From Ighomuaye Lucky, Benin
Edo State Governor, Mr. Godwin Obaseki, has called for an increased cooperation among stakeholders and host communities to usher in prosperity in the oil and gas producing areas of the state.
He made the at a one-day stakeholders forum organised by the Edo State Commissioner for Mining, Oil and Gas, Hon. Ethan Uzamere at the weekend in Benin which was aimed at rallying oil and gas stakeholders to brainstorm on ways to ensure effective implementation of the Petroleum lndustry Act (PIA) and to set foundation to develop Edo State policy for the industry.
Represented at the event by the Commissioner for Local Government, Monday Osaigbovo, Obaseki said the purpose of the stakeholders engagement was to discuss freely the implementation of the PIA for sustainable peace.
“The oil and gas sector till date is the mainstay of the Nigerian economy and as such, there is need to evaluate its contributions to communities and the state at large. This forum will afford stakeholders the opportunities to freely discuss ways to strengthen the process of PIA implementation”, Governor added and reiterated the commitment of his adminstration to improve the lives of residents in the three oil producing local government areas of Orhionmwon, Ikpoba-Okha and Ovia North-East.
In his opening remarks, convener of the forum, Hon. Ethan Uzamere, stated that the state government was at the forefront in the implementation of the PIA and that the Ministry is utilizing the forum to set foundation for the development of a comprehensive working policy for the sector.
“The Act seeks to promote the ease of doing business in the oil and gas industry, regulating the midstream and downstream sector, as well as making clear the roles of all players in the sector. It provides for fast approvals of licences to investors, removes bureaucratic bottlenecks to end fuel importation and subsidies while strengthening the value of the Naira and creating job opportunities in the petroleum value chain, among others”, Uzamere explained.
He stressed on the Host Community Development Trust, a provision of the PIA, saying that the Trust would guarantee benefits for the communities only if cooperation and peace was guaranteed in the areas of operations.
“One of the most important offshoot of the Act is that it seeks to guarantee a better and more impactful host community relations.
“Under this Act, Oil Companies are to make yearly contributions of three per cent (3%) of their yearly operating expenditure to the Trust, geared towards improving the standard of living of the host community as well as guaranteeing accountability in the management of developmental funds”, Uzamere stated.
He further outlined ways to entrench the gains of the Act for the benefit of the people which he said includes building a robust collaboration with security agencies to protect investments in oil and gas across the State, encouraging community partnerships and engagement, and ensuring that local content is given priority in every segment of the industry.
Representatives of some of the Host communities drawn from the three Oil producing areas of the state thanked the Edo State government for organizing a forum for such critical deliberations, noting that it was the first time it was being organized.
A participant, Amadin Odiase said his community will grant oil operators utmost cooperation going further since the government has helped to elucidate on gray areas of the Petroleum Industry Act.
Also, the Oba of Benin who was represented at the event, enjoined the host communities to work with the Oil companies and the state government to bring the desired growth and development to the state.