Stakeholders seek open probe
Govs back Reps’ bid to unbundle NNPC
GOING by the legendary snail’s speed at which government business gets done in Nigeria, the great despatch deployed to settle this particular one raises eyebrows, moreso for the billions of petrol-dollars involved.
However, as much as officialdom wants all to take the case of Oil Prospecting Licence (OPL) 245 involving Malabu Oil & Gas Limited (Malabu) and Shell Nigeria Ultra Deep Limited (SNUD) as a transparent done deal, this hydra-headed controversial transaction would not just go away.
To be sure, the ease with which the rift over the deal was recently resolved by the Federal Government has caught the attention of the international community, whose members wonder how easily Nigeria could opt to give away its resources. For one thing, Nigeria’s already abysmal rating on the Corruption Index would take further plunge
On the home-front, stakeholders are also insisting on a full-blown public probe of the deal, led by the National Assembly, with a view to determining the truth behind the acquisition, transfers and payments relating to the OPL 245.
But, the Federal Government yesterday defended its role towards resolving the dispute between Malabu Oil & Gas Limited (Malabu) and SNUD over the ownership and right to operate OPL 245.
In a statement, Attorney General of Federation (AGF) and Justice Minister, Mohammed Bello Adoke, government refuted claims that government officials were involved in round-tripping in respect of the N155 Billion Malabu Oil deal.
He said government only acted as an Obligor in the settlement of the agreement between Malabu Oil and Gas Limited and Shell Nigeria Ultra Deep Limited (SNUD) over Block 245.
Adoke wrote: “Malabu was allocated OPL 245 in April, 1998 and in accordance with the terms of the grant, it appointed SNUD as its Technical Partner. The two companies executed relevant Agreements including a Joint Operation Agreement in 2001. Records indicate that SNUD took 40 per cent participating interests in the venture in a farm-in- agreement and also signed agreement with Malabu as its technical partner for the venture. Although, Malabu was issued a licence for Block 245 in April 2001, the same licence was subsequently revoked by the Federal Government on July 2, 2001. Exxon-Mobil and Shell were invited in April 2002 to bid for OPL 245 despite a subsisting contractual agreements between Malabu and SNUD with respect to OPL 245. Malabu was dissatisfied with the revocation and contended that the circumstances leading to the revocation of its licence on Block 245 was less than transparent and smacked of inducement and connivance from SNUD, its technical partner.”
The minister further stated that “Malabu also contended that the subsequent re-award of OPL 245 to SNUD by the Federal Government was done under questionable circumstances. It then petitioned the House of Representatives Committee on Petroleum to look into the matter. It is apposite to note that the House of Representatives Committee on Petroleum found no rational basis for the revocation and reprimanded Shell for its complicity. The Committee also directed the Federal Government to withdraw the re-award, it made to Shell and return OPL 245 to Malabu, the original allotee of the Block.
“Malabu also instituted Suit No. FHC/ABJ/CS/420/2003, before the Federal High Court (FHC), Abuja to enforce its claim to OPL 245. Although, the suit was struck out by the FHC, Malabu lodged Appeal No. CA/A/99M/2006 before the Court Appeal, Abuja, Division. During the pendency of the Appeal, an amicable settlement was entered into between Malabu and the Federal Government and in compliance with the Terms of Settlement executed by the Parties on the 30th of November 2006, OPL 245 was fully and completely restored to Malabu in consideration for its withdrawal of the Appeal.
“In furtherance of the Resolution Agreement, SNUD and ENI agreed to pay Malabu through the Federal Government acting as an obligor, the sum of US$ 1,092,040,000 in full and final settlement of any and all claims, interests or rights relating to or in connection with Block 245 and Malabu agreed to settle and waive any and all claims, interests or rights relating to or in connection with Block 245 and also consented to the re-allocation of Block 245 to Nigerian Agip Exploration Limited (NAE) and Shell Nigeria Exploration and Production Company Limited (SNEPCO).”
According to Adoke: “It is therefore quite evident from the foregoing that the role played by the Federal Government, its agencies and officials in relation to Block 245 was essentially that of facilitator of the resolution of a long-standing dispute between Malabu and SNUD over the ownership and right to operate Block 245. At all times material to the resolution of the dispute, the Federal Government was not aware of any subsisting third party interest in Malabu’s claim to OPL 245 and neither did any person or company apply to be joined in the negotiations as an interested party.”
Adoke added:” Government has, overtime, demonstrated its commitment to attracting investment in the oil and gas sector of the economy and encouraging genuine investors (local and foreign) by creating the enabling environment for their business to thrive. The resolution of the lingering dispute over Block 245 was in furtherance of that objective. Accordingly, the Federal Government, its agencies and officials should not be dragged into a purely commercial dispute between Malabu and its purported partners.”
He then concluded: “It is also clear that the allegation of round-tripping levelled against the Federal Government is without basis and cannot be substantiated, having regard the role it played as mere facilitator of an amicable settlement between two disputing parties over a long standing dispute with obvious economic implications for the country.
But, among many other stakeholders, rights activist and former Governor of Kaduna State, Col. Abubakar Umar (rtd), has urged the National Assembly to hold a public hearing on the Malabu oil block scam.
Umar, in a statement issued at the weekend, said though, “the Senate has decided to conduct investigation in order to determine the truth behind the acquisition, transfers and payments relating to the Oil Prospecting Licence (OPL)-245 between the Federal Government and Malabu Oil Company on one hand and the Government and Shell on the other”, continuing the probe in secret “would not augur well with the spirit of transparency, accountability and justice being professed by the regime.”
The Guardian has also been told by top officials of countries whose companies have huge stakes in the Nigerian oil industry that they are worried about the impact of the so-called settlement on the nation’s image.
Also arguing that the corporation has become a behemoth inimical to the growth of the oil sector, the Nigeria Governors Forum (NGF) at the weekend backed the House of Representatives’ quest to unbundle the Nigerian National Petroleum Corporation (NNPC).
Chairman, NGF, Chibuike Amaechi, stated the forum’s position at during an interactive session at a retreat of the House ad-hoc committee on the review of the constitution in Port Harcourt.
Meanwhile, over 40 new alliances formed by British and Nigerian companies are expected to expend over $500 million (about N77.5 billion) in the Nigerian oil and gas Industry within the next five years.
Deputy British High Commissioner to Nigeria, Mr. Peter West, disclosed this at the Nigeria-UK Oil and Gas Supply Chain programme, in Lagos, at the weekend.
He pointed out that the partnerships, some of which will undertake specialist local manufacturing, technology co-operation for deepwater production and gas utilisation have the potential to create new investment, business opportunities and high value employment for skilled Nigerian talents.
Following its investigation of the subsidy regime, the House of Representatives passed a resolution recommending the unbundling of the NNPC in line with the deregulation policy of the Federal Government.
Amaechi expressed dismay over what he described as alleged refusal of the NNPC to comply with the constitutional provisions directing it to remit oil sales proceeds to the Federation Accounts.
He said: “Everyday we hear of deregulation of the petroleum sector. The truth is that nobody wants to deregulate. So, on your own you owe this nation a responsibility to do it. Break up NNPC. Even if it means putting it in the Constitution, the governors will support you.”
Umar stated that the amount reportedly involved in the Malabu oil block scam was staggering, stressing that “the public is at a loss and have a right to ask how Nigerian government officials always manage to pull through monstrous transactions such as these which, in hindsight, seem otherwise impossible”.
He noted: “In the same way, the decision by the Senate Committee on Upstream oil Sector to conduct their investigation in camera and in total confidentiality would do nothing but upset those already miffed by dubious transaction.”
Indeed, The Guardian has been told of a huge lobby in the National Assembly to compel the legislature to conduct a public probe of the deal
Posers over Malabu Oil deal as govt refutes claims of scam
