• Prince Ukpong Akpabio
A bill seeking the establishing of Ibom Oil and Gas Corporation, on Thursday, passed its second reading at the Akwa Ibom State House of Assembly.
Sponsored by Hon. (Barr) Prince Ukpong Akpabio of Essien Udim State Constituency, the bill seeks to position Akwa Ibom State as an active participant in the entire value chain of the nation’s oil and gas industry.
Given Akwa Ibom’s status as a leading oil and gas producing state, Prince Akpabio, in his lead presentation at plenary, said it would be fitting that the state establishes its own company in this sector.
Traditionally, Akwa Ibom has relied heavily on federal monthly allocations and meager contributions from oil companies operating within the state.
This bill, according to Akpabio, aims to rectify this anomaly and ensure that Akwa Ibom gains greater economic independence.
By creating the Ibom Oil and Gas Corporation, he said the state government could generate more jobs, boost revenue, and fully exploit its abundant oil and gas resources.
While drawing inspiration from the successful state-owned air carrier, Ibom Air, Akpabio said the proposed corporation would adopt a similar business model.
“Several other states have already established similar entities in the petroleum sector, demonstrating the viability of this approach. If a state like Lagos, with minimal crude oil deposits, can achieve success in this field, then Akwa Ibom, with its abundant resources, should not hesitate to embrace this opportunity”.
The general principles of the bill outlines the powers and responsibilities of the Ibom Oil and Gas Corporation. It will engage in upstream activities such as exploration, drilling, and production, as well as participate in oil and gas bid rounds and seek marginal fields allocation.
The corporation will also have the authority to acquire exploration and drilling prospects, optimize the benefits of federal petroleum policies, and secure gas volumes and other supplies for the state.
Furthermore, the Ibom Oil and Gas Corporation will collaborate with government agencies, private companies, and multinational corporations to ensure the efficient and cost-effective delivery of petroleum products.
It will invest in downstream activities, including gas processing, petroleum product retailing, and gas pipelines deployment.
The corporation will also have the power to acquire shares, assets, businesses, and properties of other companies in furtherance of its objectives.
Once the bill is passed into law and assented to by the governor, the corporation will be governed by a board comprising a chairman, four members from the public or private sector, a managing director, and a representative from the Ministry of Energy and Mineral Resources.
This structure, according to Prince Akpabio, would ensure effective oversight and management of the corporation’s operations.
During the debate, other members of the House expressed their support for the bill, emphasizing its potential to benefit the state’s economy, create jobs, reduce poverty, stimulate growth, and position Akwa Ibom as a key player in the Nigerian oil and gas industry.
The Speaker of the House, Rt. Hon. Udeme Otong, commended the sponsor and assigned the bill to the House Committee on Petroleum Resources for further examination.
