By Adedapo Adesanya
The House of Representatives Committee on Host Committees has assured of speedy amendment to section 257 of the Petroleum Industry Act (PIA) 2021 which puts the responsibility of securing oil and gas infrastructure on host communities.
Business Post reports that Section 257 (2) and (3) of the PIA state that “Where in any year, an act of vandalism, sabotage or other civil unrest occurs that causes damage to petroleum and designated facilities or disrupts production activities within the host communities, the community shall forfeit its entitlement. The basis for computation of the trust fund in any year shall always exclude the cost of repairs of damaged facilities attributable to any act of vandalism, sabotage or other civil unrest.”
This was one of the resolutions at the opening of a two-day Technical Session on 3 per cent Opex Funding for Host Communities Development Trusts (HCDTs) organized by Spaces for Change in Port Harcourt, Rivers State on Monday.
The Chairman of the House of Reps Committee on Host Communities, Mr Dumnamene Dekor, said host communities should not be held liable for vandalism, as they do not have the security architecture to protect oil and gas facilities.
“We are working towards amending that section (section 257) of the PIA. Host communities should not be held liable for vandalized oil facilities, that is the position of the Committee.
“It is one of the gaps in the Act and as a committee, we are going to take that up, so that the amendment will be done.”
The Reps Committee also urged settlors (oil operators) who were yet to fund their HCDTs to begin the funding, assuring that no host community will be shortchanged in the PIA implementation.
“Communities may not have been shortchanged, but where they have been shortchanged, we will make sure that doesn’t happen. The implementation of the HCDT aspect of the PIA is quite slow, but I am also sure that the companies are aware that there are penalties for non-implementation.
“Some communities are also part of the problem, there are so many litigations in some communities hindering the implementation of the HCDT, and in that case, you can’t hold the settlor responsible.
“We call on the host communities, the Board of HCDTs and the settlors, to ensure the PIA is implemented and there is real-time development in host communities and that is what we stand for, but the companies must also live up to its responsibilities to ensure that where an HCDT has been put in place, they should go ahead and fund.”
Also speaking at the event, the Executive Director of Spaces for Change, Mrs Victoria Ibezim-Ohaeri, said the technical session was imperative to evaluate the progress on the 3 per cent Opex remittance to host communities.
Mrs Ibezim-Ohaeri recalled that the PIA requires companies to remit 3 per cent of the operating cost of the previous year to HCDT for the socio-economic development of the host communities.
“Since the PIA is now a law, so we are engaging host communities to see if they are receiving the remittances, and also understand how the remittances are determined and how they are being applied in the community.
“HCDTs that have been implemented jumped by over 100 after our technical session in 2023, and there has been substantial compliance.
“However, we are not just going to relax because oil companies have begun setting up HCDTs, because it’s not only by setting up the Trust but funding it and ensuring the funds get to the target developmental projects across the communities.”
Modupe Gbadeyanka