Lagos gets N132m oil derivation fund in 22 months

Lagos, which joined the league of oil-producing states in the country in 2016, received a total of N131.94m as its share of the 13 per cent derivation fund from January 2018 to October 2019; data from the National Bureau of Statistics have shown.

Oil-producing states are entitled to 13 per cent derivation fund from the Federation Account. Others are Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Ondo and Rivers.

First oil was achieved in the Aje field offshore Lagos in May 2016, 20 years after it was discovered.

January to October this year, Lagos received derivation fund of N1.92m in March this year, while it got N130.01m in March 2018, according to the NBS data.

Yinka Folawiyo Petroleum Company Limited, a wholly owned indigenous firm, is the operator of the Oil Mining Lease113, where the field is located.

Other partners are Pan Petroleum Aje Limited (a subsidiary of Panoro Energy), New Age Exploration Nigeria Limited, EER (Colobus) Nigeria Limited, and PR Oil & Gas Nigeria Limited (the holder of MX Oil’s investment in the field).

One of the JV partners, ADM Energy (formerly MX Oil) said in October that the Aje field had multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.

The firm said the field had two producing wells, Aje-4 in the Cenomanian and Aje-5 in the Turonian.

Meanwhile, the Lagos State Government on Monday said it was working on an aggressive promotion of a bill to institutionalise the establishment of Lagos State Oil Producing Areas Community Development Committee.

It said this was part of efforts to ensure the support of relevant segments of the society and unhindered operation in oil-producing areas of the state.

The Lagos State Commissioner for Energy and Mineral Resources, Olalere Odusote, disclosed this during the Lagos State Oil Producing Areas Community Relations Committee Engagement Forum in Badagry.

According to him, the ratification of the bill and the introduction of a Lagos State Oil Producing Areas Community Relations (Omnibus) Bill, along with other pending and ongoing regulatory, judicial and state reforms will make the state to become a top community engagement standards-compliant organisation.

The commissioner said the bill was aimed at institutionalising the collaborative social responsibility effort that was put in place to ensure that relevant stakeholders including women, youths and traditional rulers.

While assuring the inclusion of indigenes in the employment plan of the relevant companies operating within the communities, Odusote promised to encourage oil companies to engage in Corporate Social Responsibility intervention projects for the benefit of host communities.

He assured stakeholders that the Badagry Youth Conference would hold as scheduled.

“We have obtained the necessary approvals from Mr Governor for the conference to hold. In the next few weeks, the ministry will announce the modalities for the conference,” he said.

He commended the efforts of traditional rulers in the area whom, he said, had been in the forefront of the success of the committee for their dedication, commitment, unity of purpose and loyalty to the cause of developing their communities and the state.
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