Expert Decries Abuse Of MoUs By Oil Firms

The brewing conflicts between oil companies and their host communities in the Niger Delta over the breach of agreements signed by the corporate partners are generating concern among stakeholders.
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 organisations 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  IOCS and other multinationals operating in the region mostly  flout MOUs  signed with host communities, leading to conflicts and absence of sustainable  development in the communities.
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 have been a predominant feature of the Niger Delta over the years and urged prospecting oil firms and other corporate organisations in the Niger Delta to learn from the experiences of the past to improve their host community relations by contributing meaningfully to the  development of their host communities.
The expert in Petroleum Engineering said  host communities were major stakeholders in the oil and gas business, noting that 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 have 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 implementation 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