A Civil Society Organisation , Policy Alert, has faulted the guidelines by the Department of Petroleum Resources (DPR) for the ongoing oil and gas marginal field bid rounds saying that the guidelines lacked stringent prerequisite for the development of host communities.
The Federal Government in April, 2020 approved a bid round for oil and gas exploration and production license to Companies in Nigeria, the first in about 18 years. In May 2020, the DPR issued guidelines on which the process would be based.
The DPR in its guidelines states that consideration shall be given for host community/state participation, as well as commitment to social project and/or proposal aimed at the socio-economic development of the populace.
It added that license holders shall be responsible for community development activities as well as managing interfaces and relationships with host communities.
But the Policy Alert’s Programme Lead for Extractive and Open Data, Iniobong Usen in a meeting with representatives of oil and gas host communities in Uyo, on Tuesday said such provision is noncommittal and provides too much latitude to potential awardees.
He noted that such would end up encouraging successful awardees to pay lip service to the rights of communities.
Usen who expressed reservations over the relegation and marginalisation of oil and gas producing communities in the country said if the situation is not addressed, it may lead to social tension in the host communities which invariably would spike production cost
He said, “owing to the unrestrained underdevelopment and degradation of host and impacted communities, it is our view that the DPR should have put in place a more stringent prerequisite regarding the development of host communities which legally mandates oil and gas companies to create and implement development agreements with host communities.”
The group also noted that leaving community development considerations to the discretion of awardees as the DPR Guidelines have done poses a serious risk as such social and community considerations may be pushed to the backseat by the successful bidder.
”The Federal government of Nigeria cannot completely absolve itself of its responsibility to develop host communities of oil and gas producing assets in Nigeria. While awardees should be obligated to engage with their host communities, what the Community Development/Relationship requirement in the DPR guidelines does is to transfer the obligation of government to develop host communities to oil and gas companies.
“The Nigerian government collects taxes, royalties, fees, and production entitlements from oil and gas companies, hence, it cannot abdicate its role as the principal duty bearer with regard to host communities.”
”It will be necessary for the DPR to adopt higher standards in the community engagement requirements for the ongoing pre-qualification of companies.” Usen said.
