Connect with us

Markets

ExxonMobil Boosts A’Ibom Community with N13bn Investments, Economic Benefits

Published

on

exxonmobil
  • ExxonMobil Boosts A’Ibom Community with N13bn Investments, Economic Benefits

Mobil Producing Nigeria (MPN), operator of the Nigerian National Corporation (NNPC/MPN) joint venture is almost a household name in Akwa Ibom State.

An affiliate of ExxonMobil Corporation, it often sees itself as a good corporate citizen and has affirmed that its presence in Akwa Ibom State is for a long haul; to showcase the company’s commitment to “working closely with the government in helping to improve quality of life.”

Since it began operations more than three decades ago and with its base in Akwa Ibom State, the oil company has contributed to the economy of the state and that of the federal government through its numerous programmes and projects. In many ways, it has made investments in education, health, skill development and in forging a mutually beneficial relationship with the host communities.

Apart from the oil company’s commitment to provide long term health, educational and economic benefits to its host communities, it recently performed the ground-breaking ceremony of three major community assistance projects in Akwa Ibom estimated to be worth N13 billion. The ceremony took place in Ikot Akata, Mkpat Enin local government area of the state.

Before this event, ExxonMobil subsidiaries have ‘powered the economy of their neighbouring communities’ and that of the country with investments supporting economic growth.

For instance, they have contributed more than N130 billion to the Niger Delta Development Commission (NDDC) since 2001 and more than N230 million ground rent to Akwa Ibom State. It is also a major contributor to the state’s economy with over N230 billion annually from the 13 per cent derivation principle for oil producing states.

The oil company has also sustained payment of subvention to health workers in the riverine Ibeno communities of the state for more than two decades and has been providing subvention to the maternal birth injury hospital in Itu, Akwa Ibom State for the same period; a development that helped many to have access to healthcare for the treatment of an ailment that the society stigmatises such patients.

“ExxonMobil is our backbone; the oil company gives us certain amount of money every month to support us,’’ says Ngozi Ndubuau, the matron of the hospital which treats Visco-Vaginal Fistula (VVF) cases.

For the ground-breaking event, another example of the company’s contribution to the state and its people, the projects include a technical skills acquisition facility at the Community Technical College, Mkpat Enin local government area, a trauma centre at the University of Uyo teaching hospital, and an engineering faculty complex at the University of Uyo.

Estimated to be completed over the next 18 months, it is believed that the investment is one of the largest community investment expenditure by any company in the country.

Significantly, while the trauma centre would take care of the health needs of the people, the engineering faculty would when completed provide a conductive learning environment for students, while the skills acquisition centre will serve as the hub for the training of youths in various vocations.

Because of the volume of the investment and coming at a time when it seems difficult for oil companies to commitment to developing their host communities, the ceremony turned out to be a meeting point for top government officials and key players in Nigeria’s oil industry.

For instance, the Chairman/Managing Director of Mobil Producing Nigeria Unlimited, Paul McGrath, and vice chairman of the oil company, Udom Inoyo, led the delegation to the ground-breaking ceremony.

Also, the Akwa Ibom State government was fully represented with Governor Udom Emmanuel, alongside the deputy governor, Moses Ekpo, and the secretary to the state government, Emmanuel Ekuwem, commissioners as well as royal fathers and the academia.

Speaking at the ceremony, McGrath noted with satisfaction the cordial relationship existing between the oil company and the state government restating the joint venture’s commitment to long-term operations and mutually beneficial relationship with the state.

“We know we can continue to count on the support and cooperation of the government, our communities and other stakeholders as well as all collectively work towards making these projects a reality, and eventually enjoying the health, educational and economic benefits they are designed to provide to the good people of Akwa Ibom State,” he said.
According to him, the company has enjoyed relatively peaceful relations with the people of Akwa Ibom state for the past three decades pointing out that the company has made substantial revenue and community investment contributions in the areas of health, education and empowerment projects.

He maintained that the company was committed to ensure even deeper social and economic benefits for the communities near its operations and across the state in the coming years. “We are proud of our contributions and look forward to working together with all stakeholders for greater achievements,” he said.

Giving an insight into the choice of projects, a major stakeholder in the oil industry, the National Petroleum Investment Management Services (NAPIMS) led by the group general manager, Roland Ewubare said it was an outcome of extensive engagement with key stakeholders in Akwa Ibom and it represents their conviction that direct benefits to citizens should be at the heart of every social investment decision by companies who operate the country’s oil assets.

Represented by Hillary Akpan, head of Gas unit at NAPIMS, he said his organisation worked extensively with MPN in reviewing the investment proposals for the projects, adding that it only granted execution approval based on their conviction that they would provide significant socio-economic benefits to communities in Akwa Ibom State.

“The projects will address gaps in two focus areas which we consider vital to social and economic development, capacity and skills development in Nigeria’s oil industry and accessibility to quality health care for citizens.
“The technical skills centre and the engineering complex when commissioned will considerably extend opportunities for Akwa Ibom indigenes as well as other qualified Nigerians to development much needed technical skills in our oil and gas industry,” he said.

Describing the projects as “truly important” he said solicited the support of all to ensure its success by being delivered on schedule and expressed happiness the joint venture partners have over the years found Akwa Ibom state and its people to be worthwhile partners of progress to the benefit of all stakeholders, adding that it has helped to ensure business sustainability.

Specifically, the technical skills centre consists of a three-block training complex for critical skills required in oil and gas careers such as pipeline fabrication, welding, electrical works, chemical lab works, civil works and engineering. The centre is expected to train more than 100 students annually, mostly from the neighbouring communities.

On the other hand, the trauma centre in a two-floor medical complex will help reduce mortality rates from major medical emergencies. The centre will include a resuscitation and burns room, a theatre suite, helipad, ambulance by and triage area, high dependency and radiology units, mini labs, wards, pharmacy, administrative offices, library and doctors’ call and seminar rooms.

For the engineering complex, it is to be equipped with generators and independent water supply and will feature two floors of workshops, laboratories, a lecture theatre, conference rooms and faculty offices. It is also expected to serve 2,000 students, mostly from Akwa Ibom State.

Overwhelmed with joy, the state governor, Udom Emmanuel thanked NNPC/MPN joint venture for the investment in Akwa Ibom State and promised to ensure that the peaceful atmosphere prevalent in the state is sustained as a means of attracting more investments.

The governor explained that the location of the projects was not based on any political consideration maintaining that those who are likely to be the major beneficiaries are people from Akwa Ibom State.

The paramount ruler of Eket local government area, one of the core oil producing communities in the state also lauded the joint venture operators for the investment though he expressed mixed feelings that one of the projects ought to have been located in the oil bearing communities.

Indeed, the joint venture partners have demonstrated their commitment to contributing to the growth agenda of Akwa Ibom State and their decision to invest N13 billion worth of projects in health, education and skills acquisition is a clear testimony to this and will without doubt create long term economic benefits in Akwa Ibom State.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Continue Reading
Comments

Crude Oil

Possible Middle East War Tension Buoys Oil Prices

Published

on

Crude oil

Oil prices rose on Friday and settled with their biggest weekly gains in over a year on the threat of a wider war in the Middle East following Israel and Iran’s conflict.

Brent crude oil, against which Nigerian crude oil is priced, rose 43 cents (0.6%) to settle at $78.05 per barrel while the US West Texas Intermediate 9WTI) crude oil gained 67 cents (0.9%) to close at $74.38 per barrel.

Israel has vowed to strike Iran for launching a barrage of missiles at Israel on Tuesday after Israel assassinated the leader of Iran-backed Hezbollah a week ago.

Meanwhile, gains were limited as US President Joe Biden discouraged Israel from targeting Iranian oil facilities.

The development has oil analysts warning clients of the potential ramifications of a broader war in the Middle East.

Iranian oil tankers have started moving away from Kharg Island, Iran’s biggest oil export terminal, amid fears of an imminent attack by Israel on the most important crude export infrastructure in Iran.

Market analysts say that the OPEC spare capacity, concentrated in Saudi Arabia and the United Arab Emirates (UAE), would compensate for an Iranian loss of supply.

They noted that an even more significant disruption to supply from the Middle East could lead to triple-digit oil prices, but nothing suggests that attacks on oil infrastructure in other producers in the region or the closure of the Strait of Hormuz are low-probability events.

JPMorgan commodities analysts wrote that an attack on Iranian energy facilities would not be Israel’s preferred course of action.

However, low levels of global oil inventories suggest that prices are set to be elevated until the conflict is resolved, they added.

Iran is a member of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ with production of around 3.2 million barrels per day or 3 per cent of global output.

On Friday, Iran’s Supreme Leader Ayatollah Ali Khamenei appeared in public for the first time since his country launched the missile attack and said the country will not relent.

Supply fears have also eased in Libya as the country’s eastern-based government lifted the force majeure on output and exports just hours after a deal was reached for two compromise candidates to head the country’s central bank, which controls the country’s oil revenues.

Continue Reading

Crude Oil

Oil Prices Surge as Fears of Israeli Strike on Iran Escalate

Published

on

Oil surged as markets braced for the possibility that Israel could strike Iran’s energy industry, the latest potential escalation of a conflict that began almost one year ago when Hamas attacked Israel.

Global benchmark Brent crude climbed near $77 after US President Joe Biden indicated Israel was weighing an attack on Iran’s oil infrastructure as a response to Iran’s missile attack on Israel, itself a response to Israel’s killing of leaders of Hezbollah and Hamas and an Iranian general.

When asked if he would support a new Israeli attack, Biden responded “we’re discussing that.”

Israel meanwhile continued to strike Lebanon, killing nine people at a medical site in central Beirut, local authorities said, among other targets. Israel has said it’s targeting Hezbollah militants while Lebanese officials said the attacks have killed more than 1,300 people and displaced over a million.

Tel Aviv also has warned civilians in southern Lebanon to evacuate as Israeli forces expand a ground invasion there. —Margaret Sutherlin

Continue Reading

Crude Oil

Oil Adds $3 Per Barrel as Israel, Iran Conflict Spike Fears on Supply

Published

on

Crude Oil - Investors King

Oil prices gained $3 on Thursday as concerns mounted that a widening regional conflict in the Middle East could disrupt global crude flows with Israel reportedly planning to target Iran’s oil and gas infrastructure.

Brent crude oil, against which Nigerian oil is priced, inched higher by $3.72, or 5.03 percent to close at $77.62 a barrel while the US West Texas Intermediate (WTI) crude appreciated by $3.61, or 5.15 percent to $73.71.

Prices have continued to rise in the aftermath of Iran’s Tuesday attack on Israel, which involved around 200 missiles.

Following the missile barrage, Israel’s ground troops clashed with Hezbollah forces in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing separate revenge on Iran.

The latest round of escalation was sparked by Israel’s sanctioned elimination of Hezbollah chief Hassan Nasrallah and Hamas political leader Ismail Haniyeh.

The tension was further sparked after US President Joe Biden indicated that there is a possibility of Israel striking Iran’s oil facilities.

This is after Israeli officials said on Wednesday that Israel could target Iran’s strategic energy infrastructure, including oil and gas rigs or nuclear installations, which would have the biggest economic impact, and send shockwaves through oil markets.

Iran is a member of the Organisation of the Petroleum Exporting Countries (OPEC) with production of around 3.2 million barrels per day or 3 percent of global output.

Market analysts also raised concerns that such escalation could prompt Iran to block the Strait of Hormuz or attack Saudi infrastructure as it did in 2019. The strait is a key logistical chokepoint through which 20 percent of daily oil supply passes.

The market will also weigh development coming from Libya as oil production resumed after more than a month of suspended output due to a political standoff between the eastern and western administrations in the North African OPEC producer.

The end of this Libyan crisis will lead to the return of a few hundred thousand barrels of crude per day to the market.

Also, US crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended September 27, the US Energy Information Administration (EIA) said on Wednesday.

A rise in inventories shows that the US market is well-supplied and can withstand any disruptions.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending