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Shell, Nigerian communities agree to reopen oil flow station, says official

A Shell Petroleum signage is pictured in Malaysia’s southern city of Johor Bahru April 26, 2017. REUTERS/Edgar Su

ABUJA (Reuters) – International oil major Shell and Nigerian stakeholder communities agreed to reopen the flow station for the Oil Mining Licence 25, the regional Rivers state governor said.

Shell also agreed in the memorandum of understanding to pay money owed to the communities, according to the statement. The amount was not specified.

Local communities had occupied the flow station and stopped operations for almost two years, in a bid to force Shell to sell the oil mining licence to a local oil firm. The memorandum of understanding does not mean the local firm will win the licence.

A Shell spokesman said the firm welcomed the peaceful resolution and resumption of operations.

Reporting by Tife Owolabi; Writing by Paul Carsten; Editing by Edmund Blair

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