“As guests of our Host communities, we have a duty to engage community contractors fairly in the award of contracts, and this is enshrined in our GMoUs. We have a mandate to ensure that community contractors receive opportunities to tender for work of a type and complexity appropriate to their abilities while continuously developing their ability to deliver on more complex projects, in line with Eroton’s requirements. This is all done with Eroton as operator ensuring prudence and probity.” This was Ebiaho Emafo, Chief Executive Officer, Eroton Exploration and Production speaking.
And Christian Seikibo, Chairman DAA-3 Cluster Board also has this to say: “The contribution of Eroton to the development of host community contractors is worthy of emulation by other players in the Nigerian oil and gas industry.”
For Eroton and its management team, keeping faith with the terms of the Global Memorandum of Understanding (GMoU) with host communities is key to a healthy relationship that engenders growth. And for Eroton, the “outstanding” growth in production from the initial 10,000 barrels of oil production per day to 75, 000 barrels following the acquisition of an asset in 2015 was only possible because of the cordial relationship it has “enjoyed” with its sixty host communities through what it referred to as “Cluster Boards”, CDBs.
In a press statement the company said over 20 host community contractors have been engaged continuously in a number of business services which range from construction of pipelines, solid control and filtration, to bound wall construction, marine vessels and houseboats. Others include flow stations maintenance, diesel Supply and manpower provision. The value of service contracts awarded and executed by community contractors was said to be in the region of six billion naira or more from 2016 to July 2020, an amount said to be besides investment in the corporate social responsibility initiatives over the same period.
The company also said its entrepreneurship program (ErotonPreneurshp – EP) has continued to make a positive social impact on the host communities, contributing to local business development, job creation and capacity enhancement. The program has been put in place to ensure that entrepreneurs from the host communities acquire relevant entrepreneurial and management skills, to be able to participate actively in projects and services, accessing capital as well through invoice discounting agreements with key financial institutions.
Eroton operates the OML 18 oilfield that covers a total area of 1,035 SQKM offshore Eastern Niger Delta (Swamp/Shallow Waters) on behalf of the NNPC/Eroton Joint Venture (JV).