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
Take Concrete Action To Boost Oil Production, FG Tells IOCs
Speaking at the close of a panel session at the just concluded 2026 Nigerian International Energy Summit, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government had created an enabling environment for oil companies to operate effectively.
Lokpobiri stressed that the performance of the petroleum industry is fundamentally tied to the success of upstream operators, noting that the Nigerian economy remains largely dependent on foreign exchange earnings from the sector.
According to him, “I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.
“I am also happy with the team I have had the privilege to work with, a community of committed professionals. From the government’s standpoint, it is important to state clearly that there is no discrimination between indigenous producers and other operators.
“You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations. Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”
The minister pledged the federal government’s continued efforts to sustain its support for the industry through reforms, tax incentives and regulatory adjustments aimed at unlocking the sector’s full potential.
“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. The question now is: what will you do in return? The government has given a lot.
Now is the time for industry players to reciprocate by investing, producing and delivering results,” he said.
Lokpobiri added that Nigeria’s success in the upstream sector would have positive spillover effects across Africa, while failure would negatively impact the continent’s midstream and downstream segments.
“We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” he stated.
It would be noted that Nigeria’s daily average oil production stood at about 1.6 million barrels per day in 2025, a significant shortfall from the budget benchmark of 2.06 million barrels per day.
Oil & Energy
Host Comm.Development: NUPRC Commits To Enforce PIA 2021
Oil & Energy
PETROAN Cautions On Risks Of P’Harcourt Refinery Shutdown
The energy expert further warned that repeated public admissions of incompetence by NNPC leadership risk eroding investor confidence, weakening Nigeria’s energy security framework, and undermining years of policy efforts aimed at domestic refining, price stability, and job creation.
He described as most worrisome the assertion that there is no urgency to restart the Port Harcourt Refinery because the Dangote Refinery is currently meeting Nigeria’s petroleum needs.
“Such a statement is annoying, unacceptable, and indicative of leadership that is not solution-centric,” he said.
The PETROAN National PRO reiterated that Nigeria cannot continue to normalise waste, institutional failure, and retrospective justification of poor decisions stressing that admitting failure is only meaningful when followed by accountability, reforms, and a clear, credible plan to prevent recurrence.
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