The Senate has commenced moves to ensure that all oil and gas companies in Nigeria relocate to their operational bases in the Niger Delta geo-political zone of the country as a matter of urgency.
The upper legislative chamber in its resolution asked the international oil companies (IOCs) operating in the Niger Delta to move their headquarters to their state of operation for the smooth running of their business.
According to the News Agency of Nigeria, this follows the adoption of a motion sponsored by Senator Albert Akpan (PDP-Akwa Ibom) during plenary session on Tuesday.
What the Lawmaker from Akwa Ibom state is saying
Senator Akpan, who said that the relocation of the oil companies to their host communities will facilitate development, in his lead debate pointed out that the companies have over the years operated from their respective operational bases in the Niger Delta before they relocated due to some reasons.
He said, “The companies attributed their operation outside their host communities to insecurity and hostilities in the host communities. Their operation outside of host communities and operational base accounted for the high cost of oil and gas production.
“This is a big setback to the country’s oil and gas industry and it is militating against maximum revenue from crude oil and gas sales to the federation account.’’
Akpan noted that the eventual relocation of the companies to their host communities would further boost development in the areas, enhance corporate social relationships and strengthen the nation’s collective resolve to reduce the contentious cost of production in the oil and gas sector.
What you should know
There have been increasing calls by the oil-producing states for the relocation of the headquarters of the IOCs and their subsidiaries from Lagos and Abuja to their operational bases in the Niger Delta region.
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Years after Vice President Yemi Osibanjo joined the calls for the relocation of IOCs’ head offices to major locations where their oil and gas exploration activities take place, most of the oil giants have continued to lead their organisations mainly from Lagos.