PIA: A-Ibom Tasks Oil Firms On Composition Of Trust Funds

Akwa Ibom State government has stated that the guidelines for the composition of host communities development trust funds must be followed religiously, in line with the relevant provisions of the Petroleum Industry Act (PIA).
Besides, the government advised the stakeholders to study the Act so as to understand the basic ingredients to avoid misgivings during the setting up of the trust funds.
The state commissioner for power and petroleum development, Dr John James Etim gave the charges at a community stakeholders sensitization workshop on PIA and Host Community Development Trust put together by an indigenous oil giants, Oriental Energy Resources Limited , held in Uyo, the state capital.
The commissioner applauded some operators for already registering the trust and were on the verge of constituting the board, and commended Oriental for following suit.
He said, “I wish to admonish all oil companies to exercise due diligence during the appointment of members into the board of trustees and other arms of the trust fund. This should be people with high integrity, intelligence and capacity from the host communities or Akwa Ibom at all large without bias to clauses in sections 242 of the PIA. Doing this will ensure confidence and provide the necessary social license to operate”, he said.
In his remarks, Chairman of Mbo Council, Asukwo Eyo, lauded the federal government for establishing the Act, as according to him, the law would go a long way to address some knotty development issues affecting host communities.
“Although the 3% is not much, we have to start somewhere and we thank Oriental for her giant strides in the development of Mbo. We have felt the impact of Oriental. We, however, appeal to the company not to allow PIA to create in Mbo. I plead with you to listen to all complaints and we are ready to give you a peaceful environment for your operation”, he said.
Earlier in his welcome address, Managing Director, OERL, Mustafa Indimi, described the enactment of PIA as a welcome development given the fact that the law recognizes the host communities as critical stakeholders in guaranteeing the prosperity of the industry.
He said the workshop was organized to ensure “collective understanding of the Petroleum Industry Act as well as the process of establishing the host community trust fund” by the company.
Indimi noted that the company had carried out what he called strategic social investment initiatives in the local government area before the coming of he law.
Also speaking, chief Uduak Obot, Nigerian Content Development and Monitoring Board, said the Federal government has taken necessary steps to implement the Act within the stipulated time and lauded the company for working closely with the local content board.
For his part, the representative of Nigerian Upstream Petroleum Regulatory Commission, Etukudoh Williams, warned that the commission would enforce its oversight functions by ensuring projects embark upon by the trust fund were executed to specifications.
The Paramount ruler of Mbo, HRH Okwong Okon Asukwo Abang (V), said,” I wish to commend the efforts of Oriental in the development of Mbo. It should continue to do the good works and remember the royal fathers because we are the custodians of the people.”