COMMUNIQUE
The Eight (8th) Meeting of the National Council on Hydrocarbons (NCH) was held from 9th to 13th December 2024 at the Dome Event Centre, Delta State under the Chairmanship of the Honourable Ministers of State, Petroleum Resources (Oil & Gas), Sen. Heineken Lokpobiri & Rt. Hon. Ekperikpe Ekpo. The theme of the meeting was “The Petroleum Industry Act (PIA) 2021: The Journey So Far”.
2. The Executive Session was attended by State Commissioners for Petroleum Resources, the Ministry of Petroleum Resources, Heads of Federal and States Departments/Agencies, Representatives of Security Services and Tertiary Institutions. Also present were officials from International Oil Companies, Representatives of Labour Unions, Members of Youth Groups in the Oil Producing States, Host Community Groups, Professional Bodies and Associations, Non-Governmental Organisations (NGOs) and other relevant stakeholders.
3. In the opening ceremony, the Honorable Commissioner for Oil and Gas, Delta State, welcomed the participants to the event and described the event as “a more agenda” encompassing peace, productivity, security etc. He recognized the importance of collaboration between the Government and private sectors. He noted that the absence or no recognition of the State Government in the PIA must be reviewed for more inclusivity.
4. The opening address presented by Permanent Secretary represented by Engr. Kamoru Busari, Director Upstream, stated that the NCH has come to stay as the Ministry’s flagship event aimed at garnering ideas that will propel good policy formulation in our oil and gas sector. The mandate and mission of the Ministry can only be achieved when good and implementable policies are formulated and implemented to letter which is the principal reason we converged annually for this Council. To achieve the Mandate, the Ministry exercises supervisory role over the Parastatals, Operators and Stakeholders to ensure compliance with all applicable laws and regulations in the oil and gas sector.
Finally, the Permanent Secretary urged all to make every moment in this technical session count, as the Council objectively and critically examine all memoranda submitted to ensure that we make quality recommendations to the Council to be part of good policies that shall be fashioned from this gathering to advance our hydrocarbons industry and the Nation at large.
5. Goodwill messages were received from Executive Governor of Delta State, Rt. Hon. Sheriff Oborevwori, Commissioners, Principal/CEO, Petroleum Training Institute (PTI), Dr. Samuel Onoji, Chairman of HOSTCOM, Dr. Emuh.
6. Preceding the meeting of the Council, experts and officials on hydrocarbons met for two days from Tuesday 10th & Wednesday,11th December 2024 under the Chairmanship of the Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Agbo Ella ably represented by Engr. Busari Kamoru FNSE.
7. The Council deliberated on Thirty-Eight (38) Memoranda submitted to it and adopted the following resolutions:
I. Urge the Settlors and the regulators to ensure that the 3% are collected and disbursed to the Host Communities Development Trust (HCDTs) as at when due.
II. Urge Settlors to continue the Corporate Social Responsibility (CSR) to the host communities in addition to the 3% HCDT fund in the Law.
III. Note the grievances from the HCDTs on the implementation of the HCDT in the PIA,
IV. Urge the Ministry of Petroleum Resources to formulate, develop policies to govern and monitor the activities of the HCDTs and all relevant stakeholders including the Host Communities should be involved in the policy development process to address the problem now and in the future.
V. Consider and recommend an amendment of the Act as it affects the role of the Commission and Authority in the regulation of terminal operations and crude Oil & Gas evacuation and 2% increment on royalty by price even though the issues have been temporally resolved by the Presidential directives.
VI. Urge Ministry of Petroleum Incorporated (MOPI) and Ministry of Finance Incorporated (MOFI) in collaboration with NNPCL to conclude the processes of determining and disposing of the toxic assets.
VII. Consider and recommend an amendment of the Act to ensure that the policy institution-MPR and its regulators (NUPRC, NMDPRA, NNRA & PTI) are adequately funded to effectively discharge the assigned responsibilities to them under the Act.
VIII. Approve in the meantime that adequate funding of the Ministry of Petroleum Resources should come from the annual budget as well as from external sources pending the amendment of the law to meet its obligations of supervision and policy formulation and implementation.
IX. Approve that the continuous implementation of the PIA should be domiciled in the Ministry of Petroleum Resources and to be funded appropriately to address all observed implementation gaps.
X. Urge the Federal Government to transfer the assets and liabilities of the defunct PIA Implementation Committee to the Ministry.
XI. Urge the Ministry of Petroleum Resources to lead in ensuring adequate collaboration and cooperation between the Ministry, the regulatory bodies and other institutions that have significant roles to play in achieving the objectives of the PIA.
XII. Urge the Ministry of Petroleum Resources to develop policy for the development and implementation of digital regulatory tools in the oil and gas sector.
XIII. Urge the regulatory agencies (NUPRC & NMDPRA) to ensure that host community needs assessments are carried out before HCDTs project implementation.
XIV. Note that the first National Conference on Hydrogen (NCoH) and the 7th Nigeria International Energy Summit (NIES) were held successfully in Abuja in 2024.
XV. Urge the stakeholders including International and National Oil Companies to participate and sponsor the 8th NIES & 2nd NCoH coming up later in 2025 as a demonstration of their commitment to the development of oil and gas sector and the Nigerian economy at large.
XVI. Urge the Universities and other relevant institutions to collaborate with NCDMB in local content/capacity development to enable them to participate in bidding and win oil blocks.
XVII. Urge for further engagements and consultations between Ministry of Petroleum Resources, Weight and Measures Department of the Federal Ministry of Industry, Trade and Investment and other relevant MDAs to address observed gaps in the implementation of the PIA.
XVIII. Urge MPR to review and implement the committee report on repositioning of the Petroleum Training Institute (PTI).
XIX. Consider and recommend the review and amendment of the PIA to include the roles of oil producing and host States and LGAs as long as it is not from the 3% HCDTF.
XX. Urge the Minister of Petroleum Resources to include State Ministries vested with oil and gas portfolio and HCDT in Joint Investigation Visit (JIVs) when oil spills and related incidents occur.
XXI. Urge the Ministry of Petroleum Resources to develop a policy to address the inclusion of women in the Management of HCDT.
XXII. Urge the Ministry to develop a policy to guide in the implementation of the frontier exploration fund.
8. Council commended the Government and people of Delta State for the successful hosting of the Eight Meeting and the conducive atmosphere provided.
9. Council agreed that the date and venue of the 9th National Council on Hydrocarbons Meeting will be communicated to members later.
Dated in Asaba, Delta State
This Thursday 12th Day of December, 2024.
