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KonkNaija Media | May 4, 2016

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Shell & Bayelsa state government battle over credits for new motorway

Shell & Bayelsa state government battle over credits for new motorway

The Shell Petroleum Development Company of Nigeria (SPDC) and the Bayelsa State government are currently competing for which party should take credit for a 40-year oil road project earlier abandoned by the oil firm.

The contested road links President Goodluck Jonathan’s local government with Nembe. SaharaReporters learnt that the road was abandoned by Shell and the Niger Delta Development Commission (NDDC) for “lack of funds.” The project has been delayed till date.

In an apparent move to score political mileage and retain the goodwill of the Jonathan Presidency, Governor Seriake Dickson announced on December 17 that the state government would release three billion naira to complete the road.

Barely two weeks after announcing the release of the funds, the Dickson administration commenced a public relations blitz with the state’s deputy governor, John Jonah, driving to Nembe in a 4×4 SUV vehicle. The trip was calculated to take credit for the road project that is just above 50 per cent done.

SaharaReporters gathered that the project has cost more than N30 billion.

In a counter move, Shell Corporation issued a statement signed by its spokesman, Precious Okolobo, and stated that the company remains committed to meeting its 70 per cent obligation to the Ogbia-Nembe road project.

Although the press statement issued by Bayelsa State government was silent on Shell’s participation, the oil firm’s statement disclosed that Mr. Jonah and Shell officials had taken a ride on the ongoing 27-kilometer road stretch.

“Phase 1 of the project linking Imiringi and Ogbia involved a 38-kilometer stretch with two major bridges and was completed in 2005, and funded solely by the SPDC Joint Venture,” Shell said in the statement signed by Mr. Okolobo. The statement added, “Phase 2 links Ogbia and Nembe, measuring a distance of over 27 kilometers with six bridges and more than 50 culverts across very difficult swampy terrain.”

Shell added: “Contract for this phase was awarded in December 2005 and work commenced in February the following year, but has been disrupted several times by security challenges. Phase 2 costs N24.4 billion of which the SPDC JV is funding 70 per cent with the Niger Delta Development Commission (NDDC) responsible for the remaining 30 per cent.”

Shell’s statement explained that the deputy governor’s entourage stopped briefly at the project’s site. “The contractor disclosed that the road was 60 per cent completed, but complained of disruptions to dredging activities by community youths. The deputy governor warned against such activities, saying that perpetrators would face the ‘full weight of the law.’”