FG orders Chevron to end dispute with host communities

The Federal Government has directed Chevron Nigeria Limited to resolve disagreements over the composition and designation of the Host Communities Trust Fund between the oil corporation and communities in the company’s Warri exploration and production area in Delta State.

It also urged both parties in the disagreement to keep the peace until the situation was resolved, emphasizing that it was determined to do the right thing now.

The dispute is between Chevron and the towns of Ugbororo, Ugbegugun, and Dembele in the state’s Warri South Local Government Area over the designation of the host community trust fund and the membership of its Board of Trustees.

Protesters from the three towns were said to have gathered at the Escravos Terminal area, accusing Chevron of violating the Petroleum Industry Act (2021).

According to a statement issued by the Nigerian Upstream Petroleum Regulatory Commission on Wednesday, after a meeting with the feuding parties at the NUPRC’s Abuja headquarters, the agency’s Chief Executive, Gbenga Komolafe, urged the oil company to address the dispute within two weeks.

The statement read in part, “Having listened to the submissions of the parties, Komolafe issued a regulatory position and directed Chevron on the resolution of the matter which must be implemented within two weeks. He emphasized that the law which was very explicit on the matter in contention must be obeyed by all the parties concerned.”