In the twilight of the emergence of the present administration in Bayelsa State, led by HS Dickson, the economic prosperity of the nation was in its best of forms. Oil prizes were on the rise, trading at about 90 dollars per barrel. The result of this was that the Nation received huge foreign exchange, which translated into huge allocations to states. And for an oil producing state such as Bayelsa state, the allocation received, is estimated to be between the ranges of 13 billion to 20 billion monthly.
However, as welcomed and enviable as this economic boost was, the Governor knew that this prosperity would not last forever. He knew that there was the need to source or creates alternative sources of income to support or cushion the federal allocation giving the characteristic fluctuations that generally occur with oil prices.
As it was to be expected, towards the second term of the administration, oil prices began to experience a downward spiral which ultimately impacted upon state allocations, causing panic among state governments. Nevertheless, the HS Dickson led administration which had previously predicted this outcome, took several steps to counteract and arrest the effects of the new economic and financial realities. Particularly to ensure that the state continued to meet its financial and economic obligations. Most notably series of consultations were embarked upon, with a view to increase the Internally Generated funds of the State. The cumulative result of these efforts was that the state began to experience a tremendous increase in internally generated revenue (IGR) which was reported to be well over nine hundred million naira from the previous four hundred million naira-an impressive 100% increase. ]
In an admirable display of his economic shrewdness and rare passion for good governance, the governor HS Dickson still identified the need for more to be done and this led to the overhauling of the state owned oil company-the BAYELSA OIL COMPANY LIMITED (BOC Ltd). This was done with the aim of capitalising on the vast potentials created by the ability of the state to own an oil block.
While the block was awarded to the state government in 2003, the state had entered into a tripartite joint venture agreement with Century oil production and Hardy oil for the management and exploration of the marginal field it. Nevertheless, it was yet to begin full production. This was as result of non-commitment on the part of the state, even though century oil production has expended over a hundred million dollars into this venture as part of its technical and financial obligations.
Overall, what was needed was for the management of the state oil company cooperates with Century and its technical partners who have 30 percent of the share capital.
Therefore, the governor himself (HS Dickson) had to step in and a new management was appointed under the leadership of Ebi Dorgu with the clear task to work effectively and efficiently towards the maximisation of the ATALA field to benefit the state. On her part, Century oil did what it had to do and within record time, the field began its first production. This was largely applauded by the government of the state as it was a veritable vehicle towards the increase of the state resources which was in dire need of a boost and buffer, given the aggressive development agenda of the state Governor.
While Century had proven its capacity to manage the block successfully, it was now the place of the state oil company to also play its desired role and ensure continued production and exploration to offset the huge capital already invested, and ultimately make profits, which is the cardinal objective. Unfortunately, this has not been the case.
While there are indeed a few other factors which have all contributed to this unwanted situation, such as technical and management issues which require attention, the management has not been very effective in her duties and the present reality is the resultant effect. Some have argued that the management has a different motive; one which only profits them and not the State. This argument is clearly supported by the fact that recorded technical and management issues were long begging for management attention only became worse as a result of blatant negligence.
Over this period, it is on record that the present management has taken several steps to frustrate the entire project which is in clear contradiction to their principal-the Governor’s intentions and plan. Firstly, they began by making unnecessary demands from its technical partners. Not satisfied with their responses, which of course, were not within their mandate, the management accused them of not having the capacity to meet their contractual obligation knowing that this was not a part of their mandate under the joint venture.
Consequently, while efforts were being put in place to facilitate the smooth and continued operations of the exploration by Century, the Bayelsa oil company and its managing director started making sinister efforts to negotiate a new joint venture agreement with potential clients. The motive behind such efforts remains very unclear and leaves many to make their own conclusions.
As part of such efforts to scouting new partners, advertorials were placed on business blogs and papers to attract prospective clients while also speaking with top notch oil giants with a view to push Century out of an otherwise legally binding contract.
While some organisations showed interest, with rumours of financial incentives already exchanging hands, most of these companies appear to appreciate the complexities of such business opportunities, and savvy enough to understand the importance of due diligence, thus making adequate enquiry. Subsequent investigations revealed the existing contractual concerns which ultimately discouraged these potential business partners.
Clearly, these conceited efforts to form new partnerships rather than working closely with Century are not designed to benefit anybody but themselves and runs afoul against the cardinal objective of the government and the state oil company.
Given the huge resources already invested by Century, the company is on record to have taken steps to intimate the state oil company of its willingness to resort to legal options if the state oil company management refuses to adhere strictly to the terms of the joint venture agreement.
Pursuant to this line of action, a notice was posted on all business communication platform to discourage ignorant potential investors. Nevertheless, the managing director, in partnership with certain elements within the state government continues to search uncontrollably for potential investors. A move which has now pushed Century to completely halt production.
As it stands, the much expected resources from the proceeds of the marginal field may afterall become a mirage. This is owing to the unscrupulous activities of the managing director and this will indeed rob the state of great potentials which could have boosted the developmental aspirations of the current Governor who has left no one in doubt over his aggressive and unprecedented drive towards leaving a legacy of change and restoration in terms of infrastructures.
What is now required is for the state Governor to quickly take a decisive action and arrest the situation before the potentials of the full exploration of ATALA FIELD quickly fades into outer space, leaving stakeholders with an unwanted reality and a PAINFUL IMAGINATION OF WHAT COULD HAVE BEEN and should be.
The Governor must not shy away from the responsibility of taking that decision for the greater objective of changing the fortunes of the state and cementing his ever flourishing legacy. This is a rare opportunity for the state to create industries, and record increased success on the twin issues of unemployment and crime in the state. Two major aspects of the Governor’s agenda.
Responsibility beckons and Governor Dickson must once again show that he is the great eagle and rise to the occasion. He must now demonstration that characteristic capacity to take timely decisions and save the state from such unnecessary bickering which are clearly unhealthy in such a time where all hands must be on deck to improve the fortunes of the state. Such display of leadership is necessary for future investments and development and curtails the state’s age long issues of inadequate resources.
A stitch in time saves nine.
- Atoukudu writes from the creek of Agge in Bayelsa State.
