Energia Limited and its joint venture partner, Oando Plc, have set up the Board of Trustees of the Ndokwa West-1 Host Community Development Trust and signed a Memorandum of Understanding with seven host communities in Delta State as part of efforts to strengthen community development under the Petroleum Industry Act (PIA), 2021.
The ceremony, attended by government officials, regulators, traditional rulers, community representatives and oil industry stakeholders, marked the formal commencement of the trust, which is expected to oversee development projects and improve relations between the oil companies and their host communities.
Speaking on behalf of the Deputy Governor of Delta State, Sir Monday Onyeme, the Deputy Chief of Staff, Christopher Osakwe, praised Energia and the host communities for implementing the provisions of the Petroleum Industry Act through the establishment of the trust and the signing of the agreement.
Osakwe described the initiative as a model for collaboration and sustainable development, urging members of the newly inaugurated Board of Trustees to carry out their duties with transparency, accountability and fairness.
He also appealed to the host communities to continue protecting oil and gas facilities and embrace dialogue in resolving disputes.
The Managing Director and Chief Executive Officer of Energia Limited, Oladimeji Bashorun, described the inauguration as the beginning of a stronger partnership between the company and its host communities.
He said although the Petroleum Industry Act now provides a legal framework for host community development, Energia had been investing in its host communities long before the law came into effect and had maintained that commitment since achieving first oil in 2009.
According to him, communities hosting the company’s operations deserve to benefit from the opportunities created by those operations, stressing that Energia’s growth is closely linked to the progress of its host communities.
Bashorun disclosed that the company has invested more than N15.94 billion in community development projects, including roads, drainage systems, healthcare facilities, education, scholarships, youth empowerment programmes, solar-powered streetlights and other social intervention projects.
He added that Energia also commits three per cent of its annual gross revenue to sustainable development projects for its host communities.
The Asset Manager of Oando, Seyi Fawora, reaffirmed the joint venture’s commitment to implementing the Host Community Development Trust, saying the partnership would continue to strengthen its relationship with the communities.
The representative of the Nigerian Upstream Petroleum Regulatory Commission, Dennis Eyitemi, described the inauguration as a major step towards promoting community participation in development and urged members of the board to remain transparent and accountable.
The Delta State Solicitor-General and Permanent Secretary, Ministry of Justice, Omamuzo Irebe (SAN), commended Energia for exceeding the minimum requirements of the Petroleum Industry Act and advised the board to manage the trust responsibly in the interest of the communities.
The event ended with the swearing-in of members of the Ndokwa West-1 Host Community Development Trust Board of Trustees, while the board chairman, Chief Godwin Edeme, pledged to work closely with Energia, Oando and other stakeholders to ensure the trust delivers lasting benefits to the host communities and future generations.
