Shell Petroleum Development Company of Nigeria Ltd (SPDC) has appealed for a conducive operating environment in oil producing communities in the Niger Delta region, even as it says it has recorded a total spend of N14.85 billion on social investment projects since 2006 in the region.
In its annual sustainability report released in April, the company said its operating environment in Nigeria worsened in 2017.
According to the report, in 2017, crude oil theft from its pipeline networks rose by 50 percent to 9,000 barrels of oil per day (b/d) from an estimated 6,000 b/d.
It said the increase was largely due to militant activities which led to a shutdown of the Forcados export terminal in 2016.
On Thursday, the oil firm declared a force majeure on Bonny Light, Nigeria’s major crude oil, citing a disruption in production following a leak discovered on the Nembe Creek Trunk Line.
The action would inadvertently lead to a cut off in sales of around 250,000 b/d of the Nigerian crude from the international market.
Igo Weli, general manager, external relations, SPDC, in a statement, said the company seeks a conducive operating environment and hopes for multi-stakeholder cooperation as it commits to its social investment programmes.
The N14.86 billion spent came under the Global Memorandum of Understanding (GMoU) clusters in Rivers State.
“While we will continue to work with government, communities and other stakeholders for the development of the Niger Delta, we strongly appeal for a conducive operating environment since this is only way we can do business and implement the needed social investment projects and programmes,” Weli said.
“The GMoU initiative has opened a new and exciting chapter in the relationship between SPDC JV and communities and empowered the people at the grassroots to take charge of their own development.”