The Nigerian Upstream Petroleum Regulatory Commission states that 102 Host Community Development Trusts have received N97 billion and $149 million as HCDT funds remitted by settlors.

NUPRC’s representative, Chidinma Nwabueze, disclosed this on Wednesday in Abuja.

Ms Nwabueze said NUPRC facilitated the remittances of N97 billion and $149 million into the HCDTs fund account as of May 19.

The Petroleum Industry Act requires oil exploration companies (settlors) to allocate three per cent of their operating expenditure of the previous year for the development of their host communities.

Ms Nwabueze said that the HCDT was incorporated and funded by the Settlors (Licencees) from three per cent of the OPEX of the annual expenses from the preceding year.

“Currently, about 102 HCDTs have received in excess of N97 billion and $149 million as HCDT funds remitted by Settlors into the HCDT fund account.

“Within three years, a lot of the HCDTs are completing projects. Last week we were in Bayelsa to commission 67 projects from Renaissance Energy Company Ltd., and in Rivers State to commission some other projects,” she said.

She said that the commission had also been able to approve 167 applications fully issued as approval to incorporate.

“Out of these, we have 146 fully incorporated HCDTs at the Corporate Affairs Commission, while 21 are under processing. Out of 146 fully incorporated HCDTs we have over 102 HCDTs account opened and funded to the tune of N97 billion and $149 million,’’ she said.

Ms Nwabueze said the HCDT aligned completely with the objective of the NUPRC by promoting the sustainable development of upstream petroleum resources in Nigeria for the sheer prosperity of host communities.

She said that it entailed direct social and economic benefits from the petroleum operations to the communities, providing a framework for establishing peace between the dwellers and the settlors.

According to her, the speedy execution of host community development regulations and the incorporation of HCDT funds are aimed at curbing rampant community restiveness and providing a conducive business environment for operations and shared prosperity to thrive.

Speaking on the timeline required to incorporate HCDT effectively, she said it must be incorporated prior to the application of the Field Development Plan and commencement of the commercial operations for a petroleum mining licence.

“Three strategic stakeholders in HCDT are the regulator, charged with making regulations and providing oversight functions for implementation of developmental projects, and the settlors who provide the three per cent OPEX to fund the trust.

“The third one is the Board of Trustees, being the community members, nominated by the community dwellers to serve on the board, to manage and administer the HCDT fund,” she said.

She added that, although the host communities were funded through the three per cent OPEX of the settlors, there are other sources of funding, including donations, gifts, grants, as well as profits, interest, and reserve funds.

“The three per cent OPEX is considered 100 per cent when it enters the collection account and is subdivided into 75 per cent for capital project development and 25 per cent for investment,’’ she said.

Ms Nwabueze, however, said the NUPRC also developed innovative software and a one-stop shop called HostComply.

She stated that the software was designed for end-to-end reporting and monitoring of HCDT activities, enabling the effective implementation of the HostCom provisions of the PIA.

(NAN)