In a significant step towards fostering sustainable development and promoting harmony in Nigeria’s oil-producing regions, the NNPC/SPDC/TotalEnergies/NAOC Joint Venture unveiled eight Host Community Development Trusts (HCDTs) in Rivers State.
This milestone event further solidifies the gains of the Petroleum Industry Act (PIA) in the region and brings the total number of unveiled Trusts to 16 out of the 22 incorporated in the joint venture’s areas of operations.
The unveiling ceremony, which was greeted with enthusiasm, garnered support from the Rivers State Government.
Mrs. Blessing Orlukwo, the acting Permanent Secretary of the Rivers State Ministry of Chieftaincy and Community Affairs, commended the establishment of the Trusts and affirmed the government’s commitment to supporting their objectives.
The ceremony was attended by industry leaders, government representatives, and community members eager to witness the dawn of a new era in the Niger Delta.
Mr. Wessel de Haas, Deputy Managing Director of The Shell Petroleum Development Company Limited (SPDC), expressed hope that the unveiling of the Trusts would mark a turning point in the narrative surrounding oil and gas operations in the region. He emphasized the importance of addressing challenges such as crude theft, pipeline vandalism, and social unrest that have hindered the smooth operations of oil companies. Mr. de Haas encouraged the members of the HCDTs to leverage the grievance-resolving provisions of the PIA, ensuring seamless exploration and production activities to secure funding for the trusts. He urged communities not to let internal conflicts hamper the establishment and operations of the Trusts, emphasizing the need for unity and collaboration.
During the ceremony, Mr. Bala Wunti, Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), represented by Deputy Manager, External Relations, Mrs. Bunmi Lawson, advised the Trusts to prioritize efficiency and expertise in executing projects. He urged them to utilize methods that amplify standard and quality, ensuring that allocated funds are channeled into impactful initiatives that address the pressing needs of the communities.
Mr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), acknowledged the SPDC-operated joint venture as a trailblazer for incorporating 22 out of the total 33 community trusts. Represented by Mr. Olatokunbo Karimu, Assistant Director, Host Community at NUPRC, Komolafe expressed hope that the peace and harmony witnessed during the unveiling would continue in the day-to-day management of the Trusts. He emphasized the importance of addressing the developmental needs of oil-producing communities through sustained efforts.
Chief Mike Enwukwe, Chairman of one of the Trusts, reassured attendees that the trustees would serve with utmost diligence and accountability. He pledged to earn the confidence and cooperation of the communities by prioritizing their welfare and development.
The PIA, enacted in August 2021, marks a transformative phase in the relationship between oil companies and their host communities. SPDC, on behalf of the joint venture, is facilitating a seamless transition from the Global Memorandum of Understanding (GMoU) initiative, which was introduced in 2006, to the new dispensation. This transition involves engaging with hundreds of communities and community leaders to familiarize them with the provisions of the PIA.
Under the new framework, oil companies are obligated to allocate 3% of their operating expenditure from the previous year to fund the Community Trusts. Simultaneously, the PIA introduces penalties for acts of vandalism, sabotage, and civil unrest, including appropriate deductions from the allocated funds.
Looking ahead, SPDC aims to incorporate a total of 33 Community Trusts across its operational areas.
