The Akwa Ibom State Government, through its Ministry of Power & Petroleum Development, has developed a Standardised Memorandum of Understanding (MoU) template for negotiation between oil and gas firms operating in the state and host communities.
State Commissioner for Power & Petroleum Development, Dr John Etim disclosed this during a stakeholders meeting for the review of the MoU between Frontier Oil Ltd and Savannah Energy and their Akwa Ibom host communities yesterday in Uyo.
He said this had become necessary due to several cases of violations of agreements by oil companies operating in the state resulting in misgivings and tensions with oil producing host communities.
According to the commissioner, some of the provisions in the template include a 3-year duration for MoUs, a sharing formula, to be negotiated for the interest of host communities and a Monitoring Committee to monitor the executions of MoUs by MoU Implementation Committees (MICs).
These provisions he said are aimed at checking violations of agreements and sharp practises in the execution of Corporate Social Responsibilities (CSRs) by the oil firms.
Etim re-emphasized his ministry’s resolve to fulfil its mandate over power and petroleum development in the state, as well as manage petroleum-related issues in Oil Producing Communities, in line with the completion Alagenda of the state government.
The commissioner observed that it was the right time to kick-start the process of reviewing the MoU, signed on 31st August, 2016 as the provision in Section 4 of the agreement ordered for a review six months before its expiration.
He commended all parties including Uquo Field MoU Implementation Committee (UFMIC); Community Development Foundation and Frontier Oil Ltd and expressed satisfaction that the CSRs in the agreement were executed, for the benefits of the people.
The commissioner encouraged the host communities to nominate members into the Technical Committee to handle the review of the agreement, expected to be completed in June, 2021, in readiness for ratification by stakeholders before the expiration date of the former document, in July.
He enjoined all parties concerned to consult widely with the people, taking into cognizance, the interest of youths and women, when nominating representatives into the 15 member Technical Committee, in order to have a fair representation.
In a remark, Commissioner for Women Affairs & Social Welfare, Dr. Ini Adiakpan, noted that the essence of the MoU was to ensure a cordial relationship between the companies and their host communities reminding all parties of Governor Udom Emmanuel’s intolerance to restiveness.
In his comment, Operations Director, Frontier Oil Ltd, Mr. Wole Adefila, while thanking the Commissioner for the early call for the review meeting described his company as being alive to its responsibilities, pledged their commitment to building a robust mutual relationship with their host communities and the state government.
Stakeholders including Chairman, Esit Eket Council Mr Iniobong Robson, Paramount Ruler of Eket, Edidem E. Abia and that of Esit Eket, Edidem Ubong Assam among others, all expressed their delight at the creation of the new Ministry and used the opportunity to negotiate for a better sharing formula for their respective areas.
