Spaces for Change, a civil society organization has raised concerns over the Global Memorandum of Understanding presented by Shell Petroleum Development Company and Seplat to Asaa, Ohaji/Egbema communities in Imo state.
The ANOH gas project is operated by Shell Petroleum Development Company and Seplat Energy Plc.
The reports by the organization said the companies recognise that stakeholder engagement and community development are crucial to the achievement of a stable climate for extractive activities but added that there were significant deficits in the companies’ handling of important issues around land, resettlement, compensation and livelihoods in the community.
“Insufficiently negotiated compensation paid for ‘unknown’ size of land grants is a major source of local discontent in the host communities. Fears about the imminent loss of farmlands and displacement from their ancestral lands are widespread, fueling anger and resistance,” it said.
The report explained that technical knowledge of oil and gas development, processing, transmission and especially the environmental impacts is low within communities, meaning that local stakeholders may indeed attend meetings convened by extractive companies without understanding what is being discussed.
“Limited access to information and absence of third-party supervision and legal representation shaped communities’ capacities during the negotiation of benefits encoded in the GMoUs.
“The GMoUs are drafted and presented to communities to sign without their input or the opportunity to seek expert guidance before signing.”
According to the report, there is no independent verification and monitoring of extractive companies’ spending on capital and non-capital projects in local communities.
“Effective enforcement and monitoring of GMoUs is needed to ensure the reported pay-outs to host communities match actual development on the ground,” it added.
S4C noted that the recent fire explosions, leaks and spills in the ANOH project’s host communities provided evidence of environmental bad practices in the locales of new oil finds in Imo State.
