Chevron Nigeria Limited and some communities within the company’s Warri exploration and production area, in Delta State must ensure strict compliance with the provisions of the law over the composition and naming of the Host Communities Trust Fund, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has declared.
Both parties in the dispute were also urged to maintain the peace pending the resolution of the matter.
The dispute between Chevron and the Ugbororo, Ugbegugun and Denbele communities in Warri South Local Government of the state was as a result of the naming of the host community trust fund established for the communities and the composition of its Board of Trustees.
People from the three communities were said to have staged a protest in the Escravos Terminal area recently, accusing Chevron of going against the provisions of the Petroleum Industry Act (2021).
At a meeting between the feuding parties on Tuesday at the NUPRC headquarters in Abuja, the Commission Chief Executive (CCE), Gbenga Komolafe, sued for peace to be allowed to reign in the operational area by maintaining the status quo over the dispute.
As the regulatory authority, Komolafe said the NUPRC was determined to ensure that the fit and proper thing was done immediately.
After listening to the submissions of the Parties, the CCE highlighted the regulatory position and gave an ultimatum to Chevron to ensure that the resolutions reached over the matter were implemented within two weeks.
He emphasised that the law which was very explicit on the matter in contention must be obeyed by all the parties concerned.
Komolafe faulted Chevron’s failure to delineate HCDT in line with the definition of PIA and HOSTCOM regulations and opted to delve into the issue of culture and tradition of the communities.
He pointed out that culture and law were often mutually exclusive as the definition of host community in the PIA bore no reference to culture nor tradition, but purely limited to communities hosting oil facilities and not chieftaincy and kingdoms.
Also, the CCE called for the immediate convening of consultation meetings with the communities on the proper delineation and naming of the Fund in compliance with the PIA and the re-composition of the Board of Trustees in line with an earlier directive of the Commission.
The process, which he said must be supervised by the Commission’s Warri Regional Office, was expected to be finalised and the report sent to the Commission within two weeks.
