The Senate refuses to name Kogi State producer of oil - Kogi News Point

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Wednesday, April 24, 2019

The Senate refuses to name Kogi State producer of oil



The Senate refuses to name Kogi State producer of oil

The Senate stated that it would not recognize Kogi State as an oil producing state because it did not contribute to the Federation Account.

"There is a difference between the production of oil and the processing of oil. They may be a state that processes oil, but they have not contributed to this country's oil revenue. They will become an oil producing state when they do that.

Isaac Alfa, the senator at the National Assembly representing Kogi East Senatorial District, moved a motion in plenary on Wednesday entitled ' Need to Recognize Kogi State as an Oil-Producing State. '

The legislators, however, vehemently disagreed.

 Alfa had said that three oil companies namely Shell BP (now SPDC), Elf (now Total Fina Elf) and Agip Energy  began oil exploration in Ibaji since 1952, in Odeke, Echeno, Ihile, Anocha / Uchuchu, Omabo, Ikah, Iregwu and Ujeh, all in Ibaji of the current Kogi State Ibaji Local Government Area.

He added that the companies collectively drilled 25 exploration wells, two assessment wells and eight core drill wells throughout the Anambra Basin, most of which fell within Kogi State, "because these facts were made possible by the former manager, Drilling, NPDC-NNPC, Engr, through a letter to the President of the Federal Republic of Nigeria. On November 21, 2003, Sam A. Uchola.

He noted that the exploration activities in Kogi and part of Anambra Basin were later abandoned until 18 July 2001, when the late Abubakar Audthen, then Kogi Governor, wrote to the then NNPC Group Managing Director to remind him of the earlier discovery of crude oil in the communities of Odeke, Echeno, and Anocha in Ibaji LGA.

Alfa further recalled that on 25 July 2001, a team of geoscientists and engineers was drafted to the area to conduct a preliminary investigation into the Kogi State Government's claims and the resuscitation of the productive core wells, resulting in an indigenous company being granted an oil license now known as the Oil Prospecting License 915 and 916.

"Orient Petroleum Resources Plc has been taking crude oil from OPL 915 since 2012 and the percentages of crude oil in OPL 915 are as follows: Kogi, 53%; Anambra, 23%; Enugu, 17%; and Edo, 7%," he said.

"The Senate regrets that there was no drilling activity from OPL 916, which is jointly owned by the states of Kogi, Anambra and Delta, whereas Orient Petroleum fully drilled four oil wells at OPL 915 – Wells 1, 2, 3 and 4 – with Wells 3 and 4 incontrovertibly located in Ibaji, Kogi State, accounting for 53% of the crude oil."


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