The Nigerian Upstream Petroleum Regulatory Commission has overseen the formal transfer of the OLO Oilfield Host Community Development Trust from TotalEnergies to Aradel Holdings, marking a significant step in the implementation of the Petroleum Industry Act and the safeguarding of host community interests during changes in operatorship.

The ceremony, held at the commission’s headquarters in Abuja, brought together senior regulatory officials, executives from both companies, and representatives of the OLO host communities to formally conclude the transfer of settlor obligations under the trust.

A statement issued on Friday by the NUPRC Head of Media and Strategic Communication, Eniola Akinkuotu, said the move is aimed at ensuring continuity in community development programmes despite the transition in operatorship of the Olo/Olo West marginal field.

The OLO Host Community Development Trust was established in accordance with the Petroleum Industry Act, which requires operators to contribute three per cent of their preceding year’s operating expenditure to promote sustainable development in host communities.

Between 2023 and 2025, the trust facilitated the completion of over 100 projects spanning water supply, electricity, road construction, education, and healthcare. An additional 40 projects are currently underway, with more than 25,000 residents across the host communities reported to have directly benefited from the interventions.

TotalEnergies previously operated the Olo/Olo West marginal field within the former OML 58 in the Eastern Niger Delta prior to its acquisition by Aradel Holdings, making the transfer of responsibilities under the trust both a statutory and operational necessity.

The oil major confirmed that all obligations up to the date of transfer had been fully discharged, with no outstanding liabilities. Aradel has now formally assumed full responsibility for the trust following the Commission’s regulatory approval.

Speaking at the ceremony, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, represented by the Executive Commissioner for Health, Safety, Environment and Community, Capt. John Tonlagha, said the transition underscores the effectiveness of the Petroleum Industry Act framework in protecting host community interests.

He stated that the trust’s structure and governance framework have been maintained, ensuring that ongoing projects proceed without interruption.

“The Olo Oilfield Host Community Development Trust remains intact. Its governance structure has been preserved, and its statutory funding obligations are transitioning seamlessly to the new settlor, exactly as envisioned by the Petroleum Industry Act,” Tonlagha said.

“The commission will continue to provide firm and consistent oversight to ensure full compliance with the provisions of the Act for the benefit of both the host communities and the industry. This is a critical component of building trust and stability in Nigeria’s upstream sector.”

In his remarks, the General Manager, Community Affairs, Projects and Development at TotalEnergies, Dornu Kogam, urged the new operator to uphold the transparent and inclusive engagement model that had guided project implementation.

“We encourage Aradel Holdings to maintain the same transparent, community-centred approach. The success recorded so far is the result of sustained dialogue, mutual respect, and shared development goals,” he said.

The Community Affairs Manager of Aradel Holdings, Blessyn Okpowo, assured stakeholders of the company’s commitment to meeting its obligations and sustaining the pace of development initiatives.

“We want to assure the host communities and the Commission that, in line with the Petroleum Industry Act, we will honour all commitments and duties required of the settlor. We also intend to work very smoothly and continue the engagement model established by TotalEnergies,” he said.

The host community framework under the Petroleum Industry Act is widely seen as one of the most far-reaching reforms in Nigeria’s oil and gas sector. It was introduced to address longstanding grievances in oil-producing communities over environmental degradation, poverty, and perceived marginalisation despite decades of resource extraction.

Under the law, operators are mandated to establish Host Community Development Trusts and contribute three per cent of their annual operating expenditure to finance sustainable development initiatives in affected communities.