The Anambra State House of Assembly on Tuesday interfaced with Sterling Oil Exploration and Energy Company Ltd – SEEPCO, as part of its oversight on oil exploration in the Ogbaru area of the State. Earlier in August, the Assembly had invited all approved oil explorers in Ogbaru where large quantities of oil and gas in Ogwuaniocha and Ogwuikpele communities are being explored. This invitation followed a delicate visit led by Hon. Chidiebere Ibemeka, the House Committee Chairman on Petroleum, to the operation site of the oil explorers in Ogbaru local government.
The meeting between the House of Assembly members and SEEPCO, represented by Mr. Augustine Brown, General Manager – GM, Community Relations and Security, and Mr. Louis Jideofor, Assistant General Manager – AGM, Community Relations and Security, was held in one of the Committee Rooms of the Assembly before their appearance on plenary. Both sessions were presided over by Rt. Hon. Somto Udeze, Speaker of the Assembly and the member representing Ogbaru II constituency, and both sessions were also opened for media coverage.
During the sessions, House members raised questions as to the extent of compliance SEEPCO has given to the Petroleum Industrial Act – PIA, particularly with regards to the mandate of the Act to oil explorers to reserve 3% of their budget for the host communities. Hon. Noble Igwe, the House member representing the Ogbaru I constituency asked for evidence that the company has complied with undertaking any developmental project of note in their host community. Similarly, Hon. Tony Muobike queried the representatives of the company to know if they have yet to provide any primary healthcare center in the community. The Speaker further explained that several petitions are coming from the communities to the Assembly, against the operations of the oil company.
In their reaction, the representatives of SEEPCO said that since their operation in 2018, they have been operating as a responsible company, paying taxes, and giving priority to the host community, both in terms of employment and social responsibility. “We follow the priorities of the community. The board of the community has been inaugurated. Funds have been made available by the company. There are scholarships, pipe-borne water, contracts in line with the Local Content Act, there is road construction, Sand filling, and school renovation, and we have been relating well with the people. The company is trying. We have done reasonably well,” Mr. Augustine said.
However, Hon. Ibemeka insists that the company has not implemented local content. “How do you ensure that host communities are given priority during staff recruitment, contract, and procurement”, he queried. In response, “Most of the people working within the vicinity are from around the communities. Both casual and permanent staff. We recruited over 300 people and most people working with us are from Anambra State,” SEEPCO representatives claimed.
In subsequent conversations, insecurity dominated the discussion and emerged as a major focus for both the representatives of SEEPCO and members of the House of Assembly. After insecurity, the next issue raised was that of oil theft. According to Mr. Augustine, “issues of insecurity are a major challenge we have. And then, the issue of oil theft.” They also complained that Unknown Gunmen had infiltrated the area and only in June 2024 ambushed their workers being escorted by the military, in that process, they killed three soldiers and took their riffles, as well as kidnapped some of their workers. The Speaker, Rt. Hon. Udeze then inquired to know if they have been meeting with the government and communicating these challenges, to which they said they have been meeting with the government, but have not yet met for some time. The Speaker was also emphatic that the interaction was to enhance trust and mutual benefits for the government, the people, and the oil company and not to shortchange them.
In the end, the House of Assembly resolved that SEEPCO, on or before 17th September 2024, should forward evidence of the deployment of 3% of its budget to the host community, video and picture evidence of roads, hospitals, schools, and other projects undertaken so far in the community. Other requirements are; evidence of needs assessment for the community, environmental impact assessment, output metering, list of Anambra people working in the company, and evidence of tax payment.
Responding to journalists after sitting, Hon. Ibemeka highlighted that the oversight is part of efforts to make Anambra benefit optimally from its endowments. “Certainly, all we are trying to do is to give Anambra people a sense of belonging in the mineral resources being explored in our land…we are representatives of the people from different communities where these explorations take place. Definitely, we are speaking the mind of our people and we are protecting the interest of our state government”, Hon. Chidi Ibemeka said.
Similarly, Augustine Brown and Louis Jideofor representatives of SEEPCO Oil, in their joint reaction to questions by journalists reiterated the company’s commitment to the wellbeing of the communities. “There are serious security issues, but I believe that in synergy with the state government, we will be able to achieve peace. With peace, we will be able to maximize our production. Our workers are being kidnapped and killed. So, I believe that this is a good beginning. We have done so much to assist the community. The internal roads, we have constructed more than enough. If you interact with the people, they will be able to tell you. In Ogwuikpele, we have given scholarships and we are paying as when due. We have done all regarding the issue of tax payment. A million-mile journey starts with a step. However, the more peaceful the area is, the merrier for everyone,” they said emphasizing that their production has been seriously affected by rising insecurity.
He is a Technical Assistant to Governor Willie Obiano’s Special Adviser on Legislative Matters, whoonce was a Special Adviser to a former Deputy Speaker of Anambra State House of Assembly. Ebuka is a second class upper division graduate of Political Science from University of Calabar, Calabar Nigeria and holds a Masters Degree in Political Science with specialization in Government and Development Studies, from Nnamdi Azikiwe University, Awka Nigeria
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