The Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), an Anambra-based oil exploration firm, expressed concerns over the adverse impact of insecurity on its operations, particularly crude oil exploration.
The company raised these concerns during its appearance before the Anambra House of Assembly on Tuesday.
Mr. Austin Brown, General Manager of Community Relations and Security at SEEPCO, who represented the company, highlighted that insecurity and environmental challenges in the Ogbaru area had led to a significant decline in production volumes.
He further explained that oil theft, illegal refining, and rising militancy by unidentified gunmen had resulted in the abduction and loss of lives of some company staff.
He revealed that approximately 11 illegal refineries have been uncovered in Ogbaru, with over 25 breach points along the pipelines where oil thieves siphon crude oil. He recalled an incident on June 11, when gunmen attacked their workers, resulting in the deaths of three soldiers and the abduction of nine staff members, who were later rescued in Ihiala.
Regarding the company’s response to insecurity and environmental degradation in Ogbaru, Brown stated that SEEPCO had conducted an Environmental Impact Assessment (EIA) and was actively executing projects as part of its Corporate Social Responsibility (CSR) initiatives.
He said, “The development has drastically reduced the output of our exploration. We constituted the Host Community Development Trust where three per cent of our annual budget is being paid; we renovated a primary healthcare centre and we are constructing some roads.’’
Anambra State’s Assembly response
Mr. Chidi Ibeneme, Chairman of the House Committee on Petroleum, criticized SEEPCO for failing to comply with the provisions of the Local Content Act, noting that most members of the host communities employed by the company were working as casual labourers.
- He urged the company to invest more in the education and healthcare of the local population.
- Ibeneme further stated that the Assembly would ensure that the welfare, revenue, and developmental benefits owed to the state and host communities would be upheld as part of SEEPCO’s oil exploration activities.
- Dr. Somto Udeze, Speaker of the Assembly, read the House’s resolution, explaining that the company’s invitation was prompted by numerous petitions from host communities regarding its operations.
- Udeze, who is from one of the host communities, requested that SEEPCO provide documentary evidence of the establishment of the host communities’ trust, Environmental Impact Assessment (EIA), Corporate Social Responsibility (CSR), and other relevant claims during its next appearance.
Udeze mentioned that other companies, including Sahara Energy Resources, Orient Petroleum, CottonWood Gas, and the Commissioner of the Nigeria Upstream Regulatory Agency, were invited but did not attend the session. The hearing was adjourned until November 17.