By Ken Afor
The federal government has mandated Chevron Nigeria Limited to settle conflicts between the organization and the communities in its Warri research and production region in Delta State, concerning the creation and naming of the Host Communities Trust Fund.
The organization implored the conflicting sides to preserve serenity during deliberation on the issue, emphasizing its resolute endeavor to guarantee that the appropriate action is promptly taken.
The controversy involving Chevron and the Ugbororo, Ugbegugun and Dembele villages in Warri South Local Government has been remedied concerning the designation of the local-trust fund set up for these communities and the constitution of its Board of Trustees.
Residents of the three communities were said to have gathered in the Escravos Terminal region, asserting that Chevron [had] violated the Petroleum Industry Act (2021).
Weighing in into the matter, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), shortly after the meeting between the oil firm representative of the communities on Wednesday in Abuja, specifically in a statement issued said that the matter should be resolved within two weeks.
According to the statement, “Having listened to the submissions of the parties, Komolafe issued a regulatory position and directed Chevron on the resolution of the matter which must be implemented within two weeks. He emphasised that the law which was very explicit on the matter in contention must be obeyed by all the parties concerned.
“Among other directives, Komolafe called for the immediate convening of consultation meetings with the communities on the proper delineation and naming of the fund in compliance with the PIA and the re-composition of the Board of Trustees in line with an earlier directive of the commission.”
The NUPRC was informed that their Warri Regional Office would have to supervise the process and that it must be concluded and the report submitted to them within two weeks.
Under the Petroleum Industry Act, 2021 (PIA), companies referred to as settlors must incorporate a host communities’ development trust (the Trust) by mandate.
Companies with interests in Petroleum Prospecting Licences or Petroleum Mining Leases whose area of operation lies within or is related to any community(s) are known as Settlors.
The Trust’s incorporation needs to happen within the timeline stated in the PIA.
