The Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri has assured the Governor of Kogi State, Alhaji Usman Ododo of Federal Government’s support in the quest by the state to improve oil production.
Senator Lokpobiri, who gave the assurance on Wednesday when the governor visited him, said the Frontier Basin Fund would be deployed to increase exploration activities in the state.
He expressed the government’s determination to hit the two million barrels per day mark by the end of this year, adding that the goal of producing 2.5 million barrels per day next year is also achievable.
“I want to assure you that Kogi State is already an oil producing state. The derivation money is a question of what quantum you produce but it shows that Kogi has joined the league of oil producing states. What is left to be done is for us to partner with the government of Kogi State so that we can use the Frontier Exploration Fund to do a requisite exploration where there could be a lot of seismic work done, where we could find more oil fields in Kogi, so that Kogi can also play big in the league of states that are earning fat from derivation.
“We, as the government, are committing to working very closely with the government of Kogi State with the NUPRC (Nigerian Upstream Petroleum Regulatory Commission) team that manages the Fund. By the provision of the Petroleum Industry Act, it is the NUPRC that manages the Frontier Exploration Fund. It is exclusively set aside for exploration activities”, he explained.
He observed that no exploration work was done in the past few years “which is why our reserves have not been growing”, noting that with the PIA and new policies of the current government, investments were gradually returning to the industry.
Earlier, Governor Ododo asked for the support of the Federal Government in increasing the exploration of oil in the state, adding the state wants to exploit its natural resources to fund development projects for the people.
In his presentation, the Commissioner of Finance and Economic Development, Asiwaju Asiru Idris, said the state only received N7.8 million once from the 13% Derivation Fund.
“We know that the NUPRC which is under you has a lot to do to develop the frontier basin. There are funds to develop it. We are happy with our colleagues in the South South, when they are going home with tons of money, while we go home with little. We are happy with them, but we hope to join them.
“So, if you call us an oil producing state, yes, we are an oil producing state, but are we producing? No. Because then, insecurity. But with that one, we have fought and we ensured there is peace in the area. Once there is peace, then people can come in to invest. As a state, we can’t do it alone. We need you to help us so that the states can fully utilize what God has given to us”.
