A positive social impact
The social investment programmes aim to target immediate impact projects at the community level, identified following the completion of all Environmental and Social Impact Assessment (“ESIA”) studies. These include healthcare, education, economic empowerment/capacity building, infrastructure development and environmental stewardship initiatives.
Our strong local ties and commitment to the Company’s host communities have been intrinsically important to our success as one of Nigeria’s leading indigenous oil and gas companies. Since inception, we have prioritised sustainable community development through creating shared value for our local communities which has been critical in not only achieving operational success but also protecting the Company’s social licence to operate. Without such inclusion there could have been operational disruptions, increased costs and reduced value for our shareholders.
The Global Memorandum of Understanding (“GMoU”) Seplat entered into with the local communities that host its operations within OMLs 4, 38 and 41 was the Company’s first community development agreement signed between the Company and its local stakeholders. This set the standard for all of Seplat’s subsequent engagements with local stakeholders as the Company has grown and acquired additional licences. The GMoU provides a framework within which the Company and its host communities can work together to support wider sustainable community development. Under the terms of the GMoU, a Community Development Committee (“CDC”), also referred to as the Host Communities Forum (“HCF”), has been established and is comprised of representatives from each host community.
The CDC/HCF is responsible for coordinating the implementation of the social investment programmes funded by Seplat and identified by the CDC/HCF, with a view to invest in areas that align Seplat’s business objectives with local priorities whilst addressing broader development objectives. This process involves transparent communication with all local stakeholders and ensures multi-party engagement between the Company, community, civil-society groups and government.
We manage our projects in accordance with international best practice as we build and maintain relationships with our host communities through respectful and open dialogue. Our Corporate Social Responsibility strategy extends across all aspects of the business from our own operations and subsidiaries to our supply chain. Seplat’s commitment to its strong social and environmental values is reflected in its rigorous approach to performance assessment, measurement and evaluation across its four core CSR pillars:
• local stakeholder engagement, health, safety
• and environmental rigour, employee effectiveness,
• and our business and ethics conduct.
Generating shared value with our local communities through job creation and skills enhancement has been our intent since inception, and as such, the number of employees recruited from our local communities has grown year-on-year.