..Commissions CDU at $1bn Azikel Refinery
Olusegun Obasanjo, former president of Nigeria, has called for an increase in the 13 per cent derivation to oil producing states in the country, saying the present benchmark was a starting point that can be negotiated upwards.
A statement by Daniel Alabrah, chief press secretary to the governor of Bayelsa State, said Obasanjo made the call on Monday while commissioning the Crude Distillation Unit (CDU) at the $1.0 billion Azikel Refinery at Obunagha in Yenagoa Local Government Area of Bayelsa State.
Oil producing states have long been clamouring for an increase in the 23 per cent derivation, arguing that they bear the brunt of environmental and health challenges as a result of extraction activities.
It is about the first time that a leading national figure outside the Niger Delta region is making such an advocacy for an upward review of the derivation principle.
The Azikel Refinery is owned by Azikel Petroleum, which is part of the Azikel Group, and it is expected to produce 2.5 million litres of petrol and 2.0 million litres of diesel daily among other petroleum products.
Obasanjo lauded Azibapu Eruani, President of Azikel Group, for initiating the refinery project and urged him to ensure its completion within the next 12 months.
He expressed appreciation to the refinery’s technical and engineering team as well as the African Finance Corporation (AFC) and the Afrexim Bank for their support to the project while advocating more financial support to ensure its completion.
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Obasanjo also lauded Douye Diri, Governor of Bayelsa State, for his support for the project, saying whenever Eruani had spoken to him about the refinery project, he had always mentioned the governor’s contribution.
According to him, Diri has put to proper use the funds accruable to Bayelsa as evident in the number of projects in the state.
He said: “I have told Dr. Eruani that I will be officially 90 years by next year March. It means I will take the boarding pass soon. So, he has to make sure the project is completed before I exit.
“Governor, I want to thank you most sincerely. Every time Dr. Eruani has spoken to me about this project, he has mentioned the critical role you have been playing and that is the way to go.
“You are right that the states and oil producing communities have not got a fair deal so far. Thirteen per cent is the beginning. You can continue to talk. The most important thing is that even the little you have received, you have used it well.
“I want to express appreciation to those who have given the technical and engineering suppprt for this project. When I came here (eight years ago), there was nothing like this, but now it has become a different thing.
“I want also to thank those two financial institutions, African Finanace Corporation and the Afrexim Bank. My challenge to you Dr. Eruani is to ensure that the refinery is completed within the next 12 months. With this done, you can even double the capacity.”
In his response, Azibapu Eruani, President, Azikel Group, stated that the refinery will kickstart the industrialisation of Bayelsa State and the Niger Delta region.
He recalled how Obasanjo laid the foundation for the refinery eight years ago, and expressed delight over his presence for the installation of the CDU, which he described as the beginning of the completion of the refinery.
Eruani said the refinery was conceived to ensure that the Niger Delta becomes an active player in the oil and gas industry, saying it is the second largest full scale refinery in the country.
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He hailed President Bola Tinubu for supporting indigenous refineries, saying they stand in alignment with the vision of the Federal Government to make petroleum products available and affordable to the people.
Eruani also expressed appreciation to Governor Diri as well as the AFC and the Afrexim Bank for their invaluable support.
In his remarks, Governor Douye Diri said the refinery justified the years of agitation by the region against the injustice in the oil industry.
He noted that as producers of crude oil, the peeople of the region deserved to be key players in the industry.
Diri again faulted the Land Use Act and the current 13 per cent derivation to oil producing states, and maintained that the region deserved more from their God-given resources as obtainable in other parts of the world.
He expressed delight over the establishment of the refinery, saying it will make the people of the state major players in the oil and gas industry and charged Bayelsans to equip themselves to benefit from the project.
Diri also emphasised the need for Africans to process their own resources as it is the only way the continent can benefit from their abundant natural endowment.
The governor called on the oil companies operating within the Gbarain/Obunagha area to complement the efforts of the state government by rehabilitating the road leading to the refinery.
His words: “As people of the Ijaw ethnic nationality, we have protested and fought because we feel that God gave us something in our land, but we are not benefiting from it.
“Others are benefiting and see us as second class citizens. It has been a long journey to be part of what God has given to us under our soil.
“The Land Use Act is unfair. Surface resources belong to states, but what lies underneath belongs to the Federal Government. That law is obnoxious and not good for any just society.
“We do not want to take all to ourselves. We just want to be co-players in determining how it is done. Thirteen per cent is not enough for the states.”
He congratulated Eruani on behalf of the people of the state while charging other youths to emulate the Azikel Group president.
In their separate remarks, Daru Owei, a board member of Azikel Petroleum, and Bubaraye Dakolo, the Ibenanaowei of Ekpetiama Kingdom and chairman, Bayelsa State Council of Traditional Rulers, lauded Eruani for the project, saying it will impact positively on the economic fortunes of the state, the region and the country.
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