The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its drive to ensure full implementation of the Petroleum Industry Act (PIA) 2021.
The body also affirms effective compliance by the Settlors and the nominated Host Communities Development Trustees and their organs, including management and advisory committees.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engineer (Dr.) Gbenga Komolafe gave the assurance while addressing critical stakeholders, leaders of thought and representatives of the petroleum host communities in Ugboland and Ogborikoko at a sensitization workshop held at the Obamakin Osangangan hall Ode – Ugbo in Ilaje Local government Area of Ondo State.
Engineer Komolafe, represented by two senior personnel, Mrs. Arowosage G. and Mr Muyiwa Ezekiel, said the Commission would ensure full compliance of the PIA 2021 by upstream operating companies and encouraged stakeholders and communities to participate actively in the effective establishment of the Host Community Development Trust (HDSTs) and it’s organs through the nomination of credible representatives to the Board of Trustees (BoT).
He also called for collaboration between stakeholders, NUPRC and oil companies for transparency and accountability, saying that the enactment of the PIA was a new dawn and game changer for both the oil and gas companies and the communities in the country.
Engineer Komolafe, who dwelt extensively on the importance of the direct social benefits of the petroleum communities as contained in the PIA, explained that host communities Board of Trustees already established and completed their needs assessment as well as submitted their Community Development Plan (CDP) would receive their direct funding for the execution of projects to address their unique needs; adding that under the new dispensation, petroleum communities had a say in the utilization of funds through consultations.
The Commission Chief Executive advised host communities to safeguard oil facilities and installations insisting that disruptions to oil operations and vandalism of oil facilities might result to reduction in funding.
Earlier, in his remarks, the Consultant and Managing Director of Mecco and Marine Holdings Ltd, High Chief George Bucknor said the sensitization workshop was to enlighten Ogborikodo and Ugboland petroleum communities in Ondo state of the sustainable development objectives of Chapter 3 of the Petroleum Industry Act.
Chief Bucknor listed the objectives to include ensuring that host communities receive their direct social and economic benefits from petroleum operations in their environment, collate actionable intelligence on the settlor/host communities development trustee’s activities to ensure effective compliance to the mandate of the PIA and facilitate compliance to the provisions of Chapter 3 of the PIA.
He also disclosed that Chapter 3 of the act established a framework for sustainable development in petroleum host communities and cited key provisions to. include incorporation of Host Communities Development trust, funding mechanisms, governance structures and grievance mechanism for conflict resolution.
Representatives of host communities and other participants at the workshop raised various concerns.
An Associate professor of Economics, Dr Ademibo Akingboye questioned the role of state hovernments under chapter 3 of the PIA, while Otumba Erejuwa Adesina expressed dissatisfaction with the oil company’s divisive tendencies which appeared to undermine the traditional institution.
The Chairman of the Ogborikoko HCDT, Dr Tomola Emaleku alleged that the Settlors had failed to pay the mandated 3% OPEX, as provided by the Matrix prepared by them as required by law , despite numerous requests from the communities.
Another community leader, Mr Meduoye Olufemi said the workshop was quite revealing and called for such interface on a more regular basis.
In his remarks, the Olugbo of Ugbo, Oba Fredrick Akinruntan commended the Nigerian Upstream Petroleum Regulatory Commission for facilitating the sensitization workshop which provided the opportunity for host communities and other critical stakeholders to voice their concerns and seek clarifications about oil exploration and community benefits.
Oba Akinruntan urged the commission to ensure that funds intended for development in communities are released by oil companies as at when due.
He appealed to the people to remain law – abiding and continue with the tradition of dialogue as veritable means of conflict resolution.
His Royal Majesty, Oba Andrew Kolawole Ikuesan, (JP) Olubakin 1, the Olubo of Obe-Nla Kingdom, Ugbo Land, ILaje LGA, Ondo State; applauded the efforts of the Commission Chief Executive but requested the kind gesture of the Commission to also establish an Alternative Dispute Resolution Centre (ADRC) within Ondo State to be closer to the ILaje petroleum Communities.
Also present at the workshop was the Odoka of Obe Ogbaro, Oba Modademu Ogbaro who called on NUPRC to safeguard the interests of host communities from being shortchanged by oil companies operating in the various regions of the country.
The programme was also attended by representatives of the Ondo state government, security agencies and critical stakeholders in the oil and gas
sector including representatives of the Nigerian Navy.
