NGO tasks IOCs on compliance with PIA
Oil and gas companies operating in the Niger Delta region have been tasked on the need to comply fully with the provisions of the Petroleum Industry Act which oversees the regulation and governance of the oil and gas industry in Nigeria.
This was the focus of a multi-stakeholders meeting convened by the Initiative for Africa Society Inclusion and Diversity (INCLUD) with support from the MacArthur Foundation held in Uyo, Akwa Ibom State capital.
The meeting, held on August 15, 2024, at Luton Park Hotel, Uyo, brought together representatives from Universal Energy Resources Limited (UERL), the Nigerian Content Development and Monitoring Board (NCDMB), civil society organizations, media, community leaders, and other stakeholders.
In her opening address, the Executive Director of the NGO, Olayinka Akerelodu-Martins, emphasized the importance of discussing development issues affecting Universal Energy Resources Limited’s (UERL) host communities, particularly regarding the implementation of the Petroleum Industry Act (PIA) 2021 provisions.
“It’s about engagement, having resources oriented engagement. We want to see that the host communities are carried along. It’s not about fighting those who probably are our representatives.
” So, there is need for everyone to have understanding of the whole thing. That will bring about the much-desired transparency and accountability, “she stated.
Presenting a keynote address, the NCDMB Zonal Head for Akwa Ibom and Cross River State zonal operations, Dr. Uduak Obot urged oil and gas companies in the state to comply with the PIA by establishing Host Community Development Trusts (HCDT) and funding them as required.
He stated, ” HCDT is a significant component aimed at fostering sustainable development and ensuring that oil producing communities directly benefit from the wealth generated by oil and gas operations.
“Non-compliance by any oil and gas company could result in penalties, including fines or revocation of licences.”
Also speaking, the UERL’s Secretary, Barr. Ekong Umorok pledged the readiness of the company to operate within the ambit of the law, adding that the company has made it a duty to attend to the yearnings of its host communities.
At the meeting, the Ntak Inyang community in Esit Eket Local Government Area agreed to withdraw the existing court injunction, paving the way for the operationalization of the PIA committee with their representatives. They also agreed to submit at least six names to UERL for selection of representatives in various committees.
The Board of Trustees (BOT) led by Mr. Bassey Ekpima also committed to continuous engagement with the communities on programs and activities. The stakeholders also agreed to resolve the rift between two factions in Ntak Inyang by August 21, 2024.
Other resolutions included prioritizing employment for host community members, communicating grievances in writing to BOT, and making community development plans and annual budgets public upon approval.
The meeting’s outcomes are expected to foster collaboration and inclusive development in the host communities.