TheCable

The senate has asked international oil companies (IOCs) operating in the Niger Delta region to relocate their headquarters to their states of operation.

The upper legislative chamber passed the resolution during plenary session on Tuesday, following the adoption of a motion sponsored by Albert Akpan, lawmaker from Awka Ibom.

There have been calls by the oil-producing states for the relocation of the IOCs and their subsidiaries from Lagos and Abuja to the south-south region.

In March 2017, Vice-President Yemi Osinbajo also lent his voice to the matter, noting that it will mitigate tension in host communities.

Leading the debate on the motion on Tuesday, Akpan said the relocation of the IOCs to their host communities will facilitate development in the areas.

He said the IOCs ought to relocate to the region, because they once operated there before they left “due to some reasons”.

“The companies attributed their operation outside their host communities to insecurity and hostilities in the host communities,” he said.

“Their operation outside of host communities and operational base accounted for the high cost of oil and gas production.

“This is a big setback to the country’s oil and gas industry and it is militating against maximum revenue from crude oil and gas sales to the federation account.”