A Review of the Nigerian Energy Industry

Bayelsa threatens legal action against IOCs

Mkpoikana Udoma 27 October 2014, Sweetcrude,  Port Harcourt – The Bayelsa State Government is bemoaning the failure of oil multinational companies operating in the state to establish operational offices in the capital, Yenegoa, saying the situation is affecting the economy of the state.
The Attorney General of Bayelsa State and Commissioner for Justice, Hon. Kemasuode Wodu, said in Port harcourt that this is adversely affecting the internally generated revenue of the state as he revealed that the state government was considering legal action against the oil multinationals over the matter.
Hon. Wodu explained that Bayelsa state generates less than N1 billion revenue monthly due to the absence of operational offices of the oil companies in the state.
According to him, “the oil companies operates in Bayelsa, that is they drill oil in Bayelsa from all the nooks and crannies of Bayelsa and what we have from it is oil spillages and degradation of the environment. Of all these oil companies, none has an operational office in Yenegoa, not even Shell, Agip, Conoil, Chevron-Texaco; they all have their offices outside Bayelsa state and the effect is that our economy suffers for it.
“So we are deprived of income, that is why as we speak, most months, Bayelsa generates less than a billion naira while states like Rivers and others can generate as much as N7 to 8 billion or even more in one month. It is a major problem for us”.
The Attorney General and Commissioner for Justice also disclosed that the state government has set up a special committee of legal experts to ensure that oil firms are compelled to site their operational offices in Yenegoa
“Calling on oil companies to establish operational offices in Bayelsa is an issues that the government is taking up very seriously, even if it will amount to litigation we are going to do it, because it is very important to the development of the state” he said.
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