Reps asks Shell to suspend relocation from Port-Harcourt
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The House of Representatives on Thursday directed the Minister of State
for Petroleum, Mr. Ibe Kachikwu, to prevail on Shell from relocating its
operational headquarters from Port-Harcourt, the River state capital to a yet
disclosed location saying such move would escalate militancy in the Niger
Delta. The House further called on the minister, the National Petroleum
Investment Management Services (NAPIMS) and Shell to suspend the planned relocation
and allow lawmakers the opportunity to intervene. This resolution followed the
adoption of a motion sponsored by Rep. Kingsley Chinda (PDP/Rivers) and seven
other lawmakers. It also resolved to investigate the Niger Delta Power Holding
Company (NDPHC) over allegations of infractions in the sale of assets under the
National Integrated Power Project (NIPP). Moving the motion on Shell, Rep.
Chinda described the planned relocation of the petroleum company from
Port-Harcourt as a threat to national security. He explained that Shell had on
September 15, 2016, issued a tender document seeking for tenders for the
construction of a supply base service. He further added that the Niger Delta
region had witnessed increasing divestments and relocation by Shell based on
spurious reason such as high operational costs. Rep. Chinda said that the major
demand of the Pan Niger-Delta Forum (PAN-DEF) meeting with President Muhammadu
Buhari in December 2016, was the return of the operational bases of all oil
companies and oil servicing companies to the Niger-Delta to help assuage the
restive and aggrieved youths. The lawmaker added that the major cause of
militancy and youth restiveness in the oil rich region was the allegation of
abandonment by operators in the oil sector and the consequential poverty and
degraded environment occasioned by long years of neglect. He expressed worry
that several youths and stakeholders in the region were provoked by the new
move by Shell and were already protesting the planned relocation which will
further escalate militancy in the region. The youth restiveness, Rep. Chinda
asserted will affect the Nigerian economy that was already experiencing
recession due to low crude oil output.
The House consequently set up an ad hoc committee to
investigate the planned relocation by the Dutch oil giant, its implications and
report back within four weeks for further legislative action. Meanwhile, moving the
motion to investigate the NDPHC, Rep. Gbillah stated that the investigation had
become imperative to ascertain the veracity of the infractions allegedly
committed by the holding company. According to him, the investigation will
involve all relevant stakeholders in the power sector who will assist the House
Committee on Power which will conduct the probe to identify any constitutional
breaches committed by the power company. Rep. Gbillah said that the federal
government incorporated the NDPHC as a limited liability company to act as a
special purpose vehicle to manage NIPP assets and projects that gulped $2.5
billion from the nation’s excess crude account. He added that the NIPP was
conceptualized in 2004 to enhance Nigeria’s electricity supply before the full
implementation of the private sector driven Electric Power Sector Reform Act.
“The NIPP encompassed projects from every aspect of the electricity value
chain, including generation, transmission and distribution. “Thus, it required
an initial Investment in the construction of 10 power plants in different parts
of the country, amongst several other projects,” the lawmaker stated. He
however expressed concern that the company with majority shareholding held by
the Federal Government which manages over $12 billion funds approved by the
National Assembly does not submit its annual budget and project plans for
appropriation. Rep. Gbillah accused a local contracting firm, Rockson
Engineering of refusing to hand over four power plants it was awarded in
controversial circumstances and is therefore holding the Federal Government to
ransom over the completion of the plants. The House in its resolution mandated
the committee on power to conduct the investigation and report back within six
weeks for further legislative action
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