Otobong Nsekpong
An indigenous oil company operating in four local government areas in Akwa Ibom state, NNPC Exploration and Production Limited and Natural Oil Field Services Limited, has sensitized leaders of host communities on the provisions in the Petroleum Industry Act, 2022.
The sensitization seminar which took place at the conference hall of Hotel Farlem in Eket local government area had in attendance leaders from host communities in Eastern Obolo, ONNA, Ibeno and Etinan local government areas.
Those invited for the meeting were youth presidents, women leaders, village heads,Clan Heads and Paramount Rulers from the four local government areas.
Sensitizing the community leaders, Becky Jacks of DAP Energy Consult, highlighted the benefits of the new law which she said was aimed at bringing development to the host communities.
Applauding the provisions of PIA, she noted that past efforts at bringing development to communities where oil is drilled had always ended at the state level without going to the host communities.
She listed such interventions in the past to include 13% derivation funds, amnesty programme, NDDC and Ministry of Niger Delta affairs saying the enactment of the PIA has changed the narrative in favour of the host Community.
Accordingly she enumerated the structure as captured by the PIA law that will fasten the pace of development in the host community.
The structure include the Commission at the top which is the regulator followed by the Settlor which is the oil company.
For the community there will be a Board of Trustees followed by a management committee and lastly an advisory committee.
Becky also informed participants that 3% of operational cost of the IOC is for the community where 75% is for capital projects, 5% for administrative cost while the remaining 20% will be for either reserved or investment in business venture that will further create job opportunities and generate income to host communities.
Participants sought clarification on the definition of host community, how to arrive at the 3% operational cost as well as the sincerity of the company in dealing with host communities.
These issues were properly put in perspective by the erudite resource person who also called on communities to maintain peace and a cordial working environment to enable the company bring in more equipment that will shore up the 3% operational cost due to communities.
