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Tag: Malabu oil deal

  • Malabu: Court grants oil block’s forfeiture

    Malabu: Court grants oil block’s forfeiture

    A Federal High Court in  Abuja has granted an order of interim forfeiture of an oil well  being managed by Shell petroleum Development Company (SPDC) pending the conclusion of its investigation and prosecution of all identified culprits by the The Economic and Financial Crimes Commission (EFCC).

    The order was granted following EFCC’s  claim that it has conducted a painstaking investigation into the case both in Nigeria and offshore which revealed that Malabu Oil and Gas Limited and Shell allegedly secured OPL245 through fraudulent scheme involving high scale bribery and corruption by top management of the company.

    EFCC) on Thursday explained how some highly placed Nigerians, including ex-ministers and multinational oil companies allegedly defrauded the country of billions of dollars through the now notorious Malabu oil deal.

    The commission also revealed how the former Attorney- General of the Federation (AGF), Mohammed Adoke, allegedly aided the payment of $1.2b bribe to ex- Minister of Petroleum Resources, Dan Etete, using his position in the President Goodluck Jonathan’s government.

    It said further findings revealed that the federal government was defrauded by and Malabu Oil and Gas Limited by under- paying $210m as signature bonus on the OPL 245.

    The commission also shed light into how the former Head of State, late Gen Sani Abacha, Etete (who was Petroleum Minister under Abacha) and Hassan Adamu (Nigerian Ambassador to the United States under Abacha) allegedly used their positions to influence the unlawful allocation of OPL 245 to Malabu Oil.

    After listening to EFCC’s lawyer, Jonson Ojogbane, moved the motion, Justice John Tosho granted the two interim orders of forfeiture sought by the commission.

  • My stand on $1.3b Malabu oil deal bribe, by Jonathan

    My stand on $1.3b Malabu oil deal bribe, by Jonathan

    Ex-President: transactions predate me 

    Former President Godluck Jonathan yesterday denied collecting $466m kickback in the fraud-fraught $1.3 billion OPL 245 Malabu oil deal involving oil giants Shell and ENI.
    A report by French News Agency AFP on Monday quoted Italian prosecutors as naming the former president and his Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, among those who collected the bribe after the former president met with top officials of the oil companies.
    The report quoted the prosecutors as alleging in documents filed by Italian prosecutors last December in Milan, that Jonathan met with Chief Executive of ENI, Claudio Descalzi, and his predecessor, Paolo Scaroni, to discuss the deal.
    The prosecutors alleged that Jonathan and Mrs Alison-Madueke benefited from $466m converted into naira and used to buy property, aircraft and others.
    The Italian prosecutors alleged that ENI and Shell executives worked with former Petroleum Minister Dan Etete to strike the deal.
    The oil companies have denied the allegations.
    In a statement by his Media Adviser Ikechukwu Eze, Dr. Jonathan denied it all.
    He said: “We wish to make it clear that former President Jonathan was not accused, indicted or charged for corruptly collecting any monies as kickbacks or bribes from ENI by the Italian authorities or any other law enforcement body the world over.
    “In the first place, we have to categorically state that the negotiations and transactions for the oil block deal predate the presidency of Dr. Goodluck Ebele Jonathan which began on 6th May 2010 and ended on 29th May 2015.
    “It may interest those promoting this false narrative to know that all the documents relating to the transactions, issues and decisions of the Federal Government on the Malabo issue, during the Jonathan administration, are in the office of the Attorney General of the Federation/Minister of Justice.
    “As President of Nigeria, there is no doubt that Dr. Goodluck Jonathan met with executives of all the oil majors operating in Nigeria and urged them to, amongst other things, support the growth of the Nigerian oil industry by ramping up their investments and comply with the Local Content Act that he promoted and signed into law.
    “We however wish to state, for emphasis, that at no time did the former President hold private meetings with representatives of ENI to discuss pecuniary issues. All the meetings and discussions former President Jonathan had with ENI, other IOCs and some indigenous operators were conducted officially, and in the presence of relevant Nigerian Government officials and were done in the best interest of the country.
    “We make bold to point out that the former President never sent any Abubakar Aliyu, as the innuendoes in the false report suggest, to ENI, the IOCs or any indigenous operator to seek favour or collect any gratification on his behalf.
    “We will like to point out for the umpteenth time that whether in office or out of office, former President Jonathan does not own any bank account, aircraft or real estate outside Nigeria. Anyone with contrary information is challenged to publicly publish same.
    “As the President who signed the Freedom of Information Act into law, Dr. Goodluck Jonathan lifted the veil on governance and encouraged transparency, knowing that evil breeds in secrecy. It is the opinion of the former President that journalists and media houses should take advantage of this law in their investigative journalism, rather than rely on hearsay.”

  • Malabu: I will come to defend myself – Adoke

    Malabu: I will come to defend myself – Adoke

    A former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Bello Adoke (SAN) on Wednesday faulted the charge of alleged involvement in a $1.6billion Malabu Oil Block deal against him by the Economic and Financial Crimes Commission (EFCC).

    He said although the charge was irrational, he was prepared to make himself available to defend it at the appropriate time.

    The ex-AGF said he did not benefit in any way from the auctioning of the Oil Prospecting Licence 245(OPL 245) popularly referred to as Malabu Oil Block.

    Adoke, who made his position known in a statement, said he got requisite approvals from ex- President Goodluck Jonathan to broker the settlement and execute the OPL 245 Settlement Agreement.

    The statement reads: “My attention has been drawn to the charges filed by the EFCC against me and other named individuals and companies in respect of OPL 245 Settlement Agreement involving Malabu Oil & Gas Limited and Shell Nigeria Ultra Deep Limited.

    “The charge of aiding the commission of money laundering offences preferred against me has finally confirmed the orchestrated plans to bring me to public disrepute in order to satisfy the whims and caprices of some powerful interests on revenge mission.

    “I wish to reiterate that I acted within the actual and ostensible authority of the office I occupied to broker a settlement between Malabu Oil & Gas Limited and Shell Nigeria Ultra Deep Limited in order to ward off the over $2billion liability in damages for breach of contract which the country would have been exposed to in the likely event of the success of Shell Nigeria Ultra Deep Limited’s claim before the International Centre for the Settlement of Investment Disputes (ICSID).

    “The terms of settlement ensured that the interests of the Federal Government of Nigeria, Malabu Oil & Gas Limited and Shell Nigeria Ultra Deep Limited were duly acknowledged and provided for in the settlement agreement.

    “The Federal Government of Nigeria was entitled to the Signature bonus which was duly paid; Malabu Oil & Gas Limited surrendered its title to OPL 245 for a consideration and Shell Nigeria Ultra Deep Limited was re-allocated OPL 245 which it had previously substantially de-risked in consideration for withdrawing their over $ 2billion claim for breach of contract against the Federal Government of Nigeria.”

  • CAC official ‘murdered over $1.092b’ Malabu oil deal’

    CAC official ‘murdered over $1.092b’ Malabu oil deal’

    The probe into the controversial $1.092 billion Malabu oil deal led to the murder of an official of the Corporate Affairs Commission (CAC), it emerged yesterday.

    The agency’s head of Compliance, Justin Ndia, said Abubakar Umar,  who was in charge of the Malabu brief, was “brutally murdered”.

    Ndia spoke when he appeared before the Hon. Rasak Atunwa-headed House of Representatives  ad hoc committee on the alleged corruption , malpractices and breach of due process in the award of Oil Prospecting Licence OPL 245 on Wednesday.

    Umar’s murder led to the disappearance of the file in which the structure of the ownership of Malabu was “illegally” changed, the committee learnt.

    Although Ndia’s appearance before the committee was secret, The Nation obtained the details yesterday.

    Other details obtained by the newspaper show that the Economic and Financial Crimes Commission (EFCC) plans to prosecute two former Ministers of Justice, Mohammed Adoke and Bayo Ojo. Also to be arraigned is former Minister of Petroleum Dan Etete.

    EFCC Acting Chairman Ibrahim Magu, who was represented by the agency’s Senior Prosecutor,  Ojogbane Johnson, said those involved would be charged to court this week.

    The EFCC, described the Malabu transaction as a “fraud”, adding that “ the international embarrassment in the manner the FGN handled the matter vis- a -vis the involvement of the former AGF and the seeming distasteful and disgraceful way the proceeds was distributed through suspicious circumstances leave much to be desired.”

    According to the commission, others to be charged include Alhaji Aliyu Abubakar, Malabu Oil & Gas Limited, Rocky Top Resources Limited, A Group Construction Co. Ltd, Megatech Engineering Co. Ltd, Imperial Union Ltd and Novel,Properties & Dev. Co. Ltd.

    The position of the anti- graft agency is sharply different from that of the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, who while appearing before the committee on Tuesday, said the evidence against Adoke and others were inconclusive.

    “One thing I have to bring to your notice is that investigation is ongoing.  I cannot with certainty jump to the conclusion of indictment,” Malami had said.

    However,  the EFCC position was corroborated by a document obtained by The Nation from the anti-graft agency,  which states: “Up till now, Mohammed Adoke, who is confirmed to be outside the country, has failed to honour all invitations extended to him. He will be declared wanted in due course through INTERPOL request to help apprehend him.”

    “Directors of Malabu Oil & Gas Limited, such as Amaran Joseph and Seidougja Munamuna are still at large and would be declared wanted in due course as they are still outside the country.”

      Adoke has washed his hands of the Malabu deal, saying the transaction was concluded seven years before he became minister.

  • Reps reopen $1. 1b Malabu Oil deal probe

    Reps reopen $1. 1b Malabu Oil deal probe

    The House of Representatives ad hoc committee investigating alleged corruption, malpractices and breach of due process in the award of OPL 245 yesterday reopened its investigation.

    The seventh House’s report on the matter was never presented. The 8th House resolved on January 27 to re-open the investigation.

    Members of the committee, seeking to highlight how $1.1 billion meant for the Federation Account was ispirited away, expressed shock that the Nigerian National  Petroleum Corporation (NNPC), AA Oil and Gas and Malabu Oil shunned the meeting.

    But from the beginning of the investigative session the committee was at variance with the position of Shell, particularly the letter written by Chief Richard Akinjide (SAN) to the committee on behalf of the oil giant that the House had no power to investigate the matter.

    The Economic and Financial Crimes Commission (EFCC), represented by Mr.Aliyu Yusuf, said the Commission had no brief on the matter. But the EFCC was given two weeks to make its submission.

    Committee Chairman Rasak Atunwa pledged that his team would get to the end of the matter “ no matter whose feathers are ruffled.”

    The lawmaker said $1.1 billion meant for the government was cornered by some former ministers.

    A former minister is likely to be declared wanted in connection with the ongoing probe of $1.092b Malabu oil deal, it was learnt yesterday.

    A businessman and three others are to be arraigned over the deal.

    The charges against the suspects are being prepared.

    The Economic and Financial Crimes Commission (EFCC) is seeking the whereabouts of $1,092,040billion paid by Shell Nigeria Exploration and Production Company Nigeria Limited (SNEPCO) and Nigeria Agip Exploration Limited (NAE) into an escrow account.

    Those implicated are six former ministers under ex-President Olusegun Obasanjo and ex-President Goodluck Jonathan, a former Permanent Secretary, Federal Ministry of Finance who generated a memo in 2011 for Dr. Jonathan to approve the transaction, a former Head of State, former President of the Senate, a former National Security Adviser, some senators, and some serving and former members of the House of Representatives.

    A source said: “We are almost concluding investigation into Malabu Oil deal. The charges against a top businessman and a few others implicated in the deal are ready. We only need to tidy up a few ends.

    “One of the former ministers who played a key role in the auctioning of the oil block has been evasive.

    “We now have no choice than to declare the ex-minister wanted. The EFCC cannot keep on waiting for this former public officer.

    “An advantage we have is that the ex-minister has been located in some jurisdictions where we can easily request for his arrest or extradition.

    “We need the former minister to address how to recover the $85million in a NatWest Bank account.

    “The cash was part of the $1,092,040billion paid into an escrow account by Shell Nigeria Exploration and Production Company Nigeria Limited (SNEPCO) and Nigeria Agip Exploration Limited (NAE).”

    The ruling of a judge in London in December left some windows for investigation.

    Justice Edis of the Southwark Crown Court, London, on December 14, 2015 stopped the payment of N17billion to Malabu Oil and Company.

    The judge said he was “not sure that the Goodluck Jonathan administration acted in the interest of Nigeria by approving the transfer of the money to Malabu.

    He said: “I cannot simply assume that the FGN which was in power in 2011 and subsequently until 2015 rigorously defended the public interest of the people of Nigeria in all respects.”

    By the terms of Block 245 Resolution Agreement, Shell agreed to the release of the outstanding Signature Bonus and to appoint an escrow agent for the purpose of paying to FGN a sum of $1,092,040billion.

    It was learnt that $982,040,000 was the total contribution of NAE to the settlement but SNEPCO contributed $110,000,000 to make up the required $1,092,040billion for the purpose of the Federal Government of Nigeria (FGN) settling all and any existing claims and or issues over OPL 245 in accordance with the agreement.

    There were fears that the $1,092,040billion in an Escrow Account was “used for the settlement of the FGN-Malabu Oil Limited agreement on OPL 245”.

    The EFCC was said to be trying to unravel whether or not the cash was paid to the government or if the appointed escrow agent managed the $1,092,040billion and shared to some beneficiaries for the settlement of dispute between the government and Malabu Oil Limited.

    A memo submitted to International Centre for Settlement of Investment Disputes by SNUD gave further details. Shell said: “In 1998, during the President Abacha military regime, OPL 245 had been allocated to Malabu on behalf of the Ministry of Petroleum Resources by Mr. Dan Etete in his capacity as the then Presidential Advisor on Petroleum and Energy. Malabu was an indigenous Nigerian company, incorporated on 24 April 1999, with Nigerian shareholders, apparently for the purpose of petroleum prospecting.

    “In March 2000, Malabu approached Shell within a farm-in proposal. Malabu was looking for an international oil company to take a 40% equity stake in the OPL 245 licence itself and ‘carry’ Malabu in developing the block i.e. the international oil company would take all the exploration and development risk by funding Malabu’s share of the costs (including the acquisition, exploration and development costs of the block) as well as its own.

    “Those costs would then be recovered by the international oil company from Malabu’s share oil production.”

     

  • Ex-minister set for grilling over $1.092b Malabu Oil deal cash

    Ex-minister set for grilling over $1.092b Malabu Oil deal cash

    Former Petroleum Resources Minister Dan Etete is set to visit the Economic and Financial Crimes Commission (EFCC) to answer questions on the controversial Malabu Oil Block (OPL 245).

    The EFCC is searching for $1,092,040 billion paid by Shell Nigeria Exploration and Production Company Nigeria Limited (SNEPCO) and Nigeria Agip Exploration Limited (NAE) into an escrow account.

    The anti-graft agency has raised a team to grill the ex-minister and all those implicated in the deal.

    Those implicated are six former ministers in the administration of former President Olusegun Obasanjo and ex-President Goodluck Jonathan, a former Permanent Secretary, a former Head of State,  a former Senate President, a former National Security Adviser (NSA), some senators, and some serving and former members of the House of Representatives.

    The EFCC may also interact with Mohammed Abacha, who has raised issues on the oil block.

    Etete, who was central to the auctioning of the oil block, has notified he EFCC of his readiness to explain his own side of the deal.

    A source, who spoke in confidence, said: “We have made significant headway on the ongoing probe of the oil block. The former oil minister is set to state his own side.

    “Etete sent his lawyer to inform the agency of his plans to return to Nigeria for interaction with our team.

    “This is a good development because Etete is central to the auctioning of the oil block and he is a stakeholder in Malabu Oil Limited.”

    The source, who pleaded not to be named so as not to jeopardise the probe, added: “This leg of investigation will enable us to track and address how to recover the $85 million in a NatWest Bank account.

    “The cash is said to be part of the $1,092,040 billion remitted into an escrow account by Shell Nigeria Exploration and Production Company Nigeria Limited (SNEPCO) and Nigeria Agip Exploration Limited (NAE).

    “The Federal Government is interested in recovering the $85 million but we must follow the due process. The UK government a few weeks ago, expressed its willingness to return funds but we have to submit substantial proof, beyond reasonable doubt, that such money is ours.”

    Etete’s coming may lead to the invitation of Mohammed Abacha.

    The source added: “We may invite Mohammed Abacha for interaction if Etete lives up to his pledge to meet our team. He is one of those who have raised issues on the Oil Block (OPL 245).

    “The Abachas said they have a lot of documents relating to the deal. You will also recall that OPL 245 was allocated to Malabu on behalf of the Ministry of Petroleum Resources by Mr. Dan Etete in his capacity as the then Presidential Advisor on Petroleum and Energy.”

    The Abacha family-owned firm, Pecos Energy Limited, and Mohammed Sani (aka Mohammed Sani Abacha) had vide a letter dated 20th January 2010 from A.A Umar & Co., claimed that they had bought OPL 245 from Malabu Oil and Gas Limited for US$ 1.3 billion and that Malabu had without their knowledge, disposed of their interests in OPL 245 to Shell Nigeria Ultra Deep Limited (SNUD).

    It was gathered that the ruling of a judge in London last December had created new grounds for investigation.

    Justice Edis of the Southwark Crown Court, London, on December 14, 2015 stopped the payment of N17 billion to Malabu Oil and Company.

    The judge said he was “not sure that the Goodluck Jonathan administration acted in the interest of Nigeria by approving the transfer of the money to Malabu.

    He said: “I cannot simply assume that the FGN which was in power in 2011 and subsequently until 2015 rigorously defended the public interest of the people of Nigeria in all respects.”

    By the terms of Block 245 Resolution Agreement, Shell agreed to the release of the outstanding Signature Bonus and to appoint an escrow agent for the purpose of paying $1,092,040 billion to the Federal Government.

    It was learnt that $982,040,000 was the total contribution of NAE to the settlement but SNEPCO contributed $110,000,000 to make up the required $1,092,040 billion for the Federal Government to settle all claims and or issues over OPL 245 in accordance with the agreement.

    There are fears that the $1,092,040 billion in an Escrow Account was “used for the settlement of the FGN-Malabu Oil Limited agreement on OPL 245”.

    The EFCC has been trying to unravel whether or not the cash was paid to the government or if the appointed escrow agent managed the $1,092,040 billion and shared it to some beneficiaries for the settlement of disputes between the government and Malabu Oil Limited.

    A memo submitted to International Centre for Settlement of Investment Disputes by SNUD gave further details. Shell said: “In 1998, during the President Abacha military regime, OPL 245 had been allocated to Malabu on behalf of the Ministry of Petroleum Resources by Mr. Dan Etete in his capacity as the then Presidential Advisor on Petroleum and Energy. Malabu was an indigenous Nigerian company, incorporated on 24 April 1999, with Nigerian shareholders, apparently for the purpose of petroleum prospecting.

    “In March 2000, Malabu approached Shell within a farm-in proposal. Malabu was looking for an international oil company to take a 40 per cent equity stake in the OPL 245 licence itself and ‘carry’ Malabu in developing the block i.e. the international oil company would take all the exploration and development risk by funding Malabu’s share of the costs (including the acquisition, exploration and development costs of the block) as well as its own.

    “Those costs would then be recovered by the international oil company from Malabu’s share oil production.”

  • Malabu Oil deal: EFCC quizzes SNEPCO boss over $1.092b settlement cash

    Malabu Oil deal: EFCC quizzes SNEPCO boss over $1.092b settlement cash

    •‘Diezani, Adoke, ex-Finance Minister, others behind pact’

    The Economic and Financial Crimes Commission( EFCC) has quizzed the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCO), Mr. Bayo Bashir Ojulari over the controversial  Malabu oil block (OPL 245) deal.

    The anti-graft agency is specifically seeking the whereabouts of $1,092 billion paid by SNEPCO and Nigeria Agip Exploration Limited (NAE) into an escrow account.

    It was learnt that investigators were trying to determine last night whether the cash had been used  for the settlement of the dispute on the oil block or diverted elsewhere.

    The SNEPCO MD said he had no knowledge of what the  the government was going to do with the cash.

    But Ojulari reportedly  named those who signed the deal for the Federal Government and the oil firms.

    EFCC operatives were searching for clues on how NAE became part of the Malabu oil deal.

    The anti-graft agency is looking for the forces behind what was termed the “sudden involvement” of Agip in the OPL 245 deal.

    A source, who pleaded not to named, said: “One key area we are probing is the whereabouts of the $1,092 billion paid for the oil well by SNEPCO and NAE.

    “We want to ascertain the escrow account which the money was paid into, if the money is still in the account, if it has been spent  and what it was used for by the administration of ex-President Goodluck Jonathan. We have conflicting reports on what became of the $1,092 billion.

    “So far, we have grilled the MD of SNEPCO, Mr. Bayo Bashir Ojulari. We will interact with other oil firms and stakeholders in the deal. We are inviting more people soon.

    “But Ojulari’s appearance has given us the clues to explore.”

    Ojulari, it was learnt, said there were two agreements on Malabu Oil Block deal – Block 245 Resolution Agreement and the SNUD Resolution Agreement.

    A top source quoted Ojulari as saying: “The signatories to Block 245 Resolution Agreement were: The Hon. Minister of Petroleum Resources( Mrs. Diezani Alison-Madueke), the Attorney- General of the Federation( Mr. Mohammed Bello Adoke) ;the Hon. Minister of Finance; NAE Vice Chairman and Managing Director; NAE Company Secretary; SNUD Director; SNEPCO Director; NNPC Group Managing Director and Company Secretary.

    “The SNUD Resolution Agreement was signed by the Attorney-General of the Federation and Minister of Justice, the Minister of Petroleum Resources; SNUD Director, SNUD Secretary; SNEPCO Director and SNEPCO Secretary.”

    The SNEPCO MD also reportedly told investigators that  the “signatories to the terms of settlement were Mr. Chikelu Onyejekwe, Mutiu Sunmonu and Rasky Gbinigie for SNUD, SPDC and Malabu.

    “The escrow agreement was signed by Muhammed Bello Adoke for the Federal Government, Ciro A. Pagano for NAE and Olujimi Lawal for SNEPCO. Escrow terms and conditions form part of the Escrow Agreement

    “By the terms of Block 245 Resolution Agreement, SNUD agreed to the release of the outstanding Signature Bonus of $207,960,000 and to appoint an escrow agent for the purpose of paying to FGN  a sum of $1,092,040billion.”

    Another source also gave insights into the interaction with SNEPCO MD on how the cash was paid into an escrow account.

    The source said: “Ojulari confirmed that  $982,040,000 was the total contribution of NAE to the settlement while SNEPCO contributed $110,000,000 to make up the required $1,092,040billion for the purpose of of the Federal Government of Nigeria(FGN) settling all and any existing claims and or issues over OPL 245 in accordance with the agreement. Evidence of SNEPCO payment of the $110m will be provided.

    “On the issue of SNEPCO having knowledge of what the government was going to do with the $1,092,040billion paid to the Escrow Account, he said he was informed reliably that the said amount was going to be “used for settlement of Malabu dispute as referenced in Block 245 SNUD Resolution Agreement for the FGN-Malabu Settlement.”

     

  • Malabu oil deal: Reps seek recovery of $1.092bn

    Malabu oil deal: Reps seek recovery of $1.092bn

    … Want Adoke, Ngama prosecuted

    The House of Representatives is seeking the recovery of $1.092 billion paid on the transaction involving the Federal Government, Shell/Agip Companies and Malabu Oil and Gas in respect of an oil block – OPL 245 in 2011.

    The report also seeks the prosecution of top government officials involved in the alleged scam.

    According to an Economic and Financial Crimes Commission interim report on the case, the Attorney General of the Federation and Minister of Justice, Mohammed Adoke and former Minister of State, Finance, Dr. Yerima Lawal Ngama, instructed the release of the funds into Malabu Oil and Gas Limited accounts in August 2011.

    In a report by the Leo Ogor- headed ad- hoc committee on the transaction, the committee recommended:

    “That in line with global best practices, accountability and transparency, individuals and financial institutions linked with and found culpable by the Economic and Financial Crimes Commission (EFCC) of receiving and transferring money unlawfully with respect to or arising out of the Resolution Agreement, should be charged to an appropriate court of competent jurisdiction, and any such monies unlawfully transferred should be recovered.”

    Malabu Oil and Gas is owned by Mohammed Abacha, son of the late dictator, who has 50 percent.

    Other investors in the company are- a former Minister of Petroleum Resources, Dan Etete (30 percent) and Pecos Energy (20 percent).

    The report added that the granting of the licences was based on a highly flawed Resolution Agreement entered into between Malabu Oil and Gas, SNEPCO and Nigeria Agip Exploration Limited with the Federal Government acting as obligator.

    “The Resolution Agreement put together by the Federal Government ceded away our national interest and further committed Nigeria to some unacceptable indemnities and liabilities while acting as obligator,” the report said.

     

     

  • How $1bn Malabu Oil deal was struck

    •Abacha, Obasanjo, Yar’Adua, Jonathan connections revealed

    • US, UK envoys get details of the agreements

     

    Federal Government’s inconsistency in the allocation and revocation of Oil Prospecting Licence (OPL 245) between 1998 and 2001 is largely responsible for the controversy surrounding the payment of $1.092 billion to Malabu Oil, according to fresh details of the deal obtained yesterday.

    The payment to the company owned by a former Minister of Petroleum Resources, Chief Dan Etete, bordered on violation of agreement.

    Though the contract was first awarded by the late General Sani Abacha, it has been a recurring decimal through the subsequent administrations of Olusegun Obasanjo, Umaru Yar’Adua and Goodluck Jonathan.

    The Resolution Agreements signed by the Federal Government with Malabu Oil, Shell Nigeria Ultra-Deep Limited, (SNUD) and Shell Nigeria Exploration and Production Company Nigeria Limited (SNEPCO) were approved by President Jonathan in 2011 following the amicable settlement of suits relating to OPL at the International Centre for the Settlement of Investment Disputes (ICISD Arbitration).

    Signatories to the Malabu and SNUD Resolution Agreements, based on an April 29, 2011 presidential directive, were the then Minister of Finance, Mr. Olusegun Aganga ( now Minister of Trade and Investment); Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke; Attorney-General of the Federation, Mr. Mohammed Bello Adoke ( SAN); Vice-Chairman /Managing Director and Company Secretary of SNUD; and the then Group Managing Director of NNPC, Austin Oniwon and Company Secretary/ Legal Adviser, Director and Secretary of SNEPCO.

    In its Claimant’s Memorial before the International Centre for Settlement of Investment Disputes, Shell Ultra Deep Limited named those who were involved or intervened at various stages in the OPL 245 dispute with Malabu Oil and Gas as Obasanjo; ex-Minister of Petroleum Resources, Chief Edmund Daukoru; Ex-NNPC GMD, Gaius Obaseki; former DG of SSS, Col. Kayode Are; Special Assistant to the President on Petroleum Matters, Mr. Funsho Kupolokun; NAPIMS; JP Morgan; a board member of Royal Dutch Shell, Mr. Malcom Brinded; the then Director of DPR, Mr. Macaulay Ofurhe; and Assistant Director of DPR, Mr. Andrew Obaje

    It was gathered last night that copies of the Malabu Oil Agreements had been forwarded by government to the British High Commissioner in Abuja and the US Ambassador.

    The British Police had indicated interest in probing the deal.

    Besides, principal officers of the National Assembly have been served copies of the agreements to enable them understand what a source described as reasons for the decision of government to resolve the disputes over OPL 245 instead of allowing the oil block lie fallow.

    An introductory note on the controversy gave insight into how Malabu Oil and Gas became a stakeholder in the petroleum sector.

    It said: “Records indicate that Malabu, an indigenous Oil and Gas company was allocated OPL 245 in April 1998 by the FGN in furtherance of its Indigenous Exploration Programme Policy introduced in the early 1990s to encourage effective development of indigenous capability in the upstream factor of the oil industry.

    “Malabu and other indigenous Oil and Gas companies were accordingly allocated Oil Blocks which they were expected to develop in partnership with international oil companies as Technical Partners.

    “Malabu had in accordance with the terms of the grant, appointed Shell Nigeria Ultra Deep Limited (SNUD) as its Technical Partner.”

    One of the agreements, shedding light on how the deal was struck, said: “Whereas on the 29th of April 1998, the Federal Government of granted an Oil Prospecting Licence (OPL 245) over oil block 245(Block 245 to Malabu.

    “On 30th March 2001, Malabu and Shell Nigeria Ultra Deep Limited (SNUD) entered into a Farm-in Agreement, and a Deed of Assignment under which Malabu assigned 40 per cent equity interest in OPL 245 to SNUD.

    “On the 2nd July 2001, FGN revoked OPL 245. By a letter dated the 23rd May 2002, the then Honourable Minister of Petroleum Resources, on behalf of FGN awarded Block 245 to SNUD on the basis of a Production Sharing Contract (PSC) following a competitive bid with another international oil company, on the invitation of the FGN.

    “On 22nd December 2003, Nigerian National Petroleum Corporation (NNPC) executed a PSC with SNUD (hereinafter referred to as the 2003 PSC ) granting SNUD the right to exclusively operate Block 245 as contractor for a term of 30 years.

    “Subsequent to the revocation referred to in paragraph C above and the execution of the 2003 PSC, various law suits involving FGN, Malabu, and SNUD, were filed to determine disputes arising from the revocation of OPL 245 by the FGN, the termination of the agreements between Malabu and SNUD and the execution of the 2003 PSC in respect thereof, with SNUD.

    “On 30th November 2006, the FGN executed a settlement agreement with Malabu wherein the FGN, without admission of liability for any alleged wrongful, unlawful, unjust or any like conduct agreed to re-allocate Block 245 to Malabu in consideration of Malabu discharging and releasing the FGN from all claims and suits filed by Malabu against the FGN in connection with the revocation of Malabu’s interest on 2nd July 2001.

    “As a result of the execution of the settlement agreement, a number of dispute resolution proceedings were initiated by SNUD against FGN and/ or Malabu, including Bilateral Investment Treaty (BIT) arbitration No. ARB/07/8 pending at the International Centre for the Settlement of Investment Disputes ( ICSD Arbitration) to enforce SNUD’s rights to exclusively operate Block 245 as Contractor on the basis of the2003 PSC beaten NNPC and SNUD.

    “The cases remaining between FGN, Malabu and SNUD are (I) CA/A/25M/ 2003- SNUD vs. The House of Representatives and Malabu ; (ii ) ICC No. 12136 MS(C12137 MS) SNUD vs. Malabu ( Arbitration with resulting award in favour of SNUD delivered on 20th December 2004 and costs of $2.735million awarded against Malabu; iii FHC/NRJ/ 01/2009-SNUD vs. Malabu, by which the ICC Award was registered on 29 March 2010, making it enforceable in Nigeria; iv ICSD Case No. ARB/07/18-Bilateral Investment Treaty arbitration between SNUD and the FGN (Ruling pending).

    “On 2nd July 2010, FGN again issued a letter to Malabu, re-allocating Block 245 to Malabu. FGN has decided to resolve its differences with Malabu amicably with respect to Block 245.

    “Pursuant to paragraphs above and with the full concurrence and agreement of Malabu, FGN is willing to reallocate Block 245 to Nigerian Agip Exploration Limited (NAE) and Shell Exploration and Production Company Limited (SNEPCO) in accordance with the terms of a reallocation agreement of even date to be entered into between FGN, SNUD, SNEPCO, NAE AND NNPC (Reallocation Agreement).

    “Now therefore, FGN and Malabu have agreed as follows with respect to Block 245:

    “All existing, claimed, asserted or disputed rights and privileges of Malabu, contracts and arrangements arising from or pursuant to Blick 245 whether such rights and privileges existed, are claimed, asserted or disputed among themselves, or against the whole world ( including SNUD or any party claiming through SNUD) shall at the Execution Date, be substituted by the following arrangement.

    “FGN agrees to pay to Malabu subject to Clause 2 and 3, 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.

    “Malabu, as stipulated in Clause 4 herein settles and waives any and all claims, interests, or rights relating to or in connection with Block 245 and hereby consents to the reallocation of the interests in Block by the FGN as granted in Clause 1.3 herein.”

  • $1.092b Malabu oil deal: How oil majors arm-twisted presidents

    $1.092b Malabu oil deal: How oil majors arm-twisted presidents

    The report of the House of Representatives Ad Hoc Committee on the transaction involving the Federal Government and Shell/ Agip companies and Malabu Oil and Gas Limited on Oil Block OPL 245 has revealed that oil majors snubbed the intervention of the three presidents and ended up with the oil block at the end of the day.

    The loser in the deal was the local content policy of the Federal Government with the active connivance of some well known Nigerians who got  $1. 092 billion in return for their efforts.

    Former President Olusegun Obasanjo, the late President Umaru Yar’Adua and President Goodluck Jonathan had all intervened to save the Malabu deal, which eventually went south to no avail.

    But the Reps report, which chronicled the atrocities visited on the country by the oil majors in the Malabu deal shows that sometimes the international oil companies are perhaps more powerful than the government in power.

    According to the report, one of the cases in point was the approval of former President Olusegun Obasanjo in a letter dated December 2, 2006 addressed to Malabu Oil and Gas that the Oil Bloc OPL 245 should be returned to Malabu Oil and Gas Ltd.

    The letter from Obasanjo through Edmund Dakoru. the then Minister of State for Petroleum reads in part:

    “We refer to the above subject matter and are delighted to convert to you that the President of the Federal Republic of Nigeria and Commander-in-Chief of the Armed Forces having concluded a review of your legal claims for the return of Oil Bloc 245 ( OPL 245) has graciously approved and directed as follows:

    •That the Federal Government of Nigeria is amenable to an out-of-court settlement of the claims comprised in the legal proceedings commenced by Malabu Oil and Gas Limited and consequently has agreed to settle your legal claims for the return of the Oil Bloc constituted as OPL 245.

    The said Oil Bloc 245 (OPL 245) shall from the dated hereof and with immediate effect be returned to Malabu Oil and Gas limited with full and total reinstatement of all its rights thereto.”

    •Any and all previous decisions inconsistent with or purporting to deprive Malabu Oil and Gas Limited of its rights over the totality of the concessions in the said OPL 245 shall stand absolutely and totally rescinded as if they had never been made.

    •Malabu shall immediately upon the receipt of this letter forthwith withdraw, discontinue and or cause to cease any, all every legal proceedings concerning OPL 245 initiated and/ or being maintained by Malabu against the a Federal Government of Nigeria in respect of the Oil Bloc OPL 245.”

    In spite of the fact that the position of the Federal Government was conveyed to SNUD by the Minister of State for Petroleum Resources in a letter dated December 1, 2006, SNUD refused to let go of the oil bloc. This was confirmed in another letter by the then Attorney-General and Minister of Justice,  Bayo Ojo to Minister of State for Petroleum.

    Consequently, the report stated that SNUD took the Federal Government to the international Centre for the Settlement of Investment Dispute (ICSID) in Washington DC.

    The Leo Ogor-headed House Committee, which examined the alleged shady sale of OPL 245 to Shell/ Agip Consortium for $1.092 billion and the transfer of the said amount to Malabu Oil and Gas Ltd as compensation showed that the intervention of two other presidents were also spurned.

    Even the late President Yar’Adua facilitated a meeting in January 2008 between Malabu and SNUD, which led to yet another draft settlement agreement.

    The report stated: “ That it was contemplated that the draft settlement would have been executed by February 28, 2009. The settlement agreement was, however, not eventually executed by the parties,” because they said “ advice from the Ministry of Justice confirmed that settlement. Agreement dated November 30, 2006 between Malabu and the Federal Government of Nigeria was valid and subsisting.”