Adaobi Rhema Oguejiofor
The Shell Petroleum Development Company (SPDC), operator of the SPDC Joint Venture (JV), has unveiled eight Host Community Development Trusts (HCDT) in Bayelsa, which it says is a critical step for unlocking the $56 million reserved for development in line with the provisions of the Petroleum Industry Act (PIA) 2021.
This was disclosed by the Managing Director and Chairman of SPDC, in Nigeria, Osagie Okunbor, during the unveiling on Tuesday in Yenagoa, Bayela State.
Okunbor, who was represented by the General Manager of Corporate Relations, Igo Weli, said that the PIA would not deliver the intended development if communities allow internal strife and chieftaincy struggles to negatively impact the setting up or operations of the Trusts. He stressed that regardless of the noble intentions of the PIA, as well as the moral and financial support of government, SPDC and other operators, the development of communities ultimately rests on the shoulders of the people in the community.
According to him, the unlocked $56.13million, which is equivalent to N25.8billion, represents the funds that SPDC JV, Shell’s deep-water subsidiary and Shell Nigeria Exploration and Production Company Limited (SNEPCo) are expected to pay as contribution to HCDTs in 2023.
He said that the bold step by Shell in the implementation of the provisions of the PIA earned commendations from the Bayelsa State Government, regulators, partners, as well as communities for what is regarded as an industry milestone.
The eight Trusts are among 22 others that have been incorporated in SPDC JV’s areas of operation in Imo, Delta, Rivers and Bayelsa States, which represent more than half of the total 41 Trusts that the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has so far approved for host communities.
Okunbor expressed that SPDC, with its knowledge of the Niger Delta from over 60 years of operations, is managing a seamless transition from the Global Memorandum of Understanding (GMoU) initiative that it introduced in 2006 to HCDTs. It is a key provision of the PIA enacted in August 2021.
In his own words, “the Company engaged more than 300 communities on the provisions of the Act, their roles and responsibilities, the obligations of oil and gas companies and also facilitated grouping of communities and nominations for trustees. It further assisted in the development of a needs assessment and development plan for communities.”
The Governor of the State, Duoye Diri, who was represented by the state’s Commissioner for Mineral Resources, Dr. Ibieri Jones, during the unveiling ceremony in Yenagoa, said that it is indeed a milestone that will ensure the progress of the communities. He added that no meaningful development can take place without an enabling environment, stressing further that with dialogue, issues can always be resolved, which is the only way to take the region to where they want it to be.
The stakeholders that were present at the unveiling charged the incorporated Community Trusts to work towards development in the Niger Delta through peaceful co-existence and collaboration with oil companies.
The Commission Chief Executive of NUPRC, Gbenga Komolafe, who was represented by the Manager of Host Communities Development in NUPRC, Omolade Awah, commended the early incorporation of the Trusts and charged them to be guided by the provisions of the PIA in their operations.
The Chief Upstream Investment Officer of the Nigerian National Petroleum Company (NNPC) Upstream Investment Management Services (NUIMS), Bala Wunti, who was represented by the Senior Adviser, Stakeholder Relations, Mrs. Joy Eguahon, said that there were high expectations for communities to collaborate with industry stakeholders for peaceful coexistence. He added that systems should be put in place to address conflicts or grievances through dialogue and resolutions that are beneficial to all the parties.
The Chairman of Gbarain and Ekpetiama Trust, Mr. Ebikesee Johnson, while speaking on behalf of his colleagues, thanked SPDC and communities for the confidence reposed in them, and enjoined trustees to ensure transparency and accountability in discharging their duties.
The eight trusts that were unveiled are expected to appoint Management Committees in collaboration with their communities, who will in turn, set up Host Community Advisory Committees. This will help complete the new community development structure under the PIA and also enable the Trusts to begin to receive funds, as well as commence operations. The Act stipulates funding of the Trusts from three percent allocation of the actual operating expenditure of an oil company in the preceding year. The SPDC JV is working towards the incorporation of a total of 33 Trusts before the end of 2023.
