Ogale Demands Equity Participation, Other Allotments in Oil Production Resumption

By Nwafor Oji Awala.

Ogale, headquarters of Eleme Local Government Area and traditional head-town of Eleme land, subdivided into nine communities, hosting a manifold, booster station, and flow station, has demanded for Equity Participation and Industry Stake-holding, Quarterly Equity Disbursement for Host Communities, Comprehensive Community-Centered GMoU among other demands before resumption of crude oil production in Ogoniland.

The demands were tabled in a statement signed by the leaders of the community under its paramount ruler, King Godwin Bebe Okpabi, Oneh-eh Nchia X and Paramount Ruler of Ogale, presented on Saturday, when the people of Eleme received the Ogoni Dialogue Committee on oil exploration resumption in Ogoniland at a town hall meeting in Alesa.

These are their key demands as contained in the statement: “Equity Participation and Industry Stake-holding: Positioned as a major stakeholder in the oil and gas sector, Ogale is well-suited to advocate for increased equity participation in E&P activities. This involves negotiating for direct equity shares, fostering local content development, and ensuring that Ogale indigenes are integrated across the oil and gas value chain—from technical workforce inclusion to strategic subcontracting opportunities. Leveraging its strategic location, rich hydrocarbon assets, and structured leadership, Ogale exemplifies the transformative potential of oil and gas-bearing communities to evolve from passive resource hosts into active industry players, thereby shaping their own development and the future of energy production in the region.

“Key Considerations and Proposals for Sustainable Development: 1. Quarterly Equity Disbursement for Host Communities: Allocate equity shares to immediate host communities based on reserves and production capacity, with dividends disbursed quarterly to secure a continuous income stream for local development.

“2. Comprehensive Community-Centered GMoU: Establish a legally binding General Memorandum of Understanding (GMoU) that delineates the rights and responsibilities of all stakeholders, including provisions for community projects, employment quotas, environmental safeguards, and conflict resolution mechanisms. Regular reviews should be conducted to align with evolving community needs.

“3. Unbundling of OML 11 and the Creation of “Ogale Oil and Gas Fields”: In recognition of Ogale’s unique hydrocarbon potential, OML 11 should be unbundled to establish a dedicated “Ogale Oil and Gas Fields” license. This restructuring will streamline regulatory oversight and formally recognize Ogale as a principal stakeholder in the oil and gas sector.”

The statement highlighted the historical and economic relevance of land to the people of Ogale.

“In Ogale—as in the wider Eleme territory—land ownership is inherently hereditary, vested in families and passed down through generations. Land is revered as a sacred inheritance, intrinsically tied to lineage and spiritual identity. Family heads serve as custodians, managing land use and preserving its integrity for future generations.

“This profound connection to the land underpins Ogale’s primary livelihoods: farming and fishing. The community relies on fertile agricultural fields and abundant waterways to sustain itself. However, the advent of oil and gas exploration poses significant risks, including environmental degradation, pollution, and restricted access to essential natural resources.”

Expatiating on “Quarterly Equity Disbursement for Host Communities” the group suggested the INDORAMA equity-sharing framework.

“For instance, under the INDORAMA Eleme Petrochemicals model, the immediate host communities—Elelenwo, Agbonchia, Aleto, Akpakpan, Njuru, and Okerewa—collectively hold a 7.5% equity stake, which is translated into regular dividend disbursements.

“Elelenwo, 0.5 units; Agbonchia, 3 units; Aleto, 44 units; Akpakpan, 16 units; Njuru, 16 units, and Okerewa, 21 units.

“This framework emphasizes direct community involvement in oil and gas operations and underscores the importance of equitable revenue distribution, environmental stewardship, and sustainable local development.”

The statement concluded thus: “Ogale’s legacy as the administrative and resource hub of Eleme is a testament to its resilience, cultural richness, and strategic significance. As the community navigates the complexities of oil and gas exploration, it must seize the opportunity to transform resource wealth into sustainable development. Through proactive leadership, equitable industry participation, and unwavering community solidarity, Ogale can build a future where its people thrive—balancing tradition with progress, preserving their ancestral land, and emerging as a beacon of self-determination and prosperity in Nigeria’s energy landscape.”

Nwafor Oji Awala