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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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REA, Mente Energy Sign MoU On Renewable Energy Localisation

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The Rural Electrification Agency (REA) and Mente Energy Limited have signed a Memorandum of Understanding (MoU), formally launching the Renewable Energy Localisation and Industrialisation Programme (RELIP).
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
Speaking during the signing ceremony at the agency’s headquarters in Abuja, the Managing Director/Chief Executive Officer, REA, Abba Aliyu, said Nigeria built significant momentum in decentralised renewable energy but until now, the economic value of that deployment has largely flowed offshore.
“By organising our national demand and building the institutional architecture to support domestic manufacturing, we are creating the conditions for investment, jobs and industrial growth to take root on Nigerian soil.
“The REA is proud to lead this programme and we welcome partners – Nigerian and international – who share our commitment to building a clean-energy industrial base that serves Nigeria first,” he said.
The founder and managing partner of Mente Energy, Tolu Osekita, said Nigeria’s renewable-energy market is one of the most significant industrial opportunities of this decade.
Osekita said “What RELIP does is to put structure around that opportunity so that capital of every origin can invest here with greater confidence and at greater scale.
“Grounded in Nigeria-first principles, this is about catalysing the maximum economic opportunity for our country – factories, jobs, investment and industrial growth built on Nigerian soil, in partnership with the world.
We are proud to stand alongside the REA in leading this work”.
The MoU establishes a five-year framework for strategic collaboration – with RELIP identified as the first priority workstream am phase 1 will be delivered over approximately six months, establishing the commercial, analytical and institutional foundations required for NREIF launch and subsequent capital mobilisation.
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
It would be noted that Nigeria is one of Africa’s most dynamic renewable-energy markets as both the public and private sectors adoption is accelerating with millions of solar home systems, hundreds of mini-grids and growing commercial and industrial uptake.
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Stakeholders Seek Unified Action To Accelerate Methane Abatement In Oil, Gas Sector

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Stakeholders across the government, civil society and industries have called for stronger regulatory coordination and accelerated action on methane abatement in the nation’s oil and gas sector.
They made the call at the Methane Emission Abatement in the Oil and Gas Industry Regulatory Dialogue organised by the Stakeholder Democracy Network (SDN) alongside other partners, in Abuja, at the weekend
The Country Director, SDN, Mrs Florence Ibok-Abasi, insisted that fragmented regulatory approaches have slowed progress in the past, noting that the current engagement aimed to align priorities, strengthen enforcement, and build lasting institutional coordination.
“We are here to align priorities, learn from our challenges, break down silos, and build genuine coordination among all stakeholders.
“Each of you brings critical knowledge; upstream expertise, midstream insights, climate policy perspective, civil society accountability, and legislative oversight. Our strength lies in bringing these together.
“Improved inter-agency cooperation is not optional; it is the foundation for better data, stronger enforcement, and credible progress toward Nigeria’s global methane pledge. We have the talent to make this work”, she said.
Ibok-Abasi said the gathering marked a turning point in efforts to harmonise regulatory approaches, describing collaboration as critical to achieving meaningful climate outcomes.
While noting that the dialogue was the first of two, the SDN boss stated that a second dialogue would be reconvene to advance initiatives and collaboration that would ensure improvement of methane abatement in the oil and gas sector.
Also speaking, the Head, Environment and Climate Change, SDN, Dr Jude Samuelson, highlighted methane reduction as one of the fastest and most effective strategies for tackling climate change globally.
Samuelson noted that the initiative was, therefore, designed to ensure regulators and operators work hand in hand to deliver measurable results.
He, however, identified the high cost of methane abatement technologies as a major constraint, calling for stronger government-industry partnerships to make such solutions more accessible and scalable in Nigeria.
“One of the recommendations that SDN has is to see how the government can work with the operators to ensure that the operators afford these technologies.
“We are also interested in bringing some of the new technologies from methane emission abatement down to the country to see how the technologies could be deployed in the oil and gas sector to ensure that emissions reduce drastically”, he said.
Speaking from the climate policy perspective, the representative of the National Council on climate Change (NCCC), Chukwuemeka Okebugwu, said methane remained a significant contributor to global warming, particularly in oil-producing countries like Nigeria.
“The oil and gas sector is a major source of methane emissions.
“So regular dialogue helps us develop practical solutions and also identify opportunities, including converting methane into useful energy instead of wasting it,” he said.
On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saudi Mohammed, highlighted the need for methane abatement.
Represented by the Technical Adviser on  Health, Safety Environment and Community, Odafe Atebe, Mohammed,
described methane abatement as a cost-effective pathway for Nigeria to achieve climate goals without compromising energy security.
In his words, “Fragmented approaches will not deliver the scale of impact required. We must move beyond discussions to coordinated action across the entire oil and gas value chain”.
On his part, Senior Manager, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Ibrahim Jilo, noted that while progress has been made, challenges remain in ensuring compliance across a diverse and evolving industry landscapNRGIe.
Jilo emphasised the importance of tailored approaches, capacity building, and sustained engagement with operators.
Representative of the Civil Society Group, Natural Resource Governance Institute, Tengi George- Kalu, who spoke from the civil society standpoint, urged stakeholders to ensure that methane reduction efforts translate into tangible benefits for communities affected by oil and gas operations.
“Collaboration is key to moving from policy ambition to real implementation and enforcement,” she stated.
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NITDA, NNPC Partner To Drive Digital Transformation In Energy Sector

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The National Information Technology Development Agency (NITDA) and the Nigerian National Petroleum Corporation (NNPC) are deepening collaboration to accelerate digital transformation in Nigeria’s energy sector.
The collaboration is being championed through the Research, Technology and Innovation (RTI) Unit of the NNPC.
In a courtesy visit by the Director, RTI Unit of the NNPC, Olatomiwa Olaniyi, to the Director-General, NITDA, Malam Kashifu Inuwa, the duo explored strategies to leverage emerging technologies to reposition the nation’s energy industry.
Speaking, NITDA boss, Inuwa, stressed the need for the NNPC to shift from traditional dependence on the exploitation of oil and gas resources to a more innovative model.
According to him, the innovative model would be anchored on the exploration of technologies such as Artificial Intelligence (AI), Internet of Things (IoT) and robotics, among other emerging technologies.
Inuwa said information technology had become a critical enabler across sectors, adding that innovation would play a key role in shaping the future of energy production, efficiency and sustainability in Nigeria.
He outlined NITDA’s strategic priorities to include promoting digital literacy, nurturing local talent, strengthening research ecosystems and advancing indigenous technology solutions.
According to him, reducing reliance on foreign technologies while encouraging home grown innovation is vital to achieving digital sovereignty and sustainable economic growth.
The NITDA boss also said the agency would support NNPC in developing a robust innovation pipeline to connect the company with Nigeria’s growing startup ecosystem.
He said startups would be engaged through incubation programmes and innovation challenges to develop practical solutions tailored to the oil and gas industry.
Inuwa further scored that NITDA’s initiatives aimed at fostering innovation among young Nigerians, including members of the National Youth Service Corps.
“Many of our corps members are already creating solutions to real-world challenges through the agency’s programmes,” he said.
Inuwa also said that effective implementation of the Nigerian Startup Act would be crucial in supporting emerging technology ventures and scaling ideas into commercially viable solutions.
Earlier, Olaniyi said the engagement was aimed at co-creating solutions and building a strong partnership framework to accelerate innovation across the energy value chain.
He emphasised that collaboration among government agencies, industry players and the technology ecosystem remained critical to achieving sustainable innovation.
Presenting the mandate of the RTI Unit, he said its focus was on driving excellence through innovation.
According to him, this would lead to improved operational efficiency, enhanced revenue generation and support sustainable growth across NNPC’s businesses, including upstream, gas, power and new energy.
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