Force Majeure: Akwa Ibom expresses fear over 70% revenue decrease

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Force Majeure: Akwa Ibom expresses fear over 70% revenue decreaseTwo feared killed in Akwa Ibom community renewed boundary clash

By Chioma Onuegbu, Uyo

Akwa Ibom State government has expressed fears that the state may face tougher days ahead as a result of the Force Majeure declared by an oil giant, ExxonMobil on Qua Iboe Terminal, QIT which led to decrease in the revenue to the state from the Federation Account.

The Commissioner for Finance, Mr Linus Nkan in a statement made available to newsmen in Uyo disclosed that the development caused 70 per cent decrease in the projected oil derivation revenue to State in the month of March 2021.

The statement reads, “There may be tougher days ahead for Akwa Ibom people as ExxonMobil has declared a force majeure on Qua Iboe Terninal (QIT).

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“The declaration of force majeure on Qua Iboe Terminal has caused 70 per cent decrease in the projected oil derivation revenue accrueable to Akwa Ibom State in the month of March 2021. We pray that it does not affect future months.

“Accordingly, the unexpected decrease in the State revenue will affect the activities of Government including the State’s ability to meet its monthly financial obligations to Public Servants, Pensioners and Contractors.

“The declaration of force majeure by ExxonMobil came as a result of a fire incident which was caused by gas explosion in the terminal in December 2020 leading to a temporary shutdown of activities in the terminal.

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“Qua Iboe Terminal is located on the eastern side of the Qua Iboe River, Ibeno, Akwa Ibom State and contains nine crude oil storage tanks. ExxonMobil is the major International Oil Company involved in oil and gas exploration and production activities in Akwa Ibom State”

The oil giant had in December 2020 declared Force Majeure on QIT, even as notification of Department of Petroleum Resources (DPR), the force majeure by ExxonMobil would only affect the revenue shared in March 2021.

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However, when contacted, the Manager, Media and Communications, ExxonMobil, Mr. Ogechukwu Udeagha said the company is not currently on Force majeure simply said, ” I can confirm that the most recent force majeure we had was lifted in mid-January, 2021. Everybody knew about it. It was communicated”.

Vanguard News Nigeria

The post Force Majeure: Akwa Ibom expresses fear over 70% revenue decrease appeared first on Vanguard News.

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