Lagos gets first 13% oil derivation by December – Ambode

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LAGOS, NOVEMBER 16, 2016 – Lagos State Governor, Akinwunmi Ambode, has disclosed that the state will get its first 13 percent derivation from being an oil-producing state by next month.

This followed the first export of oil from the Aje oil field located offshore Lagos.

The governor, who spoke on Tuesdayin Lagos, Southwest Nigeria at the International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists, announced to the large gathering that the state would receive its first derivation by next months.

Represented by the Commissioner for Energy, Mr. Wale Olowu, he said the first export from the Aje oil field had happened and that the big deal was that Lagos State is anxiously awaiting its first derivation in December.

“So, in December, we will be collecting our first derivation. We cannot wait to see a lot of oil and gas come under the soil of Lagos because it will help us in the area of employment; it will help us in the area of electricity generation, which we want to do off-grid anyway, and it will also help us in making sure that our revenue continues to be diversified.

“We will continue to work to make Lagos the investment and oil and gas hub of the nation. We reassure all of you stakeholders in the industry of our commitment to provide a safe and secure environment for exploration activities that is consistent with global best practice,” he said.

According to him, the state was also closely monitoring and “getting ready to massively support other Oil Prospecting Licences in Lagos to make sure they can quickly transform to Oil Mining Leases”.

He said the state had established its own oil and gas corporation called Ibile Oil and Gas, which, he said, would open for business by next month.

Ambode said the company would be involved in exploration, development, and production, among others.

He said, “We also want the development of the oil and gas industry in Lagos. We didn’t plan it originally. But now that we are seeing the evolution, we are doing everything possible to bring them together because on our west coast, we have found oil.

“On the east coast, we already have Dangote refinery that is the largest in Africa and one of the largest in the world, and then in our centrals, we have the banks that can finance, the oil tank farms and then we have the seaport for export.”

According to the Federal Government, four of the five Aje oil wells discovered in Lagos belong to the state.

The Chairman, Indices and Disbursement Committee, Revenue Mobilisation Allocation and Fiscal Commission, Alhaji Aliyu Mohammed, said during a recent visit of a delegation of the committee to the Lagos State Government that the verification by the committee and its recommendation would facilitate the disbursement of 13 per cent derivation fund to the state in line with the Nigerian Constitution.

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