Anambra-based oil exploration company, Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO) has lamented that insecurity and environmental issues in Ogbaru area of the state have led to a significant decline in production.
SEEPCO Head of Community Relations and Security, Austin Brown, said this on Tuesday while addressing the Anambra House of Assembly, lamenting that insecurity has adversely affected SEEPCO’s operations, especially in crude oil exploration.
Brown said the rise in oil theft, illegal refining, and militancy by unidentified gunmen in Anambra state has led to the kidnapping and death of several of the company’s employees.
“The development has drastically reduced the output of our exploration,” he said.
He said about 11 illegal refineries have been discovered in Ogbaru and there are over 25 breakages along the pipeline where oil thieves are stealing crude oil. He reported that on June 11, gunmen attacked his employees, killing three soldiers and kidnapping nine employees, who were later rescued in Ihiala.
On his company’s role in the insecurity and environmental degradation in Ogbaru, Brown said the company has conducted an Environmental Impact Assessment (EIA) and is implementing some projects under Corporate Social Responsibility (CSR).
“We constituted the Host Community Development Trust where three percent of our annual budget is being paid; we renovated a primary healthcare centre and we are constructing some roads.
Chairman of the House of Representatives Committee on Petroleum, Chidi Ibeneme, said SEEPCO has not complied with the provisions of the Local Content Act, as most of the host community members who worked for SEEPCO were informal workers.
Ibeneme called on the company to invest more in education and health care for the local residents. He said Parliament will ensure that wealth, revenue, and development benefits flow to the state and the host community through oil exploration activities.
Dr. Somto Udeze, Speaker of Parliament, who read out the House resolution, said the invitation was a result of numerous petitions against the company from the host community, affecting the company’s operations.
Udeze, who is from the host community, said SEEPCO should present evidence of the establishment of the host community trust fund, environmental impact assessment, CSR, and other demands at the next committee meeting.
“Provide evidence showing that three percent of your annual budget has been paid for 2022, 2023, 2024 and projects executed so far, as CSR, as well as document showing needs assessment of Host Communities.
“Also provide a comprehensive document showing the EIA, natural gas flare elimination, and monetization 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 of the company, and evidence of payment of tax to the state from inception till date,” he said.
Udeze said other companies that were invited but did not attend included Sahara Energy Resources, Orient Petroleum, Cottonwood Gas, and the Commissioner General of the Nigerian Upstream Regulatory Agency.
