Why we suspend all oil companies’ MoUs with host communities ─Bayelsa Government

*The Bayelsa State Government discloses it has suspended all agreements between international oil companies and host communities across the state, alleging that Shell Petroleum Development Company is fuelling crises, insecurity in its host communities in the Niger Delta

Alexander Davis | ConsumerConnect

Following allegations that Shell Petroleum Development Company (SPDC) was fuelling crises and insecurity in its host communities in the Niger Delta, the Bayelsa State Government has suspended all Memoranda of Understanding (MoUs) between international oil companies (IOCs) and their host communities in the state.

Daniel Alabrah, Chief Press Secretary (CPS) to the governor, said Governor Douye Diri of Bayelsa State announced the suspension in a statement Thursday, March 25, in Yenagoa, the state capital.

The statement noted that the suspension followed accusations by the Bayelsa Government that Shell Nigeria was fuelling crises and insecurity in its host communities in the Niger Delta region.

Alabrah stated that the agreements between transnational oil firms and host communities should align with the policies of the state government.

The decision is necessary in order to foster better relationship between host communities and the oil companies on the one hand, and among the indigenes of such communities on the other hand, the statement said.

It further noted that the government would begin a review of the Global Memorandum of Understanding (GMoU) between cluster boards and community trusts with international oil companies in the state.

According to the Bayelsa Government, agreements between oil companies and host communities will have to be approved and monitored by the state government.

“The state government is interested in being a party to such agreements to ensure all parties comply with the terms.

“A situation where oil firms breach agreements with their hosts would no longer be tolerated. This often results in conflicts in communities,” said the statement.

It added: “Consequently, no community in the state, especially those in Southern Ijaw Local Government Area, should sign any GMoU with IOCs and security companies operating in their area.

“Where such agreements have been inadvertently entered into, they remain invalid subject to a review by the Office of the Attorney-General through the Ministries of Local Government and that of Mineral Resources.”

Mr. Bamidele Odugbesan, Media Relations Manager, SPDC, when contacted on the development, was said to have confirmed that the oil firm was aware of the Bayelsa Government’s position, and the company would respond in due course, according to agency report.

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