The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) presided over the formal transfer of the OLO Oilfield Host Community Development Trust from TotalEnergies to Aradel Holdings Plc on Friday, securing continuity for community development initiatives under the Petroleum Industry Act.
Host Community Development Trusts (HCDTs) are statutory bodies under the Petroleum Industry Act (PIA).
The law requires oil and gas operators to contribute three per cent of their previous year’s operating expenditure to support development projects in host communities.
These trusts are intended to fund sustainable infrastructure and social services in areas affected by oilfield operations.
The OLO/OLO West marginal field was previously operated by TotalEnergies within the former OML 58 in the Eastern Niger Delta.
Aradel Holdings acquired the asset from TotalEnergies, triggering the statutory requirement to transfer trust responsibilities to the new operator.
The handover ceremony took place at the NUPRC’s headquarters in Abuja and brought together senior officials of the regulator, representatives of TotalEnergies and Aradel Holdings, and members of the OLO host communities.
According to a statement by the NUPRC Head of Media and Strategic Communication, the transfer formalised the change in settlor responsibilities under the trust and is expected to ensure that ongoing community development programmes continue without interruption.
The trust has supported more than 100 projects since its establishment between 2023 and 2025, covering water supply, electricity, road construction, education, and healthcare.
About 40 additional projects are currently in progress, benefiting more than 25,000 residents across the host communities.
At the event, the Commission’s Chief Executive, Oritsemeyiwa Eyesan, was represented by the Executive Commissioner for Health, Safety, Environment and Community, Captain John Tonlagha.
He said the trust’s governance and statutory funding obligations transitioned seamlessly to Aradel, preserving the existing framework envisioned in the PIA.
In his remarks, the General Manager of Community Affairs, Projects and Development at TotalEnergies, Dornu Kogam, encouraged Aradel Holdings to maintain the transparent and inclusive approach used in implementing community projects.
Aradel’s Community Affairs Manager, Blessyn Okpowo, said the company is committed to fulfilling its statutory obligations under the PIA and continuing the community engagement model established by TotalEnergies.
Wale Godwin, Chairman of the Board of Trustees of the OLO Host Community Development Trust, noted that 118 projects had been delivered out of a planned 160 and praised regulatory oversight in approving the community development plan before project execution.
The formal transfer of the trust ensures that development activities funded through the HCDT framework will continue without disruption despite the change in field operatorship.
This continuity is critical for sustaining infrastructure and services already underway in OLO host communities.
For Aradel Holdings, assuming trust responsibilities positions the company to maintain community relations and deliver on statutory development commitments under the PIA.
For policymakers and regulators, the transition underscores the PIA’s role in mandating host community development and safeguarding trust governance even as oilfield assets change hands.
