Tag: Mobil

  • Court dismisses N143b oil spill claims against Mobil

    Court dismisses N143b oil spill claims against Mobil

    The Federal High Court in Uyo, Akwa Ibom State, has dismissed four oil spill suits instituted against Mobil with a claim of over N143 billion.

    The plaintiffs are: Unwon Ama Oyorkoto Unity Fishing Cooperative Society, Mgbambop Otako Fishing Cooperative Investment and Credit Society Limited, Oyorokoto Unity Fish Farming Cooperative, and Mr. Dimkpa Ataukot), represented by Kingsley Uzoukwu, Esq.

    They sued Mobil in November 2022, alleging that the oil company caused an oil spill to occur in their communities in 2012, which severely impacted the livelihood and sources of income of the plaintiffs. 

    Mobil, represented by Prof. Fabian Ajogwu (SAN) of Kenna Partners, filed preliminary objections challenging the court’s jurisdiction to entertain the suits.

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    Ajogwu argued that the suits were statute-barred as they were initiated beyond the limitation period stipulated under Section 16 of the Akwa Ibom State Limitation Laws, 2000.

    The court, in its verdict yesterday, agreed with the submissions of Mobil’s counsel that the plaintiffs commenced their suits more than 10 years after the cause of action arose, and as a result, the suits were held to be statute-barred.

    The court upheld Mobil’s argument that even if there were indeed oil spill incidents, the plaintiffs’ cases were at best hinged on the continuing effect of the alleged spills, as against the continuation of the oil spill incidents.

    Justice Onnah dismissed all the claims by the plaintiffs.

    The judgment reaffirms the legal principle that the recognised exception to limitation law is continuous injury (which is the repetition of legal injury and not merely the continuous effects of a legal injury).

  • Firm sues NCDMB, Mobil, others for violating local content law

    An indigenous oil servicing firm in Akwa Ibom State, The Pioneer Divers Int’l Ltd, has sued Nigerian Content Development and Monitoring Board (NCDMB) for alleged breach of local content law.

    Joined in the suit as defendants are ExxonMobil, Boron Oil and Gas Ltd of United States of America and Subtech Company from South Africa.

    The plaintiff, through it lawyer Nwabueze Onukogu, alleged that NCDMB breached the provisions of Nigerian Oil and Gas Industry Content Development Act 2010.

    He further alleged that the NCDMB conspired with some International Oil companies, such as ExxonMobil, to short-change Nigerian companies from benefiting in the contract award which could facilitate transfer of technology that would help indigenous firms to acquire needed skill to take over oil industry operations in Nigeria as envisaged in the local content Act, 2010.

    He claimed that Mobil producing Nigeria awarded a contract titled “Diving, Topside and ROV’s” in their operations field in Akwa Ibom to Broron Oil and Gas Ltd of United States of America in partnership with Subtech in South Africa at $90 million.

    According to him, the services would have been executed by local companies but the first defendant (NCDMB) recommended the third and fourth (Broron oil of United States and Subtech of South Africa) defendants to Mobil for the award which the first defendant (Mobil producing Nigeria) obliged.

    Such recommendation, according to him, violated the content laws of Nigeria which it should protect, safeguard and implement for the benefit of local companies operating in the oil industry to protect them against foreign competitors.

    In the writ of summons, the plaintiff sought for a court declaration that the defendants have breached the provisions of the Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICD Act) as provided.

    “There shall be exclusive consideration of Nigeria indigenous companies of which the plaintiff is, and demonstrate ownership of equipment, Nigeria personnel and capacity to execute any work to bid on land and contract services including Diving, ROVs and Topside as contained in the Act,” Onukogu argued.

    The plaintiff also prayed the court to award N100,000,000 as damages in relief having established that the defendants have failed in their duty as enshrined in the law.

    Onukogu also sought for an order of court compelling Mobil producing Nigeria to cancel an earlier contract award issued to CNS International, an Italian company providing similar services in their oil field.

    The case was adjourned till May 20 for hearing.

  • Mobil: partial deregulation crippling downstream sector

    The refusal of the Federal Government to deregulate the downstream oil sector completely is inhibiting the growth of the sub-sector, Mobil Plc Managing Director, Mr Tunji Oyebanji has said.

    He lamented that the development had hindered competition, making it difficult for the operators to provide services and further improve on profitability.

    In an interview with The Nation in Lagos, he lamented that there was no competition among operators, despite that they had big-ticket transactions in the industry.

    He said: “In the last few years, some operators have been engaging in the production and exploration of crude oil, which is good for the industry. It is good because they are showing to the global market that they have what it takes to do what the International Oil Companies(IOCs) are doing. But that is not enough, as they are yet to introduce services at the retail end of the market to grow their profit well such that they become one-stop firms with several array of services for users of fuel in the country.’’

    He said many of the operators were unable to serve their customers to attract more people and invest in the sub-sector.

    “How many of the firms declared profit in billions? How many of the firms boast of services that could as well compete with those in foreign climes? This is because there is not enough competition among them that would make such things happen,” he said.

    According to him, the issue of deregulation was beyond fixing a price regime for fuel, as it also requires setting standards for the firms that bring in fuel into the country.

  • ‘Mobil, Nipco partnership to produce stronger business chain’

    Mobil Oil, now known as Double 11, and Nipco Plc, are fostering a relationship that would lead to the expansion of the businesses of the two players and further improve the operation of the downstream sub-sector of the industry, its Managing Director, Mr Tunji Oyebanji, has said.

    He said the decision by Nipco Plc to buy 60 per cent shares in Mobil was good, adding that it would lead to increased profitability as well as make the company to compete favourably.

    Speaking on the sideline of a promo organised for its customers in Ibadan, the Oyo State capital, he said it was difficult to describe the relationship between the two firms as a synergy, since they are operating independently.

    Known as Mobil Peel and Win Promo, the event was organised to reward customers in the south region. Prizes, such as tools boxes, gas cookers, motorcycle, generator, tricycles, as well as cash, were given to customers in Ibadan, Ondo, Port Harcourt, Benin, Osogbo.

    Oyebanji said: “I do not know whether to describe the relationship between Nipco Plc and Mobil Oil as a merger or partnership, as they are still operating separately. But what I know and convinced of is that the two companies would help in consolidating activities in the downstream sub-sector, when they eventually come together to produce a bigger role in the industry. Though the process of taking over the business of the company took place over a year ago, we still believe that the firms would produce a greater efficiency in the sub-sector.

    He said more rewards were coming for customers of the firm, adding that there was the need to reward customers who remained loyal to a brand.

    Also, its Manager, Lubricant Sales and Marketing of 11 Plc, Steve Ezendiokwere, said the promo was a part of the company’s efforts to appreciate their loyal customers as well as an opportunity to interface with them.

    He said the firm would continue to engage in marketing promos, adding that draws  would be held in the six geopolitical zones of the country.

  • NSE indicators rebound by 0.17%

    The market indicators of the Nigerian Stock Exchange ( NSE ) on Tuesday rebounded by 0.17 per cent following gains by Mobil and Dangote Cement.

    All-Share Index rose by 69.86 points or 0.17 per cent to close at higher at 40,499.04 compared to 40,429.18 posted on Monday.

    Also, the market capitalisation inched N25 billion or 0.17 per cent to close at N14.628 trillion as against N14.603 trillion recorded on Monday.

    An analysis of the price movement table indicated that Mobil led the gainers’ table with a gain of N8.50 to close at N178.50 per share.

    Dangote Cement came second with N3 to close at N255, while International Breweries increased by N2.35 to close at N51. 50 per share.

    Lafarge Africa chalked up N1.40 to close at N42.40, while Dangote Sugar appreciated by 55k to close at N22 per share.

    Conversely, Total recorded the highest loss to lead the losers’ chart, dipping N2.80 to close at N233.80 per share.

    Unilever lost N1.90 to close at N53.10, while Forte Oil dipped N1.40 to close at N38.60 per share.

    Zenith Bank dropped 55k to close at N26. 35, while GT Bank decreased by 50k to close at N43 per share.

    Sovereign Trust Insurance was the toast of investors with an exchange of 82.46 million shares valued at N16.53 million.

    It was followed by Zenith Bank with 43.98 million worth N1.16 billion, while Skye Bank accounted for 37.46 million shares valued at N24.26 million.

    Flour Mills traded 32.23 million shares worth N1.19 billion, while Access Bank achieved a turnover of 30.04 million shares valued at N361.34 million.

    In all, investors bought and sold 388.28 million shares worth N4.21 billion transacted in 4,222 deals, representing an increase of 35.27 per cent.

    This was in contrast with 287.04 million shares valued at N4.95 billion traded in 4,285 deals on Monday.

    NAN

  • 18-year Mobil, employees’ dispute nears resolution

    18-year Mobil, employees’ dispute nears resolution

    The Supreme Court has reserved judgment for April 20 in the case of 860 Nigerians employed by Mobil Producing Nigeria Unlimited. What will be their fate? ERIC IKHILAE reviews the case.

    About eight years after Mobil Producing Nigeria Unlimited lodged an appeal at the Supreme Court against the May 21, 2009 judgment of the Court of Appeal, Calabar, ordering it to accept responsibility for the 860 Nigerians it employed as security guards, the apex court has scheduled judgment for April 20 this year.

    The judgment will put to rest the about 18-year-old dispute on the status of the 860 Nigerians and the pains and misery to which they have been subjected since the company disengaged them under questionable circumstances when the dispute began.

    Court documents revealed that the Nigerian workers were variously employed in early 1990s by Mobil in its security unit. But for unknown reasons, the company chose to refer to them as: “SPY Police of Mobil Producing Nigeria Unlimited,” a decision that later created confusion over the actual status of the workers.

    On January 23, this year, a panel of five Justices of the Supreme Court, led by Justice Bode Rhodes-Vivour, chose April 20, 2018 for judgment after parties had argued and adopted their written briefs of argument in respect to the appeal marked: SC/33/2010 lodged by Mobil.

    Named as 1st to 15th respondents in the appeal (representing the 860 Nigerians) are Okon Johnson; Nkereuwem Akpe; Nsitighe Ikpam; Calistus Nwafor; Emmanuel Nwokezi; Eric Teenwi; Affiong Etim; Amangi Ala; Joseph Bamishaye; Godwin Tombra; Charles Okon; Dada Rotimi; Raji Lateef; Taiwo Laidi and Opubo Sukubo.

    Other respondents, listed as 16th, 17th and 18th, are the Inspector General of Police (IGP), Commissioner of Police, Akwa Ibom State and the Nigeria Police Council (NPC).

    Kayode Sofola, a Senior Advocate of Nigeria (SAN),  adopted the appellant’s briefs on January 23 this year, urged the court to allow his client’s appeal and set aside the May 21 judgment of the Court of Appeal, Calabar, which held among others, that it was wrong for Mobil to seek to evade its responsibility in relation to the 860 Nigerians, by claiming that they were employees of the Nigeria Police Force.

    Sofola insisted that the Nigerians, including the 15 listed in court papers (as representing the others) were supernumerary police officers, because they were administered the oath of allegiance, dressed in police uniform, availed all other police paraphernalia and trained by the police.

    He noted that the Nigerian workers described themselves, in one of their affidavits, as supernumerary police officers, which amounted to an admission that they were not employees of his client.

    Sofola also faulted the mode of commencing the case at the trial court, which he said, led to the denial of fair hearing to his client.

    In his notice of objection, Sofola argued that since the facts in the case were hotly disputed, the suit ought not to have been commenced by way of originating summons. He said the mode of commencing the suit denied his client the opportunity to lead oral evidence to support its claims.

    In a contrary argument, lawyer to the 1st to 15 respondents, Femi Falana (SAN) faulted Sofola’s claim that his clients were denied fair hearing.   He argued that there was nowhere in the appellant’s brief any evidence to show that its right to fair hearing was violated.

    Falana noted that the appellant did not, at the Court of Appeal, challenged the mode with which the suit was commenced at the trial court and could not now do so at the apex court. He added that the argument on fair hearing and the case cited by Sofola in support were irrelevant to the case.

    On the status of his clients, Falana argued that Sofola failed to provide any evidence that Mobil complied with the laid down procedure for the appointment of SPY policemen by the Nigeria Police Force.

    He noted that Mobil admitted that it conducted examination for the employment of the applicants at the trail court (the Nigerian workers), issued them with employment letters, sent them to the police for training and continued to pay their salaries through the police.

    Falana said: “It was Mobil Producing the conducted the examination for those they wanted to employment as security guards. Those, who passed, were issued employment letters by the company, but later sent to Police College, Calabar.

    As against the claim by Sofola that the Nigerians earn their salaries from the Nigeria Police Force, Falana argued that the salaries of the Nigerians were paid by  Mobil, but through the police.

    He added: “When this question arose, as to the status of the 1 – 15 respondents, the IGP clarified the issue that the responsibilities of Police regarding the SPY is mainly on training, upon the request of the employer.

    “On the face of the letter of employment, salaries and allowances paid by the appellant (Mobil) through the police, the findings of the lower court (Court of Appeal, Calabar) cannot be faulted.

    “The procedure for the application for SPY requires that an application be sent to the IGP, who will send it to the President for approval. That requirement was not complied with,” Falana said.

    He urged the court to reject the appeal and uphold the earlier decision of the Court of Appeal, Calabar on the issue.

    Lawyer to the IGP, Commissioner of Police, Akaw Ibom and NPC, Sebastian Ozoani did not file any process in response to the appeal, but did so in respect of the appeal by his clients, marked: SC/378/2010.

    Ozoani, while arguing his client’s appeal, faulted the contract between Mobil and the Nigerians. He, also faulted the letter of employment issued to them by Mobil.

    He said the letters did not contain the necessary elements required globally to qualify them (the employment letters) as valid ones.

    He urged the court to hold that the workers (listed as 2nd to 16th defendants in the second appeal) are employees of the Nigeria Police.

    In a counter argument, Falana argued that the appeal by the police lacked merit and was intended to waste the court’s time.

    Falana noted that the IGP, Commissioner of Police, Akwa Ibom State and NPC did not file any process when the case was before the Court of Appeal.

    He contended that “the case is about private contract between the 1st res and the 2nd to 16 res. It has nothing to do with the police. The IGP has said the police has no business with them beyond training them”.

    In 2000 a dispute arose about the status of the security guards, with Mobil claiming to have transferred their employment to the Nigeria Police Force (NPF). Mobil claimed it engaged them as SPY police personnel, and not actual staff; a claim the affected workers disputed, with some of them refusing to be transferred out of their stations.

    They alleged being victimised, with some sacked unceremoniously for insisting on right to being entitled to be treated as other employees of Mobil. They alleged that, aside from being subjected to harsh working condition, they were compelled to sign a document identified as “Mobil Producing Nigeria status agreement for supernumerary police service condition agreement.”

    The workers said although some of them succumbed and endorsed the documents, others stood their ground, and later sought the protection of the court by filing a suit at the Federal High Court, Uyo, Akwa Ibom State, marked: FHC/UY/CS/2004.

    In a judgment on January 24, 2006, Justice Gladys Olotu ruled in favour of Mobil. The judge said, among others, that although the Mobil did not fully comply with the requirement under the Police Act, in recruiting SPY policemen, it could be assumed that it complied, having substantially complied with some of the regulations

    The Nigerian workers appealed Justice Olotu’s decision at the Court of Appeal, Calabar, Cross River State, which rendered its judgment  on May 21, 2009 a nullity.

    A three-man panel of the Appeal Court, in its May 21, 2009 judgment, held among others, that the Nigerian workers were Mobil’s employees and ordered it to assume its responsibilities as they relate to the Nigerian workers. The panel comprised Justice Kumai Akaahs, Jean Omokri and Theresa Orji-Abadua.

    Justice Orji-Abadua observed, in the lead judgment, that: “It is clear in exhibits D and E (Mobil’s letters to the Police, requesting training for its security recruit) that the 1st respondent (Mobil) was referring to their own security men as Supernumerary Police recruit, and it wanted them to be trained by the Nigeria Police in respect of which it made application to the Commissioner of Police in charge of Cross River State.

    “In exhibit F (a November 1, 1996 letter by Mobil’s Security Advisor, B. O. B. Duke), the 1st respondent requested the Commissioner of Police to recruit its security personnel into the Police Supernumerary outfit.

    “It is clear therein that as at the date exhibit F was written, the appellants (the affected staff) had not, according to the 1st respondent, been recruited as supernumerary police officers.

    “It is also clear, in exhibit C2, that it is the 1st respondent, in the figment of its imagination and its hallucinating state, that offered the appellants employment in its security unit and described them as SPY Constables.

    “It is clear as crystal, in the processes filed before the lower court (Federal High Court) and the documents exhibited, that the 1st respondent and officers of the 2nd to 4th respondents (IGP, Akwa Ibom State Police Commissioner and Nigeria Police Council) were oblivious of the requirement of the law or its stipulations in so far as the requirements, employment/appointment of supernumerary police officers were concerned.

    “Undoubtedly, the hood does not make a monk. The fact that the appellants were described as SPY Police Mobil Producing Nigeria and were adorned with Nigeria Police uniforms and other paraphernalia cannot make them Nigeria policemen.

    “As a matter of fact, the appellants were made to believe they were being recruited into the Security Unit of the 1st respondent as the SPY police of Mobil Producing Nigeria Unlimited, but not as Nigeria Supernumerary Police officers,” she said.

    Justice Orji-Abadua further held that it was immaterial whether or not the appellants thought they were Nigeria Police SPY, and that what confers the status of a police on a person is not the wearing of uniform or being called a police, but the process of the person’s recruitment in accordance with the law creating his employment.

    She noted that: “Section 18(1) & (2) of the Police Act expressly stated the way and manner a supernumerary police officer will be appointed upon the application of the person desiring to take advantage of the services of police for protection of his property. It is clear that any step short of the ones prescribed by the Police Act will be null and void.

    “The appellants were not employed by the Nigeria Police Force and then appointed as Supernumerary Police Officers by the Police Service Commission on the directive of the Inspector general of Police for the protection of the 1st respondent’s property as envisaged by Section 18(1) & (2) of the Police Act.

    “They were and still are the employees of the 1st respondent since there was no affidavit evidence indicating that the appellants’ employment had been determined by the 1st respondent,” Justice Orji-Abadua said.

    It is this Court of Appeal’s decision that Mobil appealed to the Supreme Court and on which judgment has been reserved for April 20, this year.

  • Motorists spent night at filling stations over fuel scarcity

    Motorists spent night at filling stations over fuel scarcity

    Many motorists spent the night at filling stations in Jos queuing  for petrol as the fuel scarcity bites harder in the Plateau State capital.

    Our correspondent monitoring the fuel supply situation in Jos on Wednesday reports that there are long queues at NNPC and Mobil stations selling the product at N145 regulated price.

    There were minimum queues at other independent marketer’s stations selling at N190 a litre.

    An official at one of the filling stations selling fuel, who preferred anonymity, said as at 7 a.m. that no fewer than 80 motorists were on queue at the station waiting for commencement of sales.

    “We have issued over 76 motorists with the stations stamped and numbered tickets to access the station as soon as we open sales,” he said.

    Read also: NNPC threatens to shut stations hoarding fuel

    The NNPC mega station on Murtala Muhhamad Way was besieged by motorists who queued for about one kilometre from the station.

    Dadel Mangut, a motorist on the queue, said he did not mind the wait as the queue moved fast.

    “Other stations sell-off their fuel to black marketers at night where a gallon of petrol now sells at N1, 200.

    “They see this as an opportunity to make money for the Christmas season,” he said.

    Bagas Samuel, another motorist at Mobil, said a lot of people slept on the queue to ensure they got fuel at the right price.

    Ceaser Douglas, Operations Controller, Jos Office of the Department of Petroleum Resources (DPR), however, told NAN that the situation would soon return to normal as stations have started receiving supply.

    He said sales were going on in an orderly manner at stations that he supervised just this morning.

    NAN

  • Mobil cedes 540Mw plant to Qua Iboe power

    Mobil Producing Nigeria Limited (MPN) has reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the Qua Iboe power project and   gas supply from the NNPC/MPN Joint Venture (JV) offshore facilities to the power plant.

    MPN is the operator of Nigerian National Petroleum Corporation (NNPC)/MPN JV.

    The General Manager, Public and Government Affairs, MPN, Paul Arinze, said QIPPL is a joint venture between Black Rhino, a wholly owned subsidiary of Blackstone Group and NNPC. The transfer includes the ownership and financing of a gas-fired power plant and a 58-kilometre transmission line.

    He said the NNPC/MPN JV will retain its responsibility to fund and build the 53-kilometre offshore pipeline and platform modifications needed to supply gas to the power plant.

    The Chairman and Managing Director of MPN, Paul McGrath, said: “This milestone is a key enabler for the project, which will contribute 540 megawatts (Mw) to the national grid when completed.

    “This further demonstrates our commitment to support the Nigerian government’s priority of providing electricity to the country and maximising the economic and social benefits of a reformed power sector.”

    “We have partnered with a uniquely qualified participant that has demonstrated a strong interest in ensuring the success of the Qua Iboe power project. All stakeholders are continuing to work expeditiously to conclude the necessary agreements for a final investment decision.”

    The Group Managing Director of NNPC, Dr. Maikanti Baru, expressed  satisfaction with the development.

    He said: “The Nigerian National Petroleum Corporation is pleased that we have hit this major milestone on the road towards the realisation of the government’s power generation objectives. We will continue to work with MPN, QIPPL, Black Rhino and other stakeholders to ensure a successful and timely execution of the project.”

    Mobil Producing Nigeria has operated in Akwa Ibom State for more than 50 years and remains committed to delivering sustainable and long-term benefits to the communities and government of the state.

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, at power purchase agreement (PPA) signing ceremony between Qua Iboe Independent Power Plant Limited and Nigerian Bulk Electricity Trading Plc (NBET) held in Abuja, said the event was a milestone that is consistent with the Federal Government’s Roadmap on Power and Economic Recovery and Growth Plan (ERGP).

  • Mobil Producing congratulates Akwa Ibom at 30

    Mobil Producing congratulates Akwa Ibom at 30

    Mobil Producing Nigeria (MPN) Unlimited, operator of the Nigerian National Petroleum Corporation NNPC/MPN joint venture, has lauded the developmental strides of Akwa Ibom State, since its creation on September 23, 1987.

    Its Chairman and Managing Director, Paul McGrath, said this in a message congratulating the government and people of the state on the 30th anniversary of its creation.

    “This milestone provides an opportunity for the people of Akwa Ibom State to reflect on the vision of the state’s founding fathers and celebrate the progress achieved over the years,” said McGrath.

    The company acknowledged the support it has enjoyed from the people of Akwa Ibom since the state’s creation in 1987 and restated the joint venture’s commitment to long term operations and mutually beneficial relationship with the state.

    “We have enjoyed relatively peaceful relations with the people of Akwa Ibom over the years. Our commitment is to ensure more social and economic benefits from the joint venture business accrue to the communities near our operations and across the state,” said McGrath.

    He added:“We are proud of our contributions to the development of Akwa Ibom State and look forward to working together for greater achievements,” he added.

    Mobil Producing Nigeria commenced operations in Nigeria in 1955 and operates a Joint Venture with the Nigerian National Petroleum Corporation (NNPC). The joint venture has made substantial contributions in the areas of health, education, and empowerment projects in its operational bases in Akwa Ibom State.

  • EFCC recovers N328.9b from Total, Mobil, Conoil, six other marketers

    EFCC recovers N328.9b from Total, Mobil, Conoil, six other marketers

    The Economic and Financial Crimes Commission (EFCC), Kano Office, has recovered N328,988,296,990.62 from nine major oil marketers across the country.

    The retail oil marketers are Conoil Plc, Total Plc, OVH Energy Plc, Oando Plc, Forte Oil and Gas Plc, Mobil Plc, MRS Oil Plc, and NIPCO Oil Plc

    The recovery followed a petition against the leadership of Nigeria National Petroleum Corporation (NNPC) and its subsidiary, Pipelines and Product Marketing Company (PPMC).

    According to a statement by the EFCC Head of Media and Publicity, Mr. Wilson Uwujaren, the breakthrough was the consequence of an investigation into alleged diversion of N40 billion by the affected marketers.

    The statement said: “The petition alleged that a whooping sum of N40 billion had been diverted by the major oil marketers in connivance with the leadership of the NNPC and PPMC.

    “The EFCC in a swift reaction referred the petition to a special task force, who swung into action by conducting discrete investigation.

    “Findings by the operatives of the EFCC revealed that the oil marketers were actually indebted to the Federal Government to the tune of N91,519,485,204.44 between 2010 and 2016.

    “Further investigation into the allegation also revealed that the oil marketers had continued to obtain petroleum products from the government without proper payment, in violation of the NNPC/PPMC credit facility regulations.

    “The probe further led to the discovery of N258,928,926,351.93. Following the latter discovery, the total amount of debt stands at N349,818,411,556.37.

    “Upon the conclusion of the preliminary investigation, officials of NNPC/PPMC and all the managing directors of the concerned companies, which are NNPC retails, Conoil Plc, Total Plc, OVH Energy Plc, Oando Plc, Forte Oil and Gas Plc, Mobil Plc, MRS Oil Plc, and NIPCO Oil Plc, were invited to the Kano Zonal Office of the commission, where their statements were recorded following which the recovery process commenced.

    “So far, a sum of N328,988,296,990.62 has been recovered from the major oil marketers.

    “The outstanding debt now stands at N20,765,919,869.”

    Shady deals in the oil sector, including the fuel subsidy scandal, were said to have cost the nation over N1.3 trillion in 2011.

    But the manipulation of subsidy claim caused uproar nationwide

    The Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments had initially  indicted 21 firms for fraudulent claims that cost the nation N382 billion. The list was later increased to 25 by the Federal Ministry of Finance based on fresh evidence.

    The former chairman of the committee, Mr. Aigboje Aig-Imoukhuede, said  of the N422 billion scrutinised, N18 billion was found to be duplication and N21 billion was cleared.

    He confirmed that of the 116 oil marketing and trading companies (OM&T) invited, 107 honoured the invitation.

    He said: “Of the N422 billion, N18 billion was found to be duplication. So, the actual amount that was being verified is N403 billion. Of this amount, N21 billion was cleared and that leaves N382 billion as the sum in contention for which the committee recommended that the process of recovery should be made,” the committee report noted.

    “Painstaking efforts were made to ensure fairness; OM&T’s were given the opportunity to come back with as much documentation and even being re-interviewed where necessary.”