Oil & Energy

IOCS And GMOU Implementation

Published

12 years ago

December 10, 2012

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

ExxonMobil Earmarks $1.5b For Nigeria’s Deepwater Oil Fields

Published

44 seconds ago

May 12, 2025

The Tide

In a move to reinforce confidence in the nation’s upstream potential, ExxonMobil has affirmed its long-term commitment to the oil and gas sector with a planned $1.5 billion investment in deepwater exploration and development projects.
Country Managing Director, Shane Harris, disclosed this during a courtesy visit to the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe.
A statement on the NUPRC’s website revealed that the investment, planned to be executed between Q2 2025 and 2027, would focus primarily on revitalizing production at the Usan deepwater oil field.
The oil major hinted that a Final Investment Decision (FID) is expected in late Q3 2025, pending the final approval of the Field Development Plan (FDP), along with internal and partner funding approvals.
In addition to the Usan field, ExxonMobil also revealed intentions to accelerate development activities in other key deepwater assets, including the Owowo and Erha fields.
These developments are part of a broader strategy to strengthen its operational footprint in Nigeria and support the country’s drive for increased production.
Speaking during the visit, Harris stated that the planned capital expenditure underscored ExxonMobil’s belief in the long-term viability of Nigeria’s upstream sector and its strategic importance in the global energy landscape.
Harris, who expressed ExxonMobil’s support for NUPRC’s “Project 1 Million Barrels” initiative, which aims to boost Nigeria’s crude oil production capacity to 2.4 million barrels per day in the medium term, stressed the need for strategic collaboration between operators and regulators in achieving this ambitious target.
He further pledged to use the platform to foster stronger collaboration between industry players and the NUPRC with a focus on addressing regulatory challenges and unlocking further investment opportunities in the sector.
Responding to the development, the NUPRC boss, Engr. Gbenga Komolafe, welcomed the announcement, describing ExxonMobil’s renewed commitment as timely and crucial for Nigeria’s upstream growth.

Oil & Energy

Minister Tasks NNPCL On Oil Output Increase By Year End

Published

1 min ago

May 12, 2025

The Tide

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has called on the Nigerian National Petroleum Company Limited (NNPCL) to boost oil production significantly by the end of 2025.
Lokpobiri made the call during an interview with Energy Editors at the Africa Energy Forum (AEF) in Houston, Texas, United States.
Emphasizing the need for accelerated growth in the nation’s oil output, Lokpobiri said he had increased oil production target from President Bola Tinubu’s initial goal of 2 million barrels per day (bpd) to 2.5 million bpd.
According to a statement, “The Federal Government on Wednesday directed the management of the Nigerian National Petroleum Company Ltd. (NNPCL) to increase oil production beyond current levels by the end of the year.
“Although President Bola Tinubu had initially tasked the NNPCL with ramping up production to 2 million barrels per day (bpd) but later increased the target to 2.5 million bpd”.
He insisted that the new target is achievable, noting that the nation had previously reached that level during the COVID-19 pandemic, despite low investment.
Lokpobiri explained that the “Drill or Drop” policy under the Petroleum Industry Act (PIA) required new drilling to replenish reserves for every oil extraction, using underground surveys.
He urged global investors to take advantage of Nigeria’s improved regulatory environment and competitive fiscal terms, describing the country as a top destination for energy investment.

Oil & Energy

Stakeholders Laud PINL For Oil Pipeline Safety

Published

2 mins ago

May 12, 2025

The Tide

Oil and Gas Stakeholders in the Niger Delta have expressed delight over the improved oil output from the region, attributing it to the activities of the Pipeline Infrastructure Nigeria Limited (PINL), the contracting firm providing security to the Trans Niger Pipeline (TNP).
The stakeholders, including the Nigeria National Petroleum Company Limited (NNPCL), insisted that the pipeline infrastructure in the region has been adequately covered thereby meeting up its target since the inception of the PINL.
Speaking at the One-Day Interactive Forum of Oil and Gas Host communities, organised in appraisal of PINL’s operations on the Trans Niger Pipeline, held in PortHarcourt, Thursday, the Director, Energy Security, Office of the National Security Adviser, Ojukaye Flag-Amachree, lauded the PINL, saying the company was operating in line with the mandate given to it by the Federal Government through the Office of the National Security Adviser .
Represented by Young Harry Amachree, Flag-Amachree said, “I want to personally appreciate PINL for the work they are doing. It was a mandate that was given to them by the President to secure the pipelines, and with your collaboration, what we are seeing today is impressive.
“This is a meeting of appraisal and I have listened to everyone and everyone is towing the same line with my thought and I want to say PINL, thank you for a job well done”.
Noting the economic implications of pipeline safety, Flag-Amachree said all hands must be on deck to drive the economy forward.
He said, “when the treasury of the nation drops, it affects Nigerians and so when it comes to securing the pipelines, everyone of us must put our hands together to achieve our common goal.
“We have prosecuted more than 100 suspects as of today and some serving prison terms.
“The teams are working 24 hours to make sure that those involved in this illegal activity are dealt with according to the law. So, I’m giving you the assurance that whatever information you have about these vandals, please don’t hesitate to call our attention to apprehend them.”
On his part, the Head, Field Operations, Eastern Corridor, Project Monitoring Office, NNPCL, Engr. Akponine Omojevwe, commended PINL for its efforts which has led to improved output on the Trans Niger Pipeline.
Omojevwe said, “we want to appreciate you, the PINL, because from what we have observed, a lot has really changed. If we look at the tender receipts of 2 years ago, there are lots of improvement, so we can say that you have done well and we appreciate you”.
While calling for more efforts by the PINL, Omojevwe said, “so, from our side, we are saying that for PINL to do very well, it depends on you also. It must be a collaborative effort. Everybody is involved so long as this surveillance is involved”.
Also speaking, the President, Movement for the Emancipation of Izon Ethnic Nationality, Dr. Kennedy West, expressed gratitude for surveillance activities of the PINL.
“I want to thank PINL for bringing people from 215 communities within the Trans Niger Pipeline to discuss on what used to be wrong and I want to say, PINL you are getting it right.
“Not only that you have our thumps up, but we are using this medium to reiterate a vote of confidence on Pipeline Infrastructure Nigeria Limited. We are not just saying that but we are using this medium to also call on NNPCL to do an upward review of the contract based on current realities so that there will be financial boom within the communities”, West stated.
Earlier in his remarks, the Community Relations Consultant, PINL, Dr. Akpos Mezeh, said the essence of the engagement was to appraise the company’s activities in the Communities for the years and seek ways of improvement.
According to him, PINL’s mandate to protect the Trans Niger Pipeline has been achieved through engagements with the host communities calling for a united front against pipeline vandalism.
Reeling the activities of the company, Mezeh said, “We have carried out social investments based on needs assessment done mitigating the socio-economic drivers of oil theft while promoting sustainable empowerments of our communities.
“We have also ensured that we restore the environment hitherto destroyed by incessant crude oil theft with the associated hazards.
“Also, we have achieved near-zero infractions on the Trans Niger Pipeline and, of course, that is giving us increased crude oil production and has boosted investors’ confidence in our economy with the attendant revenue increase.