May 26, 2024

 

Oredola Adeola

 

The Shell Petroleum Development Company of Nigeria Ltd. (SPDC) has unveiled and presented 16 out of the 22 Host Community Development Trusts (HCDTs) in Rivers and Bayelsa States in compliance with the new template by the Petroleum Industry Act (PIA) 2021.

 

EnergyDay’s check showed that HCDT was specifically established to address the developmental needs of the oil-bearing and impacted communities in the region.

 

Our correspondent gathered that the 16 HCDTs inaugurated for both Bayelsa and Rivers States are among the 22 trusts that have been incorporated in the four SPDC JV’s areas of operation including Imo, Delta, Rivers and Bayelsa states.

 

This figure represented more than half of the total 41 HCDTs which the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has so far approved for host communities.

 

EnergyDay gathered that the HCDTs, unveiled as fund managers, are expected to administer the 3 per cent allocation to Host Communities Development Trusts (HCDT) in Bayelsa and Rivers States.

 

 

Shell disclosed that it has earned about $56 million for the development of its host communities based on the provisions of the PIA.

 

Osagie Okunbor, Managing Director, SPDC, in a statement, said that Shell Nigeria worked closely with more than 700 communities to set up the HCDTs in Bayelsa, Rivers, Imo & Delta states, with more expected before the end of the year.

 

According to him, this is good news for our communities as the PIA takes root.

 

He added that the development of oil-producing communities relies on the shoulders of the community people themselves, despite the intentions of the PIA backed with the financial support of the government, SPDC, and other operators.

 

SPDC in a statement said that the presentation of the HCDTs is a key milestone in the development of host communities as envisaged by the Petroleum Industry Act (PIA)