Israel Umoh
Five years after Petroleum Industry Act (PIA) was signed into law, Accugas Ltd inaugurated a nine-member Board of Trustees (BoT) for the Akwa Ibom and Cross River States Development Trust in Uyo on Friday, September 4.
Accugas, the midstream subsidiary of Savannah Energy, is involved in the transportation and distribution of gas to the Eastern part of the country.
The company traverses from 19 local government areas of Akwa Ibom at its core operational base at Uquo Gas Processing Plant in Esit Eket Local Government Area, to Odukpani and Akpabuyo of Cross River State.
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However, our reporter, who was duly invited by one of the BoT members was barred by officials of Accugas and members of Nigeria Security and Defence Corps (NSDC) from entering Sir Ahta Okon Isong Hall, Ceedapeg Hotels , Ewet Housing Estate, Uyo, venue of the event, on the basis that no journalist would be allowed to enter except three persons from each of the host communities.
Our reporter who monitored the inauguration from outside learnt from reliable source that the Board of Trustees (BoT) is headed by Chief Bassey Itauma as its Chairman.
The board was inaugurated under Chapter 3 of the Petroleum Industry Act (PIA) 2021, as the highest governing body of any Host Community Development Trust (HCDT).
Itauma from from Esit Eket is a retired staffer of ExxonMobil Plc now Seplat Energy Plc.
The BoT terms of reference include the strict legal frameworks set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the PIA, with the core responsibilities of strategic oversight, financial management, and projects approval, among others.
Recall that on 14 September 2022, then Akwa Ibom Commissioner for Power and Petroleum Development, Dr. John Etim, convened an initial HCDT mobilization meeting and met Accugas host community stakeholders in Uyo on the need to establish the HCDT.
The Pioneer newspaper reported that stakeholders were advised to set up the Board of Trustees and other organs.
The Savannah Energy’s 2022 sustainability report said it had commenced implementation of the HCDT framework and obtained provisional approval to register the HCDT for Accugas.
In 2023, Savannah Energy in its Sustainability Review reported that HCDTs had been established for its upstream assets, Stubbs Creek and Uquo, but that for Accugas was awaiting the new midstream regulations before the setting up of its HCDT.
In November 2024, following the release of the midstream regulations in November 2024, Savannah’s 2024 Sustainability Review/Annual Report stated that Accugas had commenced the process of setting up its HCDT.
Actually, Accugas Limited generates an estimated $200 million (N264.34 billion) per year in total revenue from its gas processing and distribution operations.
The company holds over $3.4 billion in contracted future gas revenues via long-term Gas Sales Agreements (GSAs). These contracts feature price-escalation clauses tied to US consumer price inflation to guard against domestic macro shocks.
It utilises a 200 MMscfpd processing facility and an approximate 260 km pipeline network. This system drives over 10% of Nigeria’s total thermal power generation capacity and fuels massive industrial hubs like the UNICEM cement plant.
Owing to the translucent nature of contract, the Senate decided to probe the gas supply contract agreement awarded to a private firm, Accugas Limited, during the administration of the late President Muhammadu Buhari.
Senator Aniekan Bassey (APC, Akwa Ibom North East Senatorial District), who sponsored the motion at the plenary presided over by the Deputy Senate President, Barau Jibrin, said in 2017, the Niger Delta Power Holding Company (NDPHC) entered into an agreement with Accugas Limited for gas supply to Calabar Generation Company Limited (Calabar Genco).
The Deputy Senate President, who presided over the plenary, mandated the committee on power, when constituted, to probe the gas supply agreement and ensure due diligence on the transaction of the gas supply agreement
Unfortunately, the committee’s report did not see the light of the day.
From Sunday, August 11, 2024, both state and federal government officials and players in the oil industry trod Ikot Inyang Abia and Ikot Ukpong Villages in Ukanafun Local Government Area of Akwa Ibom State owing to gas leak.
Investigation by Straightnews newspaper showed that the villages were deserted by indigenes due to gas leak.
It was discovered the Right of Way (ROW) of the pipeline linked to a gas station inaugurated by Accugas in Ikot Ukpong in 2009 was covered with overgrown weeds.
