Belemamoil Producing Limited (BPL), which is indicated as the first indigenous oil company with headquarters in the Niger Delta has launched a model it believes can restore stability in the Niger Delta and stop what it calls internal capital flight. It hopes to achieve this by making the host communities to love instead of hating oil companies.
The company, which says it has strong international partners with cutting-edge technology and vast knowledge in gas management wants communities to be partners in the new model with spelt-out rights, not tokens. The crisis over agitations by the oil region has led to exodus of businesses and capital flight from the region to other parts of Nigeria, the officials said. This is what the new model seeks to halt.
Presenting what the company calls the ‘Belema Model’ in Port Harcourt in the week, the Corporate Affairs Head, Sam Abel-Jumbo, a lawyer, thrilled the large audience of host community leaders and government officials with hopes of annual awards and bonus to be presented to communities that worked for peace and stability. The model showed various benefits such as employments, contracts, training, scholarships, and allowances that would go to communities; the youths, chiefs, women, etc.
The Managing Director, an engineer with over 25 years experience in the oil industry, Boma Brown, revealed that the oil/gas industry through the international oil corporations (IOCs) spends at least $10billion every year, saying if up to 50 percent of this budget was applied through the communities, it would create wealth, jobs and stability in the oil region. He said the Founder/President of the Belemaoil, Jack-Rich Tein (Jr), an indigene, a man with huge passion for his people, was out to change the narrative and show that oil was still a boom, not doom, as it was made to look by some others.
The Deputy Managing Director, Pedro Diaz, who stood in for the president/founder, said the company was always seeking ways to integrate more communities into the oil economy so as to guarantee the future. He regretted that the communities have not been made insiders in the oil industry but were made mere watchers earning tokens. “It’s important for community people to develop skills and work with us. Some will work indirectly with us. Community projects will be a normal thing, a matter of right. This meeting is to interact with us and we will answer your questions to create the needed synergy between oil company and community stakeholders”.
The Belema model:
In the presentation proper, Jumbo described the ‘Belema Model, as a world-class sustainable community engagement philosophy which he said evolved through Belemaoil’s understanding and desire to change the narrative in company – host community relationship & management. “We understand clearly that community inclusiveness is the fundamental basis for the success of our operations. And, this is our brand identity.”
The model traced the core of the Niger Delta crisis to breakdown of trust and confidence between oil communities and the IOCs but said the new model was out to repair the damage with a brand identity to put in place a vehicle that would re-invigorate mutual trust and confidence as well as stimulate the process of mutual wealth creation for the benefit of all, and more particularly for a sustained development and economic empowerment of the host communities.
He said Belemaoil would manage community and other interested parties’ issues proactively, assist communities in their developmental efforts through synergy with relevant government agencies, and other stakeholders, and create opportunities for direct economic empowerment to the host communities. The company’s social performance philosophy, he added, “is characterised by safe, empowered, healthy, thriving and self-reliant communities capable of sustaining their development, with Belemaoil being a welcomed and valued member of the communities.”
Belemaoil operations fall within the swamp terrain of the Niger Delta and cut across 18 communities located in three local governments in Rivers State: Akuku-Toru, Bonny and Port-Harcourt city.
Business corridor
Belemaoil says it has carved out business corridors with groupings such as Kula Business Corridor (KBC), Oko Business Corridor (OBC), Idama Business Corridor (IBC), Inda Business Corridor (InBC), Jokka Business Corridor (JBC), and Abuloma/Okujagu/Okuru Business Corridor (AOOBC). Each business corridor has autonomy over its allocated funds and choice of projects like in the GMOU system now ruling in the IOCs, but the Belema Model provides that Belemaoil with the support of NAPIMS shall lead the process and drive it to ensure proper control and strict implementation of guidelines. This may be to cut out the crisis in some GMOU clusters of IOCs that hold up projects and cash draw-downs through court cases.
In this case, there would be business corridor management board (BCMB) and a community interface committee (CIC) or whatever name to be chosen by each corridor.
The Board (BCMB) shall consist of the representatives of the communities under the business corridors: Belemaoil, NAPIMS, Rivers State Government Ministry of Community Development, and the respective local government councils. “The BCMB shall be a supervisory body for the six [6] business corridors and shall provide oversight functions over the CIC by monitoring and reviewing its activities.”
A woman would be a member at any instance. “Every development project must be certified by the community leadership. There shall be a designated project account for every community to which the chairman of the CIC and the treasurer shall be category ‘B’ signatories while Belemaoil representative shall be category ‘A’ signatory.
Juicy projects
The model spelt out the kind of projects the community would execute themselves starting with what the company calls sustainable development projects such as “Potable water said to be a luxury in most communities, electricity with gas-to-power system where it is possible. There would also be medical facilities such as functional cottage hospitals, duly equipped health centers, standard school construction (equipping & support to learning), community teacher’s support, skill acquisition centers, ring roads/internal roads with drainages and culverts, intercommunity bridge linkages, jetty constructions & embankments, plus dredging & reclamation works, housing units/guest homes for community income generation, and other positively impactful projects as shall be discussed with the communities upon further engagements.
Belemaoil looked hard at one of the core areas, youth empowerment and created what it sees as an inclusive scheme. It would touch 200 non-graduates to be trained in skilled and semi-skilled programmes from 2018 to 2022. They would be paid stipend (allowance), feeding & accommodation while on training, provided with business start-up capital or workshop and tools for groupings. “Others to be employed directly as facilities maintenance technicians. Training partners: Bonny vocational centre in Bonny within 12 and 24 months. Certification after training would be by London City & Guild (UK) certificate. (Other world class training institutes are also being consulted).
The Bonny Vocational Centre is said to be of world class standards specialising in building construction, business support skills, electrical installation, ICT systems support, mechanical maintenance, refrigeration & air-conditioning, and catering and hospitality. “Two students from BVC scored the highest grades in the whole world. It is among the top 10 institutes of City & Guild in the world. 76 per cent of the graduates either have jobs, self-placements or further education.”
The goal, it was indicated, is to achieve improved skills and knowledge, empowerment creation, capacity building, entrepreneurial skills, and inclusive economic growth. The skills on show would be for drilling engineer, petroleum engineer, supervisor, work-over operator, brine/mud engineering, geo scientist, drilling water management, brine filtration, reservoir engineer, mud logging, tubular handling, solid control, and petro-physicist.
Traditional rulers, often divided and marginalised, would under the Belema model take a place of pride due to the recognition they now enjoy from Belemaoil. “It is imperative that the custodians of our values and cultural heritage be supported to function effectively. This is part of the Belema model.”
Community contractors:
This has been the cause of rancour and crisis in the oil region. Belemaoil says it is moving action to the communities in terms of contracts which has been estimated in the industry to be over $10Bn per year.
Jumbo said: “This is one of the core areas of partnership with the communities under the Belema model. Our priority under the Belema model is to ensure the involvement and participation of our communities’ vendors and service providers in the contracting process of Belemaoil. We will provide opportunities for community contractors to tender for jobs within their technical capabilities, and also to have workable alliances and partnerships where necessary with competent technical counter-parts to enable them bid for jobs. We would support the growth and development of indigenous contractors’ capacity within our communities.” This brought huge applause in the audience.
Host community employment scheme:
This is another sore area in the relationship with host communities, something that flared up violent agitation in the oil region. “Employment of our youths is very paramount to the actualisation of the Belema model objectives. At the moment, we have over 600 of our youths gainfully employed in our community security surveillance scheme. Our special graduate training programme will afford us the opportunity of not only having a pool of qualified graduates to be employed, but also having a pool of Belemaoil trained and qualified manpower from within our communities to take up full employment opportunities over the next two years. There shall also be periodic recruitment exercises based purely for our communities’ graduates. This again is a top priority activity under the Belema model.”
Scholarship is also an area of attention in the model. “Under the Belema model, over 600 scholarships shall be given out yearly to our students at various levels, across the respective business corridors which are already effective this September 2017. This underscores the level of importance we attach to the educational development and advancement of our youths. Secondary category N60,000; university N200,000; Post-graduate N300,000; Foreign is to be based on excellent performance, and limited to post graduate studies.
Commitments expected from host communities:
Belemaoil as a company expected much to whom much is given. The model demands for commitment to conducive and peaceful environment–guaranteed freedom and license to operate. They also expect security and stake-ownership of Belemaoil’s facilities (in the form of business partnership); reduction of cases of community strife, restiveness, and litigation as much as possible; support the fight against facility/pipelines vandalism; transparency and accountability in dealings on behalf of community; promotion of mutual understanding and trust among community members; contribute to environmental protection through intelligence reporting on Belemaoil facility and properties; ensure community focus is in alignment with the fundamental objectives of the Belema model which include transparency and accountability, participatory partnership, and inclusiveness.
Relief, happiness in the air:
The presentation elicited huge excitement, relief and happiness on faces at the event at the prestigious Banquet Hall of the Hotel Presidential. Many respondents and community leaders said this would turn around the fortunes of the oil region to peace and stability so as to reboot the economy of the region.
The Permanent Secretary of the Rivers State Ministry of Chieftaincy Affairs and Community Development, the Knight, Sam Ibemere, who was the Special Guest of Honour, applauded Belemaoil for what he termed ‘wonderful initiative’ which for him is the first of its kind. He said this has even lessened the Ministry’s burden of spearheading
such engagements. He called on other IOCs operating in the state to emulate the Belema Model.
The Local Government Catetaker Committee Chairmen of Port-Harcourt City
LGA, Akuku-Toru LGA and Bonny LGA where Belemaoil operations cut across, were all in attendance at the session and participated effectively. They too seemed excited that a model that could restore peace in the oil communities has come on board.
This situated the vote of thanks rendered by the Executive Vice-President of the Company, Rosemary Asiegbu, who called on the women of the host communities to seize the opportunity Belemaoil offers to begin the process of re-orienting the children and youths of their respective communities, and indeed the Niger Delta.
Success hopes?
Even as the meeting was going on, noisy groups took position outside to ensure those inside did not have ease of mind. Jumbo said such was the scenario Belema Model was out to eliminate from the communities. His Royal Majesty, the king of Ngeje, Egbelekro Opueze, in his reaction to the commotion, said; “Everybody wants to be included but it’s not possible. Belemaoil has stipulated those that must be in the summit: the king, the council of chiefs, the CDC chairman, and woman leader. If these have been chosen, you don’t expect all and sundry to be there. That is the pandemonium you are seeing there.”
The king however, described the event as a big occasion. “An indigenous oil company has come up to make a difference from the IOCs, to do what the IOCs have not done for years. Belememaoil has come with a model that hinges on community inclusiveness. That is the kind of company we want to operate in the Niger Delta. This gives the communities the confidence to support the operations of the indigenous companies.”
A leader, Lolo Awara, chairman, Kula Kingdom Development Committee and the chairman, Kula-Belema Interface Committee, said the model was satisfactory but wondered how the company would deal with internal conflicts already existing in the oil communities. He however said; “There is big hope for the host communities. I have been involved in the negotiations and this blue print. At the moment, they are training graduates and non-graduates in their oil fields who will take over in the future. I have 100 per cent confidence that hope has returned to the Niger Delta and to the youths. Belemaoil is here to empower the youths.”
The conflicts facing Belema model were present. BD Sunday tried to find out why some persons would still carry out rowdy agitation at such a place of plenty. Fubara Okwuene, from Fuche community in Degema said they were not happy that one person who had led the community for over nine years and had been removed was still the one representing them at Belemaoil. He called on Belemaoil founder to give the other side a listening ear to avoid breakdown of law and order in Fuche areas.
Ignatius Chukwu
