Ondo Sets to Begin Bitumen Exploitation

Posted by African Examiner Featured, Letters/Rejoinders, News Across Nigeria Sunday, April 17th, 2016

The Ondo state government may have recorded a major breakthrough in its quest for economic stability as arrangements have begun for the exploitation of its Bitumen, being one of the Mineral resources the state has in commercial quantity.

Briefing newsmen on the development in Akure on Sunday, the state’s Commissioner for Information, Kayode Akinmade, said the state government has secured the licence to exploit the commodity through Beecon Nigeria limited, a concern where the government has near complete ownership.

He said government has before now signed a Memorandum of Understanding with an American company, Liquefied Resources and its also expected to sign a Joint Operating Agreement with the same outfit for the immediate exploitation of Bitumen which the state has in large deposit on locations that stretches across Ondo -Edo and Ondo -Ogun boundaries .

The Commissioner informed that officials of Liquefied Resources led by its President , Thomas Cooley are already in the country as they are expected to meet with the government tomorrow ( Tuesday) and finalise all arrangement regarding the Joint Operating Agreement.

As part of the visit, the officials would visit the proposed sites and also set a date for takeoff of the proposed Bitumen extraction and upgrading plant.

As part of the agreement, Liquefied Resources is expected to wholly fund the project, even as the Commissioner insists that there will be exploitation of Bitumen in the state at no cost to the government, adding that the Joint Operating Agreement will regulate profit sharing among the handling company and the government.

The government’s spokesperson described the operation as very expensive and more demanding than exploiting oil, but mentioned however that Liquefied Resources are capable of handling it, especially with the availability of new technology at its disposal to handle such project.

Registering what is projected to be the impact of the development on the state, Akinmade mentioned that the exploitation of the commodity will generate massive employment which he said will be a consolidation of sort on the jobs being provided for the youth in the state through Agriculture, a sector government has concentrated upon in recent time as its own reaction to the apparent need for economy diversification.

Emphasising on the capability of government to solve youth unemployment challenge through the Bitumen exploitation project as well as its ongoing job creation initiatives through Agriculture, Akinmade offered, that the Ondo Bitumen comes up with accompanying crude oil which will in no small measure affect the economy of the state positively.