Local Content Act Violation: Host Communities Threaten Protest Against Oil Firm

Blessing Ibunge in Port Harcourt

Host communities of OML 115 and OML 67 also known as “Ebok and Okwok Fields”, operated by Oriental Energy Resources Limited (OERL) in Akwa Ibom, have threatened to protest against the oil firm if they fail to implement the Local Content Act of 2010.

This is as the Committee for the Defence of Human Rights (CDHR), and the Community Development Committees (CDC) of Niger Delta Oil and Gas Producing Areas, have called on the federal government to sanction any oil company that refuses to implement the Local Content Act.

The two groups made the call following the alleged delay by the Oriental Energy to comply with the agreement it signed with the Effiat/Mbo host communities in Akwa Ibom State in 2023 to implement the necessary guidelines.

In separate statements issued in Port Harcourt yesterday, CDHR said it was appalled by the oil firm’s “blatant and persistent refusal to implement the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010″.

The statement added: “Despite numerous calls, resolutions, and warnings, OERL has deliberately ignored its obligations under the Act, prioritizing profits over the well-being and interests of the people of Mbo/ Effiat host communities.

“It is pertinent to say that while we appreciate OERL on its delivery on social corporate responsibility, SCR, and the establishment of Host Community Development Trust Fund, HCDT, well-funded, let it be known that the above cannot undermined the Local Content Act.

“It is shocking that the Company can implement PIA Act of 2021 and neglects that of 2010”.

Chairman, Akwa Ibom State Branch of CDHR, Ndifreke Afangide, said in the statement that “the NOGICD Act 2010 is a critical legislation aimed at promoting local content in the oil and gas industry, mandating companies like OERL to prioritize local companies, goods, and services in their operations.

“This legislation is designed to ensure that the oil and gas industry benefits the local community, promotes economic growth and development, and reduces poverty and inequality”.

He warned that “the window of opportunity for compliance is rapidly closing, and Oriental Energy Resources Limited (OERL) is urged to take immediate action to implement the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010”.

He added that “plans are already underway to lead the mother of all protests to the Akwa Ibom State House of Assembly in Uyo and the National Assembly in Abuja. We warn OERL that its refusal to implement the NOGICD Act 2010 will have serious consequences”.

Similarly, the BoT chairman of the Oil communities, Joseph Ambakaderimo, in his statement said reneging in an agreement that was duly entered and endorsed by Oriental Energy Resources Limited is “preposterous”.

He said: “What Oriental Energy Resources Limited is doing is in gross opposition and violation to President Bola Tinubu agenda for the oil industry that is to increase production. The behaviour of the Company is a recipe for renewed restiveness in the Niger Delta”.

According to him, “Effiat/Mbo communities are very peaceful communities. They have never been known to be violent therefore we urge the management of Oriental Energy Resources Limited to engage the communities in a dignified manner and graciously implement the terms of agreement to allow peace reign.

“If Oriental Energy Resources Limited refuses to implement the terms of agreement, the CDC will capitalise on the goodwill it enjoys from the presidency and make a formal complaint to relevant regulatory agencies and NASS”, he warned.