Thursday, May 27, 2010

Nigeria: Oil Equity Delta Communities to Get N95 Billion Yearly

Hamisu Muhammad

Niger Delta Communities will get about N94.5bn annually as 10 percent dividend from the oil extracted from the region, Special Adviser to the President on Energy Matters Emmanuel Egbogah has said.

Speaking yesterday in Abuja, Egbogah said under the programme the money will be paid as distributed to the host communities. Mr Egbogah said "The proposal is based on the payment of 10 percent of the impact value of the acreage and assets used for petroleum operations in Nigeria, as dividends to the host and impacted communities by licensees, lessees, and commercial licenses."

Egbogah said the dividends are expected to provide a guaranteed rate of return of 10 percent yearly on the impact value and as a consequence. According to him, the proposal will encourage the host and local communities to take necessary steps to protect assets and facilities within their impact area.

He said the benefits by each community will be calculated based on the area, number of producing value, length of each flowing gathering line, area occupied by tank farm, and barrel equivalent for total facility name plate facility.

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