REPLICATING THE MEMORANDUM OF UNDERSTANDING (MOU) OBODO UGWA OGUMW, EMU-EBENDO & OTHER COMMUNITIES SIGNED WITH ENERGIA IN ALL OIL AND GAS PRODUCING COMMUNITIES IN NDOKWA LAND.

REPLICATING THE MEMORANDUM OF UNDERSTANDING (MOU) OBODO UGWA OGUMW, EMU-EBENDO & OTHER COMMUNITIES SIGNED WITH ENERGIA IN ALL OIL AND GAS PRODUCING COMMUNITIES IN NDOKWA LAND.

It is a well known fact that these above named communities have become a reference point among all the oil and gas producing communities in Ndokwa nation.

The question is: How did they get it right? Many people point to the MOU signed  with Energia as the distinguishing factor between these communities and other oil and gas producing communities in Ndokwa land.

This leads to the question of the type of MOU these communities signed with Energia. I will not go into much details about the MOU but I have chosen just one critical part of the MOU to share with our people with the hope of replicating this type of MOU in other oil and gas producing communities in Ndokwa land.

The only aspect of the MOU I want to share is the "FINANCIAL."

Before I go into that, it should be noted that this particular MOU have a duration of four years and was signed on the 3rd of April 2009.

This invariably means that the MOU have expired, but it is still a reference point due to the fact that it was the first MOU that these communities signed with Energia. Been the first MOU signed with Energia it means that subsequent MOU's were built on this first MOU. These communities are still one of the most peaceful oil and gas producing community in the whole of Niger-delta, despite some internal crisis and challenges.

6.0 FINANCIAL

6.1 Energia shall set aside a fixed portion of the revenue accruing from the sales of its oil and gas produced and sold from Obodugwa Ogume-Obodeti marginal field for the purpose of creating and funding of a Trust fund for the sole purpose of implementing Sustainable Development projects for the direct benefit of the Host community and impacted communities within the area(s) of operations of Energia, subject only to the provision of any enabling law.

6.2 This fund shall be administered by a Board of Trustees comprising of reputable members of the society from Energia, other stakeholders and the Delta state Government. This fund shall be called "Energia Communities Development Trust Fund (TRUST FUND).

6.3. EBENDO, one of the host communities, shall be entitled to a sum equal to 1.25% of the revenue accruing to the Energia Community Development Trust Fund.

6.4. 0.5% of this 1.25% due to EBENDO from the TRUST FUND shall be paid quarterly into an Ebendo/Energia operations account to be opened in a reputable bank by Energia, for the activities of the Ebendo Community Development Association (ECDA), within 60 days following the commencement of oil and gas production operations and sales and upon the signing of this MOU.

6.5. All production from testing to daily production of oil and gas activities shall be subject to the financial commitment to the Trust Fund.

6.6. Energia shall through the trust fund, fund duly approved Sustainable Community Development (SCD) projects and programmes contained in this MOU.

6.7. ECDA shall utilize these funds solely for identified and approved projects and activities designed to improve the quality of life and provide sustainable development of Ebendo and shall be accountable to Energia and TRUST FUND.

I hope other oil and gas producing communities in Ndokwa nation will borrow a leaf from the MOU these communities signed with Energia which have seen these communities transformed greatly in terms of infrastructure, despite the fact that there are still more rooms for improvement in these communities.

Compiled By
Ifeanyichukwu Daniel Ogiriki.