Renewed interest, coming from Governor Ibikunle Amosun of Ogun State and stakeholders who had earlier pulled out of $10 billion (N2trn) Olokola Liquefied Natural Gas (OKLNG) project, is giving strong indication that signposts re-investment in OKLNG project located in Olokola Free Trade Zone, lying on the border of Ogun and Ondo states.
The OKLNG project was proposed to be built by former President Olusegun Obasanjo-led government in 2007, through a joint venture by Nigeria’s government represented by the NNPC and with a largest equity stake of 46.75 percent; Royal Dutch Shell with 19.5 percent share; Chevron with 19.5 percent stake, and UK’s BG Group with 14.25 percent share, respectively.
The OKLNG project, projected to produce 12.5 million per annum Liquefied Natural Gas and 15,000 barrels of condensates per day, was stagnated due to political differences and economic direction differentials between All Progressives Congress-led government in Ogun State and People’s Democratic Party’s administration in Ondo State.
Although, the OKLNG project was perfected in 2009 between the then Gbenga Daniel-led PDP administration in Ogun State and Olusegun Mimiko’s government in Ondo State, because of the same of party affiliation, government sources in Ogun State said declaration of Aliko Dangote to invest $8 billion in oil refinery at Olokola FTZ in 2013 without carrying along Ogun State, stalled the project.
The sources stated further that Chevron and Shell had earlier pulled out of the project due to declaration made by Aliko Dangote, which revealed that Dangote, Jim Ovia and other local investors were making moves to heavily invest in oil refinery at Olokola Liquefied Natural Gas project, but Dangote’s failure to carry along Ogun State did not allow the proposal to sail through.
But, Governor Ibikunle Amosun made u-turn yesterday when he received newly-redeployed flag officer commanding Western Naval Command in his office at Abeokuta and directed the Nigerian Navy to intensify security surveillance on the proposed deep sea port in Olokola FTZ and Tongeji Island in Ipokia Local Government, saying strong moves were ongoing to hit the ground running on OKNLG project.
While receiving Rafael Osondu, the rear admiral and flag officer commanding Western Zone Command, Amosun said: “I’m happy you are already aware of Tongeji Island, but we would not only need your attention and support in that area, but also at Olokola where we are having our deep sea port. We don’t want these huge resources to again go the way of Bakassi Peninsula.”
And the flag officer commanding Western Zone Command headquartered in Lagos, who was apparently speaking the minds of Federal Government, disclosed that huge revenue could be generated from Olokola Liquefied Natural Gas (OKLNG) project if now implemented, saying: “with Ogun now on the verge of becoming one of the oil-producing states, the force was fully ready to ward-off intruders from the oil-rich Tongeji Island.
“Our presence in these areas would begin to yield positive results to the state and the nation at large and we are ready to partner and work with the state in every capacity to ensure a hitch-free experience,” he said.
Another government source in Abeokuta told BusinessDay that Governor Amosun had met and briefed President Muhammadu Buhari on the abandoned Olokola Liquefied Natural Gas project and Olokola Free Trade Zone, and had appointed Babajide Odubanjo, special adviser on economy and public private partnership to work out modalities on OKLNG and Olokola FTZ in order to boost the state’s economic base.
“I can tell you thay series of undertakings are already on-going to bring life to Olokola FTZ and OKLNG. Moves are already in the pipelines to ensure that those that fled the project and more invested are even attracted to invest in the project. Please, look out for 2016 budget of Ogun state, you will see some portions budgetary allocations to the project,” according to the source.
