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Company Response

28 Mar 2016

Author:
Eni

Eni Response

[ENI, through its Agip subsidiary, is the largest shareholder of Nigerian Agip Oil Company]

NAOC received information of a gas leak along the 6” Taylor Creek 2SS  flowline at Kalaba (in Yenagoa LGA in Bayelsa State) on 21/02/2016 and immediately the well feeding the flowline has been shut in and the flow line de-pressurized to prevent further leakage...A Joint Investigation Team was thereafter constituted comprising DPR, NOSDRA, Bayelsa State Ministry of Environment, NAOC and Community representatives to visit the site on 26/02/2016.Findings by the JIV are that the leak was due to sabotage (hacksaw cut) and there was a minor release of less than one liters of liquid hydrocarbon. The impacted area was cleaned – up and repair of the hacksaw cut on the flowline commenced immediately after JIV.

[Regarding ERA demands], NAOC response was immediate, the same day of the sabotage: the gas well feeding the flowline on February 21, 2016 was   promptly shut...NAOC performed its role by promptly notifying the regulators...Based on the agreed MoU, NAOC has awarded a contract for implementation of water projects in Kalaba and Ayamabele. NAOC firmly reject the statement that Company’s activities has continued to contaminate and pollute the community’s water source... As evident from the outcome of the JIVs, the spills in the area were caused by sabotage. In the circumstance, compensation whether in cash or by project in lieu of cash is not applicable.