International Oil Companies (settlors) have been urged to ensure full compliance to the establishment of the communities needs assessment and implementation of the community development plan.
They are also required to ensure early release of 3% OPEX for the execution of the community development plan tied to the funds as enshrined in Chapter 3 of the PIA.
The Chairman/CEO of Mecco and Marine Holdings Limited, Chief George Bucknor Jr; made the call in a keynote address at a one-day Delta State Stakeholders and Petroleum Communities Sensitisation Workshop held in Warri, in collaboration with the Delta State Government and the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
Chief Bucknor said the workshop was to enlighten host communities on the provisions of chapter 3 of PIA 2021, with focus on the establishment and governance of Host Communities Development Trust (HCDT), with a view to strengthening community participation, accountability and compliance.
He added that the event was put together to clarify the role of settlor in establishing HCDTs, throw some light on the constitution of HCDT Board of Trustees and the creation of its organs, emphasize the importance of timely establishment of the HCDT Board of Trustees, highlight the timely establishment of HCDT organs, explain the functions of the HCDT organs, explain the functions of the HCDT Board of Trustees members and their organs, define the role and functions of the HCDTs in relation to the communities, amongst others.
Chief Bucknor emphasized the need for the communities, traditional rulers and their subjects to know their rights and have a good understanding of the PIA as NUPRC is a regulator that has taken time out to ensure that the communities enjoy their direct social benefits and not the misconception that government was taxing the 3% OPEX.
According to him, “Section 257 of the PIA simply says that if there is any damage of the facility in any community, the 3% OPEX will be deducted to the extent of the damage.
The rationale for the deductions were questioned as the surveillance Contracts and security were not awarded to the communities.
In an address, the Regional Coordinator, NUPRC, Warri zonal office, Ambassador Ogunnubi Benjamin, said the PIA sensitization programme for Settlors and Host Communities was apt as it would enable them to understand the provisions of the Act better.
Ogunnubi, who was represented by Engr Okundia Kingsley, assured that the Commission’s oversight functions of establishing, implementing and administrating the PIA would be carried out in line with the Act to foster sustainable prosperity for the host communities and provide direct socioeconomic benefits from the operating companies to the communities.
In his remarks, the Chairman of the event, HRM Pere of Akugbene-Mein Kingdom and 1st Vice Chairman of the Delta State Traditional Rulers’ Council, Pete S.P Like Kalanama III, said the PIA was not new to the host communities, which he noted had ensured zero tolerance for pipeline explosion before the coming of the Act.
The monarch expressed reservations at the implementation of the PIA, stressing that the 3% OPEX matric was a far cry to the needs of the communities, while the Settlors needed to up their game with respect to Corporate Social Responsibilities (CSR) so that the communities could have more value for their God-given natural resources.
In a goodwill message to the event, the State Commissioner for Oil and Gas, Hon Peter Uviejitobor; said the programme reflected the need for a good working relationship and compliance to the PIA by the settlors to the host communities regulations as established by NUPRC .
The Commissioner, who was represented by the Director, Local Content, Emmanuel Ofomiyuaju; expressed the hope that the deliberations would promote transparency, peaceful coexistence and sustainable prosperity across the host communities in Delta State.
In his remarks, the Ovie of Ozoro kingdom , HRM, Barr. Anthony Ogbogbo Ibuka 1, who was the father of the day , commended the organizers of the sensitization workshop but noted that the PIA neither recognized the role of traditional rulers nor set aside any benefit for them as the first line of defence in their communities, while describing mother 3 % OPEX as an insult to host communities.
Also speaking , former Chairman of DESOPADEC and Chairman , Board of Trustees, OML 28, Bashorun Askia Ogeah, frowned at the lopsidedness of the programme observing that the Settlors were conspicuously absent even when they invited , while NUPRC was not well represented. He expressed the hope that future engagements would be attended by all critical stakeholders in the oil sector.
For his part, the Chairman, Ndokwa HCDT of Oando, Chairman, Oando HCDTs Chairmens’ Forum and President – General of Ndokwa Neku Union, Comrade Chief Amechi Asugwuni, faulted the poor feedback mechanism between the operators and the host communities, stressing that a lot was going on in the implementation of the PIA that the Communities needed to know about.
Stakeholders from the Itsekiri, Ijaw, Ndokwa Isoko, Urhobo and Ukwuani Petroleum Communities attended the interactive sensitization programme.
