The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has supervised the formal transfer of the OLO Oilfield Host Community Development Trust from TotalEnergies to Aradel Holdings, reinforcing compliance with the Petroleum Industry Act (PIA) and ensuring continued protection of host community interests during oil asset transitions.
The handover ceremony, held at the Commission’s headquarters in Abuja, marks a key milestone in Nigeria’s upstream oil and gas reforms and the operationalisation of the Host Community Development Trust (HCDT) framework under the PIA.
The transfer follows Aradel Holdings’ acquisition of the Olo/Olo West marginal field, formerly operated by TotalEnergies within the old OML 58 in the Eastern Niger Delta.
Under the Petroleum Industry Act, oil and gas operators are required to establish and fund Host Community Development Trusts with three percent of their previous year’s operating expenditure (OPEX) to support sustainable development in oil-producing communities.
With regulatory consent granted by the NUPRC, Aradel has now formally assumed settlor responsibilities for the OLO Host Community Development Trust.
According to the Commission, TotalEnergies fulfilled all statutory obligations up to the transfer date, with no outstanding liabilities.
Between 2023 and 2025, the OLO Host Community Development Trust implemented:
- More than 100 completed development projects
- About 40 ongoing projects
- Direct benefits to over 25,000 residents
The projects span critical sectors, including:
- Rural electrification
- Water supply systems
- Road infrastructure
- Education facilities
- Healthcare services
Chairman of the Board of Trustees, Wale Godwin, disclosed that 118 out of 160 planned projects have already been delivered.
He also praised the NUPRC’s oversight role, especially its approval of the Community Development Plan before project execution, describing it as essential for transparency and alignment with community priorities.
Speaking at the event, the Commission Chief Executive of the NUPRC, represented by Executive Commissioner for Health, Safety, Environment and Community, Captain John Tonlagha, stated that the seamless transition demonstrates the strength of the PIA’s host community provisions.
“The OLO Oilfield Host Community Development Trust remains intact. Its governance structure has been preserved, and its statutory funding obligations are transitioning seamlessly to the new settlor, exactly as envisioned by the Petroleum Industry Act,” Tonlagha said.
The regulator reaffirmed its commitment to maintaining strict compliance monitoring to ensure stability in Nigeria’s upstream petroleum sector.
TotalEnergies encouraged Aradel Holdings to sustain a transparent and community-centred engagement model.
In response, Aradel assured host communities and regulators of its commitment to meeting all statutory obligations under the Petroleum Industry Act and continuing development programmes without disruption.
The company stated that it would maintain the inclusive engagement structure already established under the previous operator.
The Host Community Development Trust framework is considered one of the most transformative reforms introduced by the Petroleum Industry Act.
The model was designed to:
- Address longstanding grievances in oil-producing communities
- Reduce pipeline vandalism and unrest
- Improve operational stability in the Niger Delta
- Ensure measurable socio-economic benefits from oil operations
Industry analysts note that as Nigeria witnesses increased asset divestments by international oil companies and growing participation by indigenous operators, regulatory-supervised transitions such as the OLO trust transfer are critical to maintaining investor confidence and community trust.
The successful transfer of the OLO Host Community Development Trust reinforces confidence in Nigeria’s post-PIA regulatory regime. It demonstrates that operator changes in marginal fields and divested assets can occur without disrupting community development obligations.
With more upstream transactions expected across the Niger Delta, the NUPRC’s oversight role remains central to ensuring that host communities continue to receive their statutory entitlements under the Petroleum Industry Act.
