Trends in oil company and Delta host community relations

Chief Obaogu Daniel, a community leader in Ogbeani, Ndokwa West Local Government Area, Delta state, recently recounted how Liquefied Petroleum Gas Kwale, acquired land from the community in 2017.

According to him, one of the conditions for the acquisition was for the company to provide the community with its accrued benefits as a host community in the oil and gas industry.

“At the end of the day, what happened was quite different from what we anticipated,” he said.

Furthermore, he explained that treating workers from the community with dignity was a key condition for the acquisition.

However, he lamented that the company had failed to uphold this condition.

“We found out that even unskilled labourers were brought in from India, thereby reducing job opportunities for community youths,” he alleged.

In addition, he claimed that the military, which provides security for the company as a national critical infrastructure, had emboldened the company to act with impunity.

“Nevertheless, we are a peaceful host community which is not hostile to oil and gas companies,” he added.

A recent report stated that the host community alleged that the management of Liquefied Petroleum Gas (LPG), Kwale, Delta State, was maltreating workers from the community.

The Kwale Hydrocarbon Nigeria Limited (KHNL) is an independent downstream gas distribution company.

As a result of these concerns, the Ogbeani people and the larger Ndokwa community called on Gov. Sheriff Oborevwori to intervene over the alleged mistreatment.

According to the report, the community found it necessary to voice its anger and frustration over the mistreatment of Ogbeani community workers, particularly since the company operates on their land.

Historically, tensions between oil companies and their host communities in Nigeria have been longstanding.

The Niger Delta, which hosts the majority of the country’s oil and gas reserves, has been a hotspot for conflicts between multinational oil corporations and local communities.

These conflicts often stem from issues such as environmental degradation, lack of job opportunities for indigenes, poor corporate social responsibility (CSR) initiatives, and inadequate compensation for land use.

For instance, a 2022 report by the Stakeholder Democracy Network (SDN) revealed that over 60 per cent of host communities in the Niger Delta lack access to basic social amenities, in spite of the vast wealth generated from oil extraction in the region.

Many communities complain about the destruction of their farmlands and water sources due to oil spills and gas flaring, leading to severe economic and health consequences.

Similarly, a 2023 study by the Centre for Research on Multinational Corporations revealed that gas flaring in the Niger Delta remains one of the worst in the world, contributing to environmental pollution and health hazards such as respiratory diseases and cancer.

In spite of regulations against gas flaring, companies continue the practice with minimal consequences.

This latest allegation against LPG adds to several similar accusations by host communities in areas where oil and gas companies operate.

For example, in 2024, Nigeria Liquefied Natural Gas (NLNG) had to deny allegations that its Train 7 Project Engineering, Procurement, and Construction Contractors had neglected its host community, Bonny Island.

This followed a publication accusing the company of excluding the people of Bonny from the benefits of its Corporate Social Responsibility (CSR) programmes.

However, NLNG dismissed the report as false and baseless, stating that it had already earmarked two major CSR projects for the island.

Specifically, the company cited the Shell Gate-Coal Beach Road and the Bonny Vehicular Terminal, both of which had been agreed upon by all relevant stakeholders.

Prior to this, in 2021, Finima, a host community in Bonny Local Government Area of Rivers State, threatened to sever ties with NLNG until further notice.

According to the community, NLNG had refused to grant it the rights of a landlord, as provided for in the Nigerian Local Content Law and as applicable to other host communities of key facilities in the country.

In a broader context, Stephen Woollett, in his book ‘Environmental Grants’, noted that oil and gas operations in rural communities often generate prolonged conflicts between such communities and oil companies.

He further stated that such conflicts arise from several actions, including disregard for environmental quality concerns, gross human rights violations, and poor CSR policies.

“The low quality of life of the host communities of oil companies is indicative of the relationship between them and those communities,” he said.

Similarly, in the case of Ogbeani community workers at LPG in Kwale, their demand is for the company to issue them formal employment letters clearly defining their terms and conditions of service.

Additionally, they stated that these terms and conditions should include improved welfare provisions similar to those enjoyed by other workers.

As part of their efforts, representatives of the community workers, through I. O. Omoyibo & Co., Barristers, Solicitors, and Legal Consultants, recently sent a letter of appeal to the state governor.

Dated October 30, 2024 and titled “Save Our Soul”, the letter lamented that the company arbitrarily hires and dismisses community workers without ‘knowing their fate or what lies ahead since no employment letter was issued to them’.

Moreover, they alleged that the company had failed to implement the new minimum wage, which could have improved their lives.

They stated that all attempts to resolve the dispute amicably had proved abortive.

Given these grievances, the community urged the governor to use his good offices to persuade the company’s management to listen to the workers and implement their requests.

They further stressed that their demands were reasonable and aligned with the country’s labour requirements.

When contacted on the matter, Chief Lucky Ojumah, Community Liaison Officer (CLO) at LPG, declined to comment extensively.

“I am ready to give all the information, but I must get a directive,” he was quoted as saying.

Likewise, the company’s General Manager, Mr Murugesh Kamal Seepco, declined to respond to the allegations when our reporter reached out to him.

In conclusion, ongoing tensions between oil companies and Niger Delta communities reveal the need for corporate accountability, transparent engagement, and compliance with labour and environmental regulations.

Stakeholders urge the government, companies, and community leaders to prioritise fair labour practices, adequate compensation, and sustainable development to prevent further conflicts that disrupt both businesses and local livelihoods.