Oil and gas
HOSTCOM commends NUPRC’S steadfastness in Devpt Trust Fund creation, management
The Host Communities of Nigeria producing oil and Gas (HOSTCOM) has clarified the involvement of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in the management of the Host Community Development Trust (HCDT) which has generated unnecessary agitation within the ranks of some misinformed entities who have resorted to issuing unwarranted threats in the media recently.
National President of HOSTCOM, Highness Dr Benjamin Style Tamaranebi (JP) said the involvement of the NUPRC is purely regulatory to ensure proper implementation to the benefit of all stakeholders and nothing more.
“It is necessary to state for the umpteenth time that the NUPRC is only involved in the execution of the HCDTs to the extant prescribed in the Petroleum Industry Act 2021 and the Regulations governing the implementation of the Trust which was approved by stakeholders and gazetted by the government.
“The Commission is not unaware of the antics of those who are not comfortable with the new regulations but would prefer the status quo for which host communities were short-changed to continue.
“It is in the light of this that we would like to make the following clarifications for the sake of the undiscerning members of the public.
“It is important, first and foremost to reiterate that the NUPRC is a regulatory body established by law to oversee the upstream petroleum sector, thus its primary objective is ensuring efficient and sustainable petroleum resource exploration and production in Nigeria. “This includes safeguarding the interests of all stakeholders, including the oil and gas host communities.
“Part of the functions of the NUPRC is to superintend and monitor the implementation of the Host Communities Development Trust as stipulated in Chapter 3 of the Petroleum Industry Act (PIA), 2021 and the Nigerian Upstream Petroleum Host Communities Regulation (NUPHCR), 2022. ”
Explaining further he said, Oil producing communities are expected to have a Board of Trustees (BoT) to superintend the HCDT as stated in section 240 through 244 of the PIA.
“It is imperative to apprise the public of the responsibilities of the respective incorporated trust which, amongst others, include the general management of the host community’s development trusts, disbursement of the capital fund (75% of the 3% annual OPEX) for the execution of host communities project and the appointment of fund managers to manage the reserve fund (20% of the 3% OPEX) as business venture (while 5% ot the 3% OPEX is for administrative cost).
“The reason for the attacks on the Commission is the introduction of the digital platform and implementation by OEM hostcomply, which has heated the operators and to end the sharp practices of the oil multinationals and their cohort.
“With this HOSTCOMPLY host communities are confident and safe with their 3 % Annual OPEX without blinking eyes.
“The PIA expressly situated administrative fees in the 5 percent of the 3 percent to situate with the settlors. What the commission did was digitizing end to end administration of the HOSTCOM provision through HOSTCOMPLY and directing operators and stakeholders to subscribe to usage for transparency and avoid human interference.
“The point must be made clear that the NUPRC is not a signatory to any of the HCDT accounts rather only the settlors and the BOTs of the Host communities are signatories to the trust accounts as provided in Regulation 23 (5d) of the NUPHCR of the Commission, which is to ensure effective monitoring of the implementation and operationalisation of the HCDT process.
“It is worth noting that since the enactment of the PIA 2021, the NUPRC has been working assiduously to ensure compliance by Settlors to the provisions of the law with the overall objective of fully operationalising the trusts for the sustainable prosperity of the host communities. “This effort by the Commission has led to the incorporation of over one hundred (110) HCDTs and funding the requisite accounts for about fifty (50).
“As the Mouth piece and Umbrella body we understand the imperativeness of safeguarding the HCDT funds for the full utilisation of the sustainable development and property of the host communities.
He callef on all stakeholders to cooporate and work with NUPRC to ensure that the host communities’ funds are efficiently and transparently managed for the benefit of the communities by working closely with the relevant leaders of the HCDT in driving positive change and development in the communities.
He commended the tireless, vibrant Commission Chief Executive Engr Gbenga Komolafe for his pragmatic style of leadership geared towards improving the social inclusion and further make attempt to increase production beyond OPEC quota by 2024 involving every critical stakeholders on board.
“We observed with keen interest how operators are doing everything possible to frustrate genuine efforts by sponsoring uninformed persons against seamless flow 3% annual OPEX.
“The Settlors or Operators are the major problems we have by failing to setup HCDTs and the mode of creating the trusts is another key problem where they supper imposing candidates of there cohort confusing the communities against the extant Law of PIA.
“Finally, we want to emphasise that HOSTCOM is not comfortable towards the unpresidented delay in implementation of PIA proper in our communities after over 2 years of enactment of the Act (law) for communities to enjoy the dividends of the annual 3% Opex developmentstrides.
“HOSTCOM call on the Commission to list and publish and treat defaulting Oil Companies as stated by PIA.
“We also call on Community’s leadership to conduct themselves not to be used by Oil multinationals drag matters to delay the implementation of the PIA rather work out there differences.
“HOSTCOM Leadership reiterated the complaint from Host communities in Andoni LGA HCDTs by Green Energy operations in OML11, SPDC in Khana, Gokana, Eleme LGAS in Rivers State while SPDC in EA Host Communities at Bayelsa in EKeremor LGA, how they have denied or left out up till now .
“During our engagement with various stakeholders across the Niger Delta oil-bearing communities we recorded numerous complaints against the settlors.
“Engr Gbenga Komolafe, FNSE and his team have done so well that from September 2023 today we have recorded over 130 HCDTS sported for registration and HOSTCOM restated its commitment to the sustainable development and empowerment of the communities.
“We remain dedicated to our mandate of ensuring peacefull co existence between settlors and communities for the interest of justice and fairness and we will continue to support the Commission for good regulations for the betterment of host communities for sustainable development and prosperity.”
The Federal Government may see a significant rise in revenue, up to N6.99 trillion monthly, following an increase in oil production to 1.8 million barrels per day (bpd), according to the Nigerian National Petroleum Company Limited (NNPC Ltd.).
In collaboration with industry stakeholders, the NNPC has intensified efforts to boost crude oil output to meet the government’s production targets.
This increase is coming as the average price of Brent crude remained stable at around $81 per barrel, creating favorable conditions for substantial earnings. Calculations based on current production levels and exchange rates show that producing 1.8 million bpd at $81 per barrel could yield approximately $4.37 billion in monthly revenue, which translates to N6.99 trillion at an exchange rate of N1,600 per dollar.
NNPC’s Group Chief Executive Officer, Mele Kyari, announced the milestone during a recent Oil Production War Room meeting at NNPC headquarters in Abuja, attended by top officials, including Petroleum Resources Minister Heineken Lokpobiri. Kyari emphasized that the increased production aligns with the Federal Government’s 2024 budget projections and long-term economic goals.
Chief Production War Room Officer Lawal Musa highlighted that the collaboration between the NNPC, security agencies, and local communities had been crucial to achieving the 1.8 million bpd level. The goal is now set to reach 2 million bpd by the end of the year, a target the NNPC is optimistic about achieving given the current momentum and security improvements in oil-producing regions.
Minister Lokpobiri commended the NNPC for achieving this production feat, describing it as a “remarkable milestone.” He expressed confidence that NNPC Ltd could not only meet but exceed the two million bpd target, further enhancing Nigeria’s revenue prospects.
The Chairman of the NNPC Board, Chief Pius Akinyelure, reinforced the board’s commitment to furthering this progress, urging the management and staff to pursue even greater achievements in the oil and gas sector. Dr. Paul Bebenimibo, spokesperson for Tantita Security Services Nigeria Limited, one of the private security agencies involved, confirmed the peaceful and secure environment in the Niger Delta as key to the production surge, assuring that further measures are in place to sustain and even increase output.
The drive to reach two million bpd underscores NNPC’s dedication to stabilizing and expanding oil production, with significant implications for Nigeria’s fiscal health and overall economic stability.
Kogi State Governor Ahmed Usman Ododo has called for enhanced cooperation between the state and the federal government to accelerate investment in oil exploration within Kogi State.
Governor Ododo made this appeal during a visit to Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), in Abuja on Thursday.
Special Adviser on Media to the Governor, Ismaila Isah quoted him to have reiterated his administration’s commitment to creating a favorable environment for investors, emphasizing the state’s readiness to work closely with the federal government.
He underscored the importance of fast-tracking oil exploration in Kogi in line with President Bola Ahmed Tinubu’s vision to expand exploration in Nigeria’s frontier basins.
Responding to the governor’s call, Senator Lokpobiri reaffirmed Kogi’s status as an oil-producing state and pledged the federal government’s commitment to attract investment to tap into the state’s vast oil resources. He highlighted the mandate of the Petroleum Industry Act (PIA), which tasks the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with exploring frontier basins.
He assured that the government is ready to deploy funds for further exploration in Kogi.
Senator Lokpobiri also commended Governor Ododo for his leadership and strides in governance, noting that these efforts will be key in attracting and sustaining investment in the state.
Kogi State became the first oil-producing state in Northern Nigeria in 2022 following the federal government’s confirmation of oil discoveries in commercial quantities.
As the newly appointed chairman of the Senate Committee on Petroleum Downstream, Senator Sumaila Kawu has promised to tackle the persistent lack of transparency in Nigeria’s petroleum industry, which he likens to a “cabal.”
Kawu was appointed as chairman of the Committee following the demise of Senator Ifeanyi Uba who represented Anambra South who held sway as the chairman of the committee
Speaking to newsmen on Wednesday at the National Assembly, Kawu detailed his plans to shed light on the sector’s operations and engage the public in meaningful dialogue.
With rising fuel prices impacting Nigerians daily, Kawu emphasized the urgent need for clarity and accountability within the industry. “Our first step will be to study the current situation and gather information from relevant agencies,” he stated.
He highlighted the importance of holding public hearings, which will allow citizens to voice their concerns and experiences directly.
Kawu’s committee will focus specifically on reviewing contracts awarded by previous administrations and overseeing the current contracts for refinery repairs.
By scrutinizing the agreements, Kawu targets to expose any irregularities and ensure that funds are being used effectively.
He remarked, “We need to ask the hard questions and hold a public hearing to allow Nigerians to express their views.”
In his commitment to transparency, Kawu detailed his plans to engage with stakeholders, including the Nigerian National Petroleum Corporation (NNPC) and refinery operators, to understand the barriers to efficient production and accountability.
According to him, the recent visits to the refineries have given course fir concerns about unmet production timelines, prompting a call for a more rigorous evaluation of the situation.
Kawu’s focus on transparency is not only about identifying issues but also about fostering a culture of openness within the sector.
He promise to use the committee to dismantle the “cabal-like” operations that have characterized the industry, ensuring that decision-making processes are accessible and understandable to the public.
Senator Kawu expressed determination to implement measures that will stabilize the petroleum sector and address the legitimate concerns of Nigerians.
By prioritizing transparency and public engagement, he expressed the hope to restore confidence in the management of Nigeria’s petroleum resources.
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