The wells being operated by Yinka Folawiyo Petroleum recently delivered first oil after several years of exploration and development.
Chairman of the Indices and Disbursement Committee of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Alhaji Aliyu Mohammed confirmed the new status of Lagos on Wednesday when he led members of the Committee on a courtesy visit to Lagos State Governor, Mr. Akinwunmi Ambode, at the Lagos House, Ikeja.
Mohammed said the Committee was in Lagos to verify crude oil and gas production from Aje Oil Wells for the purpose of disbursement of the 13 per cent Derivation Fund to the State in line with the constitution of the Federal Republic of Nigeria.
According to him, the Commission had set-up an Inter-Agency technical Committee comprising of the RMAFC, DPR, Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje Oil Wells.
Mohammed said that the Technical Committee recommended that for the purpose of the Derivation Fund as spelt out under Section 162 (2) of the 1999 constitution as well as the provision of the Allocation of Revenue Act 2004, number 1, 2, 4 and 5 of the Aje Oil Wells fall within 200m isobaths and therefore should be attributed to Lagos State.
He said as a result, the Commission and members of the Inter-Agency Committee had to embark on the working visit to the Oil Wells to conclude the process.
He however said that Aje 3 oil well fell beyond the 200m isobaths and therefore could be legitimately attributed to Lagos State.
He added that the outcome of the visit would promote national unity as well as the socio-economic development of Lagos State and Nigeria.
“It is also important to state that the commencement of oil production from Aje oil field by Yinka Folawiyo Petroleum Company Limited is the first time oil is being produced outside the Niger Delta basin and therefore of a significance in diversifying the source of crude and gas production in the country,” Mohammed said.
On his part, governor Ambode said that the commencement of crude oil production in the state would greatly enhance the economy of not just the state but the nation in general.
He added that it was significant for the Nigeria economy that the state has emerged as the first oil producing state outside the Niger Delta basin.
