Bayelsa proposes out-of-court settlement on revenue dispute with Shell

The Bayelsa government has indicated willingness to withdraw pending litigation against the Shell Petroleum Development Company of Nigeria (SPDC) over unpaid revenue running into billions of naira.
Bayelsa government had dragged SPDC to court over failure of the oil firm to pay ‘development levies’.
The development levies were for land acquired for the construction of SPDC’s Gbarain-Ubie gas facility in Yenagoa, Bayelsa capital.
The state government had in March suspended all agreements signed between oil firms and host communities, alleging that SPDC was fuelling communal clashes resulting to violence in Ekeremor Local Government Area of Bayelsa.
Governor Douye Diri extended the olive branch when the Shell Country Chair and SPDC Managing Director, Mr Osagie Okunbor, led a management delegation on a courtesy visit to Government House, Yenagoa.
Speaking on the legal dispute over outstanding revenues owed the state by the company, Diri said an amicable resolution was possible in the spirit of the renewed relationship between both parties.
The governor also spoke about his administration’s decision to supervise the signing and be a part of Global Memorandum of Understanding (GMoU) between host communities and companies operating in the state..

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