Delta State Governor, Sheriff Oborevwori, has promised to take strong steps to stop the frequent disturbances affecting the operations of Seplat Energy Plc in the state. The governor gave this assurance during a meeting with the management team of the company led by its Chief Executive Officer, Roger Brown. The meeting was held in Asaba, the Delta State capital, on Tuesday.
Oborevwori said he was aware of the recent challenges the oil and gas company has been facing and assured the company that the state government will work to ensure such problems do not happen again. According to a statement released by Seplat Energy, the governor told the team, “I have been briefed recently about the challenges your company is facing in some of your operations. But I want to assure you that such issues will not happen again.”
Although the governor did not mention the specific challenges, oil and gas companies like Seplat often face disturbances in their host communities. These disturbances are sometimes caused by local protests, conflicts between community members and the company, or security problems linked to oil theft and sabotage.
Governor Oborevwori said his administration believes in peaceful dialogue to resolve disagreements, instead of confrontation. He explained that fighting between companies and communities only affects development, reduces production, and stops the people from enjoying the full benefits of having oil and gas operations in their areas. “We believe in resolving grievances through dialogue rather than confrontation, because confrontation doesn’t benefit the people or the companies,” he said.
The governor linked many of the disruptions in the oil sector to acts of economic sabotage. He said such activities reduce Nigeria’s crude oil production, scare away investors, and reduce job and wealth creation. “Economic sabotage reduces our crude oil production quota, discourages investors, and limits job and wealth creation. As a people, we know this, and I assure you that we will continue to work together for mutual benefit,” he said.
Oborevwori assured Seplat Energy that Delta State will continue to support and partner with the company to ensure smooth operations. He also promised a peaceful and business-friendly environment for their oil and gas projects.
In his remarks, Seplat’s Chief Executive Officer, Roger Brown, thanked the governor and described Delta State as a strategic base for Seplat’s activities. He said the company currently operates in 78 communities across the state. Out of these, 11 are oil-producing communities while 21 are communities through which the company’s pipelines pass.
Brown said Seplat has been making major investments in the domestic gas sector. He noted that Seplat plays a big role in supplying gas that helps to generate electricity in Nigeria. “We expect to reach 850 million standard cubic feet per day of gas going to the domestic market. Daily, we account for 25 to 30 per cent of gas-to-power,” he explained.
According to Brown, Seplat has completed a 90 million standard cubic feet per day (MMscfd) gas plant in Sapele, Delta State. He added that the company is currently putting finishing touches to a Liquefied Petroleum Gas (LPG) unit and a Compressed Natural Gas (CNG) plant in the same area. These are part of the company’s plans to expand into compressed gas infrastructure.
Brown also praised the company’s employment record in Delta State. He revealed that 27 per cent of the company’s full-time workers are from Delta State. He said Seplat has awarded contracts worth N500 billion to Nigerian vendors over the past 10 years.
The meeting between the Delta State Government and Seplat Energy comes at a time when the oil and gas sector in Nigeria is facing multiple challenges, including oil theft, pipeline vandalism, and host community unrest. Industry watchers say the support from state governments and peaceful relationships with host communities are key to attracting investments and improving Nigeria’s oil and gas output.
