Senate committee urges NUPRC to sanction erring IOCs on PIA

as Total Energies commissions HCDT projects

The Chairman, Senate Committee on Host Communities, Sen. Benson Agadaga, has charged the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to take stringent measures against International Oil Companies (IOCs) that fail to adhere to the Petroleum Industry Act (PIA) directives on setting up and implementing Host Communities Development Trusts (HCDT).

Agadaga acknowledged that there is reduced hostility in the oil industries and also relative peace in the Niger Delta region due to the achievements of the PIA through HCDT.

He warned that defaulters of the law will surely be sanctioned.

He stated this during the commissioning of seven key projects by Total Energies at the Obagi Oilfield Host Communities Development Trust (HCDT) in OML58 in Ogba/Egbema/Ndoni Local Government Area of Rivers State on Wednesday.

The projects, which spanned infrastructure, health facilities, agriculture, livelihood support, human capacity development, and economic empowerment, among others, were sequels to the establishment of the HCDTs under the Petroleum Industry Act (PIA) 2021, which placed communities at the center of development planning and execution.

Accordingly, the execution of the projects by Total Energies aligned with the implementation of the 17 United Nations Sustainable Development Goals.
Speaking at the event, Sen. Agadaga said, “Host communities are no longer as hostile as before because all of us are expecting that the PIA will give us the required dividends, and now we are seeing them.”
“There is a pronouncement on the PIA for IOCs to set up the HCDT, and where they fail to do so after three months, they will be sanctioned. Those who have not done it will be sanctioned because this is the only hope of peace and stability in the oil-producing areas.”
“We no longer want disruptions in our productions, we need maximum production, we need to meet up with targets, at least two million barrels per day, so we don’t want any interruptions,” he stated.

He challenged other host community development trusts that are yet to implement theirs to emulate what the Obagi HCDT has done.

He said, “I call on the host communities that are yet to have projects commissioned to do so now. I also call on other International Oil Companies (IOCs) to set up their own HCDTs. It is against the PIA if you don’t set up your own community development trust.”

He described the projects as quite significant and urged the youths to own and protect the projects.

Similarly, the Chairman, House Committee on Host Communities, Dumnamene Dekor, represented by a member of the Committee, Cyril Hart, expressed delight at the quality of the projects delivered, stating that it is joyful to see communities enjoying socio-economic benefits from oil and gas revenue, which, according to him, brings peace and economic growth.

The communities expressed excitement over the projects and applauded Total Energies for its commitment to ensuring timely completion of the projects, which they said have enormous impacts on their lives.

The State Deputy Governor, Prof. Ngozi Odu, who is from the area, recalled the challenges faced by the people, especially poor infrastructures, before the implementation of the projects.

She applauded Total Energies and its partners for implementing the PIA. She also thanked President Bola Tinubu and members of the National Assembly for creating the enabling environment for achieving such milestones.

A resident in Obagi, Phelomina Chinagorom, disclosed that women suffered a lot in the past due to lack of access to health facilities, expressing delight that the newly constructed health facilities would ease their pains and improve their health.

Giving a breakdown of the projects, the Managing Director of Total Energies EP Nigeria Limited, Matthieu Bouyer, said that within the Community Development Plan (CDP) of the HCDT, a total of 539 projects were identified and approved for implementation across 64 host communities.

Of the number, he said, the seven projects commissioned were embodiments of priorities identified by the community as captured in the CDP and diligently executed by the Board of Trustees and Management Committee chosen by their people.

He said Total Energies aligned with the spirit and intent of the PIA by incorporating and funding five HCDTs, including the Obagi HCDT.

The Managing Director said, “We will continue to work with industry stakeholders for effective implementation of the PIA to ensure the sustainable socio-economic development of our host communities in particular and the country at large.”

He commended the Obagi HCDT Board of Trustees for their dedication, efficiency, and accountability in delivering the projects, urging the communities to take full ownership of the projects, and stated, “Sustainability depends not just on infrastructure, but on maintenance, protection, and responsible use.”
“Let these projects serve you and your generations to come,” he added.

On his part, the Executive Commissioner, Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Capt. John Tonlagha, described the projects as a true representation of wisdom, accountability, and diligence.

He said, “This milestone translates to impacts, touching lives and strengthening sustainability. It shows that prioritising dialogue over conflict is what has made this achievement possible. Sustainable development cannot thrive without support and ownership. Today, you have proven to Nigeria and the world that true progress is best built on a foundation of unity and peace.”
“The projects represent huge success for NUPRC, as they demonstrate that our regulatory framework is not only robust but effective in ensuring that communities benefit tangibly from the petroleum resources. The future of our industry lies not only in the production of revenue but also in how well it uplifts the communities,” he added.

The NUPRC boss thanked the President for his commitment to deepening development in communities and providing the enabling environment that makes projects like this possible.

He also urged members of the communities to utilise the projects to serve them and generations to come.
Photo: One of the school projects in Obagi community

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