Delta Communities to Shut Down  NEPL’s Operations over Failure to Fund HCDTDeltaDelta Communities to Shut Down  NEPL’s Operations over Failure to Fund HCDT

Sylvester Idowu inWarri

Stakeholders from various communities in Isokoland, hosts to the Nigerian National Petroleum Company Exploration and Productions Limited (NEPL) and operators of OML 26 and the new players, Sterling Global, as well as other oil companies operating in the areas have threatened to shut down their operations over refusal to implement the PIA act

They were particularly disturbed and disappointed that nearly two years after the inauguration of AIO Host Community Development Trust (AIO HCDT) as mandated by the Petroleum Industry Act (PIA) of 2021, nothing has happened to speed the growth of their communities.

Reacting under the auspices of Isoko Grassroots Mobilisers, the stakeholders in a statement issued yesterday and signed by Erere Okpako and Angela Akpofa, said unless urgent steps were taken, the operations of the oil companies would be disrupted to vent their anger.

“We are worried about the deplorable state of our various communities as a result of decades of neglect by oil companies operating in Isoko land, and we are spoiling for shut down of oil operations in our land.

“We are particularly disturbed and disappointed that nearly two years after inauguration of AIO Host Community Development Trust (AIO HCDT) as mandated by the Petroleum Industry Act (PIA) of 2021,nothing has happened”, they said.

The stakeholders explained that by the Act, oil companies were expected to channel three percent of their Operating Expenditure (OPEX) to the HCDTs for the development of the host communities adding that of these funds, 75 percent was earmarked for infrastructure development while 20 and five percent were for investment and administrative purposes respectively.

“But as we write this, even the five percent that is to enable a proper take off has not been released let alone those for infrastructure and reserve,” they stated, adding that the various communities were visibly disturbed, and therefore, called for a review of any relationship that exists between them and the oil companies particularly the Nigerian National Petroleum Company Exploration and Productions Limited (NEPL) operators of OML 26 and the new players, Sterling Global.

The stakeholders noted that the AIO HCDT has been working without tools, not even office accommodation despite several meetings held with NEPL in Warri and Ozoro with the hope of resolving all grey areas without any positive result.

They recalled that sometime in October this year, the NEPL informed the AIO Board of Trustees (BOT) chairman of the approval of the five percent administrative budget but that up till now, the account was yet to be credited, thereby creating more complications to operationalising the HCDT activities.

While the agitated communities, including the Isoko Youth Assembly, were spoiling for a show down with the oil companies, the stakeholders acknowledged that the BOT of the AIO HCDT has been trapped between two difficult sides of the divide.

The stakeholders warned that the oil companies should not overreach their luck as “we can no longer allow them to take us for granted. We implore the operators to expedite actions to forestall any possible consequences that may result from a shutdown.”

They prevailed on federal and the state governments interventions to save the situation and avoid economic losses to all.