Delta Oil Communities Protest Non-Implementation of Petroleum Industry Act by Operators
Host communities in Delta State, operating under Oil Mining Lease (OML) 26, have declared that their patience has run out with oil operators who have failed to implement the Petroleum Industry Act (PIA). The communities, represented by the Isoko Grassroots Mobilisers, have stated they are now prepared to take control of their own destinies after prolonged delays by the Asset Management Team and Sterling Global Oil Exploration and Energy Company, in collaboration with NNPC Exploration and Production Limited (NEPL).
Legal Obligations Under the PIA
According to a statement issued by Ere Okpako and Angela Akpofa on behalf of the Isoko Grassroots Mobilisers, Chapter 3 of the PIA clearly outlines the responsibilities of the settlor to the host communities. The statement emphasizes that the law mandates three percent of the settlor's annual Operating Expenditure (OPEX) to be allocated for community development through the Host Community Development Trust (HCDT).
"It is expected that three per cent of the settlors' yearly Operating Expenditure (OPEX) is set aside for community development through the Host Community Development Trust (HCDT). But strangely, the settlor only made a paltry remittance to the HCDT of OML 26, contrary to the PIA," the statement revealed.
Financial Shortfalls and Delayed Actions
The group disclosed that the remittance was made in October 2025, nearly two years after the inauguration of the HCDT, and was short-paid by approximately N2.4 billion. The Board of Trustees (BOT) raised an alarm about this discrepancy in November 2025, drawing the settlor's attention to the shortfall. However, the company did not respond until December 22, 2025, when a virtual meeting was held. Despite assurances from the company that it would respond within two weeks, no resolution was reached.
Following this, a petition was submitted to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in January 2026. This led to a tripartite meeting on April 15, 2026, at the NUPRC Abuja office, involving NEPL and the HCDT BOT. During this meeting, the operator claimed that the shortfall had been spent on Special Intervention Projects, which contradicts both the PIA 2021 and the Global Memorandum of Understanding (GMoU) that predated the PIA.
Transition Period and Community Concerns
The group highlighted that although the PIA allows for a one-year transition period, this elapsed in August 2022, making the current delays unacceptable. They expressed deep concern that the Asset Management Team (AMT), led by Sterling Global Oil Exploration and Energy Company, is engaging in what they describe as "playing games" with the communities' development.
"We are aware of the efforts of the BOT to ensure development of the communities, but paucity of funds has been a clog in this direction," the group stated, underscoring the financial constraints hindering progress.
Call for Accountability and Action
The Delta oil communities are now calling for immediate action to rectify the non-implementation of the PIA. They stress that the continued failure to adhere to the legal framework not only undermines community development but also violates the trust placed in the operators. The communities are determined to hold the operators accountable and ensure that the provisions of the PIA are fully executed to benefit the host regions.
