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Energia Limited and its joint venture partner, Oando Plc, have inaugurated the Board of Trustees of the Ndokwa West-1 Host Community Development Trust (HCDT) and signed a Memorandum of Understanding (MoU) with seven host communities in Delta State, in line with the provisions of the Petroleum Industry Act (PIA) 2021.
The inauguration, held in Asaba brought together officials of the Delta State Government, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), traditional rulers, community leaders and members of the newly inaugurated Board of Trustees.
Delta State Governor, Sheriff Oborevwori described the establishment of the Trust and the signing of the MoU as a demonstration of cooperation between the operating companies and their host communities.
Oborevwori who was represented by his Deputy Chief of Staff, Christopher Osakwe, urged the newly inaugurated Board of Trustees to “carry out its responsibilities with transparency, accountability and fairness”, while calling on host communities to continue protecting oil and gas infrastructure and adopt dialogue in resolving disputes.
The Managing Director and Chief Executive Officer of Energia Limited, Oladimeji Bashorun, said the Host Community Development Trust marked a new phase in the company’s relationship with its host communities. According to him, “the beginning of a new chapter in the relationship between Energia and our host communities,” built on partnership, shared responsibility and sustainable development rather than dependency.
Bashorun said although the Petroleum Industry Act provides the legal framework for host community development, the company’s community engagement programmes predated the law and had remained part of its operations since it achieved first oil in 2009.
He said, “Communities that host our operations should also share meaningfully in the opportunities created by those operations. Our success has always been closely connected to the success of our host communities.” He disclosed that the company has invested more than N15.94 billion in community development projects since it commenced production, covering roads, drainage systems, healthcare facilities, educational programmes, scholarships, youth empowerment initiatives, solar-powered street lighting and other social infrastructure.
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He added that the company allocates three per cent of its gross revenue annually to support sustainable development initiatives in its host communities.
Also speaking, Oando Asset Manager, Seyi Fawora, said the joint venture remained committed to implementing the Host Community Development Trust and strengthening its relationship with host communities. Meanwhile, the representative of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Dennis Eyitemi, described the inauguration as an important step in promoting host community participation in development.
He urged members of the Board of Trustees to remain accountable and transparent in managing the affairs of the Trust and to focus on the long-term welfare of the beneficiary communities.
Providing an overview of the Host Community Development Trust framework, the Delta State Solicitor-General and Permanent Secretary, Ministry of Justice, Omamuzo Irebe (SAN), said the Trust provides a structured mechanism for managing benefits accruing to host communities under the Petroleum Industry Act.
He commended Energia for making contributions beyond the statutory requirement under the Act and urged members of the Board to place community interests above personal interests while ensuring prudent management of the Trust’s resources.
In his acceptance remarks, Chairman of the Board, Chief Godwin Edeme, pledged to work with Energia Limited, Oando Petroleum Development Company and other stakeholders to ensure the effective implementation of the Trust for the benefit of the host communities.
