A letter from the Department of Petroleum Resources of the Ministry of Petroleum, Abuja, has indicated that the Imo State Petroleum Development Company, an oil and gas exploration firm owned by the State, has acquired its first ever oil block and now set to commence oil mining.
The letter which was addressed to the Managing Director/CEO of the Company dated January 22, 2021, and signed by the Director of the Department of Petroleum Resources- Engr. Saraki Auwalu, has it that- “Further to our letter of 16th December 2020, notifying you of your status in the ongoing MFBR exercise, please be informed that Government has decided to accept the payment of Signature Bonus for the 2020 MFBR in either US dollars or the Nigerian Naira.” The letter was titled: “2020 Marginal Field Bid Round (MFBR) Exercise: Signature Bonus Payment Currency Denomination,” the letter
The disclosure for the formation of the Oil Company by the State was earlier made by the Special Adviser to the Governor and Coordinator Petroleum and Gas Matters, Rt. Hon. Goodluck Nanah Opiah taking questions from journalists in Owerri.
He assured that the establishment would lead to massive job creation for the teaming population of youths in the state and enhance government revenue, adding that the State-owned oil company was established about 20 years as a major player in the Oil Gas sector for the State.
Opiah noted that Governor Hope Uzodinma has increased the share capital of the Company to 10 billion shares.
He said that the Company would bid for Oil Mining License (OML) and engage in oil exploration activities and mining and explained that the oil producing company had, during the administration of Ikedi Ohakim, partnered with Oak Company based in the United States of America, for the establishment of a refinery in Ohaji/Egbema Local Government Area of the state, saying however that the deal could not sail through partly because of the restiveness in the Niger Delta region which forced the US Government to place travel restrictions on the states in the Niger Delta, which also led the Oak Company to pull out of the deal.
According to Opiah, the Imo Petroleum Development Company will also establish refineries in addition to prospecting for Oil and Gas.