The Opu Nembe (Nembe Bassambiri) Kingdom in Nembe Local Government Area of Bayelsa State has declared
From Right Chief (Prof.) D.K Derri of Opu Nembe Chiefs Council & Benedict Peters, the Aiteo Boss left
AITEO Eastern Exploration and Producing Limited persona non grata in its domain as a result of the draconian and mafia- like manner the company has been operating the OML 29.
The Chiefs and the entire people of the kingdom announced this at the weekend, while addressing a world press conference at the 1st Nembe town hall.in Nembe Bassambiri.
Reading the address, Chief (Prof.) Damfebo Kieriseiye Derri said that the chiefs, elders, women, youths and the people of Opu-Nembe vehemently rejected AITEO on its operation of OML 29 right from when Shell Petroleum Development Company surreptitiously sold the OML 29 to AITEO without recourse to the host Communities' equitable rights.
His words:
"...that the operational lease of OML 29 held by Aiteo having expired on 30th June 2019, notwithstanding the illegal secretive renewal by the then Minister Ibe Kachukwu, we called for its immediate relinquishment to Government, followed by a transparent competitive bidding process to ensure transparency, favourable fiscal terms to Government and host communities, untainted funding sources and superior operational capacity.
"That the Federal Government-owned Nigerian Petroleum Development Company Limited (NPDC) should take over operatorship of OML 29, pending when a new, competent and community friendly operator takes over.
"That any purported renewal of the lease after 30th June 2019 when the present lease expired is invalid and as such Aiteo became a trespasser and persona non grata in the OPU- Nembe domain and will therefore not be accorded any social licence to operate going forward."
A cross section of Chiefs Council members at the world press conference
Prof. Derri noted that because of Aiteo's recalcitrant behavior towards the land and people of the host communities, subjecting them to abject neglect and poverty, the women and youths went on a peaceful demonstration to register their grievances at the Santa Barbara Flow Station and the Odeama Field Flow Station for days, but that Aiteo did not respond to their needs nor listened to them.
He emphasized that as a peace loving and law-abiding kingdom they adopted a civilised methods of seeking reddress through lawsuits, and petitions to the Federal Ministry of Petroleum Resources, Office of the Attorney General of the Federation, NAPIMS, NNPC, NOSDRA and the NCDMB, adding that they were fed-up with the fraudulent top executives they had no alternative than to issue Aiteo quit notice to stop operations immediately, vacate the land forthwith and stop trespassing the land.
They accused Aiteo of fraudulently using companies fronting for top executives to award overinflated contracts to themselves thereby brazenly circumventing the Local Content Act, denying the Federal Government on JV partners on operational cost, and of denying communities of over 90% statutorily reserved contracts.
Prof. Derri added that Nembe Bassambiri's economy was further strangulated by Aiteo's refusal to pay few sub-contractors as well as non payment of surveillance contractors/workers and vendors for over a year all in a bid to render them "weak" and replace them with their proxies.
Inundating the environment with repeated and prolonged oil spillages and blow-out fires due to recklessness, inefficient and hazardous oil field practices in addition to refusal to clean ups, failed or refused to remediate and pay compensations.
Chief Derri who is a Professor of Law graphically gave a blow by blow accounts of how and why Aiteo was given a red card to quit their OML29 fields of operation. Hear this:
" Fraustrated and exasperated, we the Community leadership in solidarity with our protesting people have to address this press conferenc, to issue this QUIT NOTICE to Aiteo and their fraudulent front contractors, so they can stop trespassing on our territory and leave promptly.
"In brief, Aiteo's crimes which continue to stretch host communities to breaking point, besides other deep grievances we already presented in court agianst Aiteo, are:
Gentle men of the Press in attendance at the historic world press conference
"The fraudulent use of companies (some named below) beneficially belonging to fronts for executives of Alteo to award highly inflated contracts covering almost all activities to themselve, thereby brazenly routinely circumventing the Local Content Act, fleecing and defrauding the Federal Government as JV partners on operational costs, denying communities over 90% of community contracts statutorily reserved for them and subletting a solitary few to one or two community members at a fraction of the JV invoiced values through such front companies
"Strangulating the communities already streched subsistence economy by owing even the few sub-contractors community members for years and months, including surveillance contractor/workers protecting their pipelines and vendors supplying food to their workers, in the process rendering them so weak to "justify" replacing them with more proxies or middle men;
"Employing negligible numbers of community people, on casual employment at that and deplorable terms of pay and working conditions, including poor safety provisions;
" Inundating our environment with repeated, massive, prolonged oil spillages and blow-out fires due to possibly most reckless, inefficient and hazardous oil field practice - refusing to clean up, remediate and pay compensation for years;
"Deceiving communities by pretending over and over to seek settlement, only to go back again on all understandings and compromises reached;
Refusing to negotiate a fair MOU with the kingdom since it came over 5 years ago, and failing continuously on mere courtesies like diesel supplies for communities, throwing them back into thick darkness.
" It's move to arrange a site for deadly chemicals waste dump on our land, without proper community engagement or an environmental impact assessment.
" For the records, OML 29 is the crown Jewel of the Nigerian Petroleum Industry, both in terms of production volumes and its singular heritage as the source of the first commercial oil production and shipment by Nigeria, from Oloibiri oil well 1, Otuabagi' in Ogbia LGA. The bloc remains till this day the most prolific onshore bloc I. Nigeria, at present production rates in the range of 100,000 (one hundred thousand) barrels of oil per day. Even at current oil prices, OML 29 has been generating close on #700 billion per annum for Government and its joint venture partners virtually nothing from this.
Photo of Oil Spill at OML29, Aiteo refused to clean up
" In 2014, before the divestment, we tried to engage with Shell but were brushed aside. We then brought our plight and grievances to the attention of Government via the then Minister of Petroleum Resources, the then President and other authorities, including ... a couriered petition and a full page advertorial inThisday, demanding that statutory consent to the divestment be withheld until the grave concerns of the host kingdom(s) were resolved. We were snubbed. With no due diligence whatsoever conducted on these issues and without granting us fair or any hearing at all, as constitutionally guaranteed, Government and shell and Aiteo went ahead with the shrouded and suspicious transaction.
"Consequently, as lovers of peace, we took a collective decision as Chiefs and people of Opu Nembe Kingdom to seek appropriate redress to Federal High Court in suit No FHC/YNG/CS/62/2015 and to, amongst other reliefs, forestall the renewal of OML 29 pending when our grievances are adressed.
"That matter is pending in court. But in what seems now to have been an attempt to slow down the court process, though ostensibly in response to our quest for amicable settlement almost a year earlier, a meeting was called by the Ministry of Petroleum Resources on December, 12th 2018, with the Department of Petroleum Resources (DPR), Federal Ministry of Justice, Shell and Aiteo attending under the pretext of exploring an amicable settlement. It was resolved at the meeting that our demands should be properly outlined, which we did many times and forwarded to the authorities.
Community embarks on peaceful protest to Aiteo flow station
It was also sounded clearly at the meeting that, failing a timely resolution of the issues, Aiteo and its contractors would be presenting themselves as trespassers in our territory from 1st July 2019, upon expiration of OML 29 the day prior.
" While the attempted settlement was swept under the carpet for months, it came to our notice by a publication on page 86 of THISDAY Newspaper dated Sunday 24th February 2019 that Aiteo in total disregard of the pending suit or settlement went ahead to pay the sum of $82 million (equivalent to about #37 Billion) to process the renewal of OML 29 in cahoots with the Resources (DPR). This was also despite several caveats served on the immediate past Minister of state for Petroleum Resources against any backdoor attempt to renew the lease. Does this not signal that oil companies and Government are above the law, that they consider our resort to the law courts as a futile exercise, and therefore encourage aggrieved communities to sieze redress through unorthodox methods?
"We were later in 2019 invited to Accra, Ghana by the self-exiled Executive Vice Chairman and Founder of the Aiteo Group. Mr Benedict Peters, for a meeting to find an amicable resolution. Understandings were reached on some of the issues, including the need for a proper environmental assessment and a framework for sustainable community intergration.
A committee was set up to agree modalities and resolve outstanding issues. However, Aiteo quickly reneged and abandoned the process once we landed back in Nigeria. The attitude of Aiteo's top management is that host communities can go to hell becausu, from their body language, they have the means (obviously from the proceeds of oil and gas in our soil) to co-opt successive political influencers and partner/regulatory agencies.
"With Aiteo's abuses growing unbearably worse in addition to the grievances we had taken to court, we decided in June last year to declare the operator a trespasser that would no longer be tolerated in our domain from 30tb June 2019 when its lease would expire.
A cross section of placard carrying protesters at Aiteo
Suddenly desperate, Aiteo begged to be given one week to meet with Kingdom's legal representatives and make good on our grievances. Almost one and a half year later, Aiteo's one week does not seem to be over. We can no longer hold back, as a severely threatened people.
"We do not wish to delve into our claims in pending lawsuit, but are constrained by the continuing aggravations to make this public address, especially as Aiteo's antecedents and regulatory romances make us wonder if there is any point going to court or the industry's supervisory agencies on the avalanche of reapeated violations.
The protracted fraustrations and impact on our subsistent local economy can potentially ignite a volcanic crisis. For example, Aiteo's insider trading is a violent violation of all known corporate governance codes, and would attract swift stock exchange sanctions for Aiteo and it's executives if the company were a publicly quoted company. Yet, from NAPIMS and others to NCDMB, the local Content regulator, all the industry supervisors repeatedly notified of this sordid practice quietly looked the other way.
"Aiteo therefore continues operating OML 29 like a mafia organisation. The proxy companies used by Aiteo include Cavendish Mechanical Nig Ltd (a company Mr Benedict Peters also confirmed is owned by Francis Peters/his brother, the DMD), Hydra Intergrated Energy Services Ltd, Keves Global and Aviam Offshore Services Ltd. These companies who now execute most of the servicing contracts arising from OML 29 somehow do not experience the same payment frustrations the few local contractors have been subjected to by Aiteo.
"Recently, Asset Marine Ltd, a company associated with executives and agents of Aiteo has taken over all surveillance contracts in the Nembe area. Asset Marine then subcontractor to a few local contractors and others at a much lower rate. Put simply, Asset Marine rakes billions of Naira without doing anything, in the process short-changing its joint venture partner- NNPC and by extension the Federal Government and the Nigeria people. A similar scheme is run on supply of boats to Aiteo using another front, Canvendish. Yet, even the local surveillance contractors are not paid for months, triggering a chain of reaction as the young people who actually do the highly risky work in the creeks do not get paid too. Imagine this kind of provocation in the creeks!
" The implication is that the Federal Government may unwittingly be paying 100% or nearly so of the operational costs is OML 29, instead of it's 55% JV stake. In the meantime, cash calls received by the company and other proceeds from this Oil Bloc in the Nembe Se territory are diverted through carefully crafted schemes to fund lavish jet-setting lifestyles and the acquisition of lucrative mining assets across Africa, for example the $1billion platinum mine Zimbabwe just acquired by the Benedict Peters-owned Bravura Holdings Ltd,as reported by Nigeria's Businessday newspaper days ago, 11th November. And the impoverished host communities of ijawland and Niger Delta, like Opu Nembe Kingdom,are expected to be looking on and clapping.
Another placard carrying group of protesters at Aiteo
" As earlier stated, the incompetent manner this prized assets is operated has also caused several oil spills in our Kingdom, some of which are now receiving attention from NOSDRA following the petitions of our lawyers, though they remain uncleaned and unremediated over a year after. At this rate, the mere remnants of our ecological resources and natural livelihoods may completely vanish during the remaining two and a half years of President Muhhamadu Buhari's term in office, thanks to Aiteo.
" Consequently we declare as follows:
" That the operational lease of OML 29 held by Aiteo having expired on 30th June 2019, notwithstanding the illegal secretive renewal by then Minister Ibe Kachikwu, we call for its immediate relinquishment to Government, followed by transparent competitive bidding process for its re-award, to ensure transparency, favourable fiscal terms to Government and host communities, untainted funding sources, and superior operational capacity.
"That the Federal Government-owned Nigerian Petroleum Development Company Limited (NPDC) should take over operatorship of OML 29, pending when a new, competent and community friendly operator takes over.
" That any purported renewal of the lease after 30th June 2019 when the present lease expired is invalid and as such Aiteo became a trespasser and persona non grata in the Opu Nembe domain and will therefore not be accorded any social licence to operate going forward.
"That Government and other accountability watchdogs, local and International, should thoroughly investigate allegations that Aiteo is engaging in national economic sabotage and undermining Nigeria's interest, as well as dealing a fatal blow on the local economies of it's host communities, by hollowing out proceeds from OML29 fund massive acquisition in the mining sector in other African countries like Congo, Zimbabwe and Ghana where Benedict Peters is presently exiled.
" That we note with interest Mr President's recent revocation of 6 oil Bloc licences for non-payment to FG, such being against the National interest. We draw parallels with OML29 vis-a-vis both host community and national interests, especially in this era of maximum domestic revenue mobilization as an economic policy thrust for African countries.
"That this press release serves as a Quit Notice to Aiteo, effective 14th November 2020. Aiteo is no longer welcome afterwards .
" That the new operators should renegotiate lease terms for community land required for operations, and terms for community content/participation, environmental sustainability and social responsibility.
"We have hereby put Aiteo, the Nigerian Government, Bayelsa State Government and the World on notice, for the survival and protection of the Opu Nembe (Nembe-bassambiri) kingdom. Thank you and God bless..."
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