In 2007, the security situation in the Delta remained serious. Forty-seven staff and contractors were kidnapped by militants. Thankfully, all were safely released. Tragically, two others were killed in assaults and a third died as a result of a fire caused by criminals stealing oil from a pipeline. Onshore, most facilities in the Western Delta remained closed down because of security threats, while operations in the East continued throughout the year under challenging circumstances, limiting our ability to access these facilities to do routine maintenance or repair damage from sabotage.
The funding problems in the SPDC-run joint venture added to the difficulty. Partners provide funding based on their ownership. Since the national oil company holds 55%, the joint venture depends on the government’s budget and priorities. The result has been significant under funding and a particularly severe budget shortfall in 2007.
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