The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has stepped in to address a conflict between Chevron Nigeria Limited and communities in the Warri exploration and production area in Delta State. The issue revolves around the set-up and naming of the Host Communities Trust Fund.
NUPRC has urged Chevron and the concerned communities to peacefully resolve their differences while emphasizing the need for a swift and fair resolution.
The dispute stems from disagreements between Chevron and the Ugbororo, Ugbegugun, and Dembele communities in Warri South Local Government.
These communities are at odds over how the host community trust fund should be named and who should be part of its Board of Trustees. Protests occurred in the Escravos Terminal area where the communities accused Chevron of not adhering to the Petroleum Industry Act (2021).
To address this, the Chief Executive of NUPRC, Gbenga Komolafe, facilitated a meeting between the conflicting parties at the NUPRC’s Abuja headquarters. He directed Chevron to resolve the issue within two weeks under the supervision of NUPRC’s Warri Regional Office.
The commission outlined that this process should be completed within the stipulated two-week period, and a report must be submitted to the NUPRC for review and action.
A part of the NUPRC statement read
“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 emphasized 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 Backstory
On November 23, a group of protesters on boats staged a demonstration near Chevron Nigeria Limited’s Terminal and Escravos Gas-To-Liquids (EGTL) jetties, causing a blockade at the Escravos Terminal located within the company’s Western operations area.
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The protesters had specific demands: they called for the renaming of the Warri Kingdom Onshore Host Community Development Trust (HCDT) and sought to have a say in nominating additional individuals to join the Board of Trustees of the HCDT.
Additionally, they requested the mobilization of community workers to participate in the EGTL Turn Around Maintenance activities.
What you should know:
The federal government is working to increase the country’s oil production and any threat to sustaining and increasing baseline production is addressed with immediate effect.
Today, November 30, OPEC members will meet virtually, and Nigeria will find out if it will stick to a new baseline of 1.38 million barrels per day in 2024 or retain the 1.78 million barrels per day quota assigned to the country in 2023.
Note that the country has been trying to make its case for a higher baseline than 1.38 million barrels per day in 2024, in line with its strategy to increase oil production while wooing upstream oil investors.
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