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ExxonMobil‘s new initiative on community relations, how far can it go?

BusinessDay
11 Min Read
ExxonMobil

Mobil Producing Nigeria (MPN), operator of the Nigeria National Petroleum Corporation (NNPC/MPN) joint venture appears to have launched a new initiative aimed at improving its not-so-good  community relations programme  in Akwa Ibom .

Read MoreMobil pledges continued partnership with host communities in Akwa Ibom

In April, it unveiled a N170 million project  under its investment scheme focusing on peace and conflict resolution workshop,  clean energy project, community safety awareness campaign and an upgrade of market stalls as well as  community beach party.

Two months later,  it is holding  has  high level meetings with lawmakers from Akwa Ibom State who are in the National Assembly.

 The company led by its top executives has met with Patrick Ifon, member representing Eket federal constituency, the core oil producing community of Akwa Ibom State and recently  had a meeting with Onofiok luke, former speaker of the state assembly  who now represents Etinan Federal constituency in the House of Representatives.

Many observers see this as a welcome development coming at a time the company’s community relations activities had reached an all time low.

Before now, the company was a household name in Akwa Ibom State and indeed the Niger Delta region of Nigeria.  By then, it used to pride itself as a good corporate citizen of Akwa Ibom State.

According to figures released by the National Bureau of Statistics, the company which is a subsidiary of ExxonMobil Corporation produced over 500,000 barrels of oil per day in 2018.   Though figures for 2019 are not readily available, industry sources put the figure at over one million barrels of oil per day.

However since its merger with Exxon years ago, things have not been the same again and  the company has struggled to keep up with its community relations programmes.  Before then, together with its joint venture partner,  it had  a “very active community relations programme  made substantial contributions in the area of health, education, sports, water supply, electricity and road especially around its operational base in Akwa Ibom  and River States.”

With agitations by  and blockades by youths demanding   the employment , prompt response to oil spills, payment of severance benefits and other labour related issues including the difficulties in securing minor contracts from the company and its affiliate firms, it clear that all is not well with the company and its host communities.

According to Tom Benjaminsen, the company’s general manager, joint venture operations,   more than 25 cases of “unprecedented harassment, badge seizures and attacks on the company’s contractors by a handful of individuals have been recorded between January and April this year.”  Obviously, things  are not looking good with the company’s activities in Akwa Ibom State .

 One can hardly blame the youths for the increase in agitation for improved economic programmes in the host community given that issues of a clear cut Memorandum of Understanding (MoU) between the company and the host communities have yet to be sorted out, the many reported cases of oil spill and the inability of the local community to benefit from minor contracts of supplies have not helped matters.

Though the company says it is now focusing on “sustainable development projects aimed at “ promoting economic independence for communities in our areas of operations, through partnership with Non Governmental Organisations (NGOs), capacity building, micro financing of small and medium enterprises healthcare and agriculture,” this has not helped to stem the agitation in the host communities because  they seem not to go far enough.

For instance, among the sustainable development projects, embarked upon by the company is a beach party that took place at the Ibeno beach where youths gathered to dance and sing songs. One wonders, how that could translate into a viable sustainable development programme for the community.

When the going was good, the core oil producing communities of Ibeno, Esit Eket, Eket and Onna local government areas of Akwa Ibom State enjoyed significant improvement in physical infrastructure like roads, water  and electricity projects as well as scholarship programmes. In fact of many of the streets in Eket town, widely regarded as an oil city of Akwa Ibom State were constructed by the oil company.

At its peak of excellent community relations, the oil company had a sizeable budget running into millions of naira for community assistance programmes. This was seen the number of projects that were completed and inauguration in the core communities.

 In addition to its airstrip in Eket town, it also had a shuttle service by Bristow helicopters and had a The  thriving logistics department in the area with a  booming activities at is jetty in the area. But gradually, the oil company scaled down its operations leaving the host communities in a state of disbelief.

The issue of how the company  relates with its host community formed the plank of the discussion during the meeting with  Pat Ifon, a former local government chairman of Onna local government area, who insisted that the dialogue should have been with the community leaders in the host communities.

“There is a need to sit together with  the host communities and come out with a working agreement and ways of consistent community action like we used to have back then,’’ Ifon said.

Indeed, the new  approach by the company of going to the nation’s capital to engage the lawmakers from Akwa Ibom State in a dialogue of sort without first talking with community leaders at the grassroots where the company has its operations seems  like  a top-bottom approach to resolving crisis, a development  many believe would not go far enough. This approach is like treating the symptoms of a debilitating illness rather than the disease itself.

For instance, instead of committing itself to an MoU with the community to take its community relations programme to a new level, it has elected to selectively engage lawmakers from the state who are in the National Assembly face-saving meetings.

“It is our interest for you to represent us well, ExxonMobil is part of your constituency,’’ Eme  Udom, the company’s general manager in charge of  venture relations was quoted as saying during a meeting with Luke.

Many community leaders including Ifon believe that having a Memorandum of Understanding will curb the incessant  facility blockade by the youths  adding that it would define the stands of both the company and the community as anyone who crosses the ‘red line’ will be called to order by the law as contained in the agreement.

 The meeting with Luke was no different as the lawmaker informed the oil company’s delegation led by Eme Udom,  that it should take steps in ensuring that local contractors are given same opportunity like their counterparts from other parts of the country.   The vexed issue of the company’s relocation of its administrative head office to Akwa Ibom State, an issue that has been on the front burner of discussions for years was equally on the table.

To facilitate the relocation of the oil company’s head office to Uyo, the Akwa Ibom State capital, the state government is constructing a 21-storey building  in the banking district of the state capital to guard against excuses . Disappointing, the company did not make any response during the two meetings on how soon it would relocate to Akwa Ibom State.

Though it claims that it is paying three percent of its revenue to the Niger Delta Development Commission (NDDC) as required by the law, many are not enthused by it as it has not helped to upgrade decaying infrastructure in the host communities.

For years that the company has been in operations in Ibeno, the link road to its operational base was in a sorry state  of disrepair. It took the occurrence of a massive oil spill before the road  could be fixed. The community with the state government had to sit down and agreed on how the money for the payment of compensation arising from the oil spill should be spent. It was then  agreed that part of the funds would set aside for the construction of the road. Though the road had since been completed, the company caused a stir when it erected a large billboard with the amount it claimed to have spent on the road.

Indeed, the company needs to revisit its community relations approach, it needs to talk with the community leaders, the youths and all groups. Announcing a budget of less than N200 million for its community relations programme covering workshops on conflict resolution and a beach party can hardly address the myriads of issues that the community had been agitating over the years. Claiming to maintain a very active community relations programmes with its joint venture should be seen and  felt by the host community and should aim at real sustainable development of the oil bearing communities.
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