Corporate Social Responsibility of Nigerian Agip Oil Company (NAOC)

Corporate Social Responsibility of Nigerian Agip Oil Company (NAOC)

Corporate Social Responsibility of Nigerian Agip Oil Company (NAOC)

Delta State is one of the states in the Niger Delta region where most oil companies carry out their exploration businesses. The negative impact of their activities on the host community is undeniable. Notwithstanding that the impact cannot be stopped, however these oil companies can ameliorate the dire consequences on host communities by engaging in CSR projects in the area.  We will consider some oil companies like AGIP and their CSR projects in Delta State.

Corporate Social Responsibility of Nigerian Agip Oil Company (NAOC)

The Nigerian Agip Oil Company is a multinational oil producing corporation with its operation areas located in the Niger Delta region of Nigeria. Its operation area cut across four states of Bayelsa, Delta, Imo and Rivers. Agip Nigeria is a subsidiary of Eni oil, Italian oil major established in Rome in 1926. The company commenced operation in Nigeria in 1962 through its major subsidiaries, which include: Agip Energy and Natural Resources (AENR) and Nigeria Agip Exploration (NAE).

The company operates different joint ventures (JVs) in the oil and gas operations in Nigeria. NAOC is the operator of two onshore exploration leases in land area (OPL 135 with 48% interest) and swamp area (OPL 282 with 90% interest).

In another concession operated by Shell, NAOC holds five (5) percent participating interest, NNPC holds 55 percent, SPDC (30%) and Total E&P Nigeria has 10 percent interest. Nigeria Agip Oil Company also has business interest in natural gas exploration with 10.4 percent equity share in the Nigerian Liquefied Natural Gas (LNG). It also has 17% participation in Brass LNG Limited.[1]

As a way of contributing its quota to the social and economic progress of the people in its areas of operation, Agip places high premium and priority on community development initiatives and social investments. NAOC Corporate Social Responsibility priority areas include: education, rural infrastructure, health, agricultural assistance, access to energy and a variety of empowerment programmes.

The educational investment of the company include provision of educational facilities and equipment, as well as, award of scholarship and bursary supports to selected youths and students, especially in the host Rivers, Delta, Bayelsa and Imo States.

Other aspects of educational support include construction and furnishing of class room blocks, teachers’ quarters and school libraries.

The scholarship award is of two categories: Area of Operation Scholarship Award and the National Merit Scholarship Award. The Area of Operation Scholarship Award is open to first year students in Nigeria’s tertiary institutions from NAOC’s operational areas in Bayelsa, Rivers, Imo and Delta.

Read also: Corporate Social Responsibility by Total Oil Company in Delta State

In this category, scholarships are awarded to candidates from any discipline. The National Merit Scholarship Award is meant for first year Nigerian students from other states, other than NAOC operational areas, who are studying in tertiary institutions in Nigeria. Only applicants studying Engineering, Geosciences and other related courses are considered for the award.[2]

NAOC’s Agricultural assistance and development programme is executed through its Green River Project. The Green River Project (GRP) is an agricultural initiative operated by NAOC joint venture to support rural agricultural productivity, create employments and guarantee food security in NAOC operation states of Bayelsa, Delta, Imo and Rivers. The project was introduced in 1987 in compliance with the directive of the Federal Government of Nigeria in 1986 that all foreign oil companies in Nigeria should implement projects for Agricultural support.[3]

GRP’s approaches include: provision of information and enlightenment to farmers, technical supports, supply of improved agricultural inputs, formation of cooperative societies, empowerment through training and provision of micro credit scheme and so on. Key areas of operation of GRP include input and extension service delivery, agricultural skill acquisition programme, livestock production unit and food processing.[4]

Healthcare support covers investment in health infrastructure projects such as building and equipping primary healthcare centres, construction of doctor and nurses’ quarters and provision of supplementary medical facilities. Other areas of intervention include: health campaign and other forms of healthcare delivery services such as Roll Back Malaria campaign and neonatal HIV/AIDS prevention.

More so, Access to Energy Initiative is another aspect of NAOC’s social investment programme. The company undertakes the Access to Energy project in various ways. These include: supply of electricity through the independent power plant constructed by the company to the Power Holding Company of Nigeria (PHCN); supply of gas to the power station of the Rivers State Government; supply of electricity to communities through the construction of networks connected to the NAOC industrial system as well as the supply of electricity to communities through the off-grid system.





[3] NAOC Green River Project, 2016, p. 12

[4] NAOC Green River Project, 2016, p. 11

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