BRINGING OIL AND GAS OPERATIONS HOME TO DELTA STATE

BRINGING OIL AND GAS OPERATIONS HOME TO DELTA STATE

-By Zik Gbemre 

For decades, Delta State has remained one of the major pillars of Nigeria’s oil and gas industry. The state hosts numerous oils & gas fields, gas plants, flow stations, pipelines, flowlines, manifolds and related facilities that produce crude oil, condensate, and gas that sustain the national economy. Yet, despite the enormous resources extracted from its land and waters, many of the companies benefiting from these operations maintain their operational headquarters outside the state. This long-standing arrangement has limited the direct economic impact that the oil and gas industry should have on the people and communities of Delta State.

It is within this context that the Governor of Delta State, Sheriff Oborevwori, should convene a strategic meeting with the owners and chief executive officers of oil and gas companies, oil servicing firms, and major service providers operating in the state. The purpose of such a meeting would be to address a critical issue: the relocation of their operational headquarters to Delta State.

It is no longer acceptable for companies to maintain their headquarters in other states while merely flying or traveling into Delta to service oil facilities before returning to their base elsewhere. Such arrangements deny the people of Delta State the full economic benefits that should naturally come from hosting the nation’s oil and gas operations. When companies extract crude oil, condensate, and gas from Delta’s land and waters, their presence both operational and administrative should also be rooted in the state.

Allowing these firms to operate from outside Delta represents a form of capital flight that undermines the local economy. If the oil and gas companies are taking resources from Delta State, then their service providers, senior management teams, and operational leadership should also be based within the state. It is only fair that the communities that bear the environmental impact of oil and gas production also experience the economic gains that come with hosting these companies.

Historically, companies such as Shell plc maintained a strong operational presence within the Delta state. For instance, Shell previously operated two major headquarters: The Western Division in Warri and the Eastern Division in Port Harcourt. However, following its divestment from many onshore and shallow offshore assets in the South-South region, the company shifted its focus toward deep-water operations, including the Bonga field, through its subsidiary, Shell Nigeria Exploration and Production Company (SNEPCO). This strategic transition significantly reduced its direct corporate footprint in communities that have long hosted oil and gas activities.

Governor Oborevwori should therefore call for a town hall meeting with all oil and gas companies and their service providers operating in the state and issue a clear directive: operational headquarters should be relocated to Delta State. Similarly, senior management and key directors within Nigerian National Petroleum Company Limited and the Nigerian Exploration and Production Limited (NEPL)should move from locations such as Abuja, Lagos, and Edo State to Delta State, where a large portion of their operational activities take place.

It is unjust for resources extracted from Delta State to be used to develop other states while the host communities remain marginalized. Taxes and economic activities generated from oil & gas produced in Delta should benefit Delta directly, not be redirected primarily to other states. The people cannot continue to live beside the river while washing their hands with spittle.

Fortunately, Delta State already has infrastructure capable of accommodating these companies. Former Shell facilities including offices opposite Federal Government College Warri, the Ogunu industrial area, Ogunu residential area, the former Edjeba Housing Estate, and the Edjeba Shell Intensive Training Program 1 (SITP 1) complex could easily host oil companies and their service providers.

If companies are unwilling to relocate their operational presence to Delta State, then serious questions must be asked about the fairness of continuing to extract resources from the region while maintaining corporate and economic activities elsewhere. The principle is simple: if companies benefit from Delta’s resources, Delta State should also benefit from their physical presence and economic contributions.

Gov Sheriff Oborevwori has already assured investors and companies that Delta state gov't will provide a conducive and supportive environment for their operations. Now is the time to translate that commitment into action by ensuring that oil and gas companies and their service providers establish their operational headquarters where their resources truly come from Delta State.

Zik Gbemre
March 18,2026

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