Oil & Energy
IOCS And GMOU Implementation
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.
Oil & Energy
Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Oil & Energy
Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
Oil & Energy
Administrator Assures Community Of Improved Power Supply

The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor
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