THIS DAY ONLINE (Nigeria): Shell: Federal Government Under-Funds Gas Flare-Out Projects: Friday 23 December 2005
From Segun James in Warri, 12.22.2005
The Shell Petroleum Development Company (SPDC) has said it will not be able to meet the 2008 deadline set by the Federal Government on Gas flaring because of the inability of the government to meet is counterpart funding obligation to the joint venture.
The External Affairs Manager, Shell Western Division, Mr. Harriman Isa Oyofo who said this in Warri while briefing newsmen on the activities of the Company in 2005 and the projections for 2006, explained that the Company has embarked on various projects that would utilised, the gas that are presently being flared, but lack of adequate funding has made this deadline unrealistic.
Oyofo said contrary to the belief that Shell can get access to funds needed for its operation, Shell, he stressed, required the blessing of all the partners in the NNPC/Shell/Elf/Agip Joint Venture before embarking on any expenditure.
According to Oyofo, SPDC, in the Nigerian arrangement, is an operator on behalf of the partners, and by this arrangement, it can only spend approved funds by the partners.
Oyofo disclosed that the new "flare out" date proposed by the company is 2009, but insisted that "this is subject to funding that is available to the company."
Oyofo also lamented that some contractors handling project related to gas flare out are "under performing", a situation which has caused some set back to ongoing projects.
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