The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has assured Kogi State Governor Alhaji Usman Ododo of the Federal Government’s support in enhancing oil production within the state.
During a visit from the governor on Wednesday, Senator Lokpobiri stated that the Frontier Basin Fund would be utilized to increase exploration activities in Kogi. He expressed the government’s determination to reach a target of two million barrels per day by the end of this year, with an ambitious goal of 2.5 million barrels per day in the following year.
“I want to assure you that Kogi State is already an oil-producing state. The derivation money depends on the volume produced, but it indicates that Kogi has joined the league of oil-producing states,” he explained. He highlighted the need for collaboration between the federal government and Kogi State to utilize the Frontier Exploration Fund for necessary exploration efforts, including seismic work to identify more oil fields.
Senator Lokpobiri pointed out that the lack of exploration work in previous years had stunted reserve growth, but with the Petroleum Industry Act (PIA) and new government policies, investments in the sector are gradually returning.
Earlier, Governor Ododo sought the Federal Government’s support in boosting oil exploration, emphasizing the state’s desire to leverage its natural resources for development projects.
The Commissioner of Finance and Economic Development, Asiwaju Asiru Idris, noted that Kogi State had only received N7.8 million once from the 13% Derivation Fund, highlighting the disparity in financial returns compared to other oil-producing states.
“We recognize that the NUPRC, under your oversight, has a significant role in developing the frontier basin. We commend our colleagues in the South South for their financial successes, and we aspire to join them,” he stated, expressing the need for federal assistance to fully exploit the state’s natural resources in light of recent improvements in security.