FG Initiates Verification Exercise To Resolve Oil Well Ownership Disputes
By Oludare Joshua
The Federal Government has commenced a comprehensive verification process to settle long-standing disputes over ownership of newly producing and contested oil and gas wells across the country.
The exercise, which will determine how the constitutionally mandated 13 per cent derivation funds are distributed among oil-producing states, marks a significant step toward resolving inter-state revenue allocation conflicts.
Speaking at the Coordinate Verification Exercise and plotting of crude oil and gas fields/wells in Abuja yesterday, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu, disclosed that the exercise covers all oil-producing regions, including Akwa Ibom, Cross River, Bayelsa, Edo, Ondo, Rivers, Delta, and offshore locations.
Dr. Shehu explained that constitutional provisions require states where minerals are extracted to receive 13 per cent of the revenue generated, particularly from crude oil and gas production. In light of this, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) requested RMAFC’s assistance to verify the precise locations of new and disputed oil wells.
In response, the Commission established an Interagency Technical Committee comprising representatives from NUPRC, the Office of the Surveyor General of the Federation, the National Boundary Commission, and RMAFC itself.
”The committee was constituted in July, and following months of preparation, the team deployed to the field around September and October to begin taking physical coordinates of oil and gas wells. I was personally present at the opening ceremony, and we actually went into the field to take those coordinates,” the Chairman stated.
He noted that the exercise was conducted in collaboration with the Surveyors-General of all oil-producing states to ensure transparency and witness participation from every state. According to him, the teams accessed challenging terrains, including the open sea, creeks, and deep-water areas, to ensure comprehensive coverage.
The fieldwork, he revealed, concluded last week, and the next phase involves plotting the coordinates using the collected data. This stage, expected to last approximately five days, will clearly delineate the location of each oil well and identify which state is entitled to receive the derivation funds associated with it.
”There have been traditional disputes between states regarding ownership. Whenever new oil fields commence production, states seek clarity on which should receive the 13 per cent derivation. We are committed to conducting this exercise fairly, justly, and equitably, without any bias,” he emphasized.
The RMAFC Chairman further disclosed that the Commission is deploying advanced technology, including drones, to capture coordinates in areas that are difficult or unsafe to access physically.
