…Assures Communities Of More Development Project From NNPC, Others
The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mr Mele Kyari, has called on the oil producing communities in the Niger-Delta region to support the efforts of the federal government in curbing the menace of crude oil theft and pipeline vandalism.
Kyari said this in a speech delivered at the 5th National Council on Niger-Delta which had as it’s theme, “Harnessing 21st century development initiatives and strategies for greater impacts in the Niger-Delta region.”
Kyari who was represented by the NNPC Ltd Group Executive Director, Upstream, Engr. Adokiye Tombomieye, commended the leadership of the Ministry of Niger Delta Affairs for coming up with the platform that enables robust discussions on innovative partnerships for the benefit of the growth of the Niger Delta region.
He said due to the importance of the region to the oil and gas sector, the NNPC is working with all stakeholders in the sector to enable the company conduct it’s operations without interruption or vandalism.
This, he stated will ensure that crude oil are safely explored, produced, and sold under a conducive atmosphere.
However, he regretted that nearly 700,000 barrels per day of deferred crude oil production are not generating any revenue for the country at the present time
At the current average crude oil price of $100 per barrel, the 700,000 barrels per day translates to a daily loss of $70m.
The NNPC Boss said in the efforts of the Company to eliminate the recurring problem of vandalism on the nation’s pipelines and vulnerable assets in the Niger Delta region, it recently launched a new Hydrocarbon Infrastructure Security Architecture.
The security architecture, he stated, recognizes the important role of the Host Communities.
He said, “To fund any project and fulfil our obligations to the Niger Delta Communities, we must be able to conduct our operations without interruption or vandalism/sabotage, safely explore, produce, and sell hydrocarbons.
“However, nearly 700,000 barrels per day of deferred crude oil production are not generating any revenue for the country at the present time.
“The requirements of the Host Community Trust Fund are also clear; if any of our assets are damaged, the cost of repairs will be deducted directly from the fund.
“In our effort to eliminate the recurring problem of vandalism on our pipelines and vulnerable assets in the Niger Delta, we recently launched a new Hydrocarbon Infrastructure Security Architecture.
“We recognize and value the fact that they are patriotic, understand the pulse of the community, and desire the best for the Niger Delta and the nation.
” I am aware that the current Administration is determined to address all issues in this region and build a peaceful and prosperous Niger Delta, with emphasis on job creation for our teaming unemployed youths, investment in infrastructure, energy and promotion of sustainable livelihood through agricultural diversification strategy.
He described the people of the Niger Delta as peaceful, adding that the Niger Delta communities can count on NNPC Ltd to continually advocate for and support community development programmes and projects that will have a long-term, beneficial effect on their quality of life.
He explained further that the provisions of the Petroleum Industry Act has placed huge responsibilities on the Host Communities in terms of safeguarding the nation’s crude oil assets.
According to him, the PIA’s provisions ensure that the host communities receive direct social and economic benefits from petroleum operations.
He added that the Act established the Host Community Trust Fund, which, for the first time in Nigeria, provides a legal framework for the Nigerian Oil and Gas Corporate Social Responsibility (CSR), with three per cent of the previous year’s Operating Expenditures designated for the development of the Host Communities.
The Trust Fund is being administered by residents of the host communities who will serve on the board of trustees, management committees, and advisory groups.
The Host Community Trust Fund will also provide communities control over the development of their territories without external interference.
He said, “A cursory look however, at the state of development in the Niger Delta indicates that much progress needs to be made in improving the living conditions and quality of life for the people in the region.
“The Restoration, Rehabilitation and Development of the Niger Delta is a national strategic imperative and core thrust of the present administration which the Leadership is excited to drive.
“NNPC Limited is a major stakeholder in the Niger Delta and being a dynamic global energy company, with businesses and operations spanning the entire energy value chain, it has many of its operations concentrated in the region.
“The NNPC Ltd wants to see the Niger Delta become a place where poverty is eradicated, where people live in peace, where there is ample opportunity to advance one’s education and career, where there is access to affordable and clean energy, where there is robust economic growth and a healthy, sustainable environment.
“To accomplish this, NNPC LTD implements Corporate Social Responsibility activities annually in collaboration with its partners to guarantee that the needs of the host communities as determined through a Needs Assessment process are satisfied.
“Projects in the sphere of education (such as the construction and equipping of classrooms and schools), laboratories, the giving of books, scholarships, quiz competitions, and awareness campaigns are a few of these initiatives.
“Healthcare, solar energy, and other infrastructural intervention projects in the Niger Delta and other states of the Federation are other CSR efforts that have been carried out.”
SOURCE: thewhistler.ng
