Major oil companies Shell and Mobil have shut down their activities in Bonny region since the area is in control of pirates and oil bunkerers (the people who siphon oil en-route to distribution centers). The officials stated unless there are fundamental improvements in securing the area, the oil exploration and production activities cannot be conducted in the region.
Noble Pepple of shell at House of Representatives Business Dialogue Series said oil companies were conducting their businesses with growing fear of protecting their staff as well as their production units. He also brought forward the issue of increased bunkering activities that had already taken many lives, and could possibly cause major fire. He requested the government to intervene in this issue for better policing, and the area being mapped out for patrolling effectively. Since these areas are infamous for abductions and pirate attacks, the vessels have to be escorted all through, he further added.
Since Nigeria’s power generation is directly related to oil and gas production, the shutting down of these major oil companies will be a huge set back to the power supplies. The country is embarked on several projects to become self-sufficient in its power needs. According to official data, the country is just capable of supplying less than half of its energy needs today.
However, the youthful Speaker of the House of Representatives of Nigeria, Dimeji Bankole pointed out to tackle the issue to a certain extent, the locals from the oil producing regions should be absorbed in the oil related activities. Chris Ogiemwonyi, the Chief Executive Director, Exploration & Production, Nigerian National Petroleum Corporation seconded the forum’s call by stating that these fears must be given key attention by the government to achieve the projected growth in oil and gas sector.