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Tag: Malabu oil

  • EFCC seizes $1.6b Malabu oil block from Shell, others

    EFCC seizes $1.6b Malabu oil block from Shell, others

    Oil Prospecting Licence (OPL) 245 was ordered seized yesterday, but the big question  – the whereabouts of $1.6 billion  – paid for it remains as thorny as ever.

    The Economic and Financial Crimes Commission (EFCC), courtesy of a court order, seized the controversial Malabu oil block from four oil giants pending the conclusion of investigation and trial of those implicated in the $1,616,690,656.78 deal.

    The oil firms are Shell Nigeria Ultra Deep Limited, Shell Nigeria Exploration and Production Company Limited (SNEPCO), Nigeria Agip Exploration Limited and Malabu Oil and Gas Limited.

    The anti-graft agency is specifically seeking the whereabouts of $1,616,690,656.78  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 or not the cash had been used for the settlement of the dispute on the oil block or diverted elsewhere.

    A  United Kingdom anti-corruption group, Global Witness, a few weeks ago alleged that about $523million of $1.1billion paid by Shell and Eni for Malabu Oil Block (OPL 245) has gone to some fronts of a former President.

    But in line with its mandate, the EFCC applied to the Federal High Court in Abuja for an interim order of forfeiture of the said oil block.

    It urged the court to issue an order to enable the Department of Petroleum Resources (DPR) to manage the oil block during the seizure period.

    The application was filed by Aliyu M. Yusuf, Johnson Ojogbane, and H.M. Mohammed of the EFCC Legal Department in the Federal High Court, Abuja.

    The ex-parte originating summons was brought pursuant to Sections 24(a), 26(1) (a) &(3), 28, 29(a) &(b) of the EFCC (Establishment )Act and Section 44(2) (k) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and the inherent powers of the court.

    The anti-graft commission sought an interior order:

    • attaching Oil Prospecting Licence ( OPL 245) pending the conclusion of investigation and prosecution of Shell Nigeria Ultra Deep Limited, Shell Nigeria Exploration and Production Company Limited, Nigeria Agip Exploration Limited,  Malabu Oil and Gas Limited and other individuals named in connection with acts of conspiracy, bribery, official corruption and money laundering mentioned in the schedule attached to this summons;
    • directing that Oil Prospecting Licence (OPL 245) be managed by Department of Petroleum Resources (DPR) on behalf of the Federal Government pending the conclusion of investigation and prosecution of the said Shell Nigeria Ultra Deep Limited, Shell Nigeria Exploration and Production Company Limited, Nigeria Agip Exploration Limited. Malabu Oil and Gas Limited and other individuals named in connection with acts of conspiracy, bribery, official corruption and money laundering mentioned in the schedule attached to this summons; and
    • such further order or orders as the court may deem fit to make in the circumstances.

    The DPR will in the interim manage the oil block until investigation and the trial of all suspects implicated in the deal have been concluded.

    The EFCC had on December 20, 2016 filed nine charges bordering on alleged mismanagement of $1,616,690,656.78 Malabu Oil cash against a former Minister of Justice and Attorney-General of the Federation, Mr. Mohammed Bello Adoke( SAN), a former Minister of Petroleum Resources, Chief Dan Etete and seven others.

    The others are a businessman, Aliyu Abubakar, Malabu Oil and Gas Limited; Rocky  Top Resources Limited; Imperial Union Limited; Novel Properties and Development Company Limited, Group Construction Limited and Megatech Engineering Limited.

    The nine-count charge was filed  at the Federal High Court, Abuja by a team of lawyers, including Johnson Ojogbane, C.C. Nduese, H.M. Mohammed, and  Victor Ukagwu.

    The trial of all the suspects was yet to begin as at press time.

    In a letter to the EFCC, a  United Kingdom anti-corruption group, Global Witness, alleged that about $523million of the $1.1billion paid by Shell and Eni for Malabu Oil Block (OPL 245) has gone to some fronts of a former President.

    It said the deal deprived the country of a sum equivalent to 80% of its 2015 health budget in a country where more than 60% of the population live in poverty.

    The group made the disclosures in a statement by its Director, Simon Taylor.

    It also wrote a letter to the EFCC not to waiver in its determination to probe the sale of the oil block.

    Global Witness said prosecutors in the UK have alleged that about $523million of $1.1billion was paid to the fronts of a former President.

  • $1.092b Malabu oil: EFCC quizzes ex-Perm Sec, businessman top oil firms CEOs

    $1.092b Malabu oil: EFCC quizzes ex-Perm Sec, businessman top oil firms CEOs

    •Closes in on six former ministers connected with the deal

    After months of preliminary findings, the Economic and Financial Crimes Commission (EFCC) has begun investigation into the controversial $1.092bbillion Malabu Oil Block deal (OPL 245) by interrogating a former Permanent Secretary in the Federal Ministry of Finance and a businessman.

    Also, some Chief Executives of some International Oil Companies (IOCs) have been interrogated by the anti-graft agency.

    But as press time, the EFCC was closing in on six former Ministers under ex-President Olusegun Obasanjo and ex-President Goodluck Jonathan, who were part of the deal.

    The payment of 25 per cent balance of about $1.092b into an escrow account for the Federal Government.

    According to findings by our correspondent, the 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, it was learnt

    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 payment of to FGN a sum of $1,092,040billion 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 $1,092,040billion 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.

    The EFCC has begin grilling all those implicated in the Malabu Oil deal beginning with a former Permanent Secretary, Federal Ministry of Finance, who generated a memo in 2011 for ex-President Goodluck Jonathan to approve the transaction.

    A source, who spoke in confidence, said: “We have interrogated the ex-Permanent Secretary in the Federal Ministry of Finance who admitted that he wrote a memo to Jonathan on Malabu Oil deal only in line of duty as a civil servant.

    “The ex-Permanent Secretary has made useful statement and we have a copy of a 2011 memo to the ex-President in our custody.

    “Also, we have grilled a top businessman whose disclosures have assisted in getting a long list of highly-placed Nigerians involved in the oil block saga.

    “Some Chief Executives of some International Oil Companies (IOCs) have testified before our team on how the agreements were struck and how $1,092,040billion was remitted into an escrow account.

    “But we are closing in on six former Ministers during the administrations of ex-President Olusegun Obasanjo and Jonathan. Some of the former ministers actually signed the agreements on Malabu Oil deal.

    “One of the ex-Minister, who was once in charge of Finance, completed the process on Malabu Oil deal.”

    Asked why the EFCC was not forthcoming on the list of all those interrogated, the source added: “We do not want any disclosure which might prejudice the ongoing investigation.

    “The truth is that the Malabu Oil deal has international dimension. Some of our operatives had traveled abroad to collaborate with some security and crime agencies.

    “At the appropriate time, we will release the names of all those implicated, those interrogated and those with prima facie case against them.

    “The findings so far have been weighty but we are getting closer to a breakthrough on Malabu Oil deal. We are going to interact with many top Nigerians and we don’t want to manage the investigation in a way that some of these people would have been presumed guilty before concluding our probe.”

    The controversy over OPL 245(Malabu Oil Block deal) started in April 1998 during the administration of the late Head of State, Gen. Sani Abacha.

    But it spread to the governments of ex-President Olusegun Obasanjo and ex-President Goodluck Jonathan.

    Besides the judgment of a  Federal High Court, the Federal Government  of Nigeria(FGN)  faced the challenge of  an ICSD Arbitration instituted by Shell Nigeria Ultra Deep Limited(SNUD) in which the company was claiming in excess of $2billion damages from the FGN for wrongful revocation of OPL 245 previously granted to it.

    There were agreements between Federal Government and other parties on the oil block  on  November 30, 2006 and April 29, 2011.