- As National Council On Hydrocarbons Begins In Asaba
BY AWELE OGBOGU
The Delta State Government has requested the ongoing National Council on Hydrocarbons (NCH) in Asaba, to review the Petroleum Industry Act (PIA) 2021 for an inclusion of sub-national governments hosting oil and gas resources in the country.
“We recognize the importance of collaboration between government, industry and host communities in achieving the PIA goals. That is why the absence of a defined role and seeming non-recognition of state governments in the Petroleum Industry Act must be reviewed”, said Delta State Commissioner for Oil and Gas, Hon. (Chief) Peter Uviejitobor while communicating the state government’s position at the opening ceremony of the 8th National Council on Hydrocarbons, yesterday, at the Events Centre, Asaba.
It was noted that the PIA bypasses the states who are supposed to be the guarantors of the host communities, among other forms of exclusion.
The Delta State Government has therefore submitted a memorandum to the National Council on Hydrocarbons for a considerstion of its position, while three other states made a similar request.
In all, a total of 33 memoranda were submitted at the ongoing NCH, 17 of which revolved around host community related issues pertaining to the PIA, such as non-payment by oil companies of three per cent of their annual operating expenditure to registered host communities trust funds as mandated by the PIA, non-payment of gas flaring penalty to hostcoms and discontinuation of CSRs by oil companies which ought to run concurrently with the three per cent OPEX payment to hostcoms.
Three of the memoranda has to do with gaps in the implementation of the PIA, six in respect of Mandates and Institutional Strenghtening within the PIA and two of the memoranda dwelt on Harmonization/Institutionalizing Support for the Federal Ministry of Petroleum Resources’ flagship Energy Summit.
“I encourage every parricipant, especially members of constituted host community development trust and oil companies to actively defend their memoranda, contribute to the conversations, share experiences and propose innovative solutions that will shape the future of our industry”, Uviejitobor said.
The National Council on Hydrocarbons continues today in Asaba with a second technical session.
