The Nation Newspaper

Tag: Bitumen

  • ‘Ondo bitumen first exploitation begins this year’

    Ondo state government on Friday said in the next two years, it would be on the world map for bitumen exploitation as arrangements have been concluded to begin processing of the natural resources in the state.

    The Commissioner for Regional Integration and Special Duties, Prof Bayonile Ademodi dropped the hints in Akure at a meeting with Licencee Bitumen Companies Operating in the state.

    Ademodi, who said some companies had been licensed to begin production in the state, noted that the essence of the meeting was to receive presentations from licencee bitumen companies on the level of work done in line with their workplan for bitumen exploitation development.

    He reiterated that the present administration under the leadership of Governor Oluwarotimi Akeredolu was committed to providing bitumen investors, the necessary conducive atmosphere to thrive in the state.

    Ademodi said, “Since the beginning of the present administration in Ondo state, bitumen exploitation project have been put in the frontline.

    “This is the first time the ministry would be established for the purpose of overseeing the development of bitumen project in Ondo state.

    “The major task of this ministry is to prepare grounds for the successful operation of these bitumen companies and the host community. But the ministry has taken it upon itself as a major task to develop a conducive operational environment for the bitumen licencee companies. So we are fully engaged with the community.

    “I can assure the whole world that in two years time, Ondo state would be on the world map in terms of bitumen exploitation”.

    In his welcome address,the acting Permanent Secretary in the ministry,E.O Ogunsanmi,an engineer,said the programme was borne out of the ministry’s avowed commitment to ensure that bitumen exploitation in state was devoid of crisis which is usually associated with mining, particularly, crude oil as we have it in the Niger Delta Region.

    Ogunsanmi who also reiterated that the state governor was committed to the industrialization of the state and bitumen development was considered as a veritable means to transform the state from purely a civil service state to an industrial hub in Nigeria.

    According to him, “The present administration has improved the road infrastructure, and this again will aid the movement of your products to the market”.

    The Director, Project Manager of Kabara Mining Nigeria Limited, one of the companies that bid for the exploitation, Anit Wiener, expressed the readiness of his firm to begin work in the area.

    Wiener, however, charged the state government to prepare a ground with the host community for the commencement of the project saying that the company could not do it alone without the support of the state government and the community.

    He said, “We have bitumen licence that we have intent to establish, plant for separation and to finally take the bitumen from ground for the prosperity of the country, and the first exploitation would commence this year”.

  • ‘Support bitumen project’

    Ondo State government has said it will ensure bitumen exploitation, for the state’s development.

    Regional Integration and Special Duties Commissioner Prof. Bayonile Ademodi gave the hint yesterday at a one-day session with bitumen host communities in Irele Local Government.

    Agbabu community in Irele is the second largest producer of bitumen deposits in the world.

    He noted that the ministry has fashioned out an approach to meet stakeholders in the bitumen project.

    The commissioner said host communities should cooperate and buy-in into the bitumen agenda of the All Progressives Congress (APC)-led administration at federal and state levels.

    He said his ministry concluded arrangements with the Ministry of Environment on evolving environmental protection strategy, which licensed bitumen companies would comply with.

    Ademodi said there were benefits in the development of bitumen, urging the communities to support the government and investors.

    According to him, the Federal Government has awarded blocks to five companies covering almost the entire stretch of the bitumen.

  • ‘Processing of Ondo bitumen to begin 2018’

    The exploitation of bitumen deposit in Ondo State will begin in 2018, the state government has said.

    It stressed the need to have a strong interaction with its stakeholders on the natural resource.  Ondo State (Agbabu area) is reputed to having the second largest bitumen deposit in the world.

    At an interactive session organised by the state government through the Ministry of Special Duties and Regional Development, its Commissioner, Prof Bayo Ademodi, noted that the industrialisation of Ondo State was germane to the Oluwarotimi Akeredolu administration.

    The commissioner restated the need to create mutual understanding between investors and the host communities.

    He recalled that in the recent past, mineral resources were on the Exclusive List of the Federal Government, but state governments have been empowered to control their resources through economic diversification.

    Some bitumen companies have been licensed to begin exploration in the state.

    Ademodi, who spoke on behalf of the government and the people of the state, assured the companies of maximum support from the government and the host communities.

    He said: “We want to assure you that all your stay in the state during the exploitation period shall be very lively, mostly with the host communities, who are even eager to see the resources being tapped.”

  • Akeredolu: Nigeria spends N300b on bitumen import yearly

    Akeredolu: Nigeria spends N300b on bitumen import yearly

    Nigeria spends over N300billion on bitumen importation annually, Ondo State Governor Rotimi Akeredolu has said.

    He spoke during the inauguration of the board of the State Development and Investment Promotion Agency (ONDIPA) in Akure, the state capital.

    According to him, it is scandalous that the country spends such a huge amount on  bitumen importation when the state has a large deposit of the commodity, which if processed, can boost the nation’s foreign exchange.

    The governor said his major priority was to make the state the number one destination of investors by year 2020.

    He said he established ONDIPA to ensure that corporate organisations and businessmen interested in doing business in the state did their transactions without any hassles.

    Akeredolu announced that the first company for Bitumen Exploration and Processing in Nigeria would begin operation in the state before the middle of next year.

    “I want to use this opportunity to announce to this gathering that the first company for Bitumen Exploration and Processing in Nigeria will commence operation in our state before the middle of 2018. We are the largest producer of oil palm and cashew nut in South West,” he said.

    Assuring the investors of their safety in the state, Akeredolu said: “ONDIPA means business. The mandate of ONDIPA is to ensure that private sectors have no problem doing businesses in Ondo State. Today, you do not need to go to ministries to register your business and process papers, ONDIPA will do everything for you.’’

    “I want to assure investors that whatever Memorandum of Understanding (MoU) we sign with you will be fulfilled with sanctimonious attention. We would not compromise integrity.  In three years, I want to see Ondo being the number destination of investors in Nigeria. I want to export our cash crops and mineral resources to reduce pressure on our naira to boost our foreign exchange. My office is opened to investors. ONDIPA is open. The office of ONDIPA is even beside my office,” he further stated.

    The agency will be chaired by the governor while it will be directly supervised by his Special Adviser to the Governor on Development and Investment, Mr. Boye Oyewumi who will also double as the Vice-Chairman and Chief Executive Officer (CEO).

    Among the dignitaries at the event was the Minister of Solid Minerals, Dr. Kayode Fayemi, deputy governor, Hon. Agboola Ajayi and his wife, Secretary to the state Government, Hon. Ifedayo Abegunde, members of the state executive council, permanent secretaries and several other government functionaries.

    Also present at the occasion were the representative of the CBN governor, Godwin Emefiele, Mr. Omolola Adegbenga, Lagos lawyer and human rights activist, Mr. Femi Falana, Executive Director, Energy Renewal Division, Nigerian National Petroleum Corporation (NNPC), Alhaji Abdulahi Adamu, Director General, National Emergency Agency (NEMA, Alhaji Mustapha amongst others.

  • ‘Why bitumen exploration is just taking off in Ondo’

    ‘Why bitumen exploration is just taking off in Ondo’

    The  Ondo State government yesterday gave reasons for the long delay in the take off of bitumen exploration in the state.

    It attributed the delay to the absence of a licence, which took the state government more than five years to secure.

     The state Commissioner for Information, Mr Kayode Akinmade mentioned this in Akure on Friday while fielding questions from newsmen inquiring  from him why the government  had to wait till now to begin work  on the exploration of  bitumen in the state as its tenure is almost ended.

     Reacting, Akinmade said government started work on the exploration  licence process early enough, stating however that the   imbalance in the country’s system of government that gives the Federal government total right on the resources of a state, when it should be the other way round, made the exploration impossible before now.

     Akinmade said that the people trying to make an issue  out of it are obviously jittery about the development.

     Mentioning that the project will shore up the revenue profile of the state, Akinmade said it will also lead to the establishment of many companies, as it is also  projected to impact on the overall development of  the state and  generate  massive employment which  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.

     The commissioner  said  the state government   secured the licence to exploit the commodity through Beecon Nigeria limited, a concern where the government has near complete ownership,

    He concluded  that  working in agreement with an American company, Liquefied Resources, immediate  exploration of bitumen is expected to begin  in  the  Central and Southern Senatorial Districts area  of the state at no cost to the government.

  • Probe bitumen deal, says Boroffice

    Probe bitumen deal, says Boroffice

    The senator representing Ondo North Ajayi Boroffice yesterday called for a probe of the bitumen exploration deal between the Ondo State government and an American firm.

    Boriffice, an All Progressives Congress (APC) governorship aspirant, alleged that the deal might have been struck to deceive the people.

    A statement by his media adviser Kayode Adeniyi, quoted Boroffice as saying: “Over the years, I have consistently advised the Ondo State government to explore the buried wealth of the state, especially mineral resources.

    “But due to a seeming lack of political will and high-technology grasp, the government has looked helpless over the years.

    “However, sensing what a dwindled popularity portends for the Peoples Democratic Party (PDP)  in an election year, Governor Olusegun Mimiko hurriedly packaged and presented to the people what he called a Memorandum of Understanding with a Texas-based firm, Liquefied Resources, on the exploration of bitumen in the state.

    “However, credible reports have revealed that the over-hyped firm with no functional website was founded in 2012, with four employees.

    “Furthermore, the managing director of the Nigerian subsidiary claimed he joined the 2012 incorporated firm in 2006. What an irreconcilable dissimilarity!

    “How could a four-year old firm with about four employees be trusted to undertake such huge task of exploring bitumen in commercial quantity?

    “Is it not clear that the firm has no history of competence and capacity to undertake such a huge task?

    “This is the clearest indication in recent times that the Mimiko-led administration will stop at nothing in its attempt to hoodwink the unsuspecting masses.

  • Don turns crude bitumen to Asphalt for Ondo road repairs

    A lecturer at the Obafemi Awolowo University (OAU)Ile Ife,Osun State, has refined the untapped crude Bitumen in Agbabu,Irele Local Government of Ondo State to Cold Mix Asphalt (CMA).

    Dr Ademodi, an Associate Professor of Chemical Engineering, Consultant on Bitumen and Heavy Crude Oil is now using the substance to fill the failed portions of roads in Ondo West local government area of the State where he hails.

    For years, federal government has been importing  bitumen from abroad in repairing and constructing roads despite that the nation is naturally endowed with this natural resources which is rated third largest in the world.

    Ademodi, an indigene of Ondo town, who spoke with reporters shortly after demonstrating how he converted the crude bitumen to CMA said he had been using the resources in filling pot holes in the community for the past one month.

    He added that motorists and motorcyclists have been enjoying their riding in some of the streets where these materials have been applied.

    Besides, Ademodi, who is a Chieftain of All Progressives Congress(APC) in Ondo State suggested that a Ministry of Bitumen and Heavy Oil Resources be established, saying such ministry would focus on the meaningful exploitation of the resources for domestic and export markets free of OPEC regulations.

    He lamented that the federal government has refused to utilise the resources due to Nigerian factors, which he said include unnecessary politization of issues, ethnic consideration and the fact that it is not very easy to make easy money from the exploitation.

    The Academic listed some of the benefits of the resources as road repair/road construction, fuel for power plants, creation of employment for the teeming youths among others

    According to him, “Nigeria should take the advantage of the fact that its heavy/extra heavy oil did not fall under the OPEC quota, Venezuela developed the world famous ORIMULSION fuel which has been used for years domestically and exported to energy hungry countries like China, India and Japan as fuel for generating electricity (in thermal power plants), land based diesel engines.

    “Nigeria’s heavy/extra heavy oil is equally amenable for use as power plant fuel and considerable progress has been made in research in this regard. Nigeria’s heavy oil has been used to successfully raise steam in a mini-steam boiler, a precursor stage to electricity generation.

    “The resources is a potential substitute for natural gas, LPFO and coal as process fuel in industries and thermal power plants.

    ” Our work has shown that it can conveniently replace substantial quantities of Low Pour Fuel Oil (LPFO) otherwise known as black oil, the cost of which has skyrocketed astronomically and which, in turn, is responsible for the high cost of goods ranging from cement to sundry consumer products in Nigeria.

    “Similarly, Nigeria’s bitumen exists in the two form of solid tar sands and liquid deposits. Considerable success has been achieved in the utilisation of these two types of bitumen for the manufacture of road asphalt. In this regard, there are two possibilities: Hot Mix Asphalt and Cold Mix Asphalt”

    The University Don said he would continue to mount pressure on the federal government on why the resources must be fully utilised.