Towards Transparency: Best Practices for Improving Community-Company Relations in the Nigerian Oil and Gas Sector

Abstract

Abstract Oil and gas exploitation is a process of varied steps from prospecting and exploration to the production stage. As such, the overall success of such venture is dependent on success at each of these stages. While every step is critical, we highlight the important phase of community/company relations, which in fact is not a phase/step but a continuous aspect of the exploitation process as long as a company undertakes oil and gas development work in the community and even afterwards. Issues of land acquisition, memoranda of understanding, environmental issues and technical transparency (without disclosure of proprietary information) have increasingly caused misunderstanding and led to impasse which are detrimental to the causes of all parties involved. The objective of this work is to drive towards a sweet spot where the community and company can coexist for mutual economic attainment. In the lens of a Petroleum Engineer and a Lawyer, we review current practices and best-practices and proffer better solutions on improving community-company relations tailored to the Nigerian sphere based on knowledge of our clime. Under applicable laws, acts and regulations, we review the nature of land acquisition and where errors have been made in this area causing discord; as regards memoranda of understanding we highlight standards for social and environmental outcomes. We also cover operational and environmental issues and how best these could be addressed on the engineering angle We recognize that just like no two developmental projects are the same, there is therefore no one-size- fits-all solution but instead, guidelines and better understanding of issues from the technical angle and from the perspective of the law will help to remove the veil of mistrust and help communities and companies achieve a positive discourse at the table. As we mark 60 years of oil production, the oil and gas industry has and will continue to be a major driver of economic growth in Nigeria. As such, it is necessary to model what real, perceived and impactful community-company partnership is composed of. Success at the community-company level will no doubt provide a foundation for success at the other levels of development and in turn grow our communities, its economy and people and our great nation, Nigeria, at large.