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8 months after, FG yet to locate any new oil, gas investment in S-South, S-East

In its August 2017 meeting hosted by the Governor of Rivers State, Nyesom Wike, the South South/South East Governors Forum called for location of investment in the oil and gas sector in the regions.  in unison, all the state chief executives asked the Federal Government to discourage the granting of licences for oil and gas related investment to be sited outside the areas.

Eight months after the request, efforts to identify any new oil and gas investments by the federal government failed to yield any meaningful results. However, the recent declaration of Anambra State as oil producing state cannot be seen as oil and gas project done by this administration because former administration under Governor Peter Obi of the state had done the needed background work over the decades of controversies surrounding the contiguous nature of oil areas in Anambra with Kogi State, thus leaving the federal government with no other option to announce Anambra as an oil state.

Business Hilights recalls that a communiqué released at the end of the meeting in Port Harcourt, Rivers State, urged the Federal Government to encourage investors in the oil and gas industry to operation from the regions.

The communiqué signed by Chairman of the forum and Governor of Akwa Ibom State, Mr Udom Emmanuel, also called on the Federal Government to step up efforts to effectively secure the areas, adding that it should connect the regions with railways.

The forum also averred that “the emerging trend where approvals for investments in the oil and gas industry are granted for locating same in other parts of Nigeria with laying of pipelines in deep waters rather than locate the projects in the areas that produce the resources should be discouraged”.

“We urge the Federal Government to encourage investors in the oil and gas industry to operate from the regions and also make the investments in the sector in the regions.”

Reaffirming their commitment to a united Nigeria, the governors also enjoined the Federal Government to unfold its policy on concession of federal roads, adding that it should speed up the issue.

Whereas analysts say serious attention is yet to be given to the passionate appeals of the governors, weekend, an indigenous Engineering, Procurement and Construction (EPC) Company, Oilserv Limited, sealed a two-year contract with the Nigerian National Petroleum Corporation (NNPC) for the Ajaokuta Kaduna Kano (AKK) gas pipeline project.

The 614km x 40-inch gas pipeline, which spans from Ajaokuta in Kogi State to Kano through the Federal Capital Territory, Abuja, will have Oilserv/Oando Consortium handling the Lot 1 section, a 200km stretch from Ajaokuta to Abuja.

The contract was consummated on April 5 at the NNPC Towers in Abuja between Oilserv/Oando Consortium represented by the Chairman/Group CEO, Emeka Okwuosa, and the Managing Director, Gbite Falade, and the NNPC team led by the Group Managing Director, Maikanti Baru.

The scope of work includes the engineering, procurement, construction, installation, testing, and commissioning of a 40” x 614km class pipeline system from Ajaokuta to Kano, with associated valve stations, intermediate and terminal gas facilities.

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