Nexen Nigeria and the Oron Community in Nigeria: IPIECA Partnerships Case Study.
(The following are extracts from Nexen Ltd Partnership Case Study produced early in 2006.)
Nexen, in partnership with Pro-Natura International ( Nigeria ) is working with the community to fund the Oro Community Development Trust (OCODET), which will receive, evaluate and fund sustainable community development projects aimed at improving the circumstances of disadvantaged people in particular and the local community in general. The partnership is in the start up phase of what it is hoped will be a long-term, self-sustaining relationship with petroleum producers in the region.
While the OCODET partnership is at an early stage, the participants have every reason to be optimistic that it will continue to flourish. It was built upon the learnings obtained by Pro-Natura over at the past decade during which they have nurtured the 'participatory community development' model in the Niger Delta. Some of the lessons have been very hard-learned and painful indeed. Nexen has been able to benefit from many of these lessons along the way. Some of our most significant 'take-aways' include the following:
The participatory community development model is far superior to the host community adoption approach, not only from the perspective of cost-effectiveness but also from superiority of tangible and sustainable community outcomes as well as minimisation of business interruptions. In the words of Richard Owens, Nexen's Nigeria Managing Director, "Self-sustaining enterprises lead to peaceful communities and no disruption to our operations. That's a valuable commodity."
A neutral and trusted third party such as Pro-Natura is an essential intermediary between the petroleum operator and the community. Anger and resentment amongst the Niger Delta communities against the industry and the government have often reached the boiling point and led at best to confrontation and mischief and at worst to outright violence. An arms length relationship is the best approach, at least initially, for the long journey toward trust-based working relationships.
An open and transparent governance process for partnerships of this nature is of utmost importance to long-term success. All participants, especially the receiving communities need to be able to clearly see that not only are their most pressing needs being addressed, but that the available funds are being expended in accordance with technically sound project proposals. Corporate, community-based organisations such as those created for Akassa and the Oron communities seem to be the most effective model.
It is important to obtain a broad base of industry and other (e.g. government, EU, World Bank, various charitable foundations, etc.) support for community programs of this nature. The more participants there are, the greater will be the assurance of financial and institutional support over the long-term and the greater will be the opportunity for broadening the trust relationships amongst the participants.