The Federal Government has announced the approval of four of the five Aje oil wells, discovered in Lagos State, and disclosed plans to commence disbursement of 13 per cent derivation fund to the state as an oil producing entity
This was disclosed by chairman of the Indices and Disbursement Committee, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed during a courtesy visit to governor Akinwunmi Ambode in Alausa, Ikeja.
Mohammed said that the committee was in Lagos to verify the crude oil and gas production from Aje oil wells for the purpose of disbursement of the 13 per cent derivation fund to the state, which is paid to oil producing states by the federal government.
He also stated that the commission had set up an Inter-Agency Technical Committee, comprising RMAFC, DPR, Office of the Surveyor-General of the Federation and the National Boundary Commission, to determine the location of Aje oil wells.
While the government has approved four oil wells discovered in the state, it has refused the state's ownership of one oil well. Mohammed explained that the federal government's refusal of the fifth oil well hinged on the fact that it fell beyond 200 m isobaths and did not legitimately belong to the state.
“Aje Oil wells 1, 2, 4 and 5 fall within the 200 miles Isobath-a line on a map that connects all points that have same depth below water surface, and, therefore, should be attributed to Lagos State. But Aje 3 cannot be claimed by the state,” he said.
According to Mohammed, the commencement of oil production from the Aje oilfield by Yinka Folawiyo Petroleum Company was the first time oil was being produced outside the Niger Delta basin, and therefore of major significance in diversifying the source of crude oil and gas production in the country.