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HomeTop NewsShell, Ogoni Community Sign MoU To Reopen OML 25

Shell, Ogoni Community Sign MoU To Reopen OML 25

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Royal Dutch Shell may reopen its operations in Kula community of Rivers State after the oil firm signed a Memorandum of Understanding (M0U) to pay 1.34 billion naira to the community to enable its resume oil production at its shutdown Oil Minning Licence 25.

Shell

The MoU, which was facilitated by the Rivers State Governor Nyesome Wike to meant to restore peace in the community and ensure the resumption of oil production from the flow station by Shell.
Shell is expected o pay the amount agreed within the next two weeks in an instalment of 260 million naira, 75 million naira and 1.01 billion naira from the effective date of the MoU.
A Shell spokesman said the firm welcomed the peaceful resolution and resumption of operations.
The communities shutdown the OML 25 two years ago, chased Shell out of the community and called on the Federal Government to reallocate it to local interest.
However, Shell was able to renew its leasehold on OML 25 this year and has since been making move to resolve its dispute with the community.
The breakthrough MoU, which was signed on Monday may lead to an increase in Nigeria’s crude production output.

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