Mkpat Enin Community Takes Rally to Streets over Failure of Oil Companies to Implement HCDT
By Ekemini Simon
22 months after passage and assent of the Petroleum Industry Act, the oil and gas community of Ikot Obio Ndoho in Mkpat Enin local government area have held a rally across streets in Mkpat Enin asking oil and gas companies to incorporate and implement the Host Communities Development Trust.
The rally which took place last week witnessed the people of the area together with Peace Point Development Foundation with support from Global Greengrants Fund and Oilwatch Africa display placards, posters and banners with campaign messages targeted on ExxonMobil, Sterling Global and Total Energies to come open on the fund matrix of the Trust including the progress made by the companies.
Some of the inscription read include ” 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”.
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.
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.
Speaking at the rally, the community leader in Ikot Obio Ndoho, Udeme Michael said they are rallying to send a message to the companies to understand that the community know their rights and can no longer condone the “unnecessary” delay in the implementation of the Trust.
He said 22 months is adequate for any company with genuine intention of establishing the Trust to do so.
Michael said it appears the companies operating in Akwa Ibom State are abusing the peaceful nature of Akwa Ibom State to trample on the rights of the communities.
He explained that the people of Mkpat Enin will not relent in pursuing their right especially as the companies have already flouted the deadline provided for by law.
On his part, the Coordinator of Peace Point Development Foundation, Umo Isua-ikoh noted that it was disappointing that most oil and gas companies in Akwa Ibom State were operating in the dark as regards the HCDT.
He noted that for the companies not to come public with their progress or otherwise of the Trust portent a plan that may not be in the interest of the oil and gas communities.
Isua-ikoh called on the Nigerian Upstream Petroleum Regulatory Commission to immediately take action against companies who flout the PIA in line with relevant provisions.
He noted that PPDF is poised to give the community the needed support for them to realize their rights in the PIA.
Peace Point Development Foundation had recently held stakeholders dialogue on the implementation of Host Communities Development Trust in these communities.