The Federal Government has approved four of the five oil wells discovered in Lagos state but rejects the fifth saying it could not have belonged to the state since its location fell outside the approved distance.
The Chairman, Indices and Disbursement Committee, Revenue Mobilisation Allocation and Fiscal Commission, Alhaji Aliyu Mohammed, on Wednesday explained that the disproved oil well fell beyond 200 metres isobaths and could not have legitimately belonged to Lagos State.
Speaking at the Lagos Governor’s office, Lagos House, Ikeja, during the visit of a delegation of the committee, Mohammed said the delegation was in the state for the purpose of verifying crude oil and gas production from the recently discovered Aje oil wells.
He said the verification by the committee and its recommendation would facilitate the disbursement of 13 per cent derivation fund to the state in line with the Nigerian Constitution.
Mohammed also said that as part of procedure and in pursuant to its constitutional mandate, the commission set up an inter-agency technical committee which comprised the commission, the Department of Petroleum Resources, Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje oil wells.
Adding that the commencement of oil production from Aje oil field by Yinka Folawiyo Petroleum Company Limited was the first time oil was being produced outside the Niger Delta.
Governor Akinwunmi Ambode, speaking, described the visit as historic, pointing out that the visit marked the beginning of the official step that would take Lagos to the final destination as an oil-producing state.
It would be recalled that the governor had in May declared that Lagos has officially joined the League of Oil Producing States in Nigeria following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited (YFP) in the state.
And had announced that the state will export the first crude oil lifted from the Aje oil field, by the end of August.