TotalEnergies has formally handed over the OLO Oilfield Host Community Development Trust (HCDT) to Aradel Holdings Plc, marking the completion of settlor responsibility transfer under Nigeria’s Petroleum Industry Act (PIA).
The transition follows Aradel’s earlier acquisition of the Olo and Olo West marginal fields, formerly part of OML 58, from the TotalEnergies/NNPCL Joint Venture. The handover ceremony, held in Abuja on Friday, was presided over by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which granted regulatory consent for the transfer.
OLO Oilfield Host Community Development Trust (HCDT)
The OLO HCDT was established in compliance with the Petroleum Industry Act, which mandates upstream operators to contribute three percent of their prior year’s operating expenditure to host community development trusts. The framework is designed to institutionalise community participation, ensure direct funding for development projects, and reduce conflicts in oil-producing regions.
Speaking at the ceremony, the Commission Chief Executive of NUPRC, Gbenga Komolafe, represented by John Tonlagha, Executive Commissioner for Health, Safety, Environment and Community (HSEC), stated that the governance architecture of the trust remains intact and that statutory funding obligations will transition seamlessly to the new settlor in line with the PIA.
He emphasised that the Commission would maintain strict regulatory oversight to ensure full compliance with the Act, safeguarding both industry stability and host community interests.
In his remarks, Blessyn Okpowo, Community Affairs Manager at Aradel Holdings Plc, affirmed the company’s commitment to upholding all PIA obligations and sustaining the community engagement model previously implemented by TotalEnergies. He pledged continuity in project execution and stakeholder collaboration.
Dornu Kogam, General Manager, Community Affairs, Projects and Development at TotalEnergies, encouraged Aradel to maintain a transparent and community-centred implementation approach through project completion phases.
TotalEnergies confirmed that all financial and statutory obligations up to the date of transfer have been fully discharged, with no outstanding liabilities tied to the trust. With regulatory consent granted, Aradel now assumes full settlor responsibilities going forward.
Project Delivery Record
According to Wale Godwin, Chairman of the Board of Trustees of the OLO Host Community, the trust has delivered 118 projects out of 160 planned initiatives. Between 2023 and 2025, more than 100 community projects have been completed across critical sectors including potable water supply, rural electrification, road infrastructure, education, and primary healthcare.
An additional 40 projects are currently ongoing.
Stakeholders noted that the NUPRC’s prior approval of the Community Development Plan (CDP) before project commencement reflects strengthened regulatory compliance under the PIA framework.
Industry analysts view the seamless transfer of the OLO HCDT as a test case for asset divestments and marginal field acquisitions under Nigeria’s evolving upstream landscape. The continuity of host community development obligations remains a central pillar of investor confidence and social licence to operate.
