The Chairman of Ibeno local government, High Chief Williams Mkpah, has called for preference for Ibeno in the distribution of the 3% oil derivation funds to oil producing areas in Akwa Ibom State as enshrined in the Petroleum Industry Act (PIA), describing the area as the major oil exploration area in the state.
He made the call in an interaction with newsmen in his office recently.
Stressing that he was not against the inclusion of non-oil producing communities in the benefits of PIA, Mkpah advised Exxon Mobil to pay those communities from its own reserves and not from Ibeno’s oil allocation.
He stated that though the IOCs have the backing of the law to bring in more communities into the equation, the crux of the matter was from whose oil the IOCs will extract the 3% to pay those communities.
Mkpah argued that shallow water production,which falls within the boundaries of Ibeno, Mbo and Easterm Obolo local government areas,constitute what the PIA describes as littoral (coastal) local government areas with the entire pipelines, oil wells and flow stations littered over the coastline of these areas, making them the major host communities.
He claimed that the only things the International Oil Companies (IOCs) have upland are their tank farms, air strip and accommodation facilities.
Discussion about this post