14 Delta host communities call on FG to revoke licenses of NEPL, NECONDE over refusal to implement PIA

14 Host communities to the Nigeria Exploration Petroleum Limited, NEPL and NECONDE Energy Limited in Delta State, have called on the Federal Government to revoke the licenses of the two companies operating the OML 42, over perceived refusal to implement the Petroleum Industry Act, PIA and other issues as it relates to the Local Content Law.

Our Principal Correspondent, reports that the aggrieved Delta Host Communities made the demand in an open letter addressed to President Bola Ahmed Tinubu.

The letter dated Monday December 18 and signed by the Chairman OML 42/Kantu Community,

Mr. Windfree Atemubaghan, PRO of OML 42 Communities’ Forum, Oyimi Samson, Secretary-General of OML 42 Communities’ Forum, Mr. Francis Ayeku and Treasurer, OML 42 Communities’ Forum, Amb. Billy Ekele, averred inter-alia: "We wish to further state that despite the huge production to the National treasury of Nigeria, the JV operators of OML 42, since the divestment of this asset to the JV partners (formerly NPDC) and now NEPL/ Neconde Energy Limited, has failed the host communities woefully in the following areas of Oil and Gas operation in the Niger Delta region, as it affect the OMI 42 host communities.

“THE ISSUES AS FOLLOWS

“1. FAILURE TO IMPLEMENT LOCAL CONTENT ACT: The operators as Nigerian companies by law, is expected to uphold the enforcement and implementation of the laws of local content act, but the operators are not in any form encouraging indigenous vendors to build capacity, rather secretly giving out contracts meant for community vendors to their friends and associates outside the host communities.

“Whereby making it very difficult for the host communities to build capacity in terms of contracts, hence, we are worried the management of these companies, having agreed in our previous meetings to release the community base contracts to the host communities.

"It is pertinent to note that having agreed to release the community base contracts, but till now the JV partners (formerly NPDC) and now NEPL/ Neconde Energy Limited and Amaranta) refuse to comply to our previous agreement, dated 4 OCT, 2023,

"This is a clear demonstration that companies register under the law of the Federal Republic of Nigeria, which ought to respect the Local Content Law as demonstrated otherwise in their attitude that may cause breakdown of law and order, that will lead to shut-down of oil production which will affect the revenue of the Nation. 

"2. FAILURE TO IMPLEMENT SOCIAL COOPERATE RESPONSIBILITIES OF THE OPERATORS: It is the constitutional responsibility of operators of oil and gas companies in anywhere in the world to meet up to the social cooperate responsibilities to their host communities. But these operators, have failed in the aforementioned responsibilities by not developing the human capital and infrastructural needs of our host communities. Since inception of their joint venture commencement, no single community project(s) has been executed in the host communities, except electrification project in only two communities, despite the huge production of crude oil by the operators. No provision of skill acquisition programme, scholarship etc for the teeming youths of the area of their operations. 

"3. FAILURE TO RESPECT ENVIRONMENTAL ETHICS AND LAW IN THE OPERATION OF OIL AND GAS ACTIVITIES: The operators of the OML 42 NEPL AND NECONDE ENERGY LTD JV) are using barging  to load crude oil in some of the six(6) flow stations in OML 42 and supply to mother vessels in the Atlantic Ocean, thereby causing environmental pollution on the soul of the host communities, this has further damaged the entire eco system of the marine economy, making it difficult for the inhabitants to live with their God-given natural occupation.

"These barging, has caused pollution that have driven away the aquatic life of the fishes and animals in the water and land, constantly causing environmental degradation, it is seen that the act of barging crude oil while a systematical pipeline network is built as an oil and gas infrastructure since the discovering of crude in 1956 in Nigeria to move crude from production fields to terminals for onward sales, is for efficient and accurate data base taking of all operators of oil and gas in the Niger Delta, while in only OMI. 42 is barging, it is a way of stealing the common wealth of the Nation treasury. 

"4. FAILURE TO COMPLY WITH THE PETROLEUM INDUSTRY ACT(PIA) IMPLEMENTATION BY THE OPERATORS: The PIA provides for development of host communities in human and capital infrastructures, due to the oil and gas exploration and exploitation activities, which damage the environment where oil and gas is being exploited.

"It's pertinent and surprising to note that the operators of OML 42 are negligent in their duty to fast-track the process of the implementation of the PIA that has been signed to law since 2021, this is a clear demonstration that companies register under the law of the federation are deliberately refusing to implement the PIA to their host communities, making the host communities to suffer more crude oil production damages.

"We therefore call on the Federal Government to revoke the licenses of the JV operators, which has failed to implement the PIA.

"Conclusively, we appeal to State and Federal Government to quickly come to our aid to save the souls of the oil producing host communities of OML 42.”

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