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Tag: Host Communities

  • Anambra Govt. warns against crisis in oil host communities

    Anambra Govt. warns against crisis in oil host communities

    The Anambra State Government on Thursday cautioned against acts capable of instigating crisis in the oil host communities in the State.

    Mr Anthony Ifeanya, the state’s Commissioner for Petroleum and Mineral Resources, gave the warning in Awka during a town hall meeting with stakeholders.

    The meeting, organised by the African Centre for Leadership, Strategy and Development (LSD) and International Peace and Civic Responsibility Centre (IPCRC), centered on the implementation of host communities’ provisions in the Petroleum Industry Act (PIA) in the state.

    Ifeanya emphasised that peace between oil companies and host communities was crucial in ensuring the actualisation of benefits from natural resources.

    “It is only in an atmosphere of peace that progress can be made,” he said.

    The commissioner added that the meeting aimed to enlighten both parties on their rights, duties, and liabilities under the PIA, ensuring peaceful coexistence.

    He appreciated the centre for educating the people, saying that such intervention would go a long way in preventing the repeat of ugly experiences recorded in the Niger Delta.

    Also speaking, Mr Monday Osasah, the Executive Director, Centre LSD, described the meeting as a significant step towards ensuring that petroleum resources were beneficial to the host communities.

    “Petroleum should be a blessing to us, not a curse,” he added.

    In his presentation, Dr Orji Orji, the Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), said the agency promoted transparency and accountability in Nigeria’s extractive industries.

    Orji, represented by the Director, Policy Planning and Strategy NEITI, Dr Dieter Bassi, said the agency was committed to ensure that revenues were properly accounted for and utilised.

    Earlier, Mr Chris Azor, the President, IPCRC, said the meeting was targeted at discussing the effective implementation of Host Communities’ provisions in the PIA to ensure peace, security, and sustainable development.

    Azor said there was a need for improved understanding of PIA, enhanced stakeholders’ engagement, identification of priority areas, clarifications, and action plans for effective implementation.

    The programme is themed, “Host Communities and Roles of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in PIA”.

  • NUPRC unveils digital platform for host community development

    NUPRC unveils digital platform for host community development

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled an Industry Digital Automated Portal (IDAP) for monitoring and reporting of the Host Community Development Trust (HCDT).

    The commission said the platform was developed for transparent administration of the host communities as provided by the Petroleum Industry Act (PIA) 2021.

    The portal was unveiled on Wednesday in Abuja at the NUPRC’s stakeholders’ engagement on operationalisation of the HCDT pursuant to the PIA 2021.

    Speaking at the event, the Commission Chief Executive, Mr Gbenga Komolafe, said the IDAP which was developed in partnership with an Original Equipment Manufacturer (OEM) would meet specific requirements of the HCDT.

    This, he said, would aid operations of relevant stakeholders including the settlors, board of trustees and fund managers, among others.

    Komolafe said the platform would fulfil obligations to host communities and promote accountability and transparency in the HCDT programme management.

    Komolafe was represented at the event by Dr Kelechi Ofoegbu, the Executive Commissioner, Economic Regulation and Strategic Planning, NUPRC.

    “It will also enable quick feedbacks from the stakeholders and the public for the commission to carry out its regulatory oversight effectively.

    He disclosed that the commission had approved 75 host community development trusts of which 41 had been fully incorporated by the Corporate Affairs Commission.

    According to him, it has pre-qualified 19 fund managers and equally commenced the process of establishing a baseline of ongoing community development projects, in preparation for their migration into the HCDTs.

    “The establishment of the HCDT will create a more equitable distribution of the industry’s benefits and reduce the social and economic disparities in the country.

    “NUPRC shall continue to provide requisite support and guidance for the full implementation of the law,” he said.

    Komolafe also urged stakeholders to continue to work together to ensure the successful implementation of the PIA.

    He, however, tasked them to collaborate in creating a sustainable and equitable oil and gas industry that would benefit Nigerians.

    Komolafe said the commission was prioritising efforts toward increasing oil and gas production and ensuring maximum federation revenue through the optimisation of oil and gas value chain.

    “The efforts have been constrained by myriad of challenges ranging from insecurity, low investment, de-prioritisation of funding of hydrocarbon development arising from energy transition.

    “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day.

    “To further stem the tide of sabotage and third-party interferences on oil and gas critical infrastructure, the PIA has in effect domesticated the protection of our oil and gas infrastructure to the host communities,” he said.

    He said that one critical milestone under the PIA was the incorporation of the HCDT by the settlor provided for in Section 235 as well as appointment of Board of Trustees (BOT) by the settlor in consultation with the host communities.

    “Settlors are the oil and gas companies operating within host communities,” he added.

    Earlier, Captain John Tonlagha, the Executive Commissioner, Health, Safety, Environment and Communities, NUPRC, solicited support and collaborative contribution of all industry players toward implementation of provision of law regarding host communities.

    Section 240 (2) of the PIA stipulates that each settlor, where applicable through the operator, shall make an annual contribution to the applicable host communities development trust fund.

    The amount shall be equal to three per cent of its actual annual operating expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities for which the HCDT was established.

  • 2023: Atiku will ensure PIA host community fund provision – Okowa

    2023: Atiku will ensure PIA host community fund provision – Okowa

    Gov. Ifeanyi Okowa of Delta, says former Vice-President Atiku Abubakar and Presidential Candidate of the Peoples Democratic Party (PDP), will enforce the Petroleum Industry Act (PIA) including the provision on host communities’ fund, if elected.

    Okowa also the Vice-Presidential Candidate of the PDP said this during the launch of the state PDP governorship campaign in Warri South and Uvwie Local Government Areas (LGAs) of the state on Thursday.

    He said that so much fund was needed for the development of oil-producing communities in the Niger Delta.

    Okowa assured that when elected, Atiku-Okowa administration would change the poor conditions in the oil-bearing areas through full implementation of the Act.

    He said that the people of Delta were fortunate to have one of their own selected to become Vice-President in the next dispensation.

    Okowa urged the people of Delta to rise and collectively support PDP, saying “we must work hard to ensure victory for the party”.

    The governor said that Atiku-Okowa ticket would take care of some of the teething problems facing the nation.

    “We have resolved to ensure that our people are taken care of, particularly the oil bearing communities.

    “There is a provision in the PIA, that is the Host Communities Fund and we will ensure its full implementation for the benefit of the oil-bearing communities,” Okowa said.

    On how the party intended to tackle insecurity in the country, Okowa said that Abubakar would engage relevant stakeholders to ensure constitutional amendment to legalise state police.

    “We have observed that the Federal Police is grossly inadequate to secure Nigerians and therefore, we are advocating the establishment of state police to enable every state have its own police to handle peculiar security challenges.

    “Aside the state police, we will recruit more hands into federal police, procure more weapons and provide adequate logistics and intelligence gathering devices for effective policing,” he said.

    Okowa said that renovation of Warri Township Stadium would begin shortly, and disclosed that contract for the project worth N2.9 billion had already been awarded.

    He said the renovation would include the changing of the tartan tracks, the chairs as well as internal drainages within the stadium.

    “We did not commence the renovation earlier because of the storm drainages we are constructing in Warri.

    “But now that we have done over 70 per cent of the storm drainage project, we are about to start the Warri Stadium project.

    “We will do a comprehensive renovation of the stadium and I thank you all for your patience and understanding over the years.

    “After completion of the drainage, we will start construction of the roads to enable them last longer,” Okowa said.

    The state PDP governorship candidate, Sheriff Oborevwori, said Warri and Uvwie people were happy and anxiously waiting to have him, a “Warri boy”, as governor.

    He assured that the development of the twin cities would receive massive boost if elected.

    Oborevwori said that the Uvwie, Okpe and Sapele Federal Constituency was grateful to governor Okowa for ensuring that the area produced the next governor of the state.

    “I am glad with the crowd here today and I can assure you that when we come into office, with the power of God and by your support, we will revive infrastructure in the twin cities of Warri, Effurun and environs,” Oborevwori stated.

    The state PDP Chairman, Chief Kingsley Esiso, said that the people of Delta had since resolved to vote for the party in 2023.

    He said that the Presidential Campaign train would be in Asaba on Jan. 24 and urged the people to turn out enmasse to welcome Abubakar and his entourage.

  • Senate directs oil companies to relocate to host communities

    Senate directs oil companies to relocate to host communities

    The Senate has mandated its committees on Petroleum Resources Upstream, Downstream Petroleum Sector and Gas to liaise with the Ministry of Petroleum Resources and the Presidential Implementation Committee on the Petroleum Industry Act (PIA), to facilitate the relocation of oil and gas companies in Nigeria to their various operational bases in host communities to ensure smooth operations.

    The upper chamber reached the resolution after it considered a motion on the “Urgent need to encourage all Multinational and Nigerian Oil and Gas Companies to relocate to their Operational Bases.”

    The motion was sponsored by Senator Albert Bassey Akpan (PDP, Akwa Ibom North East) and co-sponsored by 23 other Senators.

    Bassey in his motion said, “The senate note with concern that multinational and Nigeria oil and gas companies have over the years been operating from their respective operational bases until militancy and insecurity in the host communities in the Niger delta became the order of the day;

    “Also notes that the reason proffered by the oil and gas companies for not relocating to their host communities has always been due to insecurity and hostilities in the host communities;

    “Aware that operating outside the host communities and operational base is the reason for the high cost of production which has been the bane of the country’s oil and gas industry, militating against maximum revenue from crude oil and gas sales to the federation account;

    “Recalls that this high cost of production has been one of the most contentious elements of our industry value chain;

    “Convinced that the recent passage and signing into law of the Petroleum Industry Act, 2021(PIA) by the National Assembly and the President of the Federal Republic of Nigeria respectively, is a major milestone towards the restoration of a lasting peace in the host communities;

    “Further convinced that the Petroleum Industry Act, 2021, now place certain responsibilities on the security, peace and safety of oil and gas infrastructure on the host communities to safeguard and ensure peaceful coexistence between oil and gas companies and their host communities;

    “Further convinced that is an opportunity to restore, recover and rehabilitate the massive and huge infrastructural facilities abandoned by the various oil and gas companies in their various operational bases to ensure their full utilization; and

    “Assured that the relocation of these companies to their host communities will further boost development in those areas and enhance the corporate social relationships and strengthen out collective resolve to considerably reduce the contentious cost of production and ensure adequate returns to federation account.”

    Accordingly, the Senate mandated its committees on Petroleum Resources Upstream, Downstream Petroleum Sector and Gas to liaise with the Ministry of Petroleum Resources and the Presidential Implementation Committee on the Petroleum Industry Act (PIA), to facilitate the relocation of oil and gas companies in Nigeria to their various operational bases to ensure smooth operations.

    Contributing, Senator Biobarakuma Degi-Eremienyo (Bayelsa East) said the agitations and problems within the oil and gas producing communities was as a result of their inability to easily access the management of the multinational companies to table complaints.

    “I believe that if this motion is passed and implemented, it will go a long way to assuage the yearnings and apprehension of the people within these host communities.

    “Mr. President, as a matter of fact, the cause of this situation is that the government of these areas are not even benefitting from the revenue, that is payment of tax, within the localities that they are exploiting this oil and gas, because the workers will claim that they are not resident in these areas.

    “The payee is not accruable to the state government. These are some of the things the people suffer on account of locating the headquarters away from the source of the raw materials”, he said.

    The lawmaker stressed that the full benefits of the Petroleum Industry Act would not accrue to the Federal Government if effort isn’t made to have the multinational companies relocate to the host communities where oil and gas is produced.

  • PIB: Niger Delta militants threaten to resume attacks over 3 per cent allocated to host communities

    PIB: Niger Delta militants threaten to resume attacks over 3 per cent allocated to host communities

    The Niger Delta Revolutionary Crusaders (NDRC), has threatened to resume attacks over the three per cent for host communities in the recently passed Petroleum Industry Bill (PIB) by the National Assembly.

    It said its commanders have returned to the creeks of the Niger Delta region waiting to strike.

    The militants in a statement on Friday by its spokesperson, W.O. 1 Izon-Ebi, condemned the three per cent as well as the 30% for exploration of frontier basins in the passed bill.

    The statement titled, “We Will Defend Our God Given Resources”, the militant group said it will fight until obnoxious sections in the PIB are reviewed by the National Assembly.

    For 56 years, the region has suffered desecration of its sacred places like worship centres, lands, streams, lakes and the severe environmental degradation without remediation.”

    The group described the PIB as a coup against the people of the oil-rich Niger Delta by the Nigerian State.

    While the government and people of Zamfara state are allowed to control 100% of their gold resource (fiscal Federalism applying in Zamfara state), what the people of the Niger Delta region could get from their own natural resource is a paltry 3% for host communities and in contrast, a whopping 30% for exploration of frontier basins.

    “This is an economic coup against the people of the region; it is an insult, a daylight robbery and betrayal by the Nigerian government.

    “The region embraced peace because it was the most civilized thing to do in order to give way for proper dialogue, genuine government commitment and re-idealogical construct about the Niger Delta region.

    “Unfortunately, about 11 years of giving peace a chance in the region, the Nigerian government has rather become ruthless to the region through obnoxious statutes. This are our genuine concern and our grievances.

    “Therefore, we have directed our commanders in the region to go back to the creeks and wait for further directive on the next line of action. We will defend our resources and protect our region from further mindless pillage of our God given resources” the statement further added.

  • BREAKING: Reps pass PIB, adopt 3% for host communities

    BREAKING: Reps pass PIB, adopt 3% for host communities

    The House of Representatives on Friday adopted the conference Committee report on the Petroleum Industry (PIB) Bill, voting 3 percent for host communities in the oil- producing areas.

    The consideration was stepped down on Thursday by the House following a rowdy session.

    However as soon as members of the Minority caucus walked out of the Chamber, there were shouts of PIB, PIB, PIB by members.

    The report was subsection submitted by Chief Whip, Hon Tahir Mongunu.

    Speaker Femi Gbajabiamila explained the laying of the conference report on the PIB followed rules of the House.

    According to him: “I need to explain the rationale behind the laying of this report. Yesterday, I stepped down the laying of this report so that we get to the Senate and see how it o resolve the issue.

    “But unfortunately, by the time we got to the Senate, they had already resolved and taken a decision. So, there was nothing that we can do.

    “It is left for us to deliberate on the report, accept it or reject it. This PIB will not go the same way of others. It is unfortunate that our Colleagues are not here. If there is any amendment to be done, that will be done in the future”.

    Deputy Minority Whip, Hon Nkiruka made frantic but efforts to make the House suspend consideration of the report to no avail.

  • PIB: Host communities to receive $500m annually – Senate

    PIB: Host communities to receive $500m annually – Senate

    Host communities will receive half a billion dollars annually, as funding from the three per cent approved for Host Communities Trust Fund in the Petroleum Industry Bill (PIB), the Senate has said.

    Chairman, Senate Committee on Petroleum Downstream, Sen. Mohammed Sabo said this when he briefed newsmen on Thursday shortly after the senate passed the PIB.

    Sabo said although the committee initially recommended five per cent to the host communities, but after consultations, discovered that three per cent would adequately take care of the communities.

    “As at today, what is going to the host communities is three per cent. And three per cent translates to over half a billion dollars annually. This is a lot of money.

    “The bill came with two point five per cent recommendation and the committee recommended five per cent.

    “There were series of consultations we have to look at 2.5 per cent and five per cent.
    “You have to look at the quantum of money involved. After being briefed and further explanations, we discovered that 3 three per cent will adequately be in order in this circumstances.

    “The law is not infinite. In two months, anybody can bring an amendment and we will look at it.
    “We need to encourage investors to come in. The more people come to invest, the more you get three per cent,” he said.

    Sabo who is also Chairman, Senate Joint Committee on Petroleum (Downstream) Petroleum (Upstream) and Gas further said the Bill was geared toward attracting more investments to the country.

    “Some decades ago, we find it is only in Nigeria that we have oil but now we have it in Ghana, Togo and Chad.

    “So if you don’t provide the incentives for investors to come in, they will go to other places and that is what has been happening.

    “So our attempt in the PIB is to capture all these areas and to synergise and provide incentives for investors to come in,” he said.

    Also speaking, Chairman Senate Committee on Petroleum Upstream, Sen. Albert Bassey described the passage of the bill as a welcome development.

    “We have made a bold statement to the global oil and gas industry that Nigeria is ready as a preferred destination for global oil and gas investment.

    “Today, we also broke the jinx of over two decades. We have passed a bill that will be easily implementable, that will attract global competitiveness and will attract the much desired investment in the oil and gas industry in Nigeria,” he said.

  • Reps. committee talks tough against oil firms polluting host communities

    Reps. committee talks tough against oil firms polluting host communities

    House of Representatives Committee on Host Communities says it is now poised to discharge its responsibility to communities affected by oil spills.

    Part of the responsibilities is to ensure environmental justice and restoration of livelihoods in impacted communities.

    Committee chairman, Mr Dumnamene Dekor, said in a statement on Thursday in Port Harcourt that it had studied recent oil spills in the Niger Delta and had resolved to speedily address the menace.

    “Areas like Nembe in Bayelsa and Gbaramatu in Delta among others were reported to have been grossly impacted in recent times.

    “The committee is indeed dismayed by the grave distortions and desecration of the environment as well as discomfort associated with oil spills.

    “We are quite aware that lives and living conditions of citizens and residents of the affected communities have been subjected to untold hardships,’’ Dekor stated.

    He said the committee would like to initiate payment of adequate compensation and environmental remediation modalities for affected communities.

    “Lack of transparency in the management of oil spills has led to short-changing affected communities while some have suffered outright denial of compensations,’’ he added.

    He said the committee was also worried about denials and counterclaims by operating companies and regulatory agencies in the region.

    Dekor appealed to impacted communities to employ legal measures for redress and involve relevant stakeholders in addressing the challenge of oil spills.

  • #TNGPIBConfab: Semenitari, Eghagha, Oghojafor condemn 2.5% derivation funds, advocate for proper definition of ‘host communities’ in PIB

    #TNGPIBConfab: Semenitari, Eghagha, Oghojafor condemn 2.5% derivation funds, advocate for proper definition of ‘host communities’ in PIB

    Erudite scholars and other distinguished personalities present at the TheNewsGuru.com’s, TNG one-day colloquium, ‘PIB: finally getting it right and breaking the 20-year hiatus’ held on Wednesday, March 10, 2021 have advocated for a clearer definition of host communities in the Petroleum Industry Bill (PIB) set for passage by the Senate.

    Former Managing Director of the Niger Delta Development Commission (NDDC), Ibim Semenitari; Deputy Vice-Chancellor, University of Lagos, (UNILAG) Professor Ben Oghojafor and Head of Department, University of Lagos (UNILAG), Professor Hope Eghagha all said the host community in the PIB is ambiguous and must be properly dissected.

    Semenitari noted that while the PIB will open several investment doors particularly for the Niger Delta region, however other concerns must be looked at before the bill is passed.

    “One of the good things with the PIB is that it actually helps encourage more investments in gas.

    And that is a plus. It has a strong focus for gas, on increasing gas prices, physical incentives to the upstream operators, creates midstream intervention fund so it will be encouraging more investment to the gas sector.

    However, my major concern as earlier raised by other discussants is on what goes to the host communities. Even the loose definition of host communities. The fact that the bill is very lose when it talks about who the host communities are. The fact of that 2.5%, again, I agree that 10% is the least we should be accepting. This is borrowed really from the Solid Minerals Act and that is an Extractive Industry Act. It deals with an extractive industry. So if 10% is okay for solid minerals, then it should be okay for petroleum.”

    Speaking in similar vein, Professor Eghagha said: “After twenty yeas, we are on the verge of passing the PIB. However, we must fire from all cylinders to ensure passage.

    That means setting up a group that will lobby our own representatives in the National Assembly to do all that it takes for the bill to be passed.

    We may not have an excellent bill as it is now. During the process of implementation, there could be challenges and a need for another bill but I have the fear that we should get this done before next year before politics and politicking takes over.

    I am also concerned about host communities. Already much has been said that it should not be left for the operators to decide the host communities. I must confess that I have not read the whole bill and can’t say if it provides for the two categories of the host communities. There is direct host community but there are adjoining communities that are impacted by exploration or extraction activities of the direct communities. I feel this should be looked into as well.

    I also agree that 2.5% is an insult on our collective integrity. God asked for 10% of our total earnings and we gladly pay. So we the communities that bare the mainstay of the national economy, if we ask for 10% we are simply copying God and I don’t think we are doing anything extraordinary. So 10% should be the minimum.

    Also there should be a mediating group between the operators and host communities. That is the reason I don’t think the state governments should be completely excluded. We should look for a way in which they may mediate. They may not house the funds which maybe the host communities’ fear but their (government’s presence) is needed. We must educate the host communities that the funds received from the operators are not meant to be shared but invested for lasting legacy projects that will benefit all. And that is why an advocacy and awareness campaign for the content of the PIB is needed.”

    Professor Ben Oghojafor in his submission said: “This PIB bill has been begging for attention; I posit that powers of the Minister of Petroleum should be further reduced in the bill, the host communities should be properly defined and stakeholder should be classified to avoid class of interest between host communities and impacting community. I submit that there is need to create awareness in all the host communities.

    “When the host communities get 10%, will it not go the same way that of 13% funds for DESOPADEC went? We need to look at issues of arbitration, there should be alternative dispute resolution in the bill, to make it a holistic one and avoid endless communal clashes. I will end up in saying that the emphasis on gas will bring lots of opportunities to our nation if this bill is amended to capture the gains.

     

     

     

  • Oil industry losing investments to non-passage of PIB – Okowa

    Oil industry losing investments to non-passage of PIB – Okowa

    Delta Governor, Senator (Dr) Ifeanyi Okowa, on Monday said Nigeria’s oil industry had lost substantial investments due to delay in the passage of Petroleum Industry Bill (PIB).

    Okowa stated this when he received on courtesy visit, the Co-Chairman, National Assembly Joint Committee on Petroleum Industry Bill, Rt. Hon. Mohammed Monguno and members of the committee at Government House, Asaba.

    He said that investments in the nation’s oil industry would be upscaled as soon as the Bill was passed.

    He disclosed that the people of Niger Delta were gladdend to hear of the renewed commitment of federal lawmakers towards passing of the PIB.

    The governor expressed delight with the inclusion of Host Communities Fund in the Bill, saying that the provision of the fund would make the people part-owners of the ventures and encourage them to secure oil facilities.

    He acknowledged that the committee members were in the state “for a very important assignment, something that we have not been able to achieve as a county in the last 14 years.

    “You have come obviously for a very important assignment, something that we have not been able to achieve as a county in the last 14 years.

    “We are gladdend as people from the Niger Delta to hear both leaderships of the National Assembly speak about their commitment towards passing the PIB.

    “If you do achieve it, your name will be definitely written in gold because for too long we have been talking about this bill and we are already endangering the oil industry.

    “People are agitated towards the direction of the PIB and when there is an anticipation and action is not clearly taken, it leads to the loss of investment opportunities because people are worried about the direction of the industry.

    “There is no doubt that oil exploration has kept our economy but over time it has caused so much pain to our people and this bill is geared towards addressing some of those pains.

    He said “people have lost their lives, lost their source of living and the pain continues to increase on a daily basis, but we thank God that the dark days are over and there is an amnesty programme even though it is not being run as it was proposed by the Yar’ Adua’s administration.

    “I am glad that there is this commitment on the part of the leadership of the National Assembly and we will be proud of you if you are able to achieve the passage this time around.

    “We hope that with the provision of the host communities fund, it will impact in their lives and help them to live a sustainable life.” Okowa stated.

    Earlier, Monguno who is the Chief Whip of the House of Representatives, said his team was in Delta in furtherance of the legislative processes leading to the passage of the PIB.

    He said that the National Assembly was working closely with the Executive arm and other stakeholders to ensure the passage of the Bill.

    “We have promised Nigerians that by the end of April we will pass this all-important bill.

    “We are committed this time around to pass the bill for the good of Nigeria.

    “There is need for us as a country to reform the oil and gas sector, especially as the world is moving away from fossil fuel to renewable energy and it is important we take advantage of the opportunities available,” Monguno said.