The Senate has begun moves to ensure that all oil and gas companies in the country as a matter of urgency relocate to their operational bases, particularly to the Niger Delta region.
To fast track the movement of the companies, the Senate, yesterday, mandated its Committees on Petroleum Resources Upstream; Downstream Petroleum Sector and Gas to liaise with the Ministry of Petroleum Resources and the Presidential Implementation Committee on the Petroleum Industry Act(PIA) to facilitate the relocation of the oil and gas companies in Nigeria to their various operational bases to ensure their smooth operations.
The Committees on Upstream; Downstream and Gas are chaired by Senators Muhammed Sabo (APC, Jigawa South West); Albert Akpan (PDP, Akwa Ibom North East) and James Manager (PDP, Delta South), respectively.
Resolutions of the Senate, yesterday, were sequel to a motion sponsored by Senator Akpan and co- sponsored by 23 others.
Presenting the motion, Senator Akpan said: “The Senate notes with concern that multinational and Nigerian oil and gas companies have over the years been operating from their respective operational bases until militancy and insecurity in the host communities in the Niger Delta became the order of the day.
“We also note that the reason proffered by the oil and gas companies for not relocating to their host communities has always been due to insecurity and hostilities in the host communities.
“We are also aware that operating outside the host communities and operational base is the reason for the high cost of production which has been the bane of the country’s oil and gas industry, militating against maximum revenue from crude oil and gas sales to the Federation Account.”
“We are also convinced that the recent passage and signing into law of the Petroleum Industry Act, 2021 (PIA) by the National Assembly and the President of the Federal Republic of Nigeria respectively, is a major milestone towards the restoration of a lasting peace in the host communities, the relocation of these companies to their host communities will further boost development in those areas and enhance the corporate social relationship and strengthen our collective resolve to considerably reduce the contentious cost of production and ensure adequate returns to the federation account.”
The motion was adopted the referred to the relevant committees.