32.1 C
Abuja
Wednesday, November 6, 2024

Bayelsa Communities Threaten Shell with Shutdown Over Host Community Trust Dispute

Shell Faces Potential Shutdown as Bayelsa Communities Demand Separate Development Trust

Must read

Seven communities in Bayelsa State have threatened to shut down Shell Petroleum Development Company’s (SPDC) facilities if their demand for a separate Host Community Development Trust (HCDT) is not met. The communities—Bisangbene, Amatu I, Amatu II, Letugbene, Orobiri, Ogbintu, and Azamabiri—have been protesting the current constitution of the HCDT, which they say unfairly groups them with other communities.

Advertisement

The protest has seen a peaceful occupation of Shell’s EA oilfields, particularly around the Sea Eagle Floating Production Storage and Offloading vessel, as the communities await a resolution. However, a recent meeting between SPDC officials and community representatives ended without agreement, escalating tensions.

Timothy Geregere, Chairman of Bisangbene, expressed frustration over the outcome of the meeting, stating that SPDC advised the communities to write to the Nigerian Upstream Regulatory Commission (NUPRC) to request a separate HCDT. Geregere criticised this advice, seeing it as an attempt to dismiss the communities’ peaceful efforts.

“What transpired at the meeting is unacceptable and an indication that SPDC is taking our peaceful disposition for granted,” Geregere said. “Having exhaustively towed the path of dialogue, the only option left is to shut down the entire field. SPDC should take responsibility for any breach of the existing peace at the EA fields, having pushed us to the wall.”

Geregere argued that SPDC’s claim—that the EA Host Community Development Trust is subject to inter-communal litigation—was contradictory and unjustified. He pointed out that other oil companies, like Chevron and ExxonMobil, have constituted multiple HCDTs in deference to the cultural lineage of host communities, suggesting that Shell could do the same.

The protesting communities began their occupation of the EA oilfields on May 20, singing solidarity songs and demanding a separate HCDT. The Petroleum Industry Act 2021 mandates oil firms to allocate three percent of their operational expenses for community development, managed by HCDTs.

Geregere emphasised that the separation of the HCDT was necessary due to the inability of the twelve communities within the EA to work together effectively. He asserted that the seven communities—Bisangbene, Amatu I, Amatu II, Letugbene, Orobiri, Ogbintu, and Azamabiri—are unified in their demand for a separate trust.

Responding to the situation, SPDC spokesperson Michael Adande acknowledged the issue, stating, “The EA Host Communities Development Trust is a subject of intra-communal litigation, the outcome of which is being awaited before any further steps by the SPDC.”

As the dispute continues, the threat of a shutdown looms, underscoring the tension between Shell and its host communities over the management and fair distribution of development resources.

More articles

Latest article