Oil giant TotalEnergies is currently facing threats from the residents of Egi-Obagi communities.
The threats are centred on their insistence that TotalEnergies refrain from engaging with specific individuals from their community in the process of establishing a Host Communities Development Trust Fund.
Failure to comply with this demand could potentially lead to disruptions in the company’s oil production operations.
This development was detailed in a report broadcast by Arise News on Monday, September 25.
The report from Arise News highlighted a demonstration conducted by residents of the Egi-Obagi community in Rivers State, which took place at the Port Harcourt branch office of TotalEnergies on Monday.
TotalEnergies, operating in the Ogba/Egbema/Udoni local government area of Rivers State as the operator of OML 58, was the target of this protest.
The protesters were specifically opposing the inauguration of the Advisory Board for the Host Communities Development Trust Fund by TotalEnergies.
During the protest, Ebenezer Hart Eleba, who serves as the leader of the Egi Oil and Gas Host Community, and spearheaded the protest, gave reasons behind their gathering and subsequent demonstration.
He said:
- “We are here to submit to the Managing Director, the document that was served on TotalEnergies long ago, in respect of a court order, restraining them from dealing with any Petroleum Industry Act (PIA) people brought from Egi Host cluster. We have rejected those people, and we will continue to reject them. But it is like the Legal Manager is still dealing with them even when he has seen the court order.
- “To that effect, we are warning TotalEnergies again, after this service today, and they continue to deal with those persons, they will see the wrath of the law. We shall go and block their facilities because they are disobeying the landlords.”
According to a resident, Anthony Chinasa Brown, the protesters do not want certain persons to be a part of the PIA Fund set-up, he specifically mentioned a certain Okechukwu Obara.
Other residents called on the company to obey the court order to avoid further actions.
Meanwhile, the Manager for Stakeholder Engagement at TotalEnergies, Henry Ehuike, received the document from the community representatives on behalf of the company.
He told the protesters that he could not speak in any capacity for the company and his job was to receive the letter which he had already done.
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According to the provisions of the 2021 Petroleum Industry Act (PIA), a crucial initiative known as the Host Communities Development Trust Fund was delineated.
This initiative was designed to strategically advance sustainable prosperity within host communities, guaranteeing that the direct social and economic benefits arising from petroleum operations are effectively channelled to these communities.
It aims to cultivate an atmosphere of peaceful co-existence and harmony between the licensees or lessees and the communities where they conduct their operations.
Commencing from the year 2022, significant strides have been taken to set up this Development Trust Fund across some host communities, including those in proximity to OML 58.
This is because oil operators need to speed up the process to fully harness goals in the oil sector.
Recall that in November 2021, during a session of the Nigerian Association of Petroleum Explorationists, the Managing Director, Mike Sangster said:
- “The Petroleum Industry Act (PIA) is expected to eliminate regulatory/legal hurdles, attract critical investments, unlock financial resources, accelerate local content development, and enhance employment, among other opportunities.
- “The fact is the PIA implementation must be accelerated. The window for investments into fossil fuels is narrowing. Very few years would remain for access to urgent funds to develop the Nigerian petroleum industry to launch it into that era of energy transition and prosperity that the world envisions.”