Delta State host communities under the aegis of Isoko Grassroots Mobilizers have called on the Asset Management Team, Sterling Global Oil Exploration and Energy Company and NNPC Exploration and Production Limited, NEPL, to operationalise the Petroleum Industry Act, PIA.
A statement signed by Erere Okpako and Angela Akpofa on behalf of the group said Chapter 3 of the PIA is very clear about the responsibility of the Settlor to the host communities.
It is expected that three percent 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. This was in October 2025 nearly two years after the inauguration of the HCDT.”
The statement added that: “Curiously, the remittance was short paid by about N2.4billion.”
The host communities noted that the Board of Trustees, BoT, drew the settlor’s attention to the shortfall in November 2025, but the company did not respond until December 22, 2025 when a virtual meeting was convened without any resolution despite the assurance of the company that it would respond within two weeks.
It said “A petition to the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, followed in January which led to a tripartite meeting of NEPL, the HCDT BOT at the NUPRC Abuja office on April 15 where the operator categorically said the shortfall was allegedly spent on Special Intervention Projects contrary to the PIA 2021 and the Global Memorandum of Understanding, GMoU, before the advent of the PIA.
“Although, the PIA allows for a one year transition, it elapsed in August 2022.”
The group expressed worry over the nonchalant attitude of the Asset Management Team led by Sterling Global Oil Exploration and Energy Company, saying the efforts of the BOT to ensure development of the communities has been thwarted due to paucity of funds.
According to them, “Before the Abuja meeting, we were aware of the security meeting that the Isoko North Council Chairman, Godwin Ogorugba held with security representatives in the area including NEPL and the BOT on April 9 to prevent any attempt to block the roads leading to the oil installations, but that too yielded no results.
“We are not unmindful of the implications of a blockade, but we can no longer wait endlessly for developments that are not forthcoming. These communities have lived without electricity and other amenities for ages, whereas the funds were meant for projects development in OML 26 as stipulated by the PIA.
Isoko Grassroots Mobilizers also condemned the policy introduced by the company wherein funds deducted from 2023 to 2025 were adjusted OPEX. This is strange to the law, thus creating the impression that the company is playing games with the three percent OPEX as stipulated in the PIA.
This development is starving the communities of the necessary funds for development.
The group urged NUPRC to prevail on Asset Management Team and Sterling Global Oil to do the right thing by remitting the shortfall of the payment to HCDT without fail, adding that that OML 26 is lagging behind in terms of infrastructural development in the Niger Delta.
It confirmed that no single project has been executed since the PIA took off in OML 26 on February 13, 2024.
“We therefore call on relevant government agencies to prevail on the companies to pay all the outstanding monies to avert a shutdown of their operations in OML 26.
“Oil exploration should ordinarily bring development to host communities but from the antics of Sterling Global, the Assets Management team and NEPL, oil exploration is almost turning to a curse to the host communities.
They noted that as critical stakeholders,” We are ready to mobilise all our people to end this injustice once and fall all. We say no to economic oppression and sabotage.”
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