In line with the Federal Government’s attempt to address persistent issues prevalent among oil-producing communities throughout the Niger Delta, Green Energy International Limited (GEIL) has opened a Host Community Development Fund (HCDT) in full compliance with the Petroleum Industry Act.
In August 2021, President Muhammadu Buhari signed the Petroleum Industry Act (PIA) into law, providing the legal provisions necessary for the establishment of the Host Community Development Fund (HCDT) by oil producing companies operating in the region.
The Petroleum Law mandated that oil producing companies set aside three percent (3%) of their annual operating expenses (OPEX) for the development of host communities, which would be managed through HCDT, a move applauded by industry stakeholders. One that would be beneficial to the host communities.
According to the Chairman, GEIL, Professor Anthony Adegbologbe: “Since the IIA was signed into law, the GEIL and LekOil Otakikpo (JV) joint venture has engaged the community in a series of community-focused activities with the good people of Ikoro City at a grassroots level, Mainly to build support for a needs assessment which eventually led to the birth of a Community Development Plan (CDP) which has since been endorsed by community members.
Added Adegbulugbe, “This was quickly followed by the establishment of HCDT through community stakeholder engagement, approvals by the Nigerian Exploration and Production Regulatory Commission (NUPRC), and registration of trust with the Corporate Affairs Commission, CAC, as the ‘Ikuru Town Host’ of the Community Development Fund.”’
He went on to praise the members of Ikuru City for their cooperation from the start, and vowed that the company would continue to do more than was required of it, to ensure that the community was well taken care of.
Also commenting, Ikuru City Representative HRM King (Dr) Aaron Miller Ikuru KSC commended GEIL for its commitment to community development, describing the company as a reliable partner.
According to him: “Every member of the community is satisfied with the high level of commitment shown by the joint venture towards the improvement of the community in the areas of education, health, social development of the population and the quality of life in general over the years. “
The HCDT aims to address hostilities by oil-producing communities towards operators in parts of the region, which has resulted in massive theft of crude oil daily and in some cases the destruction of oil facilities.
It also aims to improve the development of oil communities, improve their standard of living, and give them a sense of belonging to the ownership and operation of oil and gas assets in their field.
GEIL opens Ikoro Host Community Development Fund