Nigeria’s push for increased oil production, especially the three million barrels per day target by key players and regulators, can only be achieved if indigenous and international players prioritise partnership with oil producing communities. KINGSLEY JEREMIAH writes.
The host community fragment of the Petroleum Industry Act (PIA) is a game-changer for oil producing communities, especially in the Niger Delta. Just recently, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said that about 102 Host Community Development Trusts (HCDTs) have received in excess of N97 billion and $149 million remitted by Settlors into the HCDT fund account.
Benefit transfer to oil communities, either through the 13 per cent derivatives and the host community fund, is important to provide necessary infrastructure, skills and employment for the Niger Delta region. This can, in turn, provide the needed peace for economic activities, particularly Nigeria’s ambitious plan of increasing oil production from the current 1.7 million barrels per day to three million.
To foster sustainable development in its host communities and in addition to the list of existing HCDT, Petralon Energy announced the establishment and incorporation of HCDT for the Ogoloma and Koniama communities of Rivers State.
The announcement comes as the indigenous oil company celebrates a remarkable transformation of the Dawes Island Field into a producing field 22 years after it was initially awarded as a marginal field in the first Marginal Field Bid Round, and 46 years since its discovery in 1979 by Chevron.
When Petralon Energy assumed operatorship three years ago, the asset had languished as a symbol of missed opportunities. Today, the asset is on the cusp of sustained production, following the successful completion of DI-2 well in June 2025, and the implementation of an integrated community-business model offers a potential blueprint for sustainable operations in Nigeria’s oil sector.
Licence as privilege to operator, commitment to host community
WHAT sets the firm apart is its integration of authentic community partnership with operational excellence, going far beyond PIA requirements to establish community-led development initiatives.
In October 2022, Founder and Chief Executive of Petralon, Ahonsi Unuigbe, led his management team not just to announce operations, but to formally present Petroleum Prospecting License No. 259 (PPL 259) to the traditional rulers and people of Ogoloma and Koniama communities.
The ceremony showed authentic cultural integration that would become the foundation for unprecedented operational success.
The rich culture of the Okrika people was on full display that day. Songs from melodious voices attracted dignitaries from across the Ogoloma and Koniama communities, including youths, community elders, members of the Council of Chiefs, government officials, and traditional rulers.
The cultural display bore messages that projected the history and identity of the Okrika people to a distinguished audience that included Emmanuel Tamunoigbeindebia Ibiagolika, Amayanabo of Ancient Ogoloma Kingdom, Michael Ateke Tom, Amayanabo of Okochiri Kingdom, lawmakers, and representatives from the NUPRC.
“We are not just here to take without giving back,” Unuigbe had promised the traditional rulers and community leaders. With the right atmosphere created by the Okrika people for our company’s operations, mutual prosperity is assured,” he said.
With the way you, Petralon 54, have come to us, we are persuaded that you are keen on a long-term and mutually beneficial relationship with our people, and for that, you have our full support and cooperation,” declared one of the leaders of the Okrika communities.
The cultural foundation established at Ogoloma Town Square quickly translated into systematic business execution. Since the ceremony, Petralon 54 has made impressive strides in executing corporate social responsibility programmes targeted at multi-level stakeholder groups, but the most defining effort has been the establishment and incorporation of the HCDT initiative for the Ogoloma and Koniama communities.
While the Petroleum Industry Act (PIA) 2021 requires such trusts, Petralon Energy’s approach goes far beyond regulatory compliance. This initiative signals not just adherence to legal requirements but represents an institutional commitment that transcends regulatory minimums to invest meaningfully in initiatives that positively impact host communities.
“As part of its broader mission, Petralon Energy is committed to a new era of collaboration between oil-producing companies and host communities; one that ensures lasting economic, social, and environmental benefits,” said Uduakobong Equere, Executive Director of Petralon 54, during an in-house briefing before the commencement of drilling operations that would prove crucial to the field’s revival.
Community-controlled Development: A radical departure
THE genius of Petralon Energy’s community development approach lies in its fundamental departure from traditional oil company practices where operators design programmes based on corporate assumptions about community needs. The company places communities in the position to determine and implement projects that best serve their long-term interests.
This philosophy manifested in the comprehensive sensitisation and enlightenment programmes conducted in July 2024, well before the formal activation of the Host Community Development Trust (HCDT). Petralon Energy conducted intensive educational initiatives to ensure community leaders, youth representatives, women’s groups, and other key stakeholders thoroughly understood the benefits and structure of the HCDT framework.
The activities were specifically designed to encourage meaningful community participation in deliberations and enable a deep understanding of the HCDT scheme through exposure to detailed and useful information. The results validated PetralonEnergy’s investment in this process: communities demonstrated impressive knowledge of the HCDT scheme and established committees to draft Community Development Action Plans (CDAPs) based on previously assessed needs across the three communities in the Ogoloma kingdom.
A representative of the Ogoloma community, Chief L.T.I.I. Alalegbo captured the impact of this approach when he said, “When Petralon 54 came in for the sensitisation, it was clear that Ogoloma and its people were properly considered, and I have seen and can confirm that Petralon has a real desire to elevate the Ogoloma Community.”
With the formal incorporation and inauguration of the Host Community Development Trust, Petralon has invested heavily in ensuring effective management of the trust’s structure and procedures for maximum impact and sustainability.
The scheme will ensure that Petralon Energy and the host communities collaborate to establish Management and Advisory Committees that will steer the affairs of the Trust toward actualisation of outlined goals.
Petralon Energy’s Community Relations and CSR Manager, Kenneth Uzor, during HCDT enlightenment meetings with community leadership, explained that members of the Board of Trustees, Management and Advisory Committees would undergo capacity building training in project management and other relevant modules.
Based on the Community Development Action Plans from the various communities, the company is expected to develop a comprehensive 12-month implementation roadmap, which will serve as a dashboard for project execution and monitoring before funding is released to the Trusts for the identified projects.
This level of professional management ensures that the estimated development funding reaches communities through transparent, locally managed channels rather than traditional top-down corporate programmes that often fail to address real community priorities.
The HCDT initiative builds on Petralon Energy’s existing portfolio of community development programmes that preceded PIA requirements. The company continues to invest in various CSR projects through programmes like the Micro Credit & Entrepreneurial Development Scheme and the Post-Primary Scholarship Programme, contributing to the socio-economic growth and well-being of host communities and the broader Nigerian nation.
Among these programmes, the recently executed Future Leaders Programme (FLP) exemplifies Petralon Energy’s thinking about sustainable development. Rather than focusing solely on immediate community needs, the company has invested in developing young innovators through leadership training and technical skills development, recognising its potential transformative impact on the next generation.
The Future Leaders Programme targets a critical national priority: human capital development in the energy sector.
The programme’s selection criteria reflect Petralon Energy’s commitment to excellence and strategic alignment. Young people from departments of Geology, Petroleum Engineering, and Petroleum and Gas Engineering were selected based on outstanding academic performance and alignment with the strategic goals of the Petralon Energy Future Leaders Programme (PFLP).
These students, already distinguished by their pre-university academic records, now have access to mentorship and development opportunities that could reshape their career trajectories.
For the selected participants, Petralon Energy’s intervention represents more than educational support. It is a transformation journey toward self-actualisation and fulfillment. The indigenous exploration and production company is providing hands-on guidance through a carefully structured path of professional and personal development, creating opportunities that extend far beyond what traditional scholarship programmes typically offer.
Operational excellence validates the model
THE proof of Petralon Energy’s integrated approach lies not just in community satisfaction but in measurable operational success. The company’s revival of the long-neglected Dawes Island Field demonstrates that community partnership and business performance reinforce each other rather than competing for resources and attention.
Petralon, an indigenous exploration and production oil and gas company that holds 100 per cent interest in PPL 259, which covers the entire Dawes Island Field. As a subsidiary of Petralon Energy Limited, the company’s mission is to leverage experience, expertise, and world-class delivery capability to grow true indigenous ownership within the sector, while redefining relationships between oil companies and communities.
The field’s transformation has been remarkable. After suffering neglect for more than eighteen years, the asset now represents a significant opportunity for all stakeholders in the ecosystem. Petralon 54 has commenced substantial investment in the asset, guided by a strategic plan to achieve sustained commercial production that contributes meaningfully to national output.
The operational turnaround began with well test operations in September 2022, an initiative designed to gather sufficient data for seamless operation and contribution to national oil production. The systematic approach to field development reflects the same methodical thinking that characterizes the company’s community relations: professional, strategic, and focused on long-term sustainability rather than short-term extraction.
Contributing to National Energy Security
The timing of Petralon Energy’s success couldn’t be more critical for Nigeria’s energy security objectives. The federal government’s ‘Project One Million Barrels’ per day initiative targets increasing national output by one million barrels through enhanced collaboration between operators and regulators to address production bottlenecks. Government optimisation of production from the nation’s oil and gas assets requires creating enabling environments for existing and prospective investors, with operators expected to maximize assets assigned to them, for national economic stability.
Petralon had continued to boast of responding positively to national challenges, performing reliably as what the company leadership calls an “economic ambassadorial responsibility.” The company has optimised the operation of its assigned asset and created value for stakeholders through the implementation of a sustainable business model that integrates community partnership with operational excellence.
Petralon Energy aims to build on its current success by increasing field production and pursuing strategic, value-driven investments to unlock additional growth opportunities in the sector. These ambitions will manifest in concrete initiatives over the coming months. Each of these initiatives will be executed using the same community-centered approach that has driven success at Dawes Island.
The expansion strategy reflects Petralon Energy’s confidence that its integrated model creates sustainable competitive advantages. While other operators struggle with community relations challenges that impede operations, Petralon Energy has demonstrated that authentic partnership generates both social and operational benefits that reinforce each other over time.
The company has consolidated its position as a major player in the Nigerian upstream sector and an operator with the capacity to create value for stakeholders. The Dawes Island experience demonstrates that dormant assets can be revitalised through approaches that combine technical expertise with genuine partnerships, a model that could unlock significant value across Nigeria’s oil and gas resources.
