Oil Companies Now Finding Treasure In Akwa Ibom State

In the last couple of weeks, oil and gas firms have trooped into Akwa Ibom state to announce investment plans bringing with them sustainable development schemes.

At the last count, three oil companies, Seplat energy, Lekoil Limited and the Amalgamated Oil Company have all entered Akwa Ibom State and this is by no means significant in many ways. Coming at a time, many firms are exiting the country citing harsh operating environment and for oil companies to be flocking to the state with excitement speaks volumes about the state as the new bride of the oil industry that needs to be wooed.

As a key oil producer Akwa Ibom state known as The Land Of Promise, contributes significantly to Nigeria’s oil and gas reserves and the production of about 2 million barrels of oil per day which will greatly benefit the country’s economy.

Apart from being the host community of the American oil giant, ExxonMobil with its operational base in Ibeno, a coastal community, many other oil firms are also operating within the state and its territorial waters.

Though Mobil Producing Nigeria, a subsidiary of ExxonMobil is no longer in existence following its acquisition by Seplat Energy, nothing seems to have changed much aside from the new ownership which has now taken over the assets and liability of the oil firm.

In announcing its presence and entry to Akwa Ibom state, Udoma Udo Udoma, the company’s board chairman said Seplat Energy is confident of ensuring sustainable development programmes in Akwa Ibom State.

He expressed the commitment to partner with the Akwa Ibom State Government for sustainable development and contribute to meeting Nigeria’s strategic oil and gas aspirations while supporting the socio-economic development of Akwa Ibom State.

“We are honored to have the opportunity to engage with the Akwa Ibom State Government and present our vision for a collaborative future.

“Our commitment is not only to the growth of our operations but also to the well-being and prosperity of the communities where we operate. We are confident that through strong partnerships and shared goals, we can bring significant economic and social benefits to the country, state and our communities.”

Welcoming the Seplat team which also included the Group Chief Executive Officer, Roger Brown and the Managing Director of Seplat Energy Producing Nigeria Unlimited, Mr. Oladotun Isiaka, Governor Umo Eno stated that the state government would continue to support the oil company by creating an enabling environment for the company’s operations.

He hoped that the collaboration between the state government and SEPNU will yield tangible benefits for the people, boost the local economy and promote sustainable development.

On the heels of SEPN entry came another fast growing oil company Lekoil limited with good development plans for the state.

The Chief Executive Officer of Lekoil, Lekan Akinyanmi stated that it is an African focused oil and gas company, a portfolio company of Cambridge Growth Partners, it also has OakGold, Cambridge LNG, Cambridge Energy, Cambridge Harvest, CGP-1 Fund, and Blink Studios.

Other members of the team were; the GM Operations, Matthias Akhideno; GM Legal, Gloria Iroegbunam; GM Government Relationship and Communications, Hamilton Esi; Head of C & P, Unwana Etuk, and Godwin Okeke, GM Safety, health and environment.

As for Amalgamated Oil Company which operates from Udung Uko local government area in Akwa Ibom South senatorial district regarded as the oil bearing region of the state, it believes that “every investment would positively impact on the host community and the state at large.”

The operations of oil companies are always associated with environmental issues, pollution and communal agitations over development projects, youth employment and restiveness. Many people believe that the entry of the oil companies should fast track the development of the state in many sectors.

The Ekid Peoples Union, a socio-cultural group which has been at the forefront of demanding justice and fairness by oil companies operating in the area, says the coming of Seplat Energy should bring about a new lease of life after a frosty relationship with the American oil giant.

“So we believe Seplat’s well-timed arrival especially the opportunity that their coming now offers for a new start and a new hope that it will breathe a new wave of fresh air over the stale and sterile years of ExxonMobil,’’ the group said in a statement signed by Dr Samuel Udonsak and Barrister Bassey Dan Abia, president and secretary-general respectively.

Despite being the bride of the oil industry as it were, Akwa Ibom does not have key petrochemical facilities. It has no refinery, no fertilizer plant and not even a petrol depot. Attracting oil companies may be a good step forward but turning their presence to tangible benefits for the people should be a major leap forward.

Oil Companies Now Finding Treasure In Akwa Ibom State is first published on The Whistler Newspaper