Energia Limited and its joint venture partner, Oando Plc, have signed a Memorandum of Understanding (MoU) with seven host communities in Delta State and inaugurated the Board of Trustees of the Ndokwa West-1 Host Community Development Trust (HCDT), as part of efforts to implement the host community provisions of the Petroleum Industry Act (PIA), 2021.
The agreement, signed in Asaba, establishes the governance framework for the Host Community Development Trust, a statutory requirement under the PIA aimed at ensuring oil-producing communities benefit from petroleum operations through structured development programmes.
The event attracted officials of the Delta State Government, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), traditional rulers, community leaders, members of the newly inaugurated Board of Trustees and stakeholders from the oil and gas industry.
Representing Delta State Governor, Rt. Hon. Sheriff Oborevwori, the Deputy Chief of Staff, Hon. Christopher Osakwe, described the inauguration of the Trust and the signing of the MoU as an important step towards institutionalising cooperation between oil companies and host communities.
He urged members of the Board of Trustees to manage the Trust transparently and responsibly while calling on host communities to continue protecting oil and gas infrastructure and embrace dialogue in resolving disputes.
Speaking at the event, the Managing Director and Chief Executive Officer of Energia Limited, Oladimeji Bashorun, said the Trust provides a structured platform for collaboration between the company and its host communities.
According to him, although the Petroleum Industry Act provides the legal framework for the establishment of host community trusts, Energia had been implementing community development initiatives long before the legislation came into effect.
He disclosed that the company has invested more than N15.94 billion in community development projects since commencing commercial production in 2009.
According to Bashorun, the investments have covered road construction, drainage systems, healthcare facilities, educational programmes, scholarship schemes, youth empowerment initiatives, solar-powered street lighting and other social infrastructure across its operational communities.
He further stated that the company allocates three per cent of its annual gross revenue to support sustainable development initiatives in line with the provisions of the Petroleum Industry Act.
Also speaking, Oando Asset Manager, Seyi Fawora, said the joint venture remains committed to implementing the Host Community Development Trust framework and strengthening engagement with communities where it operates.
Representing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Dennis Eyitemi said the inauguration of the Trust marked an important milestone in deepening community participation in the management of development initiatives under the PIA.
He advised members of the Board of Trustees to uphold accountability and transparency in administering the Trust Fund to ensure long-term benefits for the communities.
In his presentation on the Host Community Development Trust framework, Delta State Solicitor-General and Permanent Secretary, Ministry of Justice, Omamuzo Irebe (SAN), urged the trustees to prioritise the interests of the beneficiary communities and ensure prudent management of the Trust’s resources.
Members of the Board of Trustees were subsequently sworn into office.
Speaking on behalf of the Board, Chairman Chief Godwin Edeme pledged to work with Energia Limited, Oando and the host communities to ensure the effective implementation of projects funded through the Trust.
The Host Community Development Trust is one of the key reforms introduced under the Petroleum Industry Act, 2021, requiring oil and gas companies to establish community trusts funded through annual contributions to support economic and social development in host communities while promoting peaceful coexistence between operators and residents.
(The Whistler)