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Bayelsa State Government on Tuesday demanded the immediate relocation of oil companies’ head offices to oil-producing states including Bayelsa.
The Commissioner of Justice and Attorney-General of the state, Mr. Wodu Kemasuode, who represented the state government, protested during a courtesy visit to the Executive Secretary of Nigerian Content Development and Management Board, Mr. Denzil Kentebe.
He said the government was considering exploring legal options to compel oil companies to relocate their headquarters to the state.
He said the absence of operational offices of the companies has adverse effects on the economy and environment of the state.
Kemasuode said, “What we suffer from the absence of these offices in the state cannot be enumerated, even in terms of taxation and the economy. Once they come, Bayelsa state will be something else.
“So, we are suffering tremendously as a result of the absence of these companies. There is absolutely no basis not even issues of security.
“If the place is secure enough for everyone then it is secure enough for them to have their offices to carry out their operations and the government is doing all its best to ensure that there is security and the government will still do more.”
He further accused the board of contravening Section 71 of the Act establishing it which requires that it carries out its business and its headquarters within the oil-producing state.
He said against the spirit of the law, the board undertakes most of its activities in its Abuja office adding that if the board carries out its programmes in the state as envisaged by the act, they will improve the programme of the state.
“The Act simply says you can have offices only in the oil producing states. You have your headquarters here if you want branch offices you can build. As a government we are calling on the board to close that office and carry out its businesses here.
“The Abuja office of the board is illegal, it’s contrary to the provisions of the act established by a particular section 71. These are serious legal issues and the state is quite serious serious about it,” he said.
He said Bayelsa State is angry at its exclusion from the transactions that led to the sale of Oil Mining Lease 29 and the Nembe Creek Trunk Line by the Royal Dutch Shell Plc.
Shell was said to have sold the oil facilities located in Nembe Local Government Area of the state to Aiteo Eastern E&P Co Ltd for about $1.7bn.
But he said the state’s expression of interest to acquire the oil assets was turned down by the multinational company.
Kemasuode also told the Executive Secretary that the interest of the state was not considered in the bidding that led to the sale.
“Bayelsa State Government submitted its bid for OML 29 but we are not happy that our bid was not considered. We feel that the board did not consider the interest of the state in the bidding. Our interest was not protected,” he said.
Courtesy – Punch
