…Host Communities To Be Held Liable For Sabotage, Oil Theft
The Shell Petroleum Development Company of Nigeria Ltd. (SPDC) has unveiled three Host Communities Development Trusts (HCDT) in line with the legal framework and implementation of the Petroleum Industry Act in Delta State.
The HCDT inaugurated are Iwereland (Itsekiri), Ogulagha and Iduwini Delta.
Inaugurating the development trusts at the Shell Multipurpose Hall in Ogunu, Warri, Delta State on Thursday, SPDC called on the trusts committees to acquaint themselves with the relevant sections of the PIA setting up the development trusts.
Recall that President Muhammadu Buhari in 2021 signed the Petroleum Industry Act into law. The law established Development Trusts for the management of resources accruing to host communities.
Speaking at the unveiling of the three Trusts, the Managing Director and Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, said SPDC is committed to a smooth partnership with host communities.
Okunbor, represented by Dr. Alice Ajah, Project Manager, NCDT, called on host communities to protect oil facilities in their domain, saying host communities will be liable for any third party infractions.
He also warned against crude oil theft and disruption of oil facilities in their communities.
“The set-up of Management Committees for three Trusts in Delta State is almost completed while the establishment of Advisory Committees will soon commence. Once done, it will enable the Trusts to receive funds and begin operations.
“The funds will come from oil and gas companies, recognised in the law as Settlors, who are expected to make an annual contribution of 3% of their actual operating expenditure of the preceding year in the upstream petroleum operation affecting the community.
“The PIA also vests roles and responsibilities on communities. Unfortunately, along with other operators in Nigeria, the SPDC JV operations continue to face the challenges of sabotage and crude oil theft, each of which not only deprives our country and our people of billions of dollars of tax revenue but endangers lives and erodes the environment.
“With funding of Trusts derived from operations, community disruptions and vandalism will inevitably lead to fewer cash and resulting to less projects and programmes. We expect communities to help ensure hitch-free operations and fully benefit from the new dispensation.
“The PIA provides for amicable resolution of grievances with oil companies, and all stakeholders including the communities are to deploy them as necessary. Also, communities which allow internal strife and chieftaincy struggles to negatively impact the establishment or operations of Trusts in their areas will be inflicting a lot of self-harm”, Mr Okunbor added.
In his remark, General Manager, Corporate Relations, Shell Companies In Nigeria, Mr. Igo Weli, said the implementation of the PIA will engender development in the host communities.
Weli, who was represented by Ucheoma Amechi, SPDC’s Corporate Relations Manager, West, said the oil firm has also inaugurated similar development trusts in Rivers and Bayelsa States.
“As the supervising executive for community interface in SPDC and crucially, as a son of the Niger Delta, I’m hopeful that the unveiling of Community Trusts and implementation of the PIA in general will help promote peace and development in the region. We need both now.
“Let me conclude my welcome remarks by reminding our friends in communities that the PIA will remain a mere document if they do not take practical steps to implement the provisions.
“I’m delighted to welcome you to the unveiling of Community Trusts in Delta State, and hopefully, to a new dawn in the Niger Delta”, he added.
Also speaking, Delta State Permanent Secretary, Ministry of Oil and Gas, Mr. Frank Omoko said, “The PIA HCDT is also a platform for mutual empowerment, a bridge that connects the aspirations of Host communities with the resources and expertise of Shell. The PIA HCDT will strive to create an environment where prosperity, social progress and environmental stewardship go hand in hand.
“The unveiling of this Trust is not merely an event but a profound commitment- a commitment to nurture long lasting relationships, fostering economic empowerment and elevating the quality of life for our host communities The Trust will play a pivotal role in championing Community- led development initiatives. Realising the PIA HCDT requies genuine collaboration. It demands open dialogues, mutual respect and the willingness to listen to one another. As a responsible IOC, I believe SPDC is committed to being an active partner in the holistic development of the communities where they operate.
“Finally, I would like to emphasise that the unveiling of the PIA HCDT not an end in itself but a new beginning-a new chapter in the journey of togetherness. Delta State Government will remain at the forefront of the implementation.”
Among those unveiled and inaugurated as Chairmen, Board of Trustees, Host Communities Development Trusts include Mr. Alli Lemmy Omagbitse (Iwereland), Chief Anoruse McDonald (Ogulagha) and Chief Benikurukuru Ibamugha (Iduwini Delta).
The ceremony was attended by the representatives of the Olu of Warri, Pere of Ogulagha and Pere of Iduwini.
