Frontier Oil Limited/Seven Uquo Gas Limited has signed a revised Memorandum of Understanding (MoU) with four parties to subsist for five years.

The MoU indicates that the immediate host communities has 32 percent, host communities in Eket, 30 percent, host communities in Esit Eket, 28 percent while the Akwa Ibom State Government is accommodated by 10 percent in the agreement.

Dada Thomas, Managing Director of Frontier Oil Limited, who entered into the revised agreement with the parties on Tuesday, commended the host communities for guaranteeing conducive environment for the company to operate.

Thomas tasked the MoU implementation committee to work towards implementing the agreement reached between the company and its host communities in good spirit to enable them succeed.

“We will do our best to implement the MoU which we have just signed with you. We will make sure that every letter in the MoU counts,” he said.

Dr. Iniobong Essien, Akwa Ibom State Commissioner for Environment and Mineral Resources, who represented the state government, said the first MoU lapsed February 9, 2016, adding that the MoU implementation committee subjected it to in-house review.

Essien added that the revised document was forwarded by the FOL on April to the ministry for consideration.

The MOU, according to him is one of the important tools for building partnership and sustaining development with host communities.

“It engenders mutual trust and reduces the likelihood of unfair dealing from all parties because it imposes transparency and accountability in the community and company relation.” He stated that the FOL-SUGL would set aside annual community development funds to a designated account where the company and community would be signatories.

“Let me mention here that FOL-SUGL has also made commitment to set aside extra-budget for the management of community development foundations different from the annual budget for community development projects,” he added.

He thanked the management of FOL-SUGL for their commitment towards the realisation of the revised MoU and for the enhanced sustainable peaceful atmosphere for greater production in the state.

He emphasised the need for the MoU executive committee to ensure that oil and gas services companies operating without MoU in the state, should enter into MoU with their host communities to develop.

In their separate speeches, the Paramount Ruler of Eket, Obong Etim Charles Daniel Abia thanked the state government for ensuring that the MoU between FOL-SUGL and his host communities had been signed. (independentnig.com)

•Photo shows Governor Emmanuel Udom of Akwa Ibom State.

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