Oil firm laments declining crude oil production, gives reasons

The Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), an oil exploration company based in Anambra State, has lamented the negative effects of insecurity on its activities, especially crude oil exploration.

The company said this when it appeared before the Anambra House of Assembly on Tuesday.

Austin Brown, the general manager of Community Relations and Security of SEEPCO, who represented the company, said the insecurity and environmental challenges in the Ogbaru Area had caused a significant decline in production volumes.

Mr Brown said oil theft, illegal refining and increasing militancy by unknown gunmen had resulted in the abduction and loss of lives of some staff members of the company.

“The development has drastically reduced the output of our exploration,” he said.

According to him, about 11 illegal refineries and over 25 broken points along the pipelines where oil thieves steal crude oil have been discovered in Ogbaru.

He recounted that on 11 June, gunmen attacked their workers, killed three soldiers and abducted nine staff members who were later rescued in Ihiala.

On their role in insecurity and environmental degradation in Ogbaru, Mr Brown said the company carried out an Environmental Impact Assessment (EIA) and was executing some projects under its corporate social responsibility (CSR).

“We constituted the Host Community Development Trust where three per cent of our annual budget is being paid. We renovated a primary healthcare centre and we are constructing some roads.”

‘Provide documentary evidence’

Chidi Ibeneme, the chairperson of the House Committee on Petroleum, said SEEPCO was not complying with the provisions of the Local Content Act as members of the host communities working in the company were largely casual workers.

Mr Ibeneme called on the company to invest more in the education and healthcare of the area’s residents.

He said the assembly would ensure that welfare, revenue and development benefits accruing to the state and host communities were guaranteed under their oil exploration activities.

Somto Udeze, the speaker of the assembly who read the House resolution, said the invitation was issued in response to the huge number of petitions by the host communities against the company.

Mr Udeze, who hails from one of the host communities, said SEEPCO should provide documentary evidence of the constitution of the host communities’ trust, EIA, CSR, and other claims at their next appearance.

“Provide evidence showing that three per cent of your annual budget has been paid for 2022, 2023, and 2024 and projects executed so far as CSR, as well as a document showing the needs assessment of host communities.

“Also, provide a comprehensive document showing the EIA, natural gas flare elimination and monetisation plan with respect to Section 108 of PIA and your plans for decommissioning and abandonment after work.

“Show evidence of output metering regarding the quantity of oil and gas produced daily, list of Anambra indigenes who are staff (members) of the company and evidence of payment of tax to the state from inception till date,” he said.

Mr Udeze said other firms that were invited but did not appear were Sahara Energy Resources, Orient Petroleum, CottonWood Gas and the commissioner of Nigeria Upstream Regulatory Agency.

Further hearing was adjourned until 17 November.

(NAN)