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Total And Sustainable Dev Practice

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Corporate relations responsibility is a core value to any successful business venture and to Total Exploration and Production Nigeria (TEPN) Limited, it is not just a responsibility but a commitment. This commitment has propelled the company’s core value in corporate social responsibility which basically include respect for the environment and the enhancement of social and economic well being of communities hosting its facilities. The company has made concerted efforts in putting in place structures and programmes for the improvement of the well being of its host communities.

Little wonder Total has been adjudged the best in the oil and gas industry in terms of its corporate social responsibility delivery to host communities which is hinged on the concept of sustainable development.

The concept stresses that when indigenous communities run majority of their programmes through institutions and enterprise set up by themselves and for themselves with Total as partners, high sustainability is maintained.

This, no doubt, has greatly paid off for the company as amidst the restiveness that other oil companies face, for Total upsstreams companies in the country, the relationships with all the communities that host its facilities have been robust and cardinal. They have operated in relative peace with all their neighbours and stakeholders. The acceptance by host communities and the perception of the Company as a role model in Corporate Social responsibility delivery by the larger society have placed the company in a good stead in the oil and gas industry. Only recently, the company’s sustainable development practice was stretched to those at the other end of society as in mates of charity homes in Port Harcourt were showered with gifts worth millions of Naira.

Among the homes visited were Home for the Elderly, Harbour Road, Motherless Babies Home Borokiri, Global Foundation for Orphaned Chilren, Ikwerre Road by Rumuokwuta and David Bassey Ikpama Home Eagle Island.

Items donated to these homes include food stuff, baby cots/Matrrases, branded wooden beds, baby changing station, provisions among others.

Presenting the items, the company’s Public Relation Manager, Port Harcourt district, Mr. Ikwazom Norbert said, “it is the tradition of Total to share the concerns of its host communities and especially during festive periods, we let every facet of society have a feel of Total’s presence”.

Responding to the gesture, Cliff Jarrell, the father of the family of almost 40 orphaned children (Global foundation for Orphaned Children) said “it is a huge help, you have taken a huge burden from me. I thank Total for being agent of mercy. An agent of change; an angel to the home. You will surely be rewarded”.

In the same vein, Mrs Barile Austine Nwakoh, Matron of the Port Harcourt Children’s Home said Nigeria would have being a much better place if we have more of the likes of Total, urging others to emulate the company.

Indeed, Nigeria, specifically the Niger Delta would have been a better place if we had many more companies like Total in existence companies that would put the people at the centre of policy formulation and implementation in the delivery of social programmes in their domains.

The practice, rather, industry-wide has been the usual appeasement of community leaders through payments and assistance which ended up not meeting the real needs of the people.

And sometimes, the appeasement ends up in the pockets of some priviledged few.

At other times when these companies go beyond payments and assiatnace to the provision of basic infrastructure which did not, emanate from community consultation, it could not be sustained as the stakeholders or communities were disconnected from such programmes.

No wonder most projects carried out by companies that took this approach end up either being abandoned or decadent due to lack of maintenance. The people become discontented and naturally results to resentment and aggression.

Total had a paradigm shift in its corporate social responsibility delivery to host communities since 2007 which has set it apart in the oil and gas industry. Total’s approach has not only been adjudged the industry bench mark but has made the company to have commensurate value for projects and programmes initiated; and the host communities derive full satisfaction.

Hear what Mr. Edem Etim Ebong, Chairman, Ibeno Youth Development Council said in an interview:

“Total has been one of the best oil and gas company Ibeno has associated with. It is the first oil company so far that will sit down with the community and discuss their developmental needs so as to have a framework of agreement on what is expected from each party … the relationship has taken off well and it is cordial”.

In demonstration of the company’s commitment to the educational development of its host communities, the company in collaboration with the consultancy division of Benviatto Schools Limited organised the 2011 Career Guidance and Counselling Programme for secondary Schools in its, OML  58 areas. The 2011 edition was the third in the series which had about 163 students drawn from eleven secondary schools in OML 58, NYSC members, teachers and community representatives’.

The company’s General Manager, Sustainable Development and Public Affairs, Mr. Vincent Nnadi represented by Anthony, Umesi, head, Educational Development said the programme is one of the compnay’s valued programme aimed at exposing students to various career.

By the programme students from the communities are exposed early in their lives to the variety of courses and professions available. They are placed in a vantage position to choose courses that they have aptitude in as it will be easier to excel and add more value to society in such chosen fields.

Also a limelight was thrown on the importance the company’s attaches to the health of indigenes of its host communities during the maiden edition of the training workshop for Traditional Birth Attendants in Akabuka. It was organised in collaboration with Partners on Health Resources and over 62 participants from OML 58 communities. The aim is to build the capacity of participants on effective maternity services and health care delivery.

Total is one company that is in the forefront in the implementation of the Nigerian Oil and Gas Industry local Content Development (NOGIC) Act. An Act that is geared towards the establishment of facilities in the country and ensuring  they are patronised in a bid to bring Nigerians jobs back home for instance the Akpo Oil and Gas Deeproater Development Project (OML130) which delivered its first oil in 2009 had 7.85 million man-hours in local employment, 25,900 tonnes of steel in local fabrication and an overall Nigeria content value of 80 per cent.

The first Nigeria’s privately owned vessel, MV OSAYAME came into being through the support of Total.

One can therefore make bold to say that Total is one company that is committed to extending socio-economic benefits to all the areas where it operates.

Borrowing the words of Sir Winston Leonard Spencer – Churchill, “Courage is what it takes to stand up to speak and courage is what it takes to sit down and listen” Relationship can be marred or sustained through the courage to give and receive. And in every relationship there is time to give and a time to receive; a time to understand and to be understood. Therefore at every point, both ends have something to do which is usually a onerous task that takes courage to accomplish.

Total has performed its part of the pact creditably by paying the price to keep the relationship with host communities thereby getting a great value for both parties involved.

Price going to prove Warren Edward Buffet’s words that, “Price is what you pay. Value is what you get”.

Vivian-Peace Nwinaene

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.
It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).
The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.
Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.
He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.
Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.
Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.
“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.
He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.
“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.
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Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

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The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.
NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.
In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.
“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.
Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.
She feared the longstanding conflict could result in the eventual collapse of the country’s power.
According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.
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Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance  ……… Seeks PIA Review 

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The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
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