How NNPC debt to oil majors is re-igniting tension in Niger Delta

It took police pleading and cajolling to avert what could have been a return to violence in Port Harcourt, the main oil community in Nigeria’s Niger Delta region on Thursday, as youths barricaded operation offices of Italian firm, Eni.

The restive region has been enjoying some relative peace, following the visit in February 2017 by the Vice President, in his capacity as Acting President.

But the locals who spoke to Ripples Nigeria said the failure of the four oil majors: Eni, Shell, ExxonMobil and Chevron to meet terms of agreement over payment of contractors and cessation of mass sack are the main causes of fresh hostility in the region.

Thus the business community and residents of Port Harcourt area were on edge throughout Thursday, as the aggrieved youths reportedly stormed the operational headquarters of the oil company, threatening to do same with the rest.

They were seen wielding green leaves, and suspected lethal items, as they barricaded all entrance and exit gates of the company.

It took a friendly aporoach by some senior police officers in the area to see the protesters vacate the premises without destroying any property.

The protesters alleged that contract staff were not getting any words from the managements of the company on their plan to settle over N300 million outstanding bills and wages owed them.

However, a spokesman of Eni, Mr. Wenenda Mpi, blamed the payment delays on debts owed by the Nigerian National Petroleum Corporation (NNPC), a view also collaborated by a source at Eni headquarters in Rome.

The company stated that its ventures with the NNPC, which was put at about $3.5 billion had not been paid in the past five years.

Officials from Shell and ExxonMobil refused to make comments on the issue, when contacted.

However, Shell is said to have refused to reopen one of its shot outflow stations in Warri, citing insecurity worries.

But the militants alleged that of all the oil majors, Eni is the only one still discrimating against local contractors in most of its works.

They also stated that threat of job losses were the instrument used by all the oil firms to hold workers down from demanding improved conditions of service.

“We have given both government and the oil companies enough time to take the peace move to another level and there is a limit that our patience can be stretched,” the leader of Niger Delta Green Peace Movement, Maxwell Peple stated.

The agitating youths were persuaded to stop their attacks by promises of more investment and jobs from visiting officials including that of Osinbajo, which has helped to restore output to close to its former level 2.2 million barrels a day (bpd) from the 1.15 million bpd in 2016.

But the NNPC has said it is making all arrangements to settle all arrears owed to oil majors from its joint oil operations.

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