Insecurity Appears to Impact Crude Oil Production, Says SEEPCO

SEATTLE (Scrap Monster):  The Sterling Oil Exploration and Engineering Petroleum Company (SEEPCO), a renowned oil exploration company in Anambra state of Nigeria, claimed that insecurity appeared to have an effect on its operations, particularly the production of crude oil.

According to Mr. Austin Brown, General Manager of Community Relations and Security at SEEPCO, it has been experiencing significant decline in production volumes in the Ogbaru area, mainly due to insecurity and environmental challenges. The company has been witnessing drastic dip in it exploration output.

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In addition, he mentioned incidents of oil theft, illicit refining, and an increase in militancy in the area. In Ogbaru, about 11 illicit refineries have been found. This year, nine of its employees were kidnapped by gunmen in early June this year.

In response, the company has been involved in various acts such as implementing projects as part of its Corporate Social Responsibility (CSR) initiatives. It had also conducted an Environmental Impact Assessment (EIA).

Meanwhile, Mr. Chidi Ibeneme, Chairman of the House Committee on Petroleum alleged that SEEPCO has failed to comply with the provisions of the Local Content Act. The company has been asked to provide documentary evidence and other relevant claims during the next appearance.