The Executive National Chairman, Host Communities of Nigeria, Producing Oil and Gas (HOSCON), Prince Mike Emuh, has urged the National Assembly, to stipulate that 2.5 per cent per flow station production quantum be given to producing host communities to enable them access crude oil to administer the modular refineries recommended for the 11 oil and gas producing states.
Emuh, who spoke against the backdrop of the guarantee by Senate President, Dr Ahmad Lawan, that the Petroleum Industry Bill (PIB) would be passed before the end of this month, said, “In the memorandum of HOSCON delivered to NASS, we advocated for 2.5 per cent per flow station production quantum to be given to the producing host communities in order for the host communities to have access to crude oil to run the modular refineries being proposed by HOSCON across the 11 oil and gas producing states.
“In totality, we say no to 10 per cent equity participation because the host communities cannot afford it, as it is the responsibility and duties of NNPC and Federal Ministry of Petroleum Resources,” Emuh stated.
The HOSCON chairman also urged the National Assembly to make it obligatory for International Oil Companies (IOCs), and National Oil Companies (NOCs), functioning in Nigeria to site their corporate headquarters in different expanses of operations in the oil and gas producing states.
“The IOCs and NOCs should relocate their corporate headquarters to their various areas of operations and bases in the oil and gas producing states as they have no business outside their field of operation.
“They are not getting their crude oil for their operation where they currently reside their corporate offices. The relocation of their corporate offices to their areas of operations will create the needed employment and development for the host communities.
“We, HOSCON, would want to encourage the 9th NASS to expedite action on the passage of the PIB that has remained unattended to for the past 14 years. It will be of rich history when the 9th NASS passes this bill as the first law to be in favour of the host communities producing oil and gas in Nigeria.
“This will create room for industrialization of communities and employment for the people of the communities, who are already impoverished by the present system in place. This proposed system by HOSCON will also reduce the over dependence on imported petroleum products.
“The 9th NASS should reflect on the bill that the gas flare penalty levy be paid directly to the host communities.
“The creation of Host Communities Trust Fund Commission is to accommodate the direct payment of gas flare penalty levy and 13 per cent oil and gas derivation fund are to be managed by the host communities nominees and to administer the proposed Host Communities Trust Fund.
“In totality we say no to 10 per cent equity participation because the host communities cannot afford it, as it is the responsibility and duties of NNPC and Federal Ministry of Petroleum Resources.
“Finally, in the PIB, NASS should create laws that will favour the host communities in terms of oil block allocation to the host communities and the traditional rulers of the oil and gas producing states,” he said.