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IOCS And GMOU Implementation

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A critical  component of the operations and activities of international oil companies (IOCS) in Nigeria, is in the area of community relations. There  is a symbiotic relationship between (IOCS)  and their host communities, and this relationship determines the success or otherwise of the prospecting oil companies in their areas of operation.

However, activities of most of the IOCS  in the Niger Delta had been fraught with conflicts, resulting from the absence of an agreeable community engagement concept that will satisfy the yearnings of the host communities, as well as the corporate  objectivities of the prospective companies.

Consequently, the evolving crisis had brought  untold  consequences  on the  corporate  partners, with a negative  prospect of devaluation of the core values of sustainable development  and corporate  social responsibility  policies in  line with international best practices.

In most communities, such sharp disagreement and lack of consensus had resulted in the  wanton destruction of lives and the facilities of the oil companies.  The ugly trend stifles the growth and expansion of activities of the affected oil companies and also create disharmony  among the host communities.

Analysts had however attributed the perennial  conflicts between oil companies and their host communities in the Niger Delta to what is commonly referred to as “conceited  development  policies”.

Such policies according to analysts, places  the host communities  in an equal partnership with the oil companies, as they are always  at the receiving end and not direct   participants in the process of planning, and execution  of development projects of which they are direct beneficiaries.

This approach to community development, believed to be lacking in consultation had over the years triggered suspicion and mutual  distrust  among oil companies and their  host communities, thereby negatively affecting the prospect  of  a thriving  partnership and corporate  growth  among  IOCS and their  host communities.

However, considering their staggering investment, and also realising the consequences of mutual corporate distrust, arising from the lack of a more acceptable community development model, IOCS are beginning  to evolve a new concept aimed  at attaining its corporate goals.

One of such measures aimed at responding to the imperatives of corporate social responsibilities, in the area of community relation is through the Global Memorandum of Understanding (GMOU) which  companies  now sign with communities neighbouring  their  clusters of operation, on agreeable terms.

The new model  which is based on direct participation by the host communities is structurally targeted at addressing past  development lapses and consolidate a thriving partnership between companies  and their host communities.

Most oil  companies  have keyed into the GMOU, process through the  Nigerian National Petroleum Corporation, NNPC Joint Venture. In the course of gathering  confidence in the strategic implementation of the GMOU process, companies  are also expanding the frontiers through  partnership  with Development Agencies   such as the Niger Delta Development Agency NDDC, and the various levels of government.

At the drive of the GMOU process, in Rivers, gathers momentum Chevron Nigeria Limited had taken advantage  of the  community  engagement model to promote it corporate objectives within  communities neighbouring  its clusters of  operation in the state.

Recently at  the Second Annual General  meeting of the Kula Regional Development  council, a body elected to manage the GMOU in Kula Community, the management  of Chevron, used the opportunity to take stock and rekindle its commitment to the process.

The management of the company, which was represented by, Mr. Ngo Kio at the event, expressed appreciation  over  the effort of the Kula RDC in the utilisatioin of available  fund for the  development  of the community. He said the GMOU as a successful  replacement  to the old system  of direct contact  with individual communities, will continue to receive the attention of the company   to promote a harmonious  relationship between  them and the host community.

He also commended its development  partners such as the NDDC, the Rivers State Government  and the Akuku Toru LGA, for the  support and expressed hope that “the interface  will bring  lasting peace in the Niger Delta.”

The Chevron management assured that communities will be encouraged  through funding and capacity  building  to take decisions on their development  process, while the GMOUS will be periodically reviewed based on terms of agreement.

Chairman of the Kula RDC, Hon Stanley Benibo also commended the  management  of Chevron for their   unflinching support to the GMOU process and assured that all money  giving by the company for the GMOU will be judiciously used. Hon Benibo however, cautioned against the erroneous impression by some community members that money voted for the GMOU process should be shared among the people.

According to him “It was disservice to the people for people not to pay back loans collected from the GMOU fund”, and also condemned  the attitude of some beneficiaries  of the evolving transport  scheme who  refused to pay back the money based on terms  of agreement. Such  attitude  he pointed out will  affect the maximal impact of the fund on the people.

In his remark, the Amanyanabo of Opukula, HRM, Dan Opusinji, cautioned against division among the people  and said lasting peace can only return to the embattled Kula community when the people speak in one accord.

Also commenting at the commissioning of Four housing units, at Robertkiri, Boro; Afforiaina, and lucky land, all in Aku LGA, recently, Barr, Charles Opurum who represented  the Rivers  State  Commissioner for chieftaincy  Affairs. Mr. Charles  Okay, suggested to  Chevron, to create  and alternative measure  of dealing directly with Traditional Rulers, rather than the RDCS. He noted that Traditional  rulers as the custodian of the traditional values  deserves, such  Prime attention. He said  RDCS should always  ensure that accountability  is the watchword  to avoid profligacy and mismanagement of available fund.

Similarly, other multinationals, such as total exploration, Mobil Nigeria, Pan Ocean  Limited among others has also adopted direct community engagement  models as approaches of stemming the  pace of disagreement among them and their host communities to avert the drift in sustainable community development .

Another  critical aspect of the GMOU process which  analysts  has canvassed support for is the area of domestication of the  local content policy through  the empowerment of  local  contractors. However, analysts are of the view, that while indigenous  contractors should benefit from the policy, effective monitoring should be put in place to ensure that projects awarded to them are completed according to specification. This arises from the growing tendency  of abuse of projects by indigenous contractors who see projects as means of appeasement rather them platforms for collective economic benefits to the people.

Also in line with the principles of international   best practices in the oil and gas sector, the Rivers State government has through its supervisory Ministry canvassed  for an effective and appropriate   energy policy in the State, especially in the area of community engagement, access to finance, regulatory  frame work and indigenous human capacity development through corporate partnership. These were  part of the recommendations of the international oil and gas  summit in the state.

 

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Can Cheap Batteries Deliver COP31’s 35% Electrification Goal?

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Electrification will be the major focus of the COP31 United Nations climate conference, to hold in Antalya, Türkiye, from today, November 9 to 20, 2026. The host country will invite the attending nations to sign onto a voluntary pledge to reach 35 percent electrification on a global level by 2035. J
ust a year ago, this target may have seemed overly ambitious, but now, experts say that a number of factors, including volatile oil and gas markets stemming from the war in Iran, paired with enormous advances in clean energy technologies, have put that goal within “striking distance.”
The months-long closure of the Strait of Hormuz has catalyzed the clean energy transition and the rate of electrification around the world. Before the United States and Israel began their military offensive in Iran back in February of this year, one fifth of the world’s oil and gas trade flowed through the Strait of Hormuz. Its abrupt closure therefore sent global oil and gas markets into turmoil and sent energy-importing countries around the world scrambling for alternatives, especially ones that they could produce and control on their home soil. And, just like that, renewable energy became the new face of energy security.
“Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”
But there is another, quieter force that has made this rapid global pivot toward renewable energies possible – the energy storage boom. Energy storage is critical to ensure grid stability in the face of rapid electrification and the increasing representation of intermittent energy sources like wind and solar power in national energy mixes. Major advances in the sector in recent years have made battery storage more affordable and more scalable than ever before – just in time for the world’s most recent bout of ‘fossilflation.’
“What’s really become a game-changer in the past two years is the rapid deployment of large-scale batteries that can hang onto ever larger amounts of power to be used throughout the day to smooth out demand and avoid overtaxing the grid,” Forbes wrote in a Monday report.
The second quarter of this year saw the United States’ largest-ever energy storage expansion, at 20.2 gigawatt-hours of additional capacity, according to a report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. That puts this year’s total additions at 30.8 GWh – and counting.
“Although President Trump is no fan of renewable energy or batteries, utility-scale energy storage capacity still nearly doubled to 165 GWh from 88 GWh in the first 18 months of his administration,” the Forbes article goes on to detail. “Grid operators, utilities and data center developers are all buying batteries as fast as they can to meet power demand and improve grid reliability. As a result, battery energy storage systems supplied more electricity to the grid in the year’s first eight months than in all of 2025.”
Ironically, despite his best efforts, Donald Trump is overseeing one of the United States’ most significant clean energy booms in the nation’s history as solar and wind have simply become too cheap to fail. And the United States is not alone. Buoyed by a flood of cheap solar panels and battery storage systems coming out of China, even the world’s poorest countries are experiencing clean energy revolutions.
“Some countries are pulling off stunningly fast energy transitions, adding solar so rapidly, it’s become a major source of electricity over the course of years — not decades,” reports CNN.
Pakistan has become the surprise poster child of this trend as residents install rooftop solar and batteries faster than any other market on Earth, as these systems provide electricity more cheaply and reliably than the country’s own beleaguered energy infrastructure. In addition, emerging economies including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia have all overtaken the United States – the world’s largest economy – in their clean energy transitions.
By Haley Zaremba
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MAN, Ministry Tackle High Electricity Costs, Erratic Supply

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The Manufacturers Association of Nigeria has said it is working with the Federal Ministry of Power to address high electricity tariffs, unreliable grid supply and rising energy costs that are undermining industrial production and competitiveness in the country.
The association said the collaboration would focus on developing sustainable energy solutions for manufacturers, including renewable energy, battery storage, captive power generation and improved electricity distribution.
Speaking during the second edition of the Manufacturers Energy Security and Energy Efficiency Summit in Lagos, the President, MAN, Dr. Ifeanyi Okoye, regretted that high electricity tariffs, unreliable grid supply and heavy dependence on fossil fuels had made industrial production exceptionally difficult.
Okoye said energy expenses consumed nearly half of some factories’ operating budgets, weakening their competitiveness, increasing product prices and threatening jobs.
He said manufacturers had continued to operate their own power infrastructure despite paying for electricity from the national grid.
“When energy expenses claim nearly half of a factory’s operating budget, competitiveness evaporates, retail prices skyrocket, and jobs are placed on the line,” he said.
Okoye said the association was moving beyond advocacy to implement practical solutions through its Industrial Energy Cost Reduction and Energy Support Programme, as key partners in delivering the initiative.
According to him, the programme would promote factory-roof solar installations, battery energy storage systems, captive natural gas generation and smart energy management networks to reduce production costs and protect manufacturers from global fuel price shocks.
He, however, stressed that manufacturers needed affordable, long-term financing to undertake the energy transition.
 “We cannot finance 21st-century industrial transitions with 30-day commercial bank loans at cut-throat interest rates,” Okoye said.
He said the summit would bring financial institutions, climate funds and green investors together to develop long-tenured, low-interest financing instruments, carbon credit opportunities and asset-financing
Also speaking, the Minister of Power, Joseph Tegbe, warned industrial customers against unauthorised electricity connections.
He disclosed that investigations had uncovered about 14 industrial customers along a particular corridor who owed more than N400m in unpaid electricity charges over several years.
Tegbe said such practices deprived the electricity sector of revenue needed to sustain power supply and unfairly burdened consumers who paid their bills.
“Such conduct deprives the sector of revenue that we need to sustain the supply, and unfairly burdens consumers who pay honestly,” Tegbe said.
The minister vowed to recover the outstanding charges and hold those responsible accountable, urging MAN to encourage its members to maintain lawful electricity connections and comply with applicable regulations.
 Tegbe acknowledged that manufacturers continued to struggle with electricity interruptions, poor power quality, vandalism and electricity theft, adding that the government was directing investments towards addressing the underlying problems.
Speaking on behalf of manufacturers, the MAN South-East Chairman, Ada Chukwudozie, said energy had become a question of survival and competitiveness for Nigerian manufacturers.
 She said manufacturers were increasingly financing and managing their own electricity infrastructure while struggling with rising production costs and limited access to capital.
 “We are effectively running a second power system paid for by ourselves, besides the grid we also pay for. And that is why for the Nigerian manufacturer, energy is no longer simply an operational issue. It is a question of survival and competitiveness,” Chukwudozie said.
 She explained that unreliable electricity supply forced manufacturers to make difficult choices between purchasing energy and raw materials, maintaining equipment and paying workers.
The regulator added that manufacturers could strengthen their competitiveness by adopting cleaner energy sources as international markets increasingly imposed environmental and carbon-related requirements on products and supply chains.
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Reps Panel Dismisses Petition Against NIPCO gas Licence

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The House of Representatives has dismissed a petition seeking the cancellation of gas distribution licences awarded to NIPCO Plc, ruling that the petitioners failed to provide credible evidence to substantiate their allegations.

The decision followed a review by the House Sub-Committee on the Petition concerning NIPCO Plc, which rejected the complaint filed by the Nigerian Energy Security Watch Group (NESWG) for lacking substance and evidential support.

The petition had called for an investigation into, and the suspension and cancellation of, gas distribution licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NIPCO for Lagos, Ogun, Oyo and Osun states, as well as the Lagos and Lekki Free Trade Zones.

Announcing the decision last Thursday, the Chairman of the Sub-Committee, Peter Aniekwe, said the petitioners relied on hearsay and failed to establish any wrongdoing in the licensing process.

“At its sitting today, the Sub-Committee resolved not to proceed with the investigation, and the petition is accordingly dismissed,” Aniekwe said.

The committee, which also includes Dahaltu Shehu, was constituted in October to examine the petition. It was granted an additional 14 days on October 26 to conclude its assignment.

Aniekwe said the issuance and regulation of gas distribution licences were statutory responsibilities of the NMDPRA under the Petroleum Industry Act, while stressing that the National Assembly would continue to exercise oversight over the process.

He disclosed that the regulator had committed to completing and rolling out gas distribution licensing in the fourth quarter of 2026, adding that the committee would monitor the implementation.

“Nigerians deserve a gas market that is open, competitive and safe, and investors deserve rules that are clear and stable,” he said.

The lawmaker reaffirmed the House’s commitment to considering petitions from individuals and organisations with genuine concerns about the petroleum sector, saying “each complaint would be assessed on its merits”.

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