RMAFC Begins Field Check of Oil Wells in Nine States
By Patience Ikpeme
The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has started a physical check of disputed and newly drilled oil and gas wells in nine states of the federation. The exercise covers wells drilled from 2017 to date.
The states are Delta, Ondo, Edo, Anambra, Imo, Bayelsa, Rivers, Cross River and Akwa Ibom.
The Chairman of the Commission, Dr Mohammed Bello Shehu, opened the exercise at a ceremony in Owerri on Wednesday. He said the work is important for keeping the sharing of the 13 per cent Derivation Fund accurate, open and fair. The fund is the share of federal oil revenue paid to the states where oil and gas are produced.
Dr Shehu explained that the Commission is required by the Constitution to watch the money paid into the Federation Account and how it is shared out. It must also make sure that oil and gas-producing states get their fair share of derivation money.
In a statement issued in Abuja by Maryam Umar Yusuf, Head of the Commission’s Information and Public Relations Unit, the Chairman said the exact location of each wellhead matters a great deal. According to him, “the determination of exact coordinates and spatial alignments for the subject wellheads directly governs the legal and financial entitlements of the respective sub-national entities.” In simple terms, the position of a well on the map can decide which state receives the money from it.
Dr Shehu urged members of the Inter-Agency Technical Committee (IATC) and the technical officers sent to the field to work carefully, professionally and with great precision. He said every location reading, technical assessment and on-site observation must be strong enough to stand up to close legal checking.
The work will include a study of disputed and newly drilled well locations, a visit to the affected wellheads, and exact marking of the positions on approved maps. Relevant court decisions will also be considered in settling disputes. The Chairman directed that the committee’s joint technical report be sent only to the RMAFC, which will review and formally adopt it.
The committee is made up of technical bodies including the Office of the Surveyor-General of the Federation, the National Boundary Commission and the Nigerian Upstream Petroleum Regulatory Commission.
The statement noted that a similar exercise was carried out earlier. Because of some problems, the Commission decided to repeat it so that all the issues raised can be properly settled.
Dr Shehu then declared the field verification open and said the Commission remains committed to accuracy, accountability and fairness in the sharing of revenue.
