The New Nigeria Foundation,NNF said there shall be deductions of payment from the 3% by the International Oil Companies,IOCs if they suffer any act of vandalism, sabotage or other civil unrest occurs that causes damage to their facilities or disrupts their production activities by the host communities protest and other activities.
NNF Senior Manager, Eyitime Aremu disclosed this at one day sensitisation/ awareness creation workshop component of the Petroleum Industry Act, PIA bridges project implementation process for Host Community Development Trusts and Community Stakeholders.
The programme which held at Egbokodo-Itsekiri in Warri South Local Government Area of Delta State was facilitated by the New Nigerian Foundation, NNF.
Aremu who was a resource person at the session explained that,”the community shall forfeit its entitlement to the extent of the costs of repairs of the damage that resulted from the activity with respect to the provisions of the PIA within that financial year. Provided the interruption is not caused by technical or natural cause.-Section 257 (2)
According to him,”The basis for computation of the trust fund in any year shall always exclude the cost of repairs of damaged facilities attributable to any act of vandalism, sabotage or other civil unrest. -Section 257 (3) of the PIA.”
Earlier the one-day awareness creation and sensitization workshop was held to provide Community leaders, Youths , women leaders, Non- governmental Organisations , NGO and other stakeholders deep and better understanding of the Petroleum industrial Act ,PIA .
The Awareness creation workshop was organised by Foundation For Partnership Initiatives in the Niger Delta , PIND in collaboration with Ford Foundation and Facilitated by New Nigeria foundation.
The Executive Director of PIND, Mr Idowu Tunji called on the participants to take advantage of the provisions contained in PIA
The Petroleum Industry Act (PIA) was signed into law on August 16, 2021.
The Act aims at establishing good governance, best practices, and ease of doing business in the oil and gas sector, by attempting to amongst other pressing issues, clarify the roles and responsibilities of officials, institutions and all stakeholders within the oil and gas sector.
