OML 34 operator; NPDC discussions with community deadlocked

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Negotiations to renew the expired Global Memorandum of Understanding (GMoU), between the operator of Oil Mining Lease (OML) 34, Nigeria Petroleum Development Company (NPDC), its business partner, ND Western and about 27 host communities in Delta State, stalemated, penultimate Thursday, following the disagreement on the funding, Vanguard reports.

The last GMoU terminated first quarter of 2016, stalling release of funds and projects delivery by the operator to the communities, cutting across Ughelli North, Ughelli South and Udu Local Government Areas of the State. Reports said the communities insisted on having a clear share of production revenue from the OML 34 assets in their locality, but the Asset Management Team (AMT) of operators maintained that the idea of profit sharing was untenable.

The Manager, Government, Community and Security, under the AMT, Mr. Sheidu, harping on the expired GMoU, which earmarked a yearly N106 million for 34 communities, proposed a yearly N80 million for five years for 27 communities. Following the unresolved deliberations, the Delta state government as mediating party, through the state Ministry of Justice, suggested that AMT be given more time to justify its N80m offer.