Posted on iii by Clarence Beaks20 Dec 2013 16:14
Boost for oil sector in Nigeria's Bayelsa State
News Date: 19th December 2013
A strategic partnership that has been struck between Heritage Oil and the government of Bayelsa State in Nigeria, is expected to boost the development of oil and gas in a region that has been beset by oil spills and divestments from the industry.
The move by Heritage, a UK-based independent upstream exploration and production company, is a sign that the administration of Governor Henry Seriake Dickson is still following his vision of a New Bayelsa that he outlined when he came to power in February 2012.
During a visit to the UK last year, Governor Dickson told interested British businessmen and investors: "Gentlemen, I make bold to say to you that Bayelsa today is one of the most peaceful and secure states in the whole of Nigeria. We have achieved this given the huge investment we have made in the area of security since we assumed office barely six months ago. Mind you, we are even doing more because of the seriousness we attach to the security of not only the lives of our investors, but also to their investments. That is why today in Bayelsa, all the multinational companies who abandoned the State at one time, are all back and they are on ground as we speak, working."
The administration is encouraging joint ventures, among other economic policies, whereby the state and a private company jointly own the assets and also drive the management of the venture.
It is in line with this that Heritage, which established its footprints in Nigeria in November 2012, has entered into the deal with the state-owned Bayelsa Oil Company to create an indigenous Nigerian entity called Petrobay Energy Ltd, of which the UK-based company will own 45 per cent.
A statement by Heritage says that the joint venture is combining support from the state government and local communities with Heritage's strong technical track record and access to financial markets.
Governor Dickson is upbeat about the joint venture. "At a time when people are divesting oil assets in this area, no mention is made of our involvement," he said. “Today, that era of standing by and non-participation has ended.
"What we have signed is going to blossom and move from strength to strength and be strong enough to compete favourably with other competitors in the upstream and downstream sectors of the industry. Let me announce to all those stakeholders in the industry that Bayelsa State is ready for active participation in the oil and gas industry".
Tony Buckingham, Chief Executive of Heritage, was equally sanguine about the strategic alliance. "Petrobay will develop close relationships with local communities and other stakeholders in the Niger Delta in recognition of the key role their support plays in securing assets and delivering safe, stable and productive operations," Buckingham said.
"This alliance reinforces Heritage's commitm
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