Indigenous crude oil production company Oriental Energy Resources Limited (OERL) has commenced engagement with its host communities, Akwa Ibom State government (AKSG), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigerian Content Development and Monitoring Board (NCDMB) on the creation of a Host Community Development Trust (HCDT).
The development is a strong move towards implementation of chapter three of the Petroleum Industry Act (PIA) 2021 and guided by the Nigeria Upstream Petroleum Host Communities Development Regulations 2022.
At a community relations session in Uyo, capital of Akwa Ibom State, on Wednesday 12 October 2022, all primary stakeholders together perused an overview of the PIA and dialogued on the draft criteria for appointing members of Board of Trustees (BoT), Management Committee (ManCom) and Advisory Committee (AdvisoryCo).
Drafted to strengthen ownership by its oil communities, growth, fairness and accountability, the Development Trust framework by Oriental Energy interpreted eligibility, roles and responsibilities of the crude oil production company and its community stakeholders in Effiat and Mbo.
Among other criteria, persons with a conflict of interest would not be appointed or contracted, candidates must demonstrate impartiality and objectivity, spouses or siblings should not be appointed in the same tenure, and no person should be disqualified for appointment merely by reason of gender especially women, disability or age. Copies of the documents were received by Effiat and Mbo Community Representative Committees (CRCs), NUPRC, NCDMB, State Ministry of Power and Petroleum Development (MPPD), and AKSG.
Applauding OERL for a transparent Trust establishment process, Head of NUPRC Eket, William Etukudo assured the communities of the Commission’s unwavering support in monitoring, enforcing compliance, and proper implementation of assessed needs. “The Commission will give zero tolerance to corruption and the books will be properly audited in line with the Act. This will promote peaceful co-existence of both operators and host communities for the overriding interest of our great nation Nigeria.”
Meanwhile, in a goodwill message to the Nigerian upstream company and host communities in its area of operation, Commissioner of the Akwa Ibom State MPPD, Dr John James Etim appreciated Oriental Energy for complementing efforts of the government through liaison with critical stakeholders and implementing the HCDT as guided by the PIA. “Oil companies must exercise due diligence in appointment of members into arms of the Trust Fund. People with integrity, intelligence, capacity, from the host communities or Akwa Ibom [and] without bias.”
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Speaking on this turning point, Oriental Energy’s Managing Director, Mustafa Indimi said the best interest of its host communities would remain the ultimate focus in the creation of the Development Trust. Represented by the Head of Community Relations, Dr Uwem Ite, the MD also guaranteed that, “Oriental Energy remains a good neighbour to communities in Mbo and a responsible corporate citizen of Akwa Ibom State. It is evident in our proactive stakeholder engagement and strategic social investment initiatives prior to enactment of the Petroleum Industry Act. We recognize that our host communities deserve priority status in deriving direct social and economic benefits from the operations of the petroleum industry. Enactment of the Petroleum Industry Act has been a welcome development. This workshop’s goal is to ensure collective understanding of the PIA and process of establishing the Host Community Development Trust Fund with us.”
The marginal field operator has been devoted to diverse areas of interventions that have improved quality of life and enterprises in its host communities. Cumulatively, at least 20,000 people in Mbo LGA and from Akwa Ibom have benefitted from the company’s development programmes in the areas of community health, education and human capital development, enterprise support, and capacity building for sustainable development.
Putting in place modalities of the HCDT is on the forefront of sustainable community responsibilities being shouldered by Oriental Energy in its commitment to deepen socioeconomic development, magnify involvement by its oil communities, and jointly chart the PIA course.
Other participants at the October community stakeholders’ sensitization session included Paramount Ruler of Mbo LGA; Executive Chairman of the Mbo LGA, Hon. Asukwu Eyo; delegates from Mbo communities; NCDMB Zonal Coordinator, Chief Uduak Obot, and representatives from the MPPD and NUPRC.
The community stakeholders are expected to review the BoT, ManCom and AdvisoryCo criteria, and share direction by the end of October this year to fast-track the next stage of establishing the Host Community Development Trust Fund with Oriental Energy for collective benefit.
