SEEPCO Petroleum laments declining crude oil production in Anambra

The Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), an oil explorationcompany based in Anambra, has lamented the negative effects of insecurity on its activities, especially crude oil exploration.

The company said this when it appeared before the Anambra House of Assembly on Tuesday.

Mr. Austin Brown, General Manager, Community Relations and Security of SEEPCO, who represented the company, said the insecurity and environmental challenges in the Ogbaru Area had caused a significant decline in its production volumes.

Brown said oil theft, illegal refining, and increasing militancy by unknown gunmen had resulted in the abduction and loss of lives of some members of staff of the company.

“The development has drastically reduced the output of our exploration,” he said.

According to him, about 11 illegal refineries have been discovered in Ogbaru, with over 25 broken points along the pipelines where oil thieves steal crude oil.

He recounted that on June 11, gunmen attacked their workers, killed three soldiers, and abducted nine members of staff who were later rescued in Ihiala.

On their role on insecurity and environmental degradation in Ogbaru, Brown said the company carried out Environmental Impact Assessment (EIA) and was executing some projects under its Corporate Social Responsibility (CSR).

“We constituted the Host Community Development Trust where three percent of our annual budget is being paid; we renovated a primary healthcare centre, and we are constructing some roads.

On his part, Mr. Chidi Ibeneme, Chairman House Committee on Petroleum, said SEEPCO was not complying with provisions of the local content act as members of the host communities working in the company were largely casual workers.

Ibeneme called on the company to invest more in the education and healthcare of the people of the area.

He said the Assembly would ensure that welfare, revenue, and development benefits accruing to the state and host communities were guaranteed under their oil exploration activities.

Dr. Somto Udeze, Speaker of the Assembly who read the resolution of the House, said the invitation was a sequel to the huge number of petitions by the host communities against the company, which impacted its operation.

Udeze, who hails from one of the host communities, said SEEPCO should provide documentary evidence of the constitution of the host community trust, EIA, CSR, and other claims at their next appearance.

“Provide evidence showing that three percent of your annual budget has been paid for 2022, 2023, and 2024 and projects executed so far, as CSR, as well as a document showing the needs assessment of host communities.

“Also provide a comprehensive document showing the EIA, natural gas flare elimination, and monetisation plan with respect to Section 108 of the PIA and your plans for decommissioning and abandonment after work.

“Show evidence of output metering regarding the quantity of oil and gas produced daily, a list of Anambra indigenes who are staff of the company, and evidence of payment of tax to the state from inception till date,” he said.

Udeze said other firms that were invited but did not appear were Sahara Energy Resources, Orient Petroleum, CottonWood Gas, and the Commissioner of Nigeria Upstream Regulatory Agency.

Further hearings were adjourned until Nov. 17.