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Tag: PIA

  • PIA: Reps to change leadership of some HCDTs over non-performance

    PIA: Reps to change leadership of some HCDTs over non-performance

    The House of Representatives has expressed disappointment over the poor performance of some Host Community Development Trusts (HCDT) established to develop oil producing communities in line with Petroleum Industry Act (PIA).

    Chairman House of Representatives Committee on Host Communities, Dumnamene Dekor disclosed that of the Trusts after receiving funding from their settlers have failed  to execute one project after more than one year of existence. 

    Dekor, while speaking during the  Bridges Project Host Community Development Trust Stakeholders Dialogue Forum in Ikot Ekpene Local Government Area of Akwa Ibom State on Thursday, hinted of a possible change in the leadership of some of the HCDTs.

    The two-day close-out forum, themed “Four Years of the PIA: Lessons, Gains, and the Path Forward for Host Community Development Trusts (HCDTs),” was organised by the Foundation for Partnership Initiatives in the Niger Delta  (PIND) in collaboration with the Ford Foundation. 

    The Bridges Project which was launched in 2023, has served as a transformative platform for dialogue and collaboration among regulators, settlors, and host communities.

    Through its Multi-Stakeholder Platform, the project strengthened transparency, built trust, and promoted shared accountability in the implementation of the PIA’s HCDT framework — a central mechanism of the PIA  designed to ensure that host communities benefit directly from extractive activities.

    However , the lawmaker expressed dismay that out of over N373bn available to all Trusts in the country some Trusts are yet to start one project after receiving funding for those projects. 

    Dekor said, “‘Like you rightly said over N373bn is available to all the Trusts, what percentage of this has been put to use? This is another question. And so for those Settlors and those Trusts that must have been funded but they are yet, for so many months and some of them more than a year, to even start one project, then there’s the need to look at it.

    ”The NUPRC and the House will partner with you and if there’s the need to change of the leadership of the Trusts for the benefits of the people, then we will propose that bill”.

    In her keynote address on behalf of the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, the Commission’s Manager, Host Community Development Administration, Mrs. Omolade Awah, commended PIND and the Ford Foundation for ”fostering dialogue and evidence-based engagement that strengthen transparency and accountability under the Petroleum Industry Act (PIA).” 

    She expressed satisfaction that the Host Community Development Trust (HCDT) framework — a core pillar of the PIA — is already yielding visible results across the Niger Delta, from infrastructure and human capital projects to renewed community trust and stability. 

     Awah reaffirmed the Commission’s commitment to ensuring that the HCDT structure continues to serve as a credible mechanism for sustainable development, peacebuilding, and shared prosperity in host communities.

    Executive Director of PIND, Mr. Sam Ogbemi Daibo, noted that the forum marks a pivotal step in consolidating lessons from the Bridges Project for future implementation. 

    “The Bridges Project has shown that the success of the PIA — and particularly the HCDT model, depends not just on compliance, but on collaboration, trust, and shared accountability’

    ”The lessons learned from this process provide a roadmap for the years ahead — guiding how we strengthen partnerships, deepen community engagement, and sustain the gains of host community development,” he said.

     Akwa Ibom commissioner of Budget and Economic Planning Dr. Linus Nkan,  emphasised that “the success of the HCDT implementation depends on shared accountability, trust, and continuous learning, and it should also be extended to government houses of all the Niger Delta states”.

  • ‘PIA implementation faces governance hitches’

    ‘PIA implementation faces governance hitches’

    Experts have listed governance challenges and poor execution strategy as key factors hindering the effective implementation of the Petroleum Industry Act (PIA). The view was expressed at the webinar organised by the CSR-in-Action Group, with the theme: “Navigating the Shift– Essential Implementation Insights for Businesses”.

    The event provided a platform for key stakeholders to examine the PIA’s impact on community stakeholders.

    Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya said that the PIA is being implemented agency by agency without a coordinated, comprehensive strategy to guide the process.

     “This is a major concern, as a stakeholders-driven, coordinated implementation plan, involving civil society, companies, and government is key to ensuring transparency and accountability. Without such coordination, agencies may avoid pushing the boundaries of transparency and accountability,” he said.

    Director of CSR-in-Action, Meka Olowola, opened the webinar by highlighting the importance of the event.  He said: “We recognise that all stakeholders, particularly businesses, are navigating new territory with the PIA, and their ability to do so effectively is key to the Act’s successful implementation. This is the basis for this event as a part of our constructive engagement process.”

    He referenced the research conducted by CSR-in-Action, supported by the Ford Foundation, which underscored critical aspects of the PIA’s implementation. These include a substantial gender imbalance in leadership roles, a lack of comprehensive needs assessments by oil companies, and overall low awareness of the Host Community Development Trust (HCDT) framework within communities.  This crucial research highlights the need to include these groups in the broader narrative of Nigeria’s oil and gas reform.

    The event featured other panelists, including  Dayo Okusami, Partner, Templars; Akinbambo Ibidapo-Obe, General Manager and Head of Commercial at Oando Energy Resources; Glory Alexander Thomas, Secretary Management of the Ibeno HCDT; and Eugenia Onyiriuka, Chairperson of the Board of Trustees for the Assa North HCDT. These leaders shared valuable insights on how implementing the PIA is reshaping Nigeria’s oil and gas sector, particularly in promoting transparency, inclusivity, and environmental responsibility.

    Okusami also highlighted the critical role of transparency in the governance of the petroleum sector, noting that “Before the PIA of 2021, the last major legislation in the oil and gas sector was almost 60 years old. The PIA represents progress, but we must focus on realistic and sustainable implementation. No law is perfect. The PIA needs time, proper implementation, and patience.”

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    The importance of community consultation was also underscored by Glory Alexander Thomas, who stated, “Projects without diligent consultation with the host communities tend to lead to failure.” This sentiment was echoed by Mrs. Eugenia Onyiriuka, who remarked, “The PIA has changed a lot of things, including how women are involved in community affairs”.

    According to Akinbambo Ibidapo-Obe, “The PIA presents a unique opportunity for HCDT to empower women and promote women-owned businesses as key service providers to the industry.

    At Oando, we are intentional about expanding our supply chain to include more women-owned businesses, ensuring they play a significant role in driving the sector forward.”

    Meka Olowola concluded by emphasising CSR-in-Action’s leading role in sustainability reporting, showcasing their pioneering work in developing the first IFRS S1&S2 compliant sustainability report for a leading organisation in the oil and gas sector.

  • Reps plan amendment to strengthen PIA, NEITI Acts

    Reps plan amendment to strengthen PIA, NEITI Acts

    The House of Representatives has said it is planning to amend the Petroleum Industries Act (PIA) and the Nigeria Extractive Industries Transparency Initiative (NEITI) Act in order to strengthen them for maximum performance in the extractive sector.

    Chairman of the House Committee on Petroleum Resources (Downstream), Ikeagwuonu Onyinye Ugochinyere, announced this at a meeting with officials of NEITI yesterday in Abuja.

    The lawmaker said the House was working on introducing key amendments to the PIA to make it have stronger provisions for clean energy transition.

    He said: “We are also focused on reviewing the NEITI Act, to grant NEITI statutory powers to implement the findings of their investigation, and possibly execute the recommendations of their report.

    “We are also considering granting NEITI powers to prosecute those found to be in breach of extant laws, strengthening the governance structure of NEITI, placing more emphasis on crucial disclosure requirements of EITI, especially as they relate to contract transparency and beneficial ownership, independent funding for NEITI, timely review and action on reports by the National Assembly, among others.

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    “We are also working with sister Petroleum/Oil and Gas Committees with a view to ascertaining those who operate extractive industries in Nigeria, to deepen transparency and public oversight of the industries through the House. “

    “We also seek to pursue the recovery of public funds that were either mismanaged, wasted or yet to be remitted from the extractive industries.

    “It is also our desire to ensure that there is accountability on the part of state-owned extractive industries to ensure that greater value and revenue is derived from the sector for the good of the nation and to foster a sustainable energy transition.”

    Uhochinyere explained that as part of efforts to ensure the success of the House legislative agenda, the committee had secured the partnership, support and commitment of over 70 lawmakers as co-sponsors for critical Bills which seek to review some provisions of the NEITI Act.

    He said this would lead to full realisation of the NEITI objectives, as well as the expansion and achievement of the desired transparency in the extractive industry.

  • PIA: Three Ugborodo indigenes feared missing in alleged attack on protesters

    PIA: Three Ugborodo indigenes feared missing in alleged attack on protesters

    Three indigenes of Ugborodo community among scores of others protesting the perceived non-implementation of the Petroleum Industry Act (PIA) by Chevron Nigeria Limited (CNL), are feared missing on the Escravos River in Warri Southwest Local Government of Delta State.

    It was gathered that the trio went missing following alleged attacks on them on Wednesday night.

    A leader of the community, Mr. Alex Eyengho, who raised the alarm via a terse WhatsApp message syndicated around 2am yesterday, said the indigenes were missing, due to alleged “vicious attacks on the peaceful protesters at about midnight.”

    “As we speak, three of the protesters are still missing somewhere at the bottom of the Escravos river, due to the vicious attacks,” the message read.

    In some videos of the midnight confrontation made available to reporters, the indigenes, while on the Escravos River, could be heard speaking to persons to allow their peaceful protest go on.

    “We do not have any issue with you. We are fighting for our rights. You are also from communities…,” one of the voices said.

    “Apart from the lingering issue of the deliberate non-implementation by Chevron of the Petroleum Industry Act (PIA), in accordance with extant laws and regulations, the peaceful protesters have other existential issues with Chevron.

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    “We refuse to be intimidated in our homeland by an international oil company and its security agents. Chevron must meet the demands of Ugborodo community and other host communities on the implementation of the PIA and other existential matters.

    “This is one protest that will not come like a flash in the pan. We are determined. We are resolute. It is no retreat, no surrender. We shall not be intimidated by Chevron or the security agencies on this matter. They should be ready to shoot and kill everybody in Ugborodo community and other host communities who are part of this protest.”

    The protesters listed 41 demands from Chevron, which include: implementation of the Ikpere HCDT as agreed with Nigerian Upstream Petroleum Regulatory Commission (NUPRC), employment of indigenes in the Turn Around Maintenance of the company, provision of social amenities, conversion of qualified community workers to direct workers.

    They also called on CNL to stop marginalisation of Ugborodo community, its divide and rule tactics as well as interference by company officials, among others.

    It would be recalled that the protest started on Monday with protesters carrying placards barricading the Chevron dock, which had been closed by the protesters with “Cotonou” boats.

  • ‘Regulatory, fiscal incentives in PIA will be seamless’

    ‘Regulatory, fiscal incentives in PIA will be seamless’

    Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has assured that the regulatory and fiscal incentives produced by the Petroleum Industry Act (PIA) would be seamlessly delivered to boost investments in the gas industry.

     Also, he pledged improved gas supply for industrial, power, transportation and domestic uses and the Nigeria Liquefied Natural Gas (NLNG) plant in Bonny, Rivers State.

    In a statement, the Spokesman for the Minister of State Petroleum Resources (Gas), Louis Ibah, said Ekpo, spoke at the Third Biennial International Conference on Hydrocarbon Science and Technology (ICHST) 2023 in Abuja yesterday.

     He said the Nigerian LNG plant operate below its installed capacity due to gas supply issues, adding that the local gas market has been grossly under-tapped due to infrastructural and pricing issues.

    He listed some of the factors stifling effective gas utilisation for exports and local consumption to include inadequate infrastructure, sabotage of crude oil and gas pipelines, unclear regulatory environment and inability to optimise value from the country’s abundant gas reserves.

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    “The ministry has identified these challenges and is working assiduously with the Ministry of Petroleum Resources (Oil) to ensure the security of supply to the NLNG plants and increasing gas penetration and utilisation by local users for power, transportation, industrial and domestic purposes,” Ekpo said.

    He further explained that the Ministry of Petroleum Resources (Gas) is also working with relevant regulatory agencies like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Content Development and Monitoring Board (NCDMB) to ensure that the robust regulatory and fiscal incentives produced by the Petroleum Industry Act (PIA) are seamlessly delivered.

    Ekpo urged experts and stakeholders in the industry to focus on tackling the issues of energy transition, sustainability and security to guarantee that Nigeria maximises the value of its abundant gas resources while ensuring access to affordable, sustainable energy for all citizens.

  • Nigeria grants first petroleum exploration licence under PIA

    Nigeria grants first petroleum exploration licence under PIA

    • NUPRC calls for unlocking of energy opportunities

    From John Ofikhenua, Abuja

    The Nigerian Upstream Petroleum Commission (NUPRC) has granted a Petroleum Exploration Licence (PEL) to TGS-PetroData Offshore Services Limited (TGS-PD). This is in accordance with the provisions of Section 71 (1) – (10) of the Petroleum Industry Act (PIA) 2021. The Commission’s Chief Executive Officer, Engr Gbenga Komolafe made this known in a statement released yesterday.

    He noted that the PEL is the first under the PIA 2021 and is under the licence agreement which the Commission and TGS-PD executed for a Geophysical Survey Project for the acquisition of about 56,000 square kilometres of 3D seismic and gravity data.

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    According to him, the development is another milestone in the smooth implementation of the PIA for the attraction of investment in the oil and gas sector in the country. Komolafe said the data acquired under the PEL is not proprietary but speculative / multi-client survey data acquired in partnership with the NUPRC.

    “The licence therefore authorises TGS-PetroData Offshore to carry out non-exclusive Petroleum Exploration Operations on a multi-client basis within the licensed area and permits the use of the acquired 3D seismic and gravity data by exploration companies,” the statement read. The acquisition of the 3D seismic and gravity data commenced on July 17, and the processed data will be available for use by mid-2024.

    Meanwhile, Komolafe called on operators in the African oil and gas business to see the theme of the Africa Oil Week as a call for action and a charge for enhanced collaboration in unlocking the vast opportunities for cleaner development and energy security.

  • PIA: Itsekiri communities occupy SPDC facility in Delta

    PIA: Itsekiri communities occupy SPDC facility in Delta

    Protesting indigenes of Ugboegungu, Ugborodo, and Deghele communities in Warri Southwest Council Area of Delta State have continued occupation of  the Otumara Flow Station operated by Shell Petroleum Development Company (SPDC) over non-inclusion in the Petroleum Industry Act (PIA).

    The hundreds of aggrieved locals began the peaceful occupation of the SPDC facility on Wednesday, threatening to shut it down if the needful is not done as a 30-day ultimatum issued last month expired.

    The Otumara flow station produces 20,000 barrels of crude oil per day.

    On Thursday when reporters visited the scene, the protesters who were on speedboats, continued their occupation of the facility in an atmosphere charged with local drumming, singing, and dancing.

    They bore placards indicating some of their demands, among which is the recognition and inclusion of Otumara Host Community Development Trust in the implementation of the Petroleum Industry Act (PIA).

    Some of the placards bore inscriptions such as “We want the Petroleum Industry Act to be given to us” and “On Otumarah Host Community we stand”.

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    Ugboegungu, Ugborodo, and Deghele communities, which are joint hosts to the SPDC Otumara Flow Station, said they have jointly adopted the Otumara Host Community Development Trust for the implementation of the PIA.

    Addressing newsmen at the scene, one of the leaders in Ugborodo Community, Comrade Alex Eyengho, said despite being handed a 30-day ultimatum that had expired, SPDC has been unwilling to interface with them as regards the PIA implementation.

    He said, “we gave a 30-day ultimatum to Shell Petroleum Development Company, which expired on the 21st of this month. Today is the ultimatum day, and Shell has refused to take advantage of the 30-day window we gave them by refusing to do the needful as it concerns the implementation of the Petroleum Industry Act (PIA).

    “This is Shell’s facility hosting three communities: Ugboegungu, Ugborodo, and Deghele communities. What you are seeing here is a protest, and it commenced yesterday. It is a peaceful protest against Shell over their refusal to implement the PIA for these three communities.

    “If I must tell you, the facility that Shell is operating in Otumara is the largest in Delta State. If we decide to shut down this facility today, Shell and Nigeria will be losing 20,000 barrels of oil per day, but we have not taken that route, and we have been very patient with Shell.

    “As it concerns this Otumara flow station, we are saying that they should create our own host community to be named Otumara Host Community Development Trust that will be hosted by the three communities.

    “We are not against any other host communities elsewhere. We do not want to be under any host community, be it the host community of Warri Kingdom,

    “We are saying that we are the host communities. If there is any form of oil spillage or environmental degradation, it is not going to affect those in Warri South Local Government or the others who are on the upland. It is going to affect Ugborodo and the other communities, primarily.

    “This is in tandem with the extant laws of the PIA, and we are not asking for anything. I think Shell should be happy that each of the three communities has come together to demand the PIA as a joint community and not as individuals”.

    Leaders representing the three communities making up Otumara Host Community Development Trust, Churchill Omadeli, Olufemi Edoema, and Anthony Menebo, also toed the line of Eyengho, warning that the protest will continue “indefinitely” until their demand is met.

    Meanwhile, no SPDC official was available to address the protesters or journalists at the facility, but a security meeting was scheduled to be held.