The Shell Petroleum Development Company (SPDC), an operator of the SPDC joint venture, has unveiled eight Host Community Development Trusts (HCDTs) in Bayelsa State, a critical step for unlocking $56.13 million earmarked for the development of the host communities in line with the provisions of the Petroleum Industry Act (PIA) 2021.
According to the international oil company (IOC), the $56.13 million represents funds to be paid this year by the SPDC JV and Shell’s deep-water subsidiary -Shell Nigeria Exploration and Production Company Limited (SNEPCo) as a contribution to HCDTs.
In a statement released by Shell, the bold step in the implementation of the provisions of the PIA earned a commendation from the Bayelsa State government, regulators, partners as well as communities for what was regarded as an industry milestone.
The company explained that the eight Trusts were among the 22 that had been incorporated in SPDC JV’s areas of operation in Imo, Delta, Rivers, and Bayelsa states, representing more than half of the total 41 which the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has so far approved for host communities.
Commenting on the development, Governor Douye Diri of Bayelsa State, who was represented at the unveiling ceremony in Yenagoa by the state’s Commissioner for Mineral Resources, Dr. Ibieri Jones, said: “This is indeed a milestone which will ensure the progress of the communities.
“No meaningful development can take place without an enabling environment. With dialogue we can always resolve issues and that is the only way it will take the region to where we want it to be.”
In his remarks, SPDC Managing Director and Chairman, Shell companies in Nigeria, Mr. Osagie Okunbor, said in an address read by the General Manager, Corporate Relations, Igo Weli, that the PIA would not deliver the intended development if “communities allow internal strife and chieftaincy struggles to negatively impact the setting up of or operations of the Trusts.”
