Green Energy International Limited (GEIL), a leading indigenous oil and gas-producing company, has established the Host Community Development Trust (HCDT) in full compliance with the Petroleum Industry Act. This is in line with the Federal Government’s efforts to address the pervasive problems affecting oil-producing communities in the Niger Delta.
President Muhammadu Buhari signed the Petroleum Industry Act (PIA) into law in August 2021, setting the legal requirements for oil-producing businesses operating in the region to create a Host Community Development Trust (HCDT).
The petroleum law requires oil-producing companies to allocate three percent (3%) of their annual Operational Expenditure (OPEX) to the development of their host communities, which will be managed by the Host Community Development Trust (HCDT), a move hailed by industry stakeholders as beneficial to the host communities.
According to the Chairman, GEIL, Prof. Anthony Adegbulugbe: “Since the signing of the PIA into law, the GEIL and LekOil Otakikpo Joint Venture (JV) has engaged the community in a series of community-focused activities with the good people of Ikuru town at the grassroots level, primarily to galvanise support to conduct a need assessment, which eventually gave birth to a community development plan (CDP) that has since been
Adegbulugbe added, “This was quickly followed by the establishment of the HCDT through the engagement of community stakeholders, approvals by the Nigerian Upstream Regulatory Commission (NUPRC), and registration of the trust as “Ikuru Town Host Community Development Trust” with the Corporate Affairs Commission, CAC.
He went on to congratulate the residents of Ikuru for their cooperation since the company’s beginning, promising that the company will continue to go above and beyond to ensure the community’s well-being.
The representative of Ikuru town, HRM King (Dr) Aaron Miller Ikuru KSC, praised GEIL for its dedication to the community’s growth and referred to the company as a reliable partner.
According to him, “every member of the community is pleased with the JV’s dedication to the improvement of the community in the areas of education, health, and social development of the inhabitants, as well as the overall quality of life throughout the years.”
The HCDT is intended to address the hostility of oil-producing communities against oil operators in sections of the region, which has resulted in daily thefts of enormous quantities of crude oil and, in some instances, the destruction of oil installations.
It also aims to improve the development of oil towns, raise their standard of living, and offer them a sense of ownership and control over oil and gas assets in their domain.
