In a significant move aligned with the Petroleum Industry Act (PIA), TotalEnergies has formally handed over the OLO Oilfield Host Community Development Trust (HCDT) to Aradel Holdings Plc. The ceremony, presided over by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), underscores the Commission’s commitment to protecting host community interests during operator transitions.
Held at the NUPRC headquarters in Abuja, the handover brought together senior officials from the Commission, TotalEnergies, Aradel Holdings, and representatives of the OLO host communities. The event marked the formal transfer of settlor responsibilities under the trust, ensuring that ongoing community development initiatives continue without disruption.
Established in compliance with the PIA, the OLO HCDT requires operators to dedicate 3% of the previous year’s operating expenditure to host community development. Between 2023 and 2025, the trust facilitated over 100 projects, including water supply, electricity, road infrastructure, education, and healthcare initiatives, directly benefiting more than 25,000 residents. An additional 40 projects are currently underway.
TotalEnergies had previously operated the Olo/Olo West Marginal field within the former OML 58 in the Eastern Niger Delta, before the field’s acquisition by Aradel Holdings. The transfer of settlor responsibilities is therefore a legally mandated step, with TotalEnergies confirming that all obligations to date have been fully met and no liabilities remain.
Aradel Holdings now assumes full responsibility for the trust, with regulatory approval granted by NUPRC. At the ceremony, Mrs. Oritsemeyiwa Eyesan, represented by Captain John Tonlagha, Executive Commissioner for Health, Safety, Environment, and Community (HSEC), emphasized that the trust’s governance structure and statutory funding obligations would continue seamlessly under the new operator.
“The Commission will continue to provide firm and consistent oversight to ensure full compliance with the PIA for the benefit of both the communities and the industry,” she said.
Speaking at the handover, Dornu Kogam, General Manager of Community Affairs, Projects, and Development at TotalEnergies, encouraged Aradel Holdings to maintain the transparent and community-focused approach that has characterized the trust’s operations.
Mr. Blessyn Okpowo, Community Affairs Manager at Aradel Holdings, affirmed the company’s commitment to honoring all PIA obligations and continuing the trust’s ongoing projects. “We will honor commitments and duties required of the settlor and work smoothly with the communities as TotalEnergies has done,” he said.
The Chairman of the OLO Host Community Board of Trustees, Mr. Wale Godwin, praised the trust’s accomplishments, noting that 118 of 160 planned projects have already been successfully delivered.
The handover marks a milestone for both the OLO communities and Nigeria’s upstream oil sector, demonstrating the PIA’s mechanisms in action to safeguard host community welfare during transitions between operators.