The Shell Petroleum Development Company, operator of the SPDC joint venture, recently unveiled eight Host Community Development Trusts in Bayelsa State, a critical step for unlocking the $56m earmarked for development in line with the provisions of the Petroleum Industry Act (PIA) 2021.
According to Shell, the $56.13m represents funds to be paid this year by SPDC JV and Shell’s deep-water subsidiary, Shell Nigeria Exploration and Production Company Limited as a contribution to HCDTs.
The Bayelsa State Government, regulators, partners as well as communities lauded Shell for unveiling Host Community Development Trusts, which they described as an industry milestone.
The eight trusts were among 22 that have been incorporated in SPDC JV’s areas of operation in Imo, Delta, Rivers and Bayelsa States, representing more than half of the total 41, that the Nigeria Upstream Petroleum Regulatory Commission has so far approved for host communities.
“This is indeed a milestone, which will ensure the progress of the communities,” said Governor Duoye Diri, during the unveiling ceremony in Yenagoa.
According to him, with its knowledge of the Niger Delta from over 60 years of operations, SPDC is managing a seamless transition from the Global Memorandum of Understanding initiative, which it introduced in 2006 to HCDTs, a key provision of the PIA enacted in August 2021.
