Mainland Oil and Gas to lease its 30, 000 metric tons capacity tank farm to Cross River Govt      

An Oil giant Mainland Oil and Gas Company Limited is to lease one of its 30,000 capacity tank farm to the Cross River State government in its about to be completed second tank farm at the Northern Industrial Estate, Esuk Utan Portside Calabar the state Capital for Six hundred and fifty million naira.

The agreement which is renewable for one year has been approved by the Cross River State Executive Council in its meeting of 11th May 2016.

The state Commissioner for Petroleum Resources Itaya Nyong Asuquo told BusinessDay that out of the. Six hundred and fifteen million,( N615 million) naira , N555,000 five hundred and fifty  five million naira is the exact cost of the lease for one year while N60m is for the operational cost of the facility that will be run and managed by the state special purpose vehicle (SPV) PETROCROSS.

Itaya said this clarification became necessary following a national newspaper reports last weekend that the state government had aquired the tank farm for N615m from Mainland oil and Gas credited to the state commissioner for Information and Orientation.

“Infact that information is not correct and misleading, there is no place on earth a 30,000 metric tons capacity tank farm could be sold for that amount,”  the commissioner stated.

 

MIKE ABANG