March 2, 2024

Senate spits fire, opposes Chevron, Exxon, others’ extractive operational model

By Our Reporter

The Senate through its Committee on Local Content , has vehemently condemned the extractive operational model being carried out in Nigeria by Chevron , Exxon and other oil companies without manufacturing content as done in other countries.
The parliamentarians said the model was wrong and unacceptable.

This was even as the National Content Development and Monitoring Board ( NCDMB), informed the Senate Committee to send invitation to the oil companies for explanations on their extractive mode of operation without manufacturing content, a development the Senate insisted was unhealthy for the country, adding that other countries would not allow such .

The Committee during its interactive session with Management of NCDMB on Wednesday, specifically complained that while Chevron apart from crude oil exploration in Saudi Arabia, also manufactures Polypropylene one of the waste products from Gas to produce Syringe which fetches Saudi Arabia $6billion annually, wondering why same could not be done in the country.

It further stated that Exxon oil does same in United States of America ( USA) , by making the country , the third largest producer of Polypropylene (PP) .

The Committee chaired by Senator Natasha Akpoti – Uduaghan (PDP Kogi Central),was befuddled why the same international oil companies exploring crude oil in Nigeria , could not go extra mile to replicate same in the country by using waste products from Crude oil for manufacturing of needed products in the country.

The lacuna in the operational model of the International Oil companies according to the committee, led to the collapse of Jubilee Syringe Plant in Bayelsa due to lack of the needed raw material (Polypropylene).

According to the Chairman of the Committee, since NCDMB says it doesn’t have the power to make the international oil companies diversify their mode of operations , they shall be summoned to give explanations on why they are turning Nigeria to extractive zone and not manufacturing one , as done in other climes.

“We cannot just allow the oil companies to turn Nigeria to just an extractive zone as far as exploration of crude oil is concerned but a manufacturing one as well with attendant economic value.

“This committee shall therefore summon the affected oil companies to appear before it on how what are available in Saudi Arabia , USA etc , can be replicated in Nigeria,” she said.

The Committee was however, impressed with disclosure made by the Executive Secretary of NCDMB, Engr Felix Ogbe, on $50million grant for research and $20m dollar for women in oil and gas.