Effects of militants’ agitation, cause of reduction in oil production, says Delta Govt

The Delta State Government has said that the effects of the agitation by militants’ group was a major cause in the reduction in oil production, adding that it invariably affected the revenue accruing to the state from federation allocation.

Mr. Charles Aniagwu, the Chief Press to the State Governor, Dr. Ifeanyi Okowa, told journalistsTuesday in Asaba while reacting to the dwindling economy of the state that succor will soon go the way of the state and federal governments as over 200, 000 barrels of crude oil will be fed into the country’s export line daily on the completion of the forcados 48-Inch under water export pipeline operated by Shell Petroleum Development Company of Nigeria Limited (SPDC) the militants destroyed last year 2016.

According to him, the repair and activation of the export line means a higher level of crude export for the national economic and Delta, host of the facility will by the same token shut up the receipts from the statutory allocation from the federation account and under the aegis of the 13 percent derivation principle for oil bearing states.

His words: “Nigeria was losing about 200, 000 barrels of crude oil per day due to the booming of forcados pipeline that conveys forcados grade of crude oil to the over 400, 000 barrels per day to the Forcados Export Terminals in the Western Niger-Delta” disclosing that the loss which translates to an average of $12million daily at an oil price of 846 per barrel, arose from the damage caused on the 48-inch under water pipeline which disrupted crude oil flows to the expert terminal.

Noting that the virtual completion of repair work on the mangled line was massive in progress, the Chief Press Secretary added that beyond the federal government’s involvement in resolving the agitation pro peace efforts had proved most useful in the restoration of peace in the once volatile oil bearing areas of the state.

He explained that Dr. Okowa led government at inauguration was inundated with huge incidences of militancy including herdsmen’s attacks on host communities, adding that the effects of the agitations by the militants’ group portended nightmare in the state but for God intervention.

“Most importantly that we also need a certain amount of money to ensure that we have peace in the creeks because just like the human body when you have some pain in the ear, it does not only inconvenience the ear, it affects other parts of the body, so the creeks affected the state” Aniagwu added.

He said that the state government considering the welfare of the people beyond the money that would come to state, has continued to address the welfare and security of Deltans with intrinsic attention to issues bothering the people, stressing” “the state government set up a high powered delegation headed by the State Deputy Governor, Barr. Kingsley Otuaro, and Prof. Sam Oyovbaire as Chairman Peace and Re conciliatory Committee who swung into action to placate our angry militants”.

Saying that the federal government saw the need beyond the deployment of the military men to the Niger Delta region, Mr. Aniagwu disclosed there was also the need to engage the individuals and that engagement, to a large extent, put an end to the hostilities as the state at present is optimistic to see the revenue increased on account of the increase in the Quantum of oil production.

“We will continue to look in the direction of the North pole and whatever happens, we will have the resources to address the issues that exist in the South pole and that is where we are today” he added.