The NNPC E&P Limited (NEPL), a subsidiary of NNPC Limited on Friday inaugurated a board of trustee each to manage the 14 host communities in its area operations as contained in the Petroleum Industry Act (PIA).
The benefiting communities are Umuedeokwara Odagwa, Uherevie, Warnog, Utrew, Benin River, Agura, Kanodi, Okoea, Egboajudieba, Isoiteija, Abuowaska, Moamog, Asa Pinnacle and Odikan
The News Agency of Nigeria (NAN) reports that NEPL is required to make an annual contribution of 3 per cent of its operating expenditure in the Upstream Petroleum to the communities.
Inaugurating the Boards in Benin, Oritsemeyiwa Eyesan, Executive Vice President, Upstream, NNPC Limited, commended the Federal Government for implementing the PIA.
Eyesan said that the essence of the boards was to ensure that the host communities were positively impacted from the resources that was coming from the exploration of oil and gas.
“We are here to inaugurate 14 host communities development trust fund as stipulated in Chapter Three of the PIA.
“So, inauguration of the boards is a major milestone for us because it brings the communities and the Settlor together to chat a positive path for community development.
“In the past, we had Global Memorandum of Understanding (GMOU) that enabled the development of communities but the trust fund is more effective.
“It ensures that the communities are empowered economically, socially and are sustainably represented in our operations.
“So, it is a great milestone for us because it is not an easy feat to get communities to agree to come together,” she said.
Eyesan said that with the establishment of these trust funds and their boards, the company was confident that it would have less negative impact on its pipelines and infrastructure.
She encouraged the trustee members to work with the company and the communities to ensure that NNPC facilities were protected to enhance production.
The Managing Director, NEPL, Nicolas Foucart, said the board members had received a one-day intensive training that would guide them through their assignment.
Foucart noted that the boards were saddled with the responsibility of ensuring that the trust funds were judiciously used to develop the various communities.
He said the NEPL was committed to ensuing transparency and accountability in oil exploration in its host communities.
“We believe that your participation is crucial in shaping the future of our host communities and the company,” he said.
He disclosed that NEPL had embraced several engagement models for its host communities which had grown from just 13 communities in 1989 to over 600.
According to him, it may interest you to know that NEPL was established as NPDC in 1989 with a production target of 1,000 barrel of oil per day from one onshore mining lease.
“Today, NEPL has grown and recording production target of 300,000 barrel of oil per day,’’ he said.
In her goodwill message, Mrs Lara Coker, General Counsel, Shoreline Natural Resources Ltd, urged the trustees to work and ensure they exceeded the expectations of NEPL.
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According to her, I want to encourage you all to be up and doing so that by next year, we will have loads of projects to commission.
Mr Ben Igbakpa, one of the boards’trustee members, thanked NEPL for the opportunity to serve adding that the inauguration was better late than never.
Igbakpa assured that each of the board of trustees would work together to attract development and better the lives of the host communities . (NAN)
