FOUR Niger Delta governors yesterday joined a Federal Government team at a meeting in The Hague, Netherlands, where restiveness among Nigerian oil-bearing communities and the need to secure the Gulf of Guinea topped the agenda.
The forum, tagged: “The Gulf of Guinea Energy Security Strategy (GGESS),” was also attended by representatives of the United States (U.S.) and the United Kingdom (UK).
The Federal Government team was headed by the Secretary to the Government of the Federation (SGF), Alhaji Baba Gana Kingibe.
The Governors are Godswill Akpabio (Akwa Ibom), Celestine Omehia (Rivers), Dr. Emmanuel Uduaghan (Delta) and Chief Timipre Sylva (Bayelsa).
In attendance were the British High Commissioner in Nigeria, Richard Gozney; Managing Director of Shell and Chairman, Shell Companies in Nigeria, Mr. Basil Omiyi; as well as his ExxonMobil and Total counterparts.
Also present were the Deputy Managing Director of Nigeria Agip Oil Company (NAOC), Mr. Akin Aruwajoye, and the Managing Director of the Niger Delta Development Commission (NDDC), Mr. Timi Alaibe.
Kingibe, at the meeting, disclosed the heavy toll of restiveness in the region on the country and put Nigeria’s revenue losses from incessant disruption of crude oil production at about N5 billion ($40 million) daily.
Kingibe said that the Umaru Musa Yar’Adua administration had held a series of direct dialogues with all the stakeholders in the region and would continue to reassure the people of his administration’s willingness to address their problems.
“There is presently a shut-in of 500,000 barrels of oil per day which translates to a revenue loss in the region of $40 million per day,” Kingibe said.
He noted other impacts to include major cost escalations ranging between 30 and 40 per cent across some key upstream projects, as contractors now factor in their contract bids, “a Niger Delta Premium”, which covers community expectations, kidnaps, and higher insurance premium, among others.
He said that the government understands clearly the need to establish normalcy and bring development to the region and adopt sustainable initiative by engaging the militants in economic empowerment initiative through the GGESS.
Kingibe added that the government is also ensuring law and order in the region.
“Of all these factors, re-establishment of law and order remains the basis on which other strategies can be effectively pursued and achieved,” he said.
Kingibe said that the new government had already begun a revitalization programme for the Joint Task Force to make it more efficient and effective.
“This revitalized Task Force will be charged with the responsibility of preventing sabotage to oil and gas pipelines, securing oil and gas facilities, installation of onshore and offshore facilities, curbing oil theft and (bunkering), preventing kidnappings and hostage-taking,” he said.
He disclosed that prevention and interception of illegal cross-border oil cartel as well as locating and neutralizing local interest groups that support arms trafficking and other illicit activities in the oil business would also be the focus of the task force.
He said: “The Task Force shall also ensure that the principles of Extractive Industry Transparent Initiative (EITI) take a stronger foothold in business undertaking of the industry in Nigeria.”
Presidential envoy on GGESS, Mr. Funso Kupolokun, spoke at the meeting, which was the seventh in the series. He stressed that the activities of GGESS were strategies to address the security and development needs in the Niger Delta region.
Kupolokun, who is also the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), said with all the stakeholders, development agencies and the international communities coming together under the umbrella of GGESS, issues on the Niger Delta will soon be a thing of the past. He added that President Yar’Adua has demonstrated his commitment to the ideals of the group.
Kupolokun noted that the group witnessed rapid growth last year following the inclusion of Canada, France, Netherlands, Norway and Switzerland as its members.
“This expansion is a reflection of the continued focus of the group on its primary objective of ensuring that the development of the Niger Delta region in an atmosphere of peace and stability remains paramount,” he said.