The Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), an oil exploration company based in Anambra, has lamented the negative effects of insecurity on its activities, especially crude oil exploration.
The company said this before the Anambra House of Assembly on Tuesday.
Austin Brown, the SEEPCO official who represented the company, said the insecurity and environmental challenges in the Ogbaru area caused a significant decline in production volumes.
Mr Brown said oil theft, illegal refining and increasing militancy by unknown gunmen had resulted in the abduction and loss of lives of some members of staff of the company.
“The development has drastically reduced the output of our exploration,” he said.
According to him, about 11 illegal refineries were discovered in Ogbaru, with over 25 broken points along the pipelines where oil thieves steal crude oil.
He stated that on June 11, gunmen attacked their workers, killed three soldiers and abducted nine members of staff who were later rescued in Ihiala.
Mr Brown said that, regarding their role in insecurity and environmental degradation in Ogbaru, the company carried out an Environmental Impact Assessment and was executing some projects under its corporate social responsibility.
Chidi Ibeneme, chairman of the House Committee on Petroleum, said SEEPCO was not complying with provisions of the local content act as members of the host communities working in the company were largely casual workers.
Mr Ibeneme called on the company to invest more in the education and healthcare of the residents.
He said the Assembly would ensure that welfare, revenue and development benefits accruing to the state and host communities were guaranteed under their oil exploration activities.
Somto Udeze, the speaker of the parliament who read the resolution of the House, said the invitation was sequel to the huge number of petitions by the host communities against the company, which impacted its operation.
Mr Udeze, who hails from one of the host communities, said SEEPCO should provide documentary evidence of the constitution of the host communities’ trust, EIA, CSR, and other claims at their next appearance.
Mr Udeze said other firms that were invited but did not appear were Sahara Energy Resources, Orient Petroleum, CottonWood Gas and the Commissioner of Nigeria Upstream Regulatory Agency.
Further hearing was adjourned until November 17.
(NAN)
