Host communities of OML 30, yesterday signed a Global Memorandum of Understanding (GMoU) with the joint venture partners to ensure effective grassroots participation.

Heritage Energy Operational Services Limited (HEOSL) operates the oil fields, in a joint venture with the Nigerian Petroleum Development Company (NPDC) and Shoreline Natural Resources Limited (SNRL).Heritage’s Executive Director, Imran Abbasy, who spoke during the ceremony at the Government House Annex in Warri, said the GMoU was a bold step to strengthen relationship between them and the host communities.

He said: “We have gone through this painstaking effort with the full participation of all relevant stakeholders to co-create a new governance framework.“We believe that it would ensure effective grassroots participation in the development process and usher in a new level of relationship and social investment that is unprecedented in the history of OML 30.”

He said the agreement became necessary following youths’ restiveness that demanded increased participation by host communities in their operation.Crude oil theft, pipeline vandalism and other challenges had over time, led to disruption of operations, leading to escalated operational costs and huge losses.

Both companies share equity participation, with NPDC controlling 55 per cent, while SNRL controls 45 per cent.Abbasy also disclosed that the GMoU has a mandate fund of N1.2 billion annually, which is a 100 per cent increase from N600 million in the expired GMoU, with an annual increase of five per cent every year.He said the agreement was achieved with the support and commitment of Delta State Governor, Ifeanyi Okowa, and the state Attorney General and Commissioner for Justice, Peter Mrakpor. He also expressed gratitude to the joint venture partners who provided the resources and guidance for the GMoU.
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