Shell calls for dialogue on Belema Flow Station and Gas Plant
Sep 18, 2018
The Shell Petroleum Development Company of Nigeria Limited (SPDC) debunked allegations in paid radio announcements falsely linking it to reported incidents of clashes between a group of invaders who have been in unlawful occupation of the company’s production facilities at Belema Flow Station and Gas Plant since August 11, 2017 and a group of people protesting the continued occupation of the facilities by the invaders.
SPDC has also restated its commitment to dialogue and peaceful resolution of disagreements with the invaders.
A group of people invaded the facilities on August 11, 2017, ejected the staff on duty and have illegally remained in occupation of the facilities since then. The group has so far rebuffed all entreaties to resolve their grievances through dialogue but has instead demanded immediate transfer of ownership and operatorship of the facilities to their preferred indigenous oil firm, under the pretext that SPDC has over the years neglected the interests of the local community.
“SPDC believes that all stakeholders in the matter should give the Rivers State Government-initiated mediation process the chance to resolve the disagreement peacefully”, said SPDC External Relations General Manager, Igo Weli, on Tuesday.
“Contrary to the false claims in the paid radio announcements, SPDC will only resume operations at the facility when it is safe to do so.”
“Our primary goal is the safe and peaceful resolution of this dispute, and we encourage all parties to return to dialogue to protect the safety and security of all concerned including those occupying the facility, community members, SPDC staff and contractors”, Weli added.
He said, SPDC and its Joint Venture partners continue to implement multi-million Naira social investment programmes to the benefit of the people of Kula Kingdom, in Akuku Toru Local Government Area of Rivers State, notwithstanding that the company has not been allowed to operate the facilities since the illegal occupation began 13 months ago, noting that this has also impacted the revenue base of the State and the Federation at large.
The mediation process initiated by the Government of Rivers State led to the creation of the Kula Project Implementation and Monitoring Committee (PIMC) with all contending parties providing members. The PIMC is intended to serve as an interim platform for the delivery of social investment initiatives and programmes worth over N263 million in the Soku-San Berth Project, which is separate from the GMoU projects have been initiated by the communities using funds provided by the SPDC JV.
Welirestated the company’s commitment to implementing the social investment programmes for the communities including the Global Memorandum of Understanding which has suffered delay in implementation due to in-fighting among the different communities in Kula Kingdom, including Belema and Offoin-ama.
He noted that notwithstanding the prevailing situation in the area, the host communities of OML 25, including Belema and Offoin-ama, have continued to benefit from contract awards, employment of unskilled labour and SPDC’s social investment programmes, including yearly award of regular and special scholarships to eligible candidates from the area.
Media Relations Manager
Softphone: +234 807 022 8045
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this announcement, joint ventures and associates may also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This Release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, September 18 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.
We may have used certain terms, such as resources, in this announcement that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.