Energia, Oando deepen host community partnership, invest N15.9bn in Delta development

ENERGIA Limited and its joint venture partner, Oando Plc, have strengthened efforts to entrench sustainable development and improve relations with oil-producing communities by inaugurating the Board of Trustees of the Ndokwa West-1 Host Community Development Trust (HCDT) and signing a Memorandum of Understanding (MoU) with seven host communities in Delta State.

The initiative, executed in Asaba, is expected to deepen community participation in the management of oil wealth while ensuring transparency and accountability in line with the Petroleum Industry Act (PIA) 2021.

The inauguration is regarded as a milestone in the implementation of the PIA’s host community provisions, which require oil and gas operators to establish trusts aimed at fostering peace, sustainable development and shared prosperity in producing communities.

Speaking at the ceremony, the Managing Director and Chief Executive Officer of Energia Limited, Mr. Oladimeji Bashorun, disclosed that the company has invested more than N15.94 billion in community development projects since achieving First Oil in 2009, covering road construction, drainage infrastructure, healthcare facilities, educational programmes, scholarships, youth empowerment, solar-powered street lighting and other social intervention projects.

He also revealed that Energia commits three percent of its gross annual revenue to sustainable development initiatives for its host communities, describing the inauguration of the Trust as a new phase in the company’s relationship with its stakeholders.

According to Bashorun, the company’s philosophy has always been anchored on partnership rather than dependency, stressing that its commitment to host communities predates the enactment of the Petroleum Industry Act.

“Our success has always been closely connected to the success of our host communities. Communities that host our operations should also share meaningfully in the opportunities created by those operations,” he said.

 Representing the Delta State Government, the Deputy Chief of Staff, Hon. Christopher Osaskwe, who stood in for the Deputy Governor, Sir Monday Onyeme, commended Energia, Oando and the seven host communities for successfully establishing the Trust and executing the MoU.

READ ALSO: FG dismisses tax hike reports, says focus is on expanding tax base

He described the development as evidence of a shared commitment to sustainable development and peaceful coexistence, while urging members of the newly inaugurated Board of Trustees to administer the Trust with transparency, fairness and accountability.

Osaskwe also appealed to host communities to continue protecting critical oil and gas infrastructure and adopt dialogue as the preferred mechanism for resolving disputes.

Also speaking, Oando’s Asset Manager, Mr. Seyi Fawora, reaffirmed the Joint Venture’s commitment to the effective implementation of the Host Community Development Trust, noting that the partnership remains focused on building stronger and mutually beneficial relationships with its host communities.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), through its representative, Engr. Dennis Eyitemi, described the inauguration as a major milestone in promoting host community participation in development and urged the trustees to uphold accountability and transparency in managing the Trust.

Similarly, the Delta State Solicitor-General and Permanent Secretary, Ministry of Justice, Mr. Omamuzo Irebe (SAN), commended Energia for exceeding the statutory obligations stipulated under the Petroleum Industry Act. He advised members of the Board to place community interests above personal considerations while ensuring prudent management of the Trust’s resources.

The event attracted senior officials of the Delta State Government, representatives of the NUPRC, traditional rulers, community leaders, oil and gas stakeholders and members of the newly inaugurated Board of Trustees.

The ceremony ended with the swearing-in of the trustees, after which the Chairman of the Board, Chief Godwin Edeme, pledged to work closely with Energia Limited, Oando Petroleum Development Company and other stakeholders to ensure that the Trust delivers lasting benefits for both present and future generations.