The Bayelsa State Governor, Duoye Diri, has said the Niger Delta region is still unhappy with the three per cent allocation of the operating cost of oil companies to host communities, provided in the Petroleum Industry Act (2022).
This is as he said that the region that produces ‘the golden egg’ must not be allowed to be in jeopardy.
This was disclosed by the state Commissioner for Mineral Resources, Dr Ebiere Jones, on Thursday, at the Nigeria Oil and Gas Opportunity Fair, held in Bayelsa.
The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, had in 2022, noted that three per cent of operating expenses allocated to host communities was more than 30 per cent profit share for oil exploration in the ‘frontier basins’.
However, Jones, who represented the governor at the fair, noted that the PIA ‘did not pay attention to the role of state governments in the realisation of the Act’.
“The authorities are only saying it that details will be in the regulations. But, I don’t know whether the regulation is superior to the Act itself.
“As the state government, we are ensuring that we provide a conducive environment for the operators in the oil and gas industry.
“When we organise youth programmes, they are tailored in a way that these youths understand the need for collaboration in the oil companies. This is because, without that, there can never be prosperity. The oil industry is the major focus of the economy,” he said.
