The Chief Executive of Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Engr. Gbenga Komolafe, has sought the collaboration of government, prospective investors and all energy and mining industry stakeholders in Ondo State to unlock the state’s vast opportunities.The NUPRC chief who is an indigene of the state stated this while delivering keynote address during the Ondo State Political and Development Summit, held at Igbokoda, headquarters of Ilaje Local Government Area of the state.Specifically, Komolafe who spoke on the theme: “A Unified Vision For Ondo State: Political and Economic Renaissance for Sustainable Development” said the collaboration is needed in unlocking the vast opportunities for leveraging the state’s energy resources and market potential in positioning it and Nigeria, as a regional energy hub. His words: “Ondo State is suitably positioned to become an economic powerhouse in the unfolding global energy dynamics given its population of over five million people and abundant natural wealth. “In the downstream gas sector, Ondo State has an established network of around thirty licensed LPG refilling plants, with several other plants currently under construction. At present, the state does not have LNG refuelling facilities, and CNG usage remains limited. The foregoing highlights the tremendous potential for expanding downstream gas access and business in Ondo State.
“The ELPS, serving as a major gas pipeline corridor through the state, offers valuable opportunities to grow the midstream and downstream sectors, ultimately promoting energy security, economic growth, and shared prosperity for the people of the Sunshine State.” Komolafe noted that, with circa 784.53 million barrels of crude oil and condensate, as well as 4.54 trillion cubic feet of natural gas as of January 2024, Ondo State contribution to Nigeria’s hydrocarbon reserves is worth noting, stressing that this resource underlines Ondo State’s vital role in supporting Nigeria’s energy security and driving economic growth across the national economy.
“In addition to oil and gas production facilities, Ondo State is a host to several key infrastructures that play crucial role in the oil and gas sector.
A good example is the Escravos-Lagos Pipeline System (ELPS): a 2 billion standard cubic feet (BSCF), 342 km pipeline which transverses Ondo State, transporting natural gas from the Escravos area to the Lagos region and supporting various power generation facilities, including the Omotosho II Power Plant.
“According to him, the fact that Ondo State contributes significantly to Nigeria’s wealth of natural resources, with an array of minerals such as oil and gas, bitumen, quartz sand, clay, talc, granite, limestone, kaolin, coal, columbite, tin, feldspar, gemstones and gypsum underscores the immense revenue potential of the state.”Hosting the world’s second-largest bitumen deposit makes Ondo stands out globally, and leading cocoa production within Nigeria. It is estimated that about 42.47 billion tons of bitumen, an in-place volume, valued at approximately $17 trillion, based on current market prices of around $400 per metric ton is embedded in the state.
This underscores the immense revenue potential of Ondo’s bitumen reserves and the transformative socio-economic impact that effective development could bring to the state and its citizens”, he stressed.To unlock the full resource potential in the State, Komolafe said it is crucial to advance policies that support partnerships and attract investments, mirroring the successful strategies of leading bitumen producers like the United States, China, Russia, Canada, India, and Malaysia.”In this regard, a close partnership between the Ondo State Government and the Federal Ministry of Mines and Solid Minerals is recommended to pursue the requisite international collaborations, accelerate development and position Ondo State as a key player on the world stage.
“Besides, he said NUPRC has fostered social inclusion with broader sustainability and community development goals, pointing that, “the Commission has also fostered social inclusion aligning with broader sustainability and community development goals, strengthening the positive social impact of the oil and gas industry across regions.
“By effectively implementing the host community provisions of the PIA, NUPRC has reinforced the principle that resource-rich communities should directly benefit from their natural wealth.
“Accordingly, the commission has so far registered a total of 154 Host Community Development Trusts out of which 137 have been incorporated by the CAC to enable funding that will go directly into sustainable host community development”, the NUPRC chief added.
Fidelis David
Follow us on:
