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  • Agip to build refinery in Nigeria

    Agip to build refinery in Nigeria

    The Federal Government has reached an agreement with Agip to build a refinery in Nigeria, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said.

    The minister said the  150,000 barrels capacity refinery will be located in Port Harcourt, the Rivers State capital.

    Kachiukwu briefed State House correspondents yesterday after a meeting of Agip top management with the Acting President, Yemi Osinbajo, at the Presidential Villa, Abuja.

    He said: “We just finished a meeting with the Acting President and Agip. In the meeting we dealt with the issue of Agip investment in Zabazaba field and their cooperation with us in the repairs of the Port Harcourt refinery.

    “We reviewed the isues following my meeting with Agip. We reached an agreement that Agip will build a brand new refinery of 150,000 barrels capacity which will be located in Port Harcourt, or Brass, and they have accepted and preparing a Memorandum of Understanding (MoU) along this line.

    Kachiukwu said the effect of this is that “oil companies operating in Nigeria will begin to migrate from only exporting crude to begin to look on how to start refining these crude so that we will be able to meet our local consumption.

    “With this new refinery and along with other things we are going to do with the refinery in Port Harcourt, it will give us hope in our quest to try and increase our local capacity to produce every refined product we need in the country and to meet the time line of  2019.”

    He said  the government is now going ahead to work out the modality with Agip. The Minister also called on other multi nationals to see how they can toe the same line, adding that Agip, which has the second largest plant in the area of power, will be on stream by 2020.

    “This is to make sure they are not only just taking away crude but making other local investment. Total investment in area of power and the refinery from Agip is in excess of $15 billion.”

  • Agip to build refinery in Nigeria – Kachikwu

    Agip to build refinery in Nigeria – Kachikwu

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Tuesday disclosed that an agreement has been reached with Agip to build a refinery in Nigeria.

    According to him, the 150,000 barrels capacity refinery will be located in Port Harcourt, Rivers State.

    Speaking with State House correspondents after the meeting between Agip top management and Acting President Yemi Osinbajo at the Presidential Villa, Abuja, Kachikwu said: “We just finished a meeting with the Acting President and Agip. In the meeting we dealt with the issue of Agip investment in Zabazaba field and their cooperation with us in the repairs of Port Harcourt refinery.

    “During the meeting with Agip we reached an agreement that Agip will build a brand new refinery of 150,000 barrels capacity which will be located in Port Harcourt or Brass. They have accepted and preparing an MoU along this line.

    “The effect of this is that oil companies operating in Nigeria will begin to migrate from only exportation of crude and begin to look on how to start refining this crude so that we will be able to meet our local consumption.

    “This new refinery and along with other things we are going to do with the refinery in Port Harcourt give us hope in our quest to try and increase our local capacity to produce every refine product we need in the country and to meet the time line of  2019.”

    He said the government is now going ahead to work out the modality with Agip.

    The minister also called on other multinational companies in the country to see how they can toe the same line.

    According to him, Agip, which has the second largest power plant, will be on stream by 2020.

    He added: “This is to make sure they are not only just taking away crude but making other local investment.

    “Total investment in area of power and the refinery from Agip is in excess of $15 billion.”

  • Agip to Niger Delta youths: stop damaging oil facilities

    Agip to Niger Delta youths: stop damaging oil facilities

    The Nigerian Agip Oil Company (NAOC) has urged youths in the Niger Delta region to stop sabotaging and vandalising oil installations.

    The company said such illegal acts could discourage international oil companies and other firms from investing in their communities.

    NAOC’s Divisional Manager Mpi Nwenendah, who spoke when the Director-General of Bayelsa State Partnership Agency (BSPA), Braboke Enaibagha, visited Agip in Port Harcourt, Rivers State, said the company was open to dialogue.

    The NAOC chief hailed Governor Seriake Dickson for establishing the agency and mandating it to promote peace and partnership for businesses to thrive in the state.

    He said having a joint desk with the agency was a welcome development.

    Nwanendah averred that ineffective communication had a negative consequence that can lead to a breakdown of law and order, if left unchecked.

    He said: “Agip is fulfilling its corporate social responsibility to its host communities. I want to advise youths not to vandalise oil installations. Such acts could force oil multinationals to evacuate from their communities.

    “The activities of the joint desk should be streamlined and institutions respected to promote mutual trust and benefits.”

    Enaibagha said effective communication and partnership remained the antidote to the impasse between communities and multinationals oil companies.

  • Agip urged to obey Supreme Court verdict

    Agip urged to obey Supreme Court verdict

    Environmental Right Action/Friends of the Earth Nigeria (ERA/FoEN) has urged Nigeria Agip Oil Company (NAOC) to respect the Supreme Court ruling on the land hosting its Obama flow station.
    It made the call in a field report signed by Mr. Alagoa Morris, head of Field Operations in Bayelsa State.
    ERA’s call is coming on the heels of a protest by the people of Egebekiri in Nembe Local Government against Agip’s refusal to comply with the court judgment in favour of the community.
    The Supreme Court on July 13, 2007 ruled that Egebekiri community was the owner of the land hosting the Agip oilfields.
    News Agency of Nigeria (NAN) reports with the ruling, Agip was supposed to pay the community its rights and benefits in the form of royalties.
    However, this was not the case, as the company paid the supposed rights and benefits to neighbouring communities.
    Following the development, the community took their protest to the Obama flow station, which led to the disruption of production in four oil wells: 5, 7, 9 and 12.
    The report noted that the residents were angry that Agip had allegedly failed to pay them any form of royalties or related with them officially since the company began oil exploration in the community over 40 years ago.
    The community lamented that despite the judgment, Agip denied them their entitlements.
    ”The highest court in the land is the Supreme Court and Agip shouldn’t subject the ruling of the Supreme Court to any interpretation.
    ”What is expected of Agip is to explore a peaceful transition of benefits to the rightful owners of the land.
    ”ERA/FoEN is convinced from the testimonies received from members of the community that they have over stretched their patience.
    “Armed with a Supreme Court judgment in their favour and being pushed to the wall, Agip should seek more positive ways of reacting to this matter,’’ the group said.
    ERA urged Agip to initiate steps to address the matter before it degenerates into violence.
    It enjoined the federal and state governments to call Agip to order, especially its refusal to honour the laws of the land, including the Supreme Court ruling.
    ”If possible, the National Assembly should invite the Agip management, since they are often quick to say the House of Assembly has no jurisdiction since oil matters are on the exclusive legislative list.
    ”Egebekiri people should not only be hailed for their peaceful disposition and exemplary conduct; but be given due recognition as landlords of Agip and whatever entitlements due them.”
    The group advised the people to remain law-abiding and resist temptation to resort to self-help.
    Much of its efforts have concentrated on multinational oil companies and the protection of the Niger Delta.
    The group works locally, nationally and globally on the following campaigns: forest and biodiversity; energy and extractives; democracy outreach programme; food sovereignty and Genetically Modified Organisms (GMOs), corporate accountability and environmental health.

  • Agip to begin work on $13.5b Zabazaba deepwater project

    Agip to begin work on $13.5b Zabazaba deepwater project

    • Firm calls for tenders

    The Nigerian Agip Exploration Limited (NAE) is to begin work on its Zabazaba deepwater project estimated to cost $13.5 billion.

    The firm will this month begin to receive commercial proposals for the various activities lined up for the development of the field.

    The request follows the conclusion of the technical evaluation for the main packages of the project by the Nigerian Content Development and Monitoring Board (NCDMB) and NAE, with the aim to maximize local content. The packages include the floating, production, storage and offloading (FPSO) units, subsea, installation and rigs.

    According to NCDMB’s Executive Secretary, Simbi Wabote, the Board fast-tracked its evaluations and approvals on the Zabazaba project with a view to increase Nigeria’s crude oil production and create opportunities for the growth and development of Nigerian Content.

    Wabote noted that the conclusion of the technical evaluation has paved the way for NAE to proceed with its plans to receive and evaluate the commercial bids, conclude negotiations and award contracts in the second quarter of 2017, adding that with the call for tender and consequent commencement of work on the deepwater facility, a fresh wave of work activities is set to begin in the Nigerian Content sector.

    He commended the NAE for working harmoniously with the Board, adding that the company took all Nigerian Content requirements on board.

    The NCDMB Chief stated that the NAE plans to achieve first oil in 2020, hence it is determined to achieve the final investment decision (FID) in the second quarter of 2017 and start execution of the project in the third quarter.

    To bring the project to fruition, Wabote, urged contractors to submit reasonable commercial bids, bearing in mind the prevailing price of crude oil and the fact that Zabazaba is the only major project that has reached execution stage at the moment. The deep water project was introduced a few years ago, but later suspended after cost projections and other push backs made it unviable.

    He praised NAE for its determination to pursue the project despite the challenges in the market and charged all stakeholders to support fast-tracking the execution.

    NAE Vice Chairman, Mr. Massimo Insulla, had at a  meeting with Wabote underscored the importance of Zabazaba project to Nigeria, all Joint Venture (JV) partners and stakeholders in terms of revenue for the government and job creation. It will also grow small and medium enterprises, expand existing facilities and develop the skills set of the work force.

    Insulla praised the NCDMB and THE NAE teams for concluding the technical evaluation at a speed that was unprecedented in the industry. He also advised other approving entities to adopt the NCDMB’s model while executing their evaluations of tenders and other processes.

    Zabazaba and Etan fields are located in oil prospecting licence OPL (245) on the southern edge of the Niger Delta in water depths of 1,700 to 2,000 metres. The oil block holds oil and gas reserves of about 560 million barrels of oil equivalent. “Agip is developing the block in partnership with Shell Nigeria Exploration Company (SNEPCo). The Etan field will follow three years later and tied back to the Zabazaba FPSO from where the produced hydrocarbons will be processed and exported,” Agip said.

  • Malabu: Abacha’s son, Obasanjo’s associate fault Agip’s, Shell’s claim to OPL 245

    •Plaintiffs seek order stopping exploration in area covered by licence

    Son of the late Head of State General Sani Abacha, Mohammed and a known associate of former President Olusegun Obasanjo, Otunba Oyewole Fasawe, have gone before the Federal High Court in Abuja to, among others, seek an order voiding the ownership claim of two foreign oil firms over Oil Prospecting Licence (OPL) 245.

    The foreign firms – Shell Nigeria Exploration and Production Company Ltd (SNEPCO) and Nigerian Agip Exploration Company (NAECO) – are claiming ownership of OPL 245.

    Last Friday, a Federal High Court in Abuja vacated order of temporary forfeiture on the OPL 245, earlier granted in favour of the Economic and Financial Crimes Commission (EFCC) on January 26, 2017.

    Mohammed and Fasawe, in a suit, which they instituted last Friday in the name of Malabu Oil and Gas Ltd, also want the court to, among others, issue an order perpetually restraining all defendants in the suit and their agents “from carrying out any exploration or prospecting activities in connection with or in relation to the area covered by OPL 245.”

    Mohammed said he owns 50 per cent shares in Malabu Oil, and Fasawe is representing a firm, Pecos Energy Ltd, said to own 20 per cent share in Malabu Oil. Named as defendants, in the suit instituted via writ of summons, are Federal Government of Nigeria, Minister of Petroleum Resources, Shell Nigeria Ultra-Deep Ltd, SNEPCO, NAECO, EFCC and Etete.

    They contend, through the plaintiff, that the claim of SNEPCO and NAECO to OPL 245 is based on an alleged illegal agreement between the Federal Government of Nigeria and Minister of Petroleum Resources and SNEPCO and NAECO on the other hand on April 29, 2011.

    The plaintiff stated that the purported agreement was executed without the consent and knowledge of its (Malabu Oil’s) major investors – Mohammed and Pecos Ltd. It faulted former Petroleum Minister Dan Etete’s claim to being a director in Malabu Oil, with 30 per cent shareholding.

    Mohammed, in his witness statement, chronicled how, despite Malabu Oil’s subsiding interest in OPL 245, the licence was allegedly handed to SNEPCO and NAECO by the FGN under an arrangement which had the foreign oil firms paid $1.3 billion, without the involvement of the original investors of Malabu Oil.

    He said at the incorporation of Malabu Oil in 1998, it had a total share capital of 20 million ordinary shares, with him (Mohammed) holding 10 million, Amafagha Kweku (holding six million) and Hindu Hassan (holding four million).

    He said Malabu Oil’s share structure has remained unaltered, except with the transfer of Hindu Hassan’s four million shares to Pecos Energy.

    Mohammed said, although OPL 245 was duly awarded to Malabu Oil in 2008 after its payment of the necessary fees, the allocation was revoked by the Federal Government in 2001, but was reallocated to Malabu Oil in 2010 through an out- of-court settlement agreement.

    He added: “While the allocation to the plaintiff of OPL 245 was subsisting, the 1st, 3rd, 4th, 5th defendants – FGN, Shell Ultra-Deep, SNEPCO, NAECO – and the Nigerian National Petroleum Corporation (NNPC) entered into what they called ‘Block 245 Resolution Agreement’ dated April 29, 2011.”

    Mohammed added that part of the terms of the April 29, 2011 agreement was that the FGN “shall allocate OPL 245 to the 4th and 5th defendants (SNEPCO and NAECO) without the knowledge or consent of the plaintiff.

    “In spite of the acknowledgement of the subsisting rights and interest of the plaintiff in OPL 245, the plaintiff was not a party to, but was deliberately and purposefully excluded from the Block 245 resolution agreement of 29th April 2011 to enable the parties agree among themselves to allocate OPL 245 to the 4th and 5th defendants,” he said.

    Mohammed stated that in line with the April 29, 2011 agreement, SNEPCO and NAECO allegedly agreed to pay $1.3 billion to Etete “purportedly in the name of the plaintiff, but through the 1st defendant acting as a facilitator.

    “Sometimes in May 2011, the 4th and 5th defendants paid the sum of $801,540,000 into the 1st defendant’s escrow account with J. P. Morgan Chase Bank,” he said.

    Mohammed added that sometime between August and September 2011, the FGN allegedly directed the payment of $801,540,000, from the escrow account, into two bank accounts purportedly opened by Etete or at his instance.

    Mohamed said Etete served as the sole signatory to the accounts and that he expended the money paid into the accounts with the exclusion of the plaintiff.

    The plaintiff wants the court to declare that its rights and interest over OPL 245 still subsists.

    It also seeks a declaration that the FGN’s allocation of OPL 245 to SNEPCO and NAECO through a letter dated May 11, 211, by the petroleum minister was null and void.

    The plaintiff wants an order compelling the defendants and their agents to “forthwith, restore to the plaintiff, its rights to the exclusive possession of OPL 245”.

    None of the defendants has responded to the suit, which is yet to be assigned to any judge.

  • Landlord families shut down Agip’s oil wells

    The ONELGA Oil and Gas landlords Families in ONELGA in Rivers State have shut down 37 of the oil well heads of the Nigerian Agip Oil Company/NNPC joint venture.

    The association´s chairman Mr. Chikobi Alali, in a statement said the decision to shut down the oil company’s  operations became imperative when several attempts allegedly made by the association to resolve the age long dispute between the landlord families and the company failed.

    It said the association is the ancient owners of OML 60 and 61 on which stand the 150 oil well heads which NAOC operates in the local government area NAOC facilities like the Ebocha oil center, OB/OB Gas injection plant, electrical generating turbines, pipelines, flow lines and other installations.

    According to the group, the latest showdown with  the company was triggered off by NAOC’s alleged  inability to honour the understanding it reached with the association to pay all pending bills as palliative to create harmony in addressing serious problems affecting the communities such as security, corporate social responsibility CSR, and matters relating to the environment.

    “The palliatives are immediate payment of all landlords contractors bills, payment of 1% total amount accrued from deduction made in contracts awarded to and executed by landlord families contractor to the association account, out of court resolution of all pending court cases between the oil and gas landlords families and NAOC including judgment of court in suit no: FHC/PH/CS/1352/2004, compensation of the Ebocha blowout for Egbema communities, and payment of approved legal land rates by government.

    “In December 2016 the association received telephone short messages from the Ministry of Petroleum Resources emanating from NAOC claiming to have made these payments to the landlords contractors. The landlords waited for one week without receiving alert from the banks.

    “This prompted the Minister of Petroleum to send a fact finding team to NAOC office in Port Harcourt and the result according to Mr. Charles Achodo Special Adviser to the Minister of Petroleum Resources on Niger Delta, that the money for the payment has been approved but does not know who it was paid to.

    “ It will be recalled that the ONELGA oil and gas landlord families’ contractors have not been paid for their services for over one year now,” the association stated.

    It said amongst those reached by the association to amicably resolve these issues in the past include the Chairman of ENI Group Ms. Emma Marcegala, Managing Director of ENI Group Claudio Descalzo, vice-president of ENI Group Sub-saharan Africa Mr. Umberto Carrara and Managing Director NAOC/NNPC joint venture Mr. Massimo Insulla.

    Others are the Honorable Minister of State for Petroleum Resources, Minister of Defence, Minister of Interior, Chief of Defence Staff and the Inspector-General of Police who for about a year now have not been able to been able to resolve the disagreement.

    The association called  on the government to come to its  aid as a regulatory authority to protect the interest of the landlords as it has “ become evident that international oil companies (IOC) does not and has no intention of protecting the interest of the landlords.”

     

  • Malabu: Shell, Agip battle Fed Govt over OPL245 P6

    Malabu: Shell, Agip battle Fed Govt over OPL245 P6

    Shell Nigeria Exploration and Production Company (SNEPCO) Limited and Nigeria Agip Exploration Limited, two multi-national companies named in the Malabu Oil deal, have challenged the January 26, orders granting temporary control of Oil Prospecting Licence (OPL) 245 to the Federal Government.
    Both companies, accused by the Economic and Financial Crimes Commission (EFCC) of involvement in some fraudulent transactions in relation to the transaction, were in control of the OPL 245 (the subject of the Malabu Oil deal) before the January 26 orders.
    The order, obtained ex-parte by the EFCC, among others, allows the Department of Petroleum Resources (DPR) to manage the OPL 245 on behalf of the Federal Government, pending the conclusion of investigation and prosecution of “SNEPCO, Agip and other individuals named in connection with acts of conspiracy, bribery, official corruption and money laundering” contained in some charges already filed in court.
    Shell and Agip have however filed applications seeking the vacation of the order, arguing that the court was misled into granting it.
    When the case was called yesterday before Justice John Tsoho of the Federal High Court, Abuja, lawyers to Shell and Agip – Konyinsola Ajayi (SAN) and Babatunde Fagbohunlu (SAN) – informed the court about their pending applications.
    EFCC lawyer Jonson Ojoggbane confirmed that both applications were served on him, but that he was yet to respond to them. He sought a short adjournment to enable him address the applications and put forward the EFCC’s position to enable the court reach a just conclusion.
    Although Ajayi and Fagbohunlu agreed to come back next week, the judge informed parties about his official engagement next week outside the country. He adjourned till February 27 for hearing of the applications.
    At yesterday’s proceedings were some individuals linked to the deal, including the son of the late General Sani Abacha, Mohammed, and businessman Otunba Oyewole Fasawe, among others.
    The EFCC, while applying for the order, explained the alleged role played by Shell and Agip in the transaction, through which some highly placed Nigerians, including ex-ministers, and multinational oil companies purportedly defrauded the country of billions of dollars.
    The commission also revealed how former Attorney General of the Federation (AGF) Mohammed Adoke allegedly aided the payment of $1.2b bribe to ex-Petroleum Resources Minister Dan Etete, using his position in former President Goodluck Jonathan’s administration.
    EFCC stated, in a supporting affidavit, that: ”Sometime in April 1998, Malabo Oil and Gas Limited was incorporated in Nigeria with shareholders’ namely: Mohammed Sani (fronting for the late General Sani Abacha), Kwekwu Amafegha (representing Dan Etete, the then Minister of Petroleum Resources) and Hassan Hindu (on behalf of Ambassador Hassan Adamu).
    “In April 1998, the company was incorporated, the Federal Ministry of Petroleum Resources offered the company deep water oil block prospecting licence in respect of OPL 245 in line with the Federal Government’s indigenous policy in the upstream sector.
    “The oil prospecting licence, against all known government’s regulations, was awarded to Malabu Oil and Gas even before a formal application was submitted by the company.
    “In June 1998 Gen Sani Abacha died and between 1999 and 2000, the corporate status and shareholding structure were altered severally through forged resolutions which eventually divested Mohammed Sani of their shares, while new shareholders and directors were appointed fraudulently.
    “At the time the company, namely Malabu Oil and Gas Ltd was incorporated, Gen Sani Abacha and Dan Etete were Head of State and Minister of Petroleum Resources, while Hassan Adamu was Nigerian Ambassador to the United State of America between 1996 and 1999,” the EFCC said.
    It added that as at when they incorporated Malabu Oil, the Gen Abacha, Etete and Adamu were barred by extant laws from engaging in any form of business by virtue of their offices.
    “They used their positions to confer unfair advantage on themselves and cronies in allocating OPL 245 to themselves without due process. The company contracted Shell Petroleum and SNEPCO, in a joint venture scheme, for the purpose of prospecting and operating the said licence given by the Federal Government of Nigeria.”
    The EFCC said Shell know that the allocation of the oil well and the procedure adopted by the owners of Malabu Oil and Gas Ltd were fraught with fraud, but went ahead to consummate the transaction.
    The agency went on: “Sometime on 2nd July 2001, the Federal Government withdrew the title and allocation of OPL 245 to Malabu Oil and Gas Ltd on the directive of Mr. Funso Kupolokun, the then Presidential Adviser on Petroleum to President Olusegun Obansajo after which same was reallocated to Shell Nigeria Ultra Deep Ltd.
    “Malabu Oil and Gas Ltd sued the Federal Government over the revocation, but the suit was later withdrawn and settled out of court by the parties and the said oil well was reallocated to Malabu Oil and Gas Ltd.
    “Shell and Agip again went into a fraudulent agreement with Malabu Oil and Gas, in which the companies will pay signature bonus of $210m to the Federal Government of Nigeria while $1.2b would be paid to the owners of Malabu Oil and Gas Ltd.
    “Shell Petroleum was later to explain that the payment was for compensation, but investigation conducted revealed that the money was bribe to Dan Etete and his cronies.
    “Shell was aware at the time of consummating this transaction that Dan Etete, the owner of Malabu Oil and Gas Ltd, was already a convict and hence, was not willing to pay the said sum of $1.2b directly to Dan Etete and or Malabu Oil and Gas Ltd directly.
    “One Mohammed Adoke was the Federal Government counsel in series of arbitration instituted by Shell in London on the said oil well and, who later became the Attorney General of the Federation, conspired with Shell/Agip to route the payment of the $1.2b bribe money through Federal Government Escrow Account with JP Morgan Chase bank.”
    Adoke, the EFCC said, had written a letter dated 9th February 2011 seeking the advice of the Department of Petroleum Resources (DPR) on whether to consummate the transaction involving Shell Ultra Deep Sea, Malabu Oil and Gas Ltd, NNPC, Nigeria Agip Exploration and production Company (SNEPCO).
    The DPR on April 1, 2011 advised against the transaction on the ground that it was highly prejudicial to the Federal Government’s interest.
    Despite the advice, Adoke approved the payment of the $1.2b bribe money through Federal Government Escrow Account with JP Morgan Chase Bank in London, the agency said, adding: “Sometime in May 2011 Nigeria Agip Exploration and SNEPCO instructed Chase Bank to release $1,092,040,000 into Escrow Account of the Federal Government.
    The money, on Adoke’s instruction, the EFCC claimed, was transferred from the Escrow Account to two banks accounts operated by Dan Etete and Malabu Oil and Gas Ltd.
    The EFCC went on: “The said amount was later laundered with several accounts of individuals and different companies. Investigation further revealed that the Federal Government was defrauded by SPDC and Malabu Oil and Gas Ltd by under paying $210m as signature bonus on OPL 245.
    “Investigation conducted revealed that Malabu Oil and Gas Ltd and SPDC secured OPL245 through fraudulent scheme involving high scale bribery and corruption by top management of the company.
    “Information available to the applicant (EFCC) is to the effect that a London judge, sitting in the Southwark Crown Court refused to release to Dan Etete and Malabu Oil and Gas Ltd $85m which is connected to the said fraudulent transaction by Shell Nigeria, Nigeria Agip Exploration and Malabu Oil and Gas in respect of OPL245.
    “The $85m formed part of the proceeds of the fraudulent transaction between Shell Nigeria, Nigeria Agip Exploration and Malabu Oil and Gas Ltd. The said sum was seized as a result of request by Italian prosecutors.”

  • Malabo oil scam: Shell, Agip ask court to dismiss forfeiture order

    Shell Nigeria Exploration and Nigeria Agip Exploration have asked the Federal High Court, Abuja, to discharge the order of forfeiture on OPL 245 granted the Economic and Financial Crimes Commission (EFCC).

    Justice John Tsoho on January 26 granted an order of interim forfeiture of Oil Prospecting Licence (OPL 245) to the Federal Government pending investigation and prosecution of suspects in the $1.1 billion Malabu oil scam.

    At the resumed hearing of the matter on Tuesday, the prosecuting counsel, Mr. Johnson Ojogbane, told the court that he was unable to respond to the two applications filed by the applicants on the matter.

    Ojogbane said his inability was, “due to circumstances beyond our control.”

    He applied for an adjournment to enable the prosecution to respond to the two applications.

    Counsel to Shell, Prof. Olaniwun Ajayi (SAN), told the court that he has filed two applications on the matter.

    Ajayi said the first application was seeking the discharge, dismissal or striking out of the order of forfeiture to the federal government which the court made pending the conclusion of the matter.

    The second, he said, prayed for an order staying or suspending the effects of the interim order made in favour of the EFCC, directing that OPL 245 be managed by the Department of Petroleum Resources (DPR).

    NAN

  • NCDMB, Agip to partner on project

    NCDMB, Agip to partner on project

    The Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Agip Oil Company (NAOC) have agreed to work together to ensure the speedy completion of the Zabazaba and Etan deep water project.

    At a meeting on the project at the agency’s headquarters in Yenagoa, the Bayelsa State capital, NCDMB Executive Secretary Simbi Wabote said the project would utilise capacities and facilities developed on past projects. He charged the promoters to exceed the Nigerian Content performance achieved on the Egina deep water project, including the partial integration and fabrication of the Floating Production, Storage and Offloading (FPSO) platform.

    NAOC Managing Director Mr. Massimo Insulla pledged the company’s commitment to developing the project to create jobs.

    He underscored the support of NCDMB since the conception of the project, noting that a speedy development would benefit all.

    According to him, the promoters of the deep water project are keen on taking the Final Investment Decision (FID) and determined to make it profitable, despite the sustained low price of crude oil.

    Insulla confirmed that the project would generate about $8 billion for the Federal Government, adding that the company has been engaging local and international contractors in the past four months.

    The General Manager, Nigerian Content, NAOC, Mr. Barry Nwibani, said the company organised six workshops in August and September for local and international contractors enlightening them on the Nigerian Content opportunities on various packages of the project.

    He said the workshops afforded contractors the opportunity to showcase their capacities and form alliances to enable them to deliver on the project in compliance with the Nigerian Content Act.

    Nwibani noted that the feedback from the workshops confirmed that there were scopes of the project where local capacity exceeded the percentages prescribed in the Nigerian Content Act, while there were also scopes where local capacity was short of the targets set in the Act.

    He said the areas of significant capacity limitations would require the Board’s review to enable it to decide the capacity development initiatives to be developed in place of waivers.

    NCDMB General Manager, Projects and Operations Division,  Paul Zuhumben, urged NAOC to ensure that the Engineering, Procurement and Construction (EPC) contractors sign Memoranda of Agreements (MOA) with local contractors to firm up the execution of the job.

    NAOC is developing the Zabazaba and Etan deep water integrated project in Oil Prospecting Licence (OPL) 245 with Shell Nigeria Exploration Company (SNEPCO).