Ikot Abasi Community March Against Delayed Implementation of HCDT by ExxonMobil, Sterling Global
By Ekemini Simon
The people of Essene Community in Ikot Abasi local government area of Akwa Ibom State have marched across streets in Ikot Abasi local government area calling on Mobil Producing Nigeria Unlimited, Sterling Global and Total Energies to immediately implement the Host Communities Development Trust in their communities.
The community said although they have Mobil Producing Nigeria Unlimited, Sterling Global, and Total Energies in their territory, the companies are yet to commence implementation of the Trust over 22 months after the the Petroleum Industry Act came into force.
The Petroleum industry Act (PIA) (2021) has provided for the incorporation of Host Communities Development Trust (HCDT) in oil and gas producing communities 12 months from August 2021 when the Act came into force.
The HCDT is aimed at fostering sustainable prosperity in the host communities, providing direct social and economic benefits from petroleum operations to the host communities among other benefits.
Community members who took the rally to the streets in Essene Community on Thursday, July 13, 2023 in collaboration with the Non-Governmental Organisation, Peace Point Development Foundation with support from Global Greengrants Funds amd Oilwatch Africa, had placards and banner with inscription such as ” ExxonMobil, Sterling Global, Total Energies, come clear on your HCDT Progress”, ExxonMobil, Sterling Global, Total Energies, publish your 3% Annual OpEx Now”, “NUPRC take action against companies flouting HCDT Deadline Now”.
Speaking at the rally, the youth leader of Essene Community, Christian Udoaka noted that their decision to hit the street with a rally is to send a strong message to the oil companies and the Nigeria Upstream Petroleum Regulatory Commission that they can no longer condone the failure of the companies to commence implementation of the Host Communities Development Trust in their communities.
Udoaka noted that although he only heard through rumour that only Mobil had asked for nomination of people into the Board of Trustees of the Trust since June last year, the people have been kept in the dark on the progress so far recorded.
He said that Sterling Global and Total Energies have not commenced the process of establishing the Trust in their domain hence disregarding their right.
The Youth Leader called on the Nigerian Upstream Petroleum Regulatory Commission to wake up to their responsibility of taking action against oil and gas companies who flout the PIA in incorporating and implementing the HCDT.
On his part, the Coordinator of Peace Point Development Foundation, Umo Isua-ikoh noted that PPDF is poised to give the community the needed support for them to utilise legitimate means towards realisation of their rights.
According to the PIA, the failure to incorporate the Trust is a breach and brings consequences on the settlor according to Section 238 of the PIA and paragraph 9 of the Nigerian Upstream Petroleum Host Communities Development Regulations 2022 (the Regulation). Section 238 of the PIA states that the failure to incorporate the Trust may be a ground for the revocation of the settlor’s licence after the settlor must have been informed of such failure by the Commission. Besides, revocation of licence, failure to incorporate the Trust after 45 days notice by the Commission, the settlor or operator shall be liable to an administrative penalty of $2,500 or its Naira equivalent per day.