Tour of IOC Operations in Delta North: Senator Ned Nwoko visits OPAC, AHL, AGIP, others. Pushes for enhanced CSR, environmental compliance
As part of his familiarization tour of International Oil Companies (IOCs) in Delta North, Senator Ned Munir Nwoko, Vice Chairman of the Senate Committee on Environment and the Senator representing Delta North Senatorial District, visited several IOC facilities in Ndokwa East and Ndokwa West local government areas on Monday, June 3, 2024.
The IOCs visited include OPAC Refineries in Umuseti, Ndokwa West LGA; Pillar Oil, also in Umuseti, Ndokwa West LGA; Chorus Energy Ltd in Matsogo, Ndokwa East LGA; Ashvinakak Hydrocarbon Limited (AHL) in Ogbe-Ani community, Kwale, Ndokwa West LGA; and Agip Oil Company in Ndokwa West LGA.
During his visits, Senator Nwoko emphasized the importance of ensuring that companies operate profitably and safely, comply with Nigerian laws, and fulfill their responsibilities to host communities. He noted that as the representative for Delta North, it is his duty to oversee the interests of all businesses and individuals operating within the senatorial district.
Senator Nwoko sought assurance that the companies are operating profitably, as he believes this is crucial for fulfilling their Corporate Social Responsibility (CSR) to host communities. However, he placed greater emphasis on the companies’ CSR efforts towards host communities, including environmental impact assessments, especially for those still flaring gas. He questioned their long-term strategies for managing gas flaring and the feasibility of utilizing the gas for electricity production instead of flaring it. Despite acknowledging that companies pay penalties to the Federal Government for flaring, he emphasized that this is insufficient given the hazardous health implications for both workers and members of the host communities.
Addressing the Managing Director of OPAC Refineries, Alex Norikov, and the company's engineers, Senator Nwoko said, “I know that you’re paying penalties for gas flaring, but even with that, the locals suffer, including the staff here. The health hazard of gas flaring is very serious. I am looking at the possibility of putting an end to it totally by considering projects that will utilize the flare.”
Regarding CSR, Senator Nwoko inquired about OPAC's contributions to the host community and any additional support they are willing to provide beyond what is stipulated in the MOU. In response, William Awili, the company's Head of Community External Relations, explained that OPAC maintains a joint account with the host community, into which the company deposits an annual dividend for both capital and non-capital projects. However, the community’s spokesperson, Chief Chris O.E., argued that the annual dividend of N20m is insufficient for necessary projects. Senator Ned Nwoko concurred with this assessment and advocated for an increase in the annual payment to a more reasonable amount, taking into account the company's profit margins.
At Pillar Oil, Senator Nwoko urged management to focus less on intra-community conflicts, which they cited as obstacles to their CSR execution, and to continue their responsibilities regardless. He noted that community conflicts are inevitable and should not be a reason to neglect primary responsibilities. He also cautioned against exploiting such situations.
Senator Ned Nwoko was impressed by Chorus Energy Ltd's zero-flaring approach. Engineer Rukevwe Etu-Efeotor, the company’s Field Superintendent and Base Manager, explained that, instead of the traditional flaring method previously used, the company now utilizes nearly 100% of the gas. The gas is sent to Independent Power Producers (IPPs) for power generation. To gain a comprehensive understanding of these claims, Senator Nwoko toured the company’s control room and other mentioned facilities. While he was impressed by their operations, he urged the company to enhance its social responsibilities to the host community.
At AHL, Senator Ned Nwoko addressed the concerns raised by the host community regarding the oil company laying off some indigenous staff. The General Manager clarified that the layoffs were due to the closure of the facility where these locals worked, as it was no longer economically viable. Nonetheless, the senator inquired about the possibility of reabsorbing those laid-off employees into any available facilities, even if the roles are temporary or menial, until better opportunities arise.
The lawmaker frowned at the bureaucratic bottlenecks at Agip Oil Company, pointing out their detrimental impact on the host community, including slow decision-making and poor communication. He offered the management the option of meeting formally through the relevant Senate committees or informally to address the urgent needs of the host communities, emphasizing that his visit was not merely symbolic.
The Delta North senator wrapped up his day-long tour at the Independent Power Plant in Okpai. During his visit, he commended the engineers for their efforts and reaffirmed his dedication to facilitating the transmission of 100 megawatts of power from the IPP to the host community, a matter he has raised in the Senate and discussed with the Minister of Power and the MD/CEO of the Transmission Company of Nigeria.
