When the oil and gas-producing communities in the Niger Delta pointed out lacunas in some provisions of the Petroleum Industry Act, PIA, 2021 that gave the oil companies top-heavy power against the host communities, the Federal Government and National Assembly dismissed their fears.
Among the worrisome issues raised by stakeholders before and after the passage of the Act was the domineering authority given to the oil companies to set up the Host Community Development Trust Fund, HCDFT, which is to manage the three percent annual Operational Expenditure, OPEX, to affected oil communities.
Two years after the Act came into effect; none of the oil companies has remitted three percent OPEX to the oil communities because of the suspicions raised at the time, which the authorities ignored.
Section 257 (2) of the PIA which came into effect in August 2021, stipulates that Oil and Gas Companies should remit three percent (3%) of their annual operational expenditure to affected host communities, but as already stated, the International Oil Companies, IOCs, and National Oil Companies, NOCs, are tactically in breach.
From Delta to Rivers and Akwa Ibom states, the host communities are at war with the oil companies and their leaders over the composition of the HCDTF, which precedes the remittance.
As it is, the oil companies were smartly using some monarchs and chiefs desirous to maintain their provinces to undermine the host oil communities in the composition of the HCDTF, a development that has escalated tension in the oil region
Weighing in on the fight, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, certified to facilitate speedy implementation of the three percent OPEX, awarded a penalty of $1,825 million to the defaulting oil companies at the rate of N52,500 per day as stipulated by the PIA.
However, the oil companies seemed not threatened by the penalty.
On Tuesday, the House of Representatives probably trying to save face for the National Assembly, mandated its Committees on Host Communities Petroleum Resources (Downstream) and Petroleum Resources (Midstream) to investigate the non-remittance of three percent of their annual expenditure to eh HCDTF by the IOCs.
Wrong implementation – Dr. Emuh, national chair, Host Communities
The National Chairman of the Host Communities of Nigeria, Producing Oil and Gas, Prince Dr. Mike Emuh, traced the disaffection among the host communities on what he called the “wrong implementation” of the PIA.
Pointing out that the organization was making efforts to correct the anomaly, he said, “We want to make sure that the wrong implementation of the 3% oil derivation to host communities is corrected, else crisis will loom.”
“For the avoidance of crisis, we are saying that the IOCs, NOCs, the regulators, Upstream, Midstream, and Downstream, in line with the Ministry of Petroleum, should allow the communities to make their choices.
“The 3% OPEX in the PIA, Section A favors the federal government, section B favors the oil companies, and then, C is the law that favors the host communities.”
Emuh stated that traditional rulers were not supposed to influence the process, but regrettably, the oil companies and chiefs were handpicking individuals and registering them in the Corporate Affairs Commission, CAC.
”Sections 249, and 250 of the Act quoted that there should be the Host Communities Development Trust Fund; it is not Traditional Rulers of Oil Minerals Producing Communities of Nigeria, TROMPCON.
“It is the host communities that are the main trust; therefore, for people now to hijack it without the host community being involved is bad. For the oil companies to recruit their own cronies and register them with the CAC to run the fund it is not done.
“And for the upstream, the regulator to appoint 29 fund managers without the host communities is a wrong implementation. We are trying to correct is wrong.
“The operators, oil companies, traditional rulers, and the HOSTCOM should come together, appoint people, and register them. They should commence this immediately. Two years now, the oil companies are yet to do anything,” he added.
Catastrophe looms – Dr. Tamranebi, national president, Host Communities
National President of Host Communities of Nigeria Producing Oil and Gas, Dr. Benjamin Tamaranebi, speaking to reporters, recently, said two years after the enactment of the Act, none of the oil-producing companies has complied with it, describing it as unacceptable and precursor to crisis in the affected communities.
“We call on all meaningful stakeholders to join hands with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to facilitate the speedy implementation of the 3% OPEX which is overdue by the settlors.”
“In fact, we call on the NUPRC to list out all the settlors that have refused to comply with the PIA 2021. Or else, we will have no choice but to escalate the issue of noncompliance to Section 234 of the PIA 2021, and the Host Communities Development Regulation No. 114 of 2022 to the President, who is the Federal Minister of Petroleum Resources.
“The NUPRC, and the Nigerian Midstream, and Downstream Petroleum Regulatory Authority (NMDPRA) to invoke the revocation of their licenses for violating the extant regulatory laws of Nigeria, and protocols of the United Nations Framework Convention on Climate Change (UNFCCC), and Clean Development Mechanism (CDM) Green House Gas (GHG).
Checks by Saturday Vanguard in Rivers revealed that like other states of the region, implementation of the PIA has fuelled more divisions in the state.
Rivers communities at war with Total Energies
In some of the communities and clusters in Abua/Odua and Ogba/Egbema/Ndoni Local Government Areas, ONELGA, where they allegedly hijacked the PIA process, the battle has since moved to the court. The development has grounded the entire process of management of the HCDTF as provided in the PIA.
However, the Obagi and Egi clusters, Ogba/Egbema/Ndoni, who are already in court on alleged imposition of PIA executives took their protest to the premises of the oil multinational operating in their land.
The people of the 14 communities of Egi Kingdom in ONELGA playing host to Total Energies picketed Total Energies over the firm’s alleged disobedience to orders of the court.
A community leader, Chief Ebenezer Hart-Eleba, regretted that despite the order of the court, the oil firm has continued to deal with the individuals in the committee.
Hart-Eleba, who led the protest to Total Energies office in Port Harcourt, while handing over a letter attached with the orders of the court to the management, accused them of acting against court order, and the will of the host communities.
.Another leader, Chief Anthony Brown, stated, “Obagi and Egi are the host landlords, and if there is anything that is happening in Egi, at least Total is supposed to enlighten the people. Like this PIA, Total or their agents are supposed to come to Egi, and enlighten the people. Total did not do that, what they did was to go to their choice and pick their brothers to represent the Egi people.”
I will deliver to appropriate quarters – Ehuike, Total Energies
Manager, Stakeholders’ Engagement, Total Energies, Henry Ehuike, who received the protest letter, promised to deliver it to the appropriate quarters.
Oil companies empowered to set up HCDTF – Oriokha- presidential general, EPA
Contrary to the claim of his kinsmen, the President-General of EPA, and a member of the board in Egi, Dr Ugochukwu Orikoha, said those pushing for orders of court do not understand the provisions of PIA.”
Orikoha stated that the Act gave the oil companies the right to constitute the board in their host communities, adding that Total Energies within its power advertised and screened the representatives from their host communities.
“One thing you will find out in the whole thing is that illiteracy is playing a major role in their gathering. First, before you pursue a thing, you should do research to know exactly what it entails Itsekiri communities challenge SPDC, CNC, and others in Delta.
In Delta State, aggrieved indigenous people of Ugboegungu, Ugborodo, and Deghele in Warri South West Local Government Area of Delta State, who laid siege to the Otumara Flow Station, lately, alleged non-inclusion in the implementation of the Petroleum Industry Act by an oil company, SPDC.
One of the community leaders, Alex Eyengho, told reporters, “This is Shell’s facility hosting three communities: Ugboegungu, Ugborodo, and Deghele communities. What you are seeing here is a protest and it commenced yesterday. It is a peaceful protest against Shell over their refusal to implement the PIA for these three communities.”
”We are not against any other host communities elsewhere. We do not want to be under any host community, be it the host community of Warri Kingdom.
Saturday Vanguard learned the protesting communities at a meeting in Abuja, requested the registration and recognition of Otumara Host Community Development Trust for the joint implementation of PIA not only SPDC, but also Chevron Nigeria Limited, CNL, and NUPRC as enshrined in the Act.
The SPDC reportedly said it worked closely with the Olu of Warri Palace all through the process, and the palace was the clearinghouse for the naming of the Iwere Host Community Development Trust (Iwere-HCDT), and the nomination of members of the Board of Trustees reportedly submitted by the concerned host communities of the Iwere-HCDT.
The SDPC official revealed that the Corporate Affairs Commission (CAC) had registered the Iwere-HCDT and a certificate had already been issued.
A representative of CNL, who was also asked to explain why his company snubbed the protesting communities, disclosed that as a strategy for the implementation of the PIA, Chevron did it on an ethnic basis and approached the Olu of Warri, “being the only King of the Itsekiri,” to help facilitate and coordinate the entire implementation process.
He reportedly said that all the meetings with the host communities and decisions held in respect of Itsekiri land took place in the Palace of the Olu of Warri, while the Warri Kingdom Onshore Host Community Development Trust and the Warri Kingdom Offshore Host Community Development Trust were at the advanced stages of registration at the CAC. He said that with members of the Board of Trustees nominated by the communities and approved by the Olu of Warri.
Ekid Union tackles ExxonMobil in A-Ibom
In Akwa Ibom State, the Ekid Peoples’ Union, EPU, had written ExxonMobil to voice its objection to the implementation of PIA HCDTF, especially with ExxonMobil’s decision to set up a separate HCDTF for Ibeno local government and another for the seven other local government areas.
He noted that the decision was completely against the spirit and content of the collective decision, earlier reached on the subject matter, at the joint meeting of September 07, 2022, held at Ibom Icon Hotel in Uyo.
He said the action was intended to shortchange the benefits and rights due to Ekid people under the PIA, and transfer them to Ibeno local government.
Source- Vanguard Newspaper.