Diri’s remarks came during the inauguration of the Crude Distillation Unit at the $1 billion Azikel Refinery in Obunagha, Yenagoa Local Government Area, where former President Olusegun Obasanjo urged Dr. Azibapu Eruani, the project’s promoter, to complete the facility within a year.
Diri argued that while oil-producing communities bear the environmental and social costs associated with extraction, they do not receive corresponding advantages. He noted the long-standing agitation for resource justice, insisting that those in oil-rich areas feel marginalized despite the wealth beneath their land. Critiquing the existing resource control systems, particularly the Land Use Act, Diri asserted that oil-producing states should have more authority over their natural resources and expressed that the current 13% derivation rate is insufficient.
The governor acknowledged the establishment of the refinery as a significant step towards enhancing the Niger Delta’s role in the petroleum value chain and encouraged Bayelsa’s youth to pursue technical and vocational training to be prepared for forthcoming job opportunities as the refinery becomes operational. He also urged oil companies operating in the Gbarain-Obunagha area to invest in infrastructure, specifically mentioning the need to rehabilitate access roads.
Former President Obasanjo praised Eruani for his entrepreneurial vision and reiterated the necessity for increasing the derivation allocation, describing the existing percentage as a baseline for negotiations. He acknowledged Diri’s support for the project and expressed hope for its timely completion, emphasizing the importance of local resource utilization and management.
The Azikel Refinery, part of Azikel Petroleum, aims to produce 2.5 million liters of petrol and 2 million liters of diesel daily along with other refined products. The Crude Distillation Unit plays a crucial role in separating crude oil for further processing. Once operational, the refinery is expected to bolster domestic refining capacity, generate employment, boost ancillary businesses, and enhance local value addition within the petroleum sector.
Eruani noted that the initiative seeks to shift the Niger Delta’s identity from one centered solely on crude oil production to a hub for refining and industrial development. He acknowledged the support of various stakeholders, including financial institutions and contractors, and expressed optimism that the refinery would significantly contribute to economic growth in both Bayelsa and the broader Niger Delta region.
