… loses revenue due to ongoing production issues at Aje field
… as dispute between Yinka Folawiyo, technical partners lingers
Oredola Adeola
The Lagos State Government has that it received a cumulative sum of N3.911 billion in oil derivation funds from the Federal Government between 2018 and 2021, adding that the payment for 2022 to date has been stalled due to production issues at the Aje field, within the OML 113 field in Lagos managed by Yinka Folawiyo Petroleum Company Limited and its technical partners.
Mr. Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources made this known during the 2024 Ministerial press briefing held at the Bagulda Kaltho Press Centre, Alausa, Ikeja, on Wednesday.
Mrs. Adetola Idowu, Lagos State Deputy Director, Public Affairs made this known in a statement obtained by Advisors Reports.
The Commissioner specifically emphasised that Lagos State obtained N131 million in 2018-2019 and a substantial increase to N3.78 billion in 2020-2021, assuring that the owners of the assets will find new technical partners and return to production before the end of the year.
Ogunleye said, “Between 2018 and 2019, the state government received from the Federal Government N131 million as part of oil derivation. Also, between 2020 and 2021, the Lagos state government received N3.78 billion.
“But the owners of the assets have been having issues among themselves. And as long as they could not produce, there would be no money for Lagos.
“The state government is engaging them to ensure that they return to the field. And we hope that before the end of the year, they will find new technical partners and they can go back to production,” the Commissioner noted.
Ogunleye also mentioned that the Lagos State Government has concluded plans to set up five additional power hubs across the metropolis, to sustain its drive for an effective 24-hour economy and give residents other alternative sources of clean energy.
According to him, these additional power hubs earmarked would complement the six solar POCs, giving Lagosians a better alternative to power supply across Lagos.
He further emphasised that there was planning to develop 1 gigawatt of grid-scale solar energy capacity for the clean Lagos electricity market.
The Commissioner noted that over 10 sites have been considered for the 1-gigawatt solar grid-scale project and they include the Egbin terminal plant site, Ikorodu, Badagry, Agbara, Ogudu, and others.
He also disclosed that the administration of Governor Babajide Sanwo-Olu has distributed over 10,000 gas tubes to petty traders to reduce their dependence on firewood and other unclean sources in Lagos.
He said: “We have distributed over 10,000 gas tubes to the residents to abandon other unclean energy. We believe that this source is better and healthy for the traders and other Lagosians patronizing them”.
“While we are encouraging this, the government will be intensifying enforcement to curb haphazard establishment of gas plants and shops in the state. This is to ensure that everyone adheres to safety”.
The commissioner added that the Lagos state government would be partnering with the Federal Government to ensure both gas and fuel stations do not cause harm to the people in the state. “We want to ensure that our people are safe in Lagos”.
Ogunleye, meanwhile, disclosed that the government would be embarking on other research works to discover new mineral resources that could boost Lagos revenue annually.
