Nigeria lost about $1.7bn over OML 25 shutdown – NNPC

The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, said the shutdown of Oil Mining Lease 25 flow station by its host communities for over two years had caused the country the loss of over $1.7bn.

The communities; Belema, Offoin Ama and Ngeje in Akuku-Toru Local Government Area of Rivers state had occupied OML 25 and insisted that only an indigenous firm would be allowed to operate there.

But Kyari while reopening of the flow station in the area after an agreement was brokered by the Federal Government through the Federal Ministry of Petroleum and the NNPC between Shell and the host communities of the oil facility, stated that 35,000 barrels of oil was lost per day following the occupation of the facility.

He said, “We had a shutdown of the Belema flow station for over two years leading to the loss of over 35,000 barrels of oil per day in monitory terms that over $1.7bn which could have been put to use for the benefit of the community and the rest of the federation.

“We have engaged the communities and Shell to make sure that this dispute between them is brought to a closure, the communities have agreed to vacant the facility to allow petroleum operations to continue.”

Kyari added that Shell would soon resume operations of the facility after carrying out an inventory of  damages done to the facility over the period it shut.

“For re-entry of Shell and operations to commence, validation of the state of facility and damages done on the facility overtime would be done and I’m sure within the shortest period of time shell will come up with their plans how it would be done.

“Our first interest here is to ensure peace and security to ensure that normal live returns to this communities. in the communities so that normal lives and development can begin to take place.”

SOURCE: PUNCH