The Ureju Community Council of Elders in Warri North Local Government Area of Delta State has accused the management of NNPC Exploration and Production Limited and Elcrest Exploration and Production Nigeria Limited of violating provisions of the Petroleum Industry Act in the composition of the Board of Trustees (BoT) of the OML 40 Gbetiokun field’s Agura Host Communities Development Trust (HCDT).
In a statement issued over the weekend, the elders insisted that under the PIA, only the community’s council of elders has the authority to recommend nominees for the BoT. They alleged that the oil firms were instead dealing with a faction of the trust executive currently embroiled in a legal dispute over constitutional issues.
The statement was signed by the Olare-Aja (oldest man) of the community, Pa. Thompson Adini Jarikpe, alongside Pa. D.E.T. Ekpoto and Pa. Omereyemi Rone Orugboh.
The elders disclosed that the community had formally nominated Godwin Igho Erewa as its representative on the BoT. However, they expressed concern that the companies had failed to respond to the recommendation, while proceeding to introduce what they described as a “phantom” five-year budget.
According to the council, the proposed budget contains projects that are neither community-driven nor reflective of local priorities, warning that many of the listed items could result in duplication and waste.
They further alleged that the proposed budget does not align with the level of production derived from the community, describing it as a breach of the PIA’s provisions on host community benefits.
“The budget illegally proposed for Ureju falls short of the proportionate production from our community. This clearly demonstrates that the company is flouting relevant provisions of the law,” the statement read.
The elders also questioned who the companies were engaging with in the community, stating that the council remains the legitimate body for such interactions.
They warned that until the companies formally engage with the Council of Elders and address their concerns, they would resist the implementation of any projects under the disputed budget.
“Until the company relates with the Council of Elders of Ureju, we will not allow NEPL and Elcrest to execute any of the projects,” they declared.
The council called on the Chief Executive Officer of NEPL to intervene and direct both companies to comply with the law and correct the alleged irregularities. They warned that any breakdown of peace in the community would be the responsibility of the companies if their concerns are ignored.
Among the projects listed in the disputed budget are the drilling of solar-powered boreholes with water treatment plants, installation of 50 solar streetlights, and procurement of boats with outboard engines — all of which the elders argued were either unnecessary or duplicative.
The development adds to ongoing tensions between host communities and oil operators in the Niger Delta over the implementation of the Petroleum Industry Act, particularly regarding transparency, inclusion, and equitable distribution of benefits.
