Rivers Community Writes Oando Over NAOC Legacy Liabilities
Members of Aggah community in Ogba/Egbema/Ndoni Local Government Area of Rivers State, have written Oando Plc over the legacy flooding in their community caused by activities of Nigerian Agip Oil Company, NOAC, a matter which, according to the community, is before the Organisation for Economic Cooperation and Development, OECD, in Italy.
The community, in a letter signed by its lawyer, Luca Saltalamacchia, said it was imperative for Oando Plc to be aware of the liabilities of NAOC in their community before completing the purchase of NAOC shares, since they (Oando Plc) will have to inherit the issue, with all its attendant consequences.
Saltalamacchia, giving the background of the flooding in Aggah community, said NAOC, which operates 27 oil wells in the area, had elevated some lands to support their wellheads which in turn obstructed the natural flow of rain water from the community into the Oloshi River.
The letter, titled “Aggah Flood Victims”, explained that as a result of the obstruction, flood water now stays stagnated in the community for up to five months every year, destroying farmlands and causing severe health challenges in the area.
Saltalamacchia added that NAOC, a subsidiary of the Italian giant Eni, after being held liable for the flood by a Federal High Court in Port Harcourt and by the Rivers State Ministry of Environment, made only minimal efforts to alleviate the flooding and has never fully and fairly compensated the community members for the damages they have suffered.
He said the situation necessitated the community to drag Eni and NAOC before the Italian and Dutch National Contact Points in Italy, which resulted in the signing by all parties concerned of a binding Terms of Settlement in July 2019 before the Organisation for Economic Cooperation and Development, OECD.
He said following the failure of NAOC to abide by the terms of settlement reached between them and the community at OECD, the community has again directed him to sue Eni and NAOC in Italy to compel their compliance and for damages for the decades of damages which NAOC’s flooding has caused to people and property in Aggah community.
The letter read: “I am writing on behalf of the members of Aggah Community, Rivers State, whose fundamental rights have been severely compromised because of the flooding caused by the facilities of Nigerian Agip Oil Company, NAOC, located on their territories. NAOC has numerous unmet legal, moral, and constitutional obligations toward these individuals and the community as a whole.
“We understand that NAOC’s parent company, Eni S.p.A., has agreed to sell its shares in NAOC in whole or in part to your company, and we wish to ensure that you are aware of this significant source of liability before you complete the purchase.
“Aggah Community is part of the Egbema clan, whose lands are located in the Ogba/Ndoni/Egbema Local Government Areas (LGAs), situated in the western part of Rivers State.
Within the community area is the Mgbede oil field, which is exploited through wells identified with location numbers 1 to 27 respectively. Wells numbered 9, 11, 18 and 20 are operated by NAOC.”
It continued: “In the early 1970s, NAOC began elevating the land at each of the above-mentioned sites to support the wellheads, building causeways to connect them. These works immediately posed an obstacle to the natural flow of water, produced in abundance during the rainy season (between July and September), which previously flowed freely towards the river due to the natural slope of the land.
“Due to the construction of these elevations and the lack of adequate drainage channels, the water backs up and floods the inhabited and cultivated areas of the community, causing immense property destruction and harm to human health. This state of affairs lasts for several months, so much so that in some areas of Aggah, floodwaters stagnate for up to five months every year.
“NAOC’s direct responsibility for the flooding has been verified in a judgment by the Federal High Court of Nigeria in Port Harcourt and also through an inspection by the Rivers State Ministry of Environment. NAOC’s own engineers recognized
NAOC’s responsibility and recommended various technical works and compensation for those who were affected.
“Due to NAOC’s inaction, Aggah community members formed a residents’ association known as “Egbema Voice of Freedom” and on the 15th of December 2017 filed a specific instance before the Italian and Dutch National Contact Points (NCP) for the OECD Guidelines together with two organizations – Chima Williams & Associates and Advocates for Community Alternatives – which support Nigerian communities.
“These proceedings were launched against ENI Spa and its subsidiary, NAOC, and resulted in the signing by all parties concerned of a binding Terms of Settlement, ToS, dated 8th of July 2019.
“My clients have reported to me and documented evidence that in signing the ToS and subsequent agreements, NAOC, ENI, and the complainants undertook to alleviate the flooding in Aggah, and that they designed a multi-stage, consultative process for achieve that goal.
“The construction that NAOC has contracted pursuant to the agreement, however, does not further that goal, as they have declined to take any steps beyond the construction of culverts to convey water from one side of Mgbede locations 11 and 20 and the Mgbede 18 access road to the other.
As this measure fails to meaningfully address the main issue of the flooding and brings little benefits to the people of Aggah, my clients deem NAOC to be out of compliance with its contractual obligations and negligent in the remediation of flooding damage that NAOC have caused.
“For this reason, on behalf of the Aggah community, I sent a notice in September 2022 to NAOC (and its then parent company, ENI) calling on both to comply with the ToS and in any case to remove the causes of the flooding. NAOC declined to comply with this notice.
“You should be aware that, as a result, I have been instructed by my clients to sue Eni and NAOC in the courts of Italy to compel their compliance with their contractual obligations, and to seek damages for the decades of damages that NAOC’s flooding has caused to people and property in the community.
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“Much like the Ikebiri case, another lawsuit against ENI and NAOC that was launched in the courts of Italy, this case has the potential for tremendous damages and serious reputational consequences.
“As you are doubtless aware, NAOC’s liabilities to third parties will persist, regardless of the ultimate owner of the company. Therefore, having learned that your company intends to buy NAOC, I inform you that you will inherit this issue, with all its attendant consequences; should the Italian court recognize NAOC’s liability for the facts described above, the consequences of the ruling will also affect the value of your asset.”
