Host Oil Communities Defend NUPRC on Akwa Ibom HCDT Funds
*Says any area not getting 3% Opex undergoing validation
Emmanuel Addeh in Abuja
A coalition, the Host Communities Confederation (HCC) yesterday firmly defended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the alleged non-remittance of the 3 per cent accruals to some Akwa Ibom oil host communities.
The group made the observation in a press conference in Abuja by the National Chairman, Confederation of Oil & Gas Communities of Nigeria, Dr Mike Emuh, alongside heads of other host community groups headed by Jonathan Usigho; Dr. Emerson Moore; Sam Eribo and George Bucknor.
Emuh asserted that whoever was making the allegation of lack of accountability in the administration of the funds had not been following up on NUPRC-Host Communities activities and events from the commission’s inception.
HCC noted that it was absurd to ask NUPRC, a regulator, to account for the revenue paid on the communities’ behalf without first asking the oil companies whose obligation it is to deliver to the communities on its development responsibilities.
“The demand is completely misplaced and it smacks of ignorance to ask NUPRC to account for 3 per cent Opex Hostcom fund that flows directly to HCDT operated by board of trustees appointed by the host communities democratically.
“NUPRC maintains arm’s length with host communities’ funds and as such is not in a position to account for funds not remitted to the commission. The first line of action begins with the settlor to the Host community Development Trusts (HCDTs),’’ the group stated.
It said that the issue of gas flare penalty fund would be addressed when the gazetted gas flare penalty Act has been repealed and the Act reviewed in tandem with the current cost reality of gas revenue in the world market.
“Therefore, the issue of $21 million paid by Mobil for Akwa Ibom State to address the ecological footprint should not be the major issue affecting the Akwa Ibom State. The first thing to do is to tackle the root cause of the problem of inadequate gas flare penalty remittance to NUPRC by demanding from the oil and gas company.
In light of the challenges in the host communities, NUPRC, the confederation said, has put mechanism in place to ensure effective implementation of the 2021 Petroleum Industry Act (PIA) to enhance host communities’ development for fairness, accountability and transparency.
“For dispute resolution, NUPRC has set up Alternative Dispute Resolution Centres (ADRC) one in Lagos and the other in Bayelsa to address the numerous host communities’ challenges than resorting to litigations in court.
“It is a much peaceful, faster and cheaper way of resolving disputes in the oil and gas industry, particularly issues relating to host communities, to engender a conducive operating environment for operators.
“NUPRC has set up an environmental intelligence and monitoring mechanism to ensure the effective implementation of the regulations and the PIA for the benefits of the Host communities to address ecological issues.
“It has introduced technological advancement to enhance an effective working condition between the oil companies and the host communities,” Emuh added.
Besides, he stated that the NUPRC has launched the Hostcomply, an industry data automation portal for warehousing all HCDT implementation and operationalisation processes and data platform in order to foster sustainable prosperity within the host communities.
This, the group said has led to ease of access, inclusivity, fairness, accountability, transparency and compliance with regulations and the law.
“Finally, for more clarity, host communities are advised to avoid being used for cheap blackmail and gross misconduct by first clearing with the operating oil companies before seeking redress outside to avoid severe consequences,” the host communities said.
Henceforth, it urged the NUPRC to forward such ‘malicious and ridiculous’ demands from any community in any state producing oil and gas for verification and authentication to the already established ADRC for proper investigation.
According to the coalition, NUPRC has always shown support to enhance the development of the various host communities producing oil and gas as contained in Chapter 3 of the PIA.
“Regarding the alleged delays in funding development projects in host communities in Akwa Ibom State. One needs not over-emphasise the issues of delay in funding, as most of the settlors were yet to effectively comply with the setting up HCDT in accordance to the 2021 PIA.
“However, note that NUPRC has established mechanisms to safeguard the funds while ensuring accountability and transparency in the disbursement,” the coalition of host oil communities stated.
