OML 26: Delta Communities Demand ₦2.4bn HCDT Balance, Warn of Shutdown

Oil-producing communities in Delta State have called on relevant authorities, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to intervene in an alleged shortfall in the 3 per cent Operating Expenditure (OPEX) remittance under the Host Community Development Trust (HCDT) tied to OML 26. They are also urging the Asset Management Team and Sterling Global Oil, operators of the asset, to fully meet their statutory obligations or face possible disruption of operations.

Under the Isoko Grassroots Mobilisers, the communities maintain that the Petroleum Industry Act (PIA) requires settlors to contribute 3 per cent of annual OPEX for host community development. They allege that although the HCDT was inaugurated nearly two years ago, only partial remittance was made in October 2025, leaving a shortfall of about ₦2.4 billion.

The group further stated that the Board of Trustees raised concerns over the discrepancy in November 2025, but no meaningful resolution followed. A virtual meeting held in December ended without agreement, while a petition submitted to the NUPRC in January 2026 led to a tripartite meeting in Abuja on April 15, 2026 involving NEPL, the Asset Management Team, and the HCDT Board.

At that meeting, the operator reportedly attributed the shortfall to “special intervention projects,” a justification the communities reject as inconsistent with the provisions of the PIA. They also expressed concern that despite several engagements, including earlier discussions on security in Isoko North, no visible development projects have been implemented since the HCDT’s inauguration in February 2024, warning that continued inaction could trigger mobilization for a shutdown of oil operations in the area.