Oil & Energy
Expert Tasks Oil Firms On MoUs’ Implementation
Worried over the increasing spate of disagreements between oil firms and their host communities, an expert in the oil and gas sector, Dr Eddie Wikina, has called on all multinationals and corporate organizations operating in the Niger Delta to implement the Memorandum of Understanding (MOUs) signed with their host communities.
Wikina who spoke with The Tide in an exclusive interview recently, said the flouting of MOUs and the absence of sustainable community development policies among various oil firms and corporate organisations were the roots causes of under-development and conflict in the Niger Delta.
He pointed out that, “modern industry practices require that both the oil firms and the host communities operate in mutual agreement and synergy through a well 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 region to learn from the experiences of the past and improve their host community relations by contributing meaningfully to the development of their host communities.
Dr wikina noted that said host communities were major stakeholders in the oil and gas business, saying 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. 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 glosses 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.
“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,” he noted.
According to him, the passage 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.
Taneh Beemene
Oil & Energy
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Oil & Energy
Power Supply Boost: FG Begins Payment Of N185bn Gas Debt
In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.
The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.
According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.
Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.
The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.
In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.
“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.
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