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SEEPCO Petroleum Reported that Insecurity is Harming Crude Oil Production in Anambra.
SEEPCO Petroleum reported that insecurity is harming crude oil production in Anambra.
The Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), an oil exploration entity operating in Anambra, has expressed serious concerns regarding the detrimental impact of insecurity on its operations, notably in the area of crude oil exploration.
These issues were articulated during the company’s presentation to the Anambra House of Assembly on Tuesday.
Mr. Austin Brown, the General Manager of Community Relations and Security at SEEPCO, who represented the company, underscored that both insecurity and environmental challenges in the Ogbaru region have considerably diminished production volumes.
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He elaborated that incidents of oil theft, illegal refining practices, and escalating militancy by unidentified armed groups have led to the abduction and tragic loss of lives among some of the company’s personnel.
Brown reported that approximately 11 illegal refineries have been identified in Ogbaru, along with over 25 breach points along the pipelines where oil thieves extract crude oil. He recounted a specific incident on June 11, during which armed assailants attacked company workers, resulting in the deaths of three soldiers and the abduction of nine employees, who were subsequently rescued in Ihiala.
In light of the insecurity and environmental degradation in Ogbaru, Brown indicated that SEEPCO has conducted an Environmental Impact Assessment (EIA) and is actively engaged in implementing projects as part of its Corporate Social Responsibility (CSR) initiatives.
He stated, “The situation has drastically reduced our exploration output. We have established a Host Community Development Trust, dedicating three percent of our annual budget to this initiative; we have renovated a primary healthcare center and are in the process of constructing several roads.”
Response from the Anambra State Assembly
Mr. Chidi Ibeneme, Chairman of the House Committee on Petroleum, expressed criticism towards SEEPCO for not complying with the provisions of the Local Content Act, highlighting that a majority of the host community members employed by the company are engaged as casual laborers.
He urged the company to allocate more resources towards the education and healthcare of the local populace. Ibeneme additionally indicated that the Assembly would hold the company accountable to ensure that the welfare, revenue, and developmental benefits owed to the state and the host communities are upheld as part of SEEPCO’s oil exploration activities.
Dr. Somto Udeze, Speaker of the Assembly, conveyed the House’s resolution, noting that the company’s attendance was sought in response to numerous petitions from host communities regarding SEEPCO’s operations. Udeze, who is from one of the host communities, requested that SEEPCO provide documentary evidence related to the establishment of the host communities’ trust, the Environmental Impact Assessment (EIA), Corporate Social Responsibility (CSR) initiatives, and other pertinent claims during its subsequent appearance.
Udeze also mentioned that other companies, including Sahara Energy Resources, Orient Petroleum, and Cottonwood Gas, as well as representatives from the Nigeria Upstream Regulatory Agency, had been invited but did not attend the session. The hearing was subsequently adjourned until November 17.
