Oil and Gas
Senator Utazi laments exclusion of Enugu from Oil Producing States
Following the recognition of Kogi and Anambra as Oil Producing States, Senator representing Anambra North, Chukwuma Utazi has lamented the exclusion of Enugu State from the Oil Producing States.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) had last week declared Kogi and Anambra States as Oil Producing States, a situation that has infuriated the lawmaker who insisted that OPL 915 and 916 in the controversial Anambra basin belongs to Enugu State.
Speaking through Order 43 on the floor of the Red Chambers of the Senate on Tuesday, Utazi explained that the three lawmakers from the three States have been in the struggle for recognition, given the geographical location of the oil wells.
Utazi recalled that in the 8th National Assembly, the legislative issue on oil and gas deposits between Enugu, Kogi and Anambra States has been a recurrent one in the hallowed Chambers of the Senate.
“All Senators that have been representing that Senatorial district especially the Igala speaking communities that have boundary with Enugu and Anambra States, we have been discussing this issue throughout the 8th Assembly.
“Following the frequency of our discussion, this Assembly asked the Department of Petroleum Resources to look into this issue to find out and settle this issue permanently within this three States so that they can enjoy the 13% derivation that we are entitled to because we have deposits of hydrocarbon in our area.
The lawmaker emphasize that Enugu State should be recognized temporarily so that the three States can benefit from the 13% derivation in the interest of peace.
“So the Committee that was set up by the Petroleum upstream invited the Department of Petroleum came and we discussed with them extensively.
“They gave us a condition that any State that want to become an oil producing State to fulfill. I want to say that Anambra State has Orient Oil Producing Company that has been there trying to extract crude oil in that basin.
“After our meeting, the Department of Petroleum Resources wrote to the Senate Committee on Petroleum Resources (Upstream) on 24th July, 2018 and we an issue here that the Orient Petroleum that is operating between Kogi, Anambra and Enugu has not fulfill certain conditions and which was mentioned here clearly.
“In view of the foregoing, the Orient Petroleum Company has no status of an oil producing company, therefore, Anambra, Kogi and Enugu cannot be classified as an Oil Producing States for now.
“Am happy that we are inching towards solution of this matter which in the 8th Assembly we jointly sponsored a motion here by the entire Senators, that is Senator Isaac Alfa, Kogi East Senatorial district, Senator Chukwuka Utazi, Enugu North Senatorial district and Senator Stella Adaeze Oduah, Anambra North.
“We all agreed that since the National Boundary Commission was not able to solve this problem, the three affected States should in the interim enjoy the 13% derivation till when the problem would be solved.
“My problem now is that the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has gone ahead to recognize Kogi, and Anambra. What is left now is Anambra State. Because from the letter they have written, OPL 915 and 916 are in our area.
I want to put on record here that since the RMAFC has accorded recognition to our our neighbours, Kogi and Anambra, they should extend same to Enugu State, so that there will be peace.
CAPITAL POST recalled that the Revenue Mobilisation Allocation and then Commission, an agency of government has written to governors Yahaya Bello of Kogi State and Willie Obiano of Anambra State recognizing their States as Oil Producing States which will start enjoying 13% when proceeds start coming into the coffers of the Federal government.