The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), yesterday, disclosed that plans are being concluded on the implementation of the host community aspect of the Petroleum Industry Act (PIA) after receiving submission of over 113 Host Communities Development Trust (HCDT).
Disclosing that about 84 of the HCDT have been approved, while 61 have been incorporated by the Corporate Affairs Commission (CAC), the Chief Executive of NUPRC, Gbenga Komolafe, insisted that the move is critical to achieving projected objectives of PIA and the Nigerian Upstream Petroleum Host Communities Development Regulations (NUPHCDR).
Represented by the Acting Director in charge of Health, Sustainability and Environment, he expressed government’s desire to address the challenges facing the host communities through the PIA.
Komolafe had noted that government has commenced the process of establishing a baseline of ongoing community development projects, in preparation for integrating them into HCDTs, while stressing that government would ensure 100 per cent compliance and that oil companies don’t default in remitting to the funds.
As part of PIA, oil companies are mandated to remit three per cent of their operating expenses to a pool that would enable government address the age-long agitation of transferring benefits of the oil industry to communities impacted by oil and gas exploration and production. The sources of the fund have been expanded by the commission to include gifts, grants and donations.
While a total of 37 applications by fund managers have been received by the commission, it noted that 19 has already been approved. Of the HCDT approved by the commission, Shell is leading with 23, while Agip followed with 13, and Newcross Petroleum, seven.
Total and Seplat has three approved HCDT each while Green Energy Limited and Mobil also have two each.
