TotalEnergies has deployed a deepwater rig to the Akpo field to commence fresh drilling operations in Nigeria.
The deployment of the Black Rhino rig comes at a time when questions persist regarding the absence of publicly identifiable host community trusts for the offshore field’s operations. This lack of clarity follows the Nigerian oil regulator’s decision to link the offshore field to littoral communities located in Rivers and Bayelsa states.
The Akpo field is a major deepwater asset for TotalEnergies, and the arrival of the Black Rhino rig signifies a new phase of extraction intended to sustain production levels in the region. However, the operational rollout is being closely watched due to the ongoing complexities surrounding the implementation of the Petroleum Industry Act (PIA).
Regulatory questions over host community trusts
Under the provisions of the Petroleum Industry Act, oil companies are required to establish host community development trusts to ensure that local populations benefit directly from the presence of extractive activities. These trusts are designed to manage funds dedicated to infrastructure, education, and local economic development.
The challenge for the Akpo field lies in its offshore location. While the drilling occurs in deep waters, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has identified littoral communities in Rivers and Bayelsa states as the relevant host groups. This identification has created a layer of scrutiny regarding which specific communities are entitled to participate in the trust structures and how those trusts will be formally recognised and operated.
The absence of publicly identifiable trusts for the Akpo operations has raised concerns among stakeholders who argue that clear community representation is essential for social licence and the prevention of local unrest. Without clearly defined and transparently managed trusts, the distribution of benefits to the coastal communities in the Niger Delta may face legal or administrative hurdles.
The deployment of the Black Rhino rig marks a significant step in TotalEnergies’ efforts to maximise the output of the Akpo field, but the company still faces the task of resolving the administrative questions regarding community engagement and the formalisation of host development frameworks in line with current regulations.
TotalEnergies has yet to provide a specific timeline for the finalisation of the host community trust registrations for the Akpo offshore operations.
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