OML 29: Nembe E&P Challenges Bayelsa Government, Demands Retraction Over Dieama-Okpoama Crisis

Nembe Exploration and Production Company Limited (Nembe E&P), operator of Oil Mining Lease 29 (OML 29), has challenged the Bayelsa State Government over its handling of the communal crisis between Dieama and Okpoama communities, demanding the immediate retraction of a public announcement linking the company to the dispute.

The company also questioned the legality of the government's directive suspending its land acquisition activities in Brass Local Government Area, insisting that it neither instigated nor participated in the violence that reportedly claimed a life and left several others injured.

Nembe E&P, formerly known as Aiteo Exploration and Production Company, said the state government acted without establishing any evidence connecting it to the October 19 confrontation.

In a statement issued by its board and obtained by our correspondent on Friday in Yenagoa, the company described the government's announcement as unjustified, prejudicial and damaging to its corporate reputation and commercial interests.

It consequently demanded that the government disclose the evidence upon which it based its decision to associate the oil firm with the communal crisis and suspend its land acquisition activities.

The development followed an earlier announcement by the Bayelsa State Commissioner for Information, Orientation and Strategy, Mrs Ebiuwou Koku-Obiyai, that Governor Douye Diri had directed the suspension of all land acquisition activities and processes by the OML 29 operator in Brass LGA until further notice.

The government had explained that the dispute between Dieama and Okpoama communities resulted in one death, while several other persons sustained serious injuries.

It also announced that the police had restored peace in the affected communities, appealing to residents, particularly youths, to refrain from actions capable of escalating the situation.

However, Nembe E&P has rejected the government's action, arguing that the confrontation arose from disagreements over black sand mining, community leadership and control of natural resources rather than any activity attributable to the company.

Dispute Rooted In Black Sand Mining

Providing its account of the events preceding the October 19 violence, the company said information available to it indicated that a senior state government official had convened a meeting involving representatives of Dieama and Okpoama communities on October 8.

According to the company, the meeting resulted in an agreement that black sand mining activities should be suspended pending further directives from the state government.

Nembe E&P alleged, however, that mining operations continued in Dieama despite the understanding reached at the meeting.

It said members of Okpoama community subsequently visited the mining site on October 11 to stop the operations, an action which, according to the company, formed part of the sequence of events that eventually culminated in the October 19 confrontation.

The oil firm further alleged that its investigations linked the disputed black sand mining activities to Starant Mining Limited, while disagreements over community leadership and control of natural resources contributed to the growing tensions.

It nevertheless acknowledged that the accounts surrounding the dispute required independent verification, urging the state government to investigate the underlying issues rather than associate the company with the violence.

The company's position effectively places the controversy within the broader context of competing interests over mineral resources, community authority and the management of economic activities in the affected areas.

Company Questions Government's Suspension Order

Nembe E&P also raised concerns about the government's decision to suspend its land acquisition activities, arguing that the directive failed to establish any wrongdoing on its part.

It maintained that the proposed land acquisition was introduced through a third party with which it had other business transactions.

The company explained that it did not have any representative on the team that visited the proposed site for negotiations and that the visit ended without any incident.

Against this background, it questioned the basis for the government's decision to suspend its activities, particularly when, according to the company, no specific breach of law or regulation had been attributed to it.

It also faulted the suspension order for failing to specify the duration of the restriction or identify the statutory provisions under which the government exercised its authority.

The company challenged the state government to explain why it had not adequately addressed the alleged continuation of black sand mining activities following the October 8 meeting convened to resolve the disagreement between the communities.

For Nembe E&P, the central issue is not merely the suspension of its proposed land acquisition activities but the implication of the government's announcement that it was connected to a violent communal dispute without, in its view, establishing the necessary facts.

Demands Public Retraction, Reserves Legal Rights

Consequently, the company demanded an immediate retraction of the public announcement associating it with the Dieama-Okpoama crisis.

It further insisted that any retraction should receive publicity and circulation commensurate with the original announcement to ensure that the damage to its reputation is adequately addressed.

Nembe E&P warned that it reserved its legal rights to challenge the government's directive and pursue appropriate remedies to protect its corporate reputation, operations and commercial interests.

Although the company expressed strong reservations about the government's handling of the matter, it acknowledged the human cost of the confrontation.

It extended condolences to the family of the deceased and sympathised with those who sustained injuries during the violence.

The company also called for a thorough and independent investigation into the circumstances surrounding the October 19 incident, stressing the need to establish the facts and address the disagreements that have continued to strain relations between the two communities.

Need For Independent Investigation

The controversy presents another challenge for the Bayelsa State Government as it seeks to maintain peace in communities where competing interests over land, mineral resources and commercial activities can generate tensions.

The Dieama-Okpoama dispute also raises questions about the management of black sand mining operations, the enforcement of agreements reached between communities and the role of government authorities in preventing local disagreements from degenerating into violence.

While the government has announced measures to restore calm and suspend the land acquisition activities of the OML 29 operator, the company insists that responsibility for the violence must be established through evidence rather than public attribution.

An independent investigation capable of establishing the immediate causes of the confrontation, identifying those responsible and examining the circumstances surrounding the disputed mining operations would be important in resolving the competing claims.

Beyond the immediate dispute, the situation underscores the importance of transparent engagement among host communities, government authorities and companies operating in the Niger Delta, particularly where access to land and natural resources is involved.

For now, the disagreement between Nembe E&P and the Bayelsa State Government remains unresolved, with the oil company demanding a public retraction and leaving open the possibility of legal action over the suspension order and the alleged damage to its reputation.