Punish IOCs flouting PIA rules, Senate tells regulator
CHIGOZIE AMADI
The Senate Committee on Host Communities has urged the Nigeria Upstream Petroleum Regulatory Commission to sanction International Oil Companies that fail to adhere to the Petroleum Industry Act directives to set up the Host Communities Development Trust.
The committee expressed delight that there is reduced hostilities between oil firms and communities, which has translated to relative peace in the Niger Delta region due to the achievements of the PIA through the HCDT.
The Chairman, Senate Committee on Host Communities, Benson Agadaga, stated this during the commissioning of seven key projects by Total Energies at the Obagi Oilfield Host Communities Development Trust in OML-58 in Ogba/Egbema/Ndoni Local Government Area of Rivers State on Wednesday.
Agadaga said that following the peace in the region, it became imperative that firms flouting the law would not escape appropriate punishment. He said, “Host communities are no longer as hostile because all of us are expecting that the PIA will give us the required dividends, and now we are seeing them.
“There is a pronouncement on the PIA for IoCs to set up the HCDT, and where they fail to do so after three months, they will be sanctioned. Those who have not done it will be sanctioned because this is the only hope of peace and stability in the oil-producing areas.
“We no longer want disruptions in our productions; we need maximum production, we need to meet targets of at least two million barrels per day, so we don’t want any interruptions.”
He challenged other host community development trusts that are yet to implement theirs to emulate what the Obagi HCDT has done.
“I call on the host communities that are yet to have projects to be commissioned to do so now, also call on other International Oil Companies, IOCs, to set up their own HCDTS. It is against the PIA if you don’t set up your own community development trust.
“NUPRC in your regulatory functions, take special note of those who have not set up their Host Community Development Trust and take stringent measures against them according to the law, “ the Senate Host Communities chairman said..
“There is a pronouncement where you fail to do it after three months, you have sanctions. So those who have not done it should be sanctioned because this is the only hope of peace and stability in the oil-producing areas.”
He described the projects as significant and urged the youths and people of the area to own and protect the projects. The projects, which spanned through infrastructure, health facilities, agriculture, livelihood support, human capacity development, and economic empowerment, among others, were sequel to the establishment of the HCDTs PIA, 2021, which placed communities at the centre of development planning and execution.
Speaking, Rivers State Deputy Governor, Prof Ngozi Odu, recalled the challenges faced by the people, especially poor infrastructure, before the implementation of the projects. She commended Total Energies and its partners for implementing the PIA and thanked President Bola Tinubu and members of the National Assembly for creating the enabling environment to achieve such milestones.
The Managing Director of Total Energies E&P Nigeria Limited, Matthieu Bouyer, stated that within the Community Development Plan of the HCDT, a total of 539 projects were identified and approved for implementation across 64 host communities
Of the number, Bouyer said seven projects commissioned were an embodiment of priorities identified by the community as captured in the CDP and diligently executed by the Board of Trustees and Management Committee, chosen by their people.
He said Total Energies aligned with the spirit and intent of the PIA by incorporating and funding five HCDTs, including the Obagi HCDT. He said, “We will continue to work with industry stakeholders for effective implementation of the PIA to ensure the sustainable socio-economic development of our host communities in particular and the country at large. Let these projects serve you and your generations to come. “
Also speaking, the Commission Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe, described the projects as a true representation of wisdom, accountability, and diligence.
Komolafe, who was represented by the Executive Commissioner, Health, Safety and Environment, John Tonlagha, said, “This milestone translates to impacts, touching lives and strengthening sustainability. It shows that prioritising dialogue over conflict is what has made this achievement possible. Sustainable development cannot thrive without support and ownership.
“Today, you have proven to Nigeria and the world that true progress is best built on the foundation of unity and peace. The projects represent huge success for NUPRC, as they demonstrate that our regulatory framework is not only robust but effective in ensuring that communities benefit tangibly from the Petroleum resources. The future of our industry lies not only in the production of revenue but also in how well it uplifts the communities”.
The NUPRC boss thanked President Bola Tinubu for his commitment to deepening development in communities and providing the enabling environment that makes projects like this possible, even as he urged members of the communities to utilise the projects to serve them and generations to come.
