Business
Four StatesTo Enjoy Agip’s $50m Community Projects
Community projects in the
Nigerian Agip Oil Company’s (NAOC) operation areas of Imo, Rivers, Delta and Bayelsa states, have been estimated to gulp $50million this year, following the upward review from the previous $30 million.
NAOC General Manager, Giovanni Salvini, dropped the hint last Saturday, at the presentation of the company’s joint venture gas facilities to members of the House of Representative’s House Committee on Gas Resources in Port Harcourt , during their facility visit.
He re-affirmed NAOC’s commitment towards improving the standard of living of the host communities in the four OML concession areas, in spite of the revenue sharing formula of NNPC 60%, Philips 20% and Agip 20%.
Salvani added that NAOC has reduced gas flaring up to 12% this year and intended to reduce it further to 7% by 2013.
The General Manager, however, noted that community and security issues have impeded projects and also affected the progress of work.
The said include, inadequate funding to carry out projects, Power Holding Company of Nigeria (PHCN) high level of indebtedness to the Independent Power Project (IPP) and the unstable grid limiting the output of IPP are issues that must be addressed. Also, facility and oil theft by vandals affects the production capacity and the economy in general, he noted.
In his response, the House Committee Deputy Chairman, Alphonsous Ironna, who represented the chairman, commended NAOC for supporting the federal government in the IPP Gas projects and urged them to step up their concern towards the electrification of the nation.
The lawmaker, advised the company to introduce a high technology device known as HDD to check the criminal acts of vandalization and oil theft, and assured that a bill will be passed to check any vandal who chose to perpetrate the act.
“As part of effort to maintain a peaceful co-existence, NAOC should live up to its social corporate responsibility, consult widely with the community stakeholders, obey MoUs and empower the youths in the area, he said.
Highlight of the visit was the site inspection of the IPP Gas plant at Obrikom in Ogba/Egbema/Ndoni Local Government, Rivers State by the committee members.