09/02/2024
*Prince Ukpong Akpabio's Oil and Gas Bill passes through second reading at AKHA*
..*Deputy Speaker, Deputy Leader, Hon Akata, hail Bill, list benefits to Akwa Ibom State economy*
A Bill for a Law to establish the *Ibom Oil and Gas Corporation and for other purposes connected thereto*, sponsored by Prince Ukpong Akpabio II, Member representing Essien Udim State Constituency and Chairman, House Committee on Rules, Business, Ethics and Privileges, have passed through second reading on the floor of the Akwa Ibom State House of Assembly.
Speaking while leading debate on the Bill at plenary on Thursday, February 8, 2024, the sponsor, Prince Akpabio, noted that it was pertinent for Akwa Ibom State, being a major oil and gas producing state to have a state owned company in the sector.
According to Prince Akpabio, the core essence of the Bill is to establish Akwa Ibom State as a visible and dominant player in the Nigerian oil and gas sector as the state ranks among one of the largest producer of oil and gas but regretted that despite that, the state remains only beneficiaries of federal monthly allocation as well as tokens from oil companies operating in the state.
"It is only commonsensical for Akwa Ibom State to actively participate in exploiting the full benefits of this resources by establishing a company to actively compete with foreign and indigenous oil and gas companies", he noted.
Prince Akpabio noted that the Bill is not without precedent in Nigeria because aside the fact that states have used legislations to create business entities to leverage any sector of interest for the overall good of their people, with Ibom Air as a case study, other states like Lagos in 2013 established their state owned Oil and Gas Corporation known as IBILE Oil and Gas Corporation.
"If Lagos state with minimal crude oil deposits can do this, then given our huge oil and gas resources , Akwa Ibom should not wait a day further. The moment and time is now. This Bill is the crucial channel through which we could enter into and participate in a market that promises huge return on investment", he submitted.
The Bill seeks to ensure Akwa Ibom State have a Corporation to be known as IBOM Oil and Gas Corporation, with powers to; engage in all oil and gas upstream activities, including Exploration, Drilling and Production; invest in a company or a consortium for the purpose of participating in oil and gas bid rounds and seeking marginal fields allocation; acquire old or new exploration and drilling prospects and prospecting abandoned wells anywhere in Nigeria or Overseas; optimise the benefits of the Petroleum Policies of the Federal Government; and acquire gas volumes and other supplies for the State as may be considered appropriate.
The Bill also seeks the Corporation to liaise with Federal Government agencies or private and multinational companies to deliver petroleum products to the State in the most effective and cost efficient manner; invest in downstream oil and gas activities including gas processing businesses, petroleum products retailing, gas retailing, gas pipelines deployment, acquisition of petroleum products tank farms and other distribution facilities; acquire all or part of the shares, assets, businesses, properties, privileges, contracts, rights, obligations and liabilities of any company, firm or person in furtherance of any business of the Corporation; enter into contracts or public private partnerships with any company, firm or person to facilitate the discharge of its powers under the provisions of this Law; invest in refineries, petrochemical processing or other production processes; and do all such things necessary to facilitate the discharge of its responsibilities, among others.
The Bill when passed into law and assented to by the Governor will empower the Corporation to have a Governing Board comprising of a Chairman; four members from the Public or Private Sector; a Managing Director; and the Permanent Secretary or a representative in the Ministry of Energy and Mineral Resources not below Grade Level 15 to be nominated by the Commissioner.
The law seeks to ensure that members of the Board except the ex-officio members shall be appointed by the Governor, subject to the confirmation of the House of Assembly and the Board shall have powers to; set general policy guidelines for the management of the corporation; ensure that the corporation complies with the provisions of this Law; appoint, promote and discipline the management staff of the corporation; make recommendations to the Governor regarding the terms and conditions of employment and the remuneration of staff of the Corporation; approve the annual budget of the Corporation; approve or reject any proposal made to it by the Managing Director on matters affecting the Corporation; and approve administrative guidelines for the conditions and welfare of staff as may be proposed by the Managing Director.
Members who spoke at plenary gave their support to the Bill, submitting that when passed into law, the Bill will go a long way to ensure Akwa Ibom State benefits maximally from the many benefits of the upstream sector of the oil and gas industry.
They opined that Ibom Oil and Gas Corporation will also help in job creation, poverty reduction, stimulate economic growth, sustainable development of Akwa Ibom State and reposition the state to become a key player in the Upstream, Midstream and Downstream sector of the Nigerian oil and gas industry.
