After Four Years, OML 13 Operator Reveals Community Needs Report

Almost five years after the Petroleum Industry Act set deadlines for Host Communities Development Trusts, Sumedha Energy Limited, which operates Oil Mining Lease 13 in Akwa Ibom State, has released a needs assessment report. This report aims to guide development projects in the host communities of Akwa Ibom State.

Sumedha's spokesperson shared that the 624-page report was presented on Monday in Uyo. It highlights key areas needing attention like healthcare, education, infrastructure, water and sanitation, youth empowerment, livelihoods, human capital development, and environmental sustainability across 11 oil-producing local government areas.

The Petroleum Industry Act requires operators to conduct a needs assessment. This assessment forms the basis of a Community Development Plan that outlines what projects will be carried out by the Host Communities Development Trust.

The law also states that the Community Development Plan is necessary for registering the trust. According to Regulation 7(f) of the Nigerian Upstream Petroleum Host Communities Development Regulations, this plan is one of the conditions needed for the Nigerian Upstream Petroleum Regulatory Commission to approve the trust's registration.

But Section 236 of the Act says that operators of existing oil mining leases must set up the trust within 12 months after the Act became effective. Since the Act started in August 2021, operators were supposed to have their trusts ready by August 2022.

Those who do not comply may face penalties. Regulation 9 of the Host Communities Development Regulations allows the NUPRC to issue a default notice. This notice gives an operator 45 days after the deadline to establish the trust. If they do not comply, they could be fined $2,500 per day until the trust is created. Continued failure could lead to the commission recommending that the lease or license be revoked.

The Chairman of the Board of Trustees of the OML 13 Host Communities Development Trust, Ekpris Urujzian, presented the report. He called it an evidence-based framework that will help with resource allocation and guide development projects in the affected communities. He also mentioned that the report was created after consulting community members and other stakeholders to ensure the projects meet local needs.

Festus Sunday, a member of the Trust, stated that the assessment was commissioned by NNPC Exploration and Production Limited, which was awarded the asset, along with Sumedha Energy Limited, previously known as Natural Oilfield Services Limited.

He added that the study covered the areas of Eastern Obolo, Onna, Mkpat Enin, Ikot Abasi, Eket, Esit Eket, Ibeno, Etinan, Oruk Anam, Nsit Ubium, and Urue-Offong/Oruko local government areas. The recommendations were developed through field assessments and community consultations.

Adeniji Titilayo, a representative from the NUPRC, described the report as an important step in following the host community rules of the PIA. She said the assessment gives a solid base for identifying and prioritizing projects in the host communities. She urged the Trust to make sure these recommendations lead to real improvements in living conditions.

Mrs Titilayo also highlighted the need for transparency, accountability, stakeholder participation, and effective monitoring during project implementation. She confirmed the Commission’s commitment to making sure the PIA’s provisions are followed.

PREMIUM TIMES noted that a recent report indicated many HCDTs in Akwa Ibom show some governance improvements, but they lack inclusion and energy transition. NEPL’s Deputy Chief Operating Officer for OML 13, Auwal Ya’u, said the company is dedicated to funding approved development projects through the Trust.

Community relations official Susan Bassey said the unveiling was the result of strong collaboration among stakeholders. She expressed hope that implementing the recommendations would improve life in the affected communities.

The report suggests investing in vital infrastructure, healthcare, education, water and sanitation, youth development, environmental sustainability, and stronger monitoring systems.

This unveiling comes more than three years after the deadline for establishing host community trusts for existing oil mining leases. In July 2019, the Nigerian National Petroleum Corporation, now called Nigerian National Petroleum Company Limited, and Sterling Oil Exploration and Energy Production Company signed a $3.15 billion agreement for the development of OML 13.

Sumedha is part of SEEPCO. When commercial oil production from the asset was announced in May 2024, NNPC said NNPC Exploration and Production Limited was in charge, working with Natural Oilfield Services Limited, now Sumedha Energy Limited.

When PREMIUM TIMES asked why the Host Communities Development Trust process took so long after the PIA deadline, the company’s spokesperson in the state, Aniekeme Finbarr, said the delay was due to the level of consultations needed.

He said, "The needs assessment took an organic process because it was done with the communities carried along, and it is a very large document of over 600 pages."

Mr Finbarr added, "Compared to other companies, you must know that everything happens in due time. There are many communities involved. We have 11 local government areas and over 300 communities. I am not sure other companies have that spread. That in itself is a very tedious process. So, we needed to take time and involve the communities. But the communities are happy that it is done now."