Eroton E&P awards N6bn jobs so far to indigenous contractors
…boosts production from 10,000 bpd to 75,000 bpd due to enhanced community relations
Eroton E&P, new operators of Oil Mining Lease 18 located in Rivers State, has so far awarded N6bn worth of jobs to local contractors in aid of community participation in the oil industry in the past four years.
The indigenous oil company which acquired the oil acreage from Shell says it has moved production from mere 10,000 barrels per day to 75,000 bpd, all due to what it calls enhanced relationship with over 60 host communities.
The communities cut across five local council areas of Rivers State, including Degema, Asari Toru, Akuku Toru, Bonny and Okrika local council areas. OML 18 oilfield covers a total area of 1,035 sqkm offshore Eastern Niger Delta (Swamp/Shallow Water) on behalf of the NNPC/Eroton Joint Venture (JV).
The N6bn value of service contracts awarded and executed by community contractors from 2016 to July 2020 is said to be aside from the company’s investment in corporate social responsibility initiatives over the same period.
“As guests of our host communities, we have a duty to engage community contractors fairly in the award of contracts and this is enshrined in our GMoUs,” a statement from Eroton E&P quoted the CEO, Ebiaho Emafo, to have said.
“We have a mandate to ensure that community contractors receive opportunities to tender for work of a type and complexity appropriate to their abilities while continuously developing their ability to deliver on more complex projects in line with Eroton’s requirements. This is all done with Eroton as operator ensuring prudence and probity,” Emafo said.
The company says it is keeping faith with the terms of the Global Memorandum of Understanding (GMoU) it signed with the 60 host communities through the five Cluster Boards (CDBs), saying this is the key reason Eroton enjoys a very cordial relationship with their hosts.
According to the spokesman, Masade Odianosen, Eroton’s entrepreneurship programme (ErotonPreneurshp – EP) continues to make a positive social impact on the company’s host communities, contributing to local business development, job creation and capacity development.
“The programme has been put in place to ensure that entrepreneurs from our host communities acquire relevant entrepreneurial and management skills, actively participate in projects/services and have access to capital through invoice discounting agreements with key financial institutions.
“Over 20 host community contractors are continuously engaged in the provision of services that range from the construction of pipelines, solid control, filtration, bound wall construction, marine vessels & houseboats, flow stations maintenance, diesel supply, and the provision of manpower.
An impacted community leader, Christian Sekibo, (DAA-3 Cluster Board chairman), admitted that much, saying; “The contribution of Eroton to the development of host community contractors is worthy of emulation by other players in the Nigerian oil and gas industry.”