Nationalise Shell, youth groups tell Fed Govt

Nigerian youths on the platforms of Ethnic Youth Leaders and
Patriotic Youth Organizations have urged the federal government to
sanitise the oil and gas industry and nationalise Shell Petroleum
Development Company (SPDC) Ltd assets in the country.

In a protest in Abuja on Tuesday, the Ethnic Youth Leaders
presented letters allegedly written by the Department of Petroleum
Resources (DPR), accusing the oil giant of understating the volume
of crude oil which was pumped to the terminal.

They also presented another letter alleged to be from SPDC where
the firm committed to refunding about 2.1 million barrels of crude
to some local oil companies including Belema Oil, Newcross, AITEO
and Eroton.

A Federal High Court in Ikoyi, Lagos on January 25 granted an
interim Mareva injunction directing commercial banks to block SPDC
and its subsidiaries accounts in a bid to recover the cash value of
more than 16 million barrels of crude oil allegedly diverted by the
oil giant from AITEO Eastern E & P Company Ltd.

Aiteo is claiming about $4 billion against SPDC over alleged
problems with the Nembe Creek Trunk Line (NCTL) pipeline it bought
from the Anglo-Dutch group in 2015 and over claims that Shell
undercounted its oil exports.

The Patriotic Youth Organisation of Nigeria  in a suit
number FHC/ABJ/CS/252/2021 prayed the court to order the federal
government “to expropriate, nationalise and take over all assets,
investments and interests of Shell found anywhere or traceable
within the Federal Republic of Nigeria.”

Speaking on behalf of the Ethnic Youth Leaders, the President of
Middle Belt Youth Council, Godwin Meliga pledged “total support to
the President Muhammadu Buhari economic agenda and anti-corruption
stand.”

The group commended DPR Director Auwalu Sarki for “insisting
that the right thing must be done” by firms operating in Nigeria’s
oil sector, and for “making Nigerians proud by standing up to
Shell” and imposing a fine on the firm.

It said: “As you are aware, Shell is the operator of the Bonny
and Forcados crude oil export terminals which has the capacity of
5.7 million barrels and 6.3 million barrels respectively. This has
made Shell the largest exporter of Nigeria’s crude oil.

“Shell was also the owner and operator of the OML 29 and the
Nembe Creek Trunk Line (NCTL) which it later sold sometime in 2015
to an indigenous company known as AITEO Eastern E & P Company
Limited.

“This Company upon their acquisition of the Nembe Creek Trunk
Line had an agreement with Shell, who as the operators of the Bonny
Oil Terminal were to be the handlers of the crude oil injected into
the Trunk Line by AITEO and other local oil companies that
transport their oil to the terminal through NCTL.

“In our crude oil handling, there are allocations made for water
and oil theft which are calculated and then deducted from the total
volume of crude supplied by the various companies. The methodology
for calculating the water and crude theft allocations are
determined by the Department of Petroleum Resources (DPR) on behalf
of the Federal Government of Nigeria.

“This approved methodology is reviewed periodically in line with
the Petroleum Act and issued as Guidelines by the DPR.

“In 2016, the DPR approved methodology was to be conducted with
a metering system known as Leased Automatic Custody Transfer (LACT)
and not any other system.

“However, following several complaints from Local Oil Companies
(LOC’s) operating particularly on the Nembe Creek Trunk Line, the
DPR conducted investigations and discovered that instead of using
the approved metering system, Shell acting through its officers and
agents, deployed an unapproved metering system, known as the
Coriolis Flow Meter.

“DPR informed Shell that the Coriolis Flow Metering system which
it installed does not have any approval. The DPR went ahead to
sanction Shell and imposed a penalty of only N250, 000 for
violations of the Petroleum Act and Mineral Oil Safety
Regulation.”

Nigerian youths on the platforms of Ethnic Youth Leaders and
Patriotic Youth Organizations have urged the federal government to
sanitise the oil and gas industry and nationalise Shell Petroleum
Development Company (SPDC) Ltd assets in the country.

In a protest in Abuja on Tuesday, the Ethnic Youth Leaders
presented letters allegedly written by the Department of Petroleum
Resources (DPR), accusing the oil giant of understating the volume
of crude oil which was pumped to the terminal.

They also presented another letter alleged to be from SPDC where
the firm committed to refunding about 2.1 million barrels of crude
to some local oil companies including Belema Oil, Newcross, AITEO
and Eroton.

A Federal High Court in Ikoyi, Lagos on January 25 granted an
interim Mareva injunction directing commercial banks to block SPDC
and its subsidiaries accounts in a bid to recover the cash value of
more than 16 million barrels of crude oil allegedly diverted by the
oil giant from AITEO Eastern E & P Company Ltd.

Aiteo is claiming about $4 billion against SPDC over alleged
problems with the Nembe Creek Trunk Line (NCTL) pipeline it bought
from the Anglo-Dutch group in 2015 and over claims that Shell
undercounted its oil exports.

The Patriotic Youth Organisation of Nigeria  in a suit
number FHC/ABJ/CS/252/2021 prayed the court to order the federal
government “to expropriate, nationalise and take over all assets,
investments and interests of Shell found anywhere or traceable
within the Federal Republic of Nigeria.”

Speaking on behalf of the Ethnic Youth Leaders, the President of
Middle Belt Youth Council, Godwin Meliga pledged “total support to
the President Muhammadu Buhari economic agenda and anti-corruption
stand.”

The group commended DPR Director Auwalu Sarki for “insisting
that the right thing must be done” by firms operating in Nigeria’s
oil sector, and for “making Nigerians proud by standing up to
Shell” and imposing a fine on the firm.

It said: “As you are aware, Shell is the operator of the Bonny
and Forcados crude oil export terminals which has the capacity of
5.7 million barrels and 6.3 million barrels respectively. This has
made Shell the largest exporter of Nigeria’s crude oil.

“Shell was also the owner and operator of the OML 29 and the
Nembe Creek Trunk Line (NCTL) which it later sold sometime in 2015
to an indigenous company known as AITEO Eastern E & P Company
Limited.

“This Company upon their acquisition of the Nembe Creek Trunk
Line had an agreement with Shell, who as the operators of the Bonny
Oil Terminal were to be the handlers of the crude oil injected into
the Trunk Line by AITEO and other local oil companies that
transport their oil to the terminal through NCTL.

“In our crude oil handling, there are allocations made for water
and oil theft which are calculated and then deducted from the total
volume of crude supplied by the various companies. The methodology
for calculating the water and crude theft allocations are
determined by the Department of Petroleum Resources (DPR) on behalf
of the Federal Government of Nigeria.

“This approved methodology is reviewed periodically in line with
the Petroleum Act and issued as Guidelines by the DPR.

“In 2016, the DPR approved methodology was to be conducted with
a metering system known as Leased Automatic Custody Transfer (LACT)
and not any other system.

“However, following several complaints from Local Oil Companies
(LOC’s) operating particularly on the Nembe Creek Trunk Line, the
DPR conducted investigations and discovered that instead of using
the approved metering system, Shell acting through its officers and
agents, deployed an unapproved metering system, known as the
Coriolis Flow Meter.

“DPR informed Shell that the Coriolis Flow Metering system which
it installed does not have any approval. The DPR went ahead to
sanction Shell and imposed a penalty of only N250, 000 for
violations of the Petroleum Act and Mineral Oil Safety
Regulation.”