Business
Expert Decries Lack Of Mous Among Multinationals In Onne

Elder statesman and foremost Environmentalist, Engr. Olu Wai – Ogosu, has attributed the brewing conflicts between oil companies and their host communities in the Niger Delta to the absence of effective regulatory policies.
Engr. Wai-Ogosu said the policies such as Memorandum of Understanding (MOU) and the breach of other existing agreements signed by the companies and their host communities have been responsible for the conflicts.
The elder statesman said that despite the numerous companies operating in Onne, their was no meaningful host community engagement as no MOU was signed with the people of Onne.
Wai-Ogosu who described the practice in Onne and Niger Delta as, “corporate negligence “ called on all multinationals and corporate organisations operating in the Niger Delta to introduce a more practical community engagement model and implement the Memorandum of Understanding (MOUs) signed with their host communities.
In an interview with The Tide, yesterday in Port Harcourt, he pointed out that, “modern industry practices require that both the oil firms and the host communities operate in mutual agreement as well as synergy through a well established community engagement model that would be subject to upward reviews to suit evolving developments to avert crisis.”
He noted that oil related conflicts has been a predominant feature of the Niger Delta over the years and urged prospecting oil firms and other corporate organisations in the Niger Delta to learn from the experiences of the past to improve their host community relations by contributing meaningfully to the development of their host communities.
The Environmental expert, said that the host communities were major stakeholders in the oil and gas business, noting that their active participation in the sector was an elixir to smooth business operation.
“It’s certain that business activities can’t strive in an environment where their is mutual disagreement and incessant conflicts, the federal government policies in the Onne oil and gas free zone are not properly directed.
“There are fillers that Snepco, a major affiliate of Shell want to relocate from Onne over flimsy and unjustifiable excuses, this is totally unacceptable to the people of Onne.
“Global standards in oil and gas business require that host communities be given their due sense of belonging to promote peace and development, the business concern must be accommodative of the development interest of the host communities, any company that gloss over the interest of its host communities is bound to face challenges”, he said.
He cautioned against the influx of substandard oil firms in the Niger Delta and called on the federal government to enact laws that will compel multinationals to implement all agreements signed with their host communities
According to him: “Not all companies that prospect for oil in the Niger Delta has the capacity for effective business operation, some of them don’t have the industry experience and lack the potency to make the right impact.
“The implantation of the Petroleum Industry Bill will address the inherent challenges in the oil and gas sector, especially in the development of oil and gas producing communities.”
By: Taneh Beemene