By Emmanuel Enebeli
ASABA/Nigeria:The Delta State Government has issued a firm directive to Sterling Exploration and Energy Production Company Limited (SEEPCO) to immediately release a Purchase Order for the supply of Automotive Gas Oil (AGO) to communities under the AGGE Bayelsa and Delta Global Memorandum of Understanding (GMOU) Board.
The directive, signed by the State Commissioner for Oil and Gas, Hon. (Chief) Peter Uviejitobor, requires SEEPCO to provide up to one million liters of AGO beginning in September 2025. The supply will be channeled through vendors nominated by the GMOU Board in line with agreements reached during a high-level meeting with stakeholders on Tuesday, August 26, 2025.
According to the statement, the meeting brought together representatives from the Ministry of Oil and Gas and officials of the AGGE GMOU Boards of both Bayelsa and Delta States. It reviewed the expectations of host communities, particularly in relation to energy supply, resource control, and community participation in oil asset security.
In addition to the AGO supply, SEEPCO has been directed to provide three vessels to the GMOU Board. The company is also required to commence negotiations for the renewal of the expired GMOU within the next 60 days, a process that will be overseen by the Delta State Ministry of Oil and Gas to ensure transparency and accountability.
The Ministry stressed that AGGE Delta must receive its full 30 percent quota in the ongoing Surveillance Contract arrangement. This measure, it explained, is designed to boost community participation in protecting oil installations and to promote fairness in resource allocation between Delta and Bayelsa components of the GMOU.
“The Government of Delta State remains committed to providing the enabling environment for investors while safeguarding the rights and expectations of host communities,” Uviejitobor said in the statement. “This directive to SEEPCO must be complied with strictly in order to reinforce mutual trust and ensure equitable benefit-sharing.”
The directive was also copied to the Nigerian Army headquarters in Abuja, the Delta State Police Command, and the Department of State Services (DSS) in Delta, underlining the seriousness of government’s stance and its desire to forestall any breakdown of law and order in the oil-rich region.
Observers say the move marks a renewed push by the Delta State Government to maintain stability, accountability, and fairness in host community relations with oil companies, particularly through the GMOU framework. The GMOU system, introduced in the early 2000s by oil majors and adopted by several independent producers, remains a key instrument for managing company-community relations in the Niger Delta.
Over the years, disagreements over the implementation of GMOU provisions, ranging from delayed community projects to unmet supply obligations, have fueled tensions and sometimes violent protests in host communities. Analysts note that the Delta Government’s proactive directive to SEEPCO seeks to preempt such crises by holding oil companies to their commitments.
The provision of one million liters of AGO, community leaders argue, is particularly critical at a time when many host communities are grappling with fuel shortages, unreliable power supply, and the rising cost of energy. The supply, once implemented, is expected to ease the burden of powering community projects, health centers, schools, and local businesses.
“This decision shows that the government is listening to the people,” said a source familiar with the GMOU negotiations. “Communities have been demanding not just fairness, but concrete measures that directly impact their daily lives. Diesel supply and vessels will go a long way in restoring confidence.”
The issue of vessels, insiders add, is central to transportation and economic activities in the AGGE area, a riverine and difficult-to-access terrain. By mandating SEEPCO to provide three vessels, the government is addressing both logistical challenges and the broader demand for infrastructure support in these oil-bearing communities.
Stakeholders also see the 60-day deadline for GMOU renewal negotiations as an important step toward institutionalizing accountability. For years, expired or poorly implemented GMOUs have been a source of tension, with communities often accusing oil firms of taking undue advantage of the lapse to delay obligations.
By placing the Ministry of Oil and Gas at the center of the negotiation process, the Delta Government is signaling its intent to act not just as a regulator but also as a guarantor of fairness in the oil-producing areas. This move, analysts say, could set a precedent for stronger government oversight in other oil-bearing states of the Niger Delta.
Security experts point out that ensuring AGGE Delta’s 30 percent quota in the Surveillance Contract is also strategic. With rising concerns about pipeline vandalism, oil theft, and community restiveness, giving host communities a direct stake in surveillance and security arrangements could strengthen cooperation and reduce sabotage.
However, some community leaders have cautioned that directives alone will not solve long-standing grievances unless they are followed by practical and timely implementation. “We have heard similar promises in the past,” one leader remarked. “What matters now is action. If SEEPCO complies, it will be a new dawn for AGGE communities.”
The Delta Government’s intervention is likely to resonate beyond AGGE, as oil-producing communities across the state and the Niger Delta continue to press for greater equity, development, and respect for host community agreements. The coming weeks will therefore test both the resolve of SEEPCO to comply and the determination of government to enforce its directive.
For now, the directive has been hailed as a bold and necessary step to strengthen trust, reduce tensions, and create a more transparent and beneficial partnership between oil companies and the communities that host them.
elta.
