The Ondo state government may have recorded a major breakthrough in its
quest for economic stability as arrangements have begun for the
exploitation of its Bitumen, being one of the Mineral resources the state
has in commercial quantity.
Briefing newsmen on the development in Akure on Sunday, the state’s
Commissioner for Information, Kayode Akinmade, said the state government
has secured the licence to exploit the commodity through Beecon Nigeria
limited, a concern where the government has near complete ownership.
He said government has before now signed a Memorandum of Understanding
with an American company, Liquefied Resources and its also expected to
sign a Joint Operating Agreement with the same outfit for the immediate
exploitation of Bitumen which the state has in large deposit on
locations that stretches across Ondo -Edo and Ondo -Ogun boundaries .
The Commissioner informed that officials of Liquefied Resources led
by its President , Thomas Cooley are already in the country as they are
expected to meet with the government tomorrow ( Tuesday) and finalise all
arrangement regarding the Joint Operating Agreement.
As part of the visit, the officials would visit the proposed sites and
also set a date for takeoff of the proposed Bitumen extraction and
upgrading plant.
As part of the agreement, Liquefied Resources is expected to wholly fund
the project, even as the Commissioner insists that there will be
exploitation of Bitumen in the state at no cost to the government,
adding that the Joint Operating Agreement will regulate profit sharing
among the handling company and the government.
The government’s spokesperson described the operation as very expensive
and more demanding than exploiting oil, but mentioned however that
Liquefied Resources are capable of handling it, especially with the
availability of new technology at its disposal to handle such project.
Registering what is projected to be the impact of the development on the
state, Akinmade mentioned that the exploitation of the commodity will
generate massive employment which he said 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.
Emphasising on the capability of government to solve youth unemployment
challenge through the Bitumen exploitation project as well as its
ongoing job creation initiatives through Agriculture, Akinmade offered,
that the Ondo Bitumen comes up with accompanying crude oil which will
in no small measure affect the economy of the state positively.