The Nation Newspaper

Tag: Nigeria National Petroleum Corporation (NNPC)

  • University of Maiduguri produces 78 First Class graduates

    The University of Maiduguri on Monday said it produced 78 First Class graduates for the 2015/ 2016 and 2016/2017 academic sessions.

    The Vice Chancellor of the University, Dr Ibrahim Njodi, made the disclosure at a pre-convocation press conference in Maiduguri.

    Njodi said that a total of 17, 895 graduates would be conferred with various degrees and certificates during its 23rd combined convocation ceremony scheduled for Saturday, April 28.

    He explained that 3, 527 students were graduands of the Post Graduate School programmes comprising of 56 Ph.D graduates; 570 Masters Degree graduates and 2, 901 Post Graduate Diploma graduands .

    Njodi added that the statistics of the undergraduates showed that 8, 643 graduands would be awarded degrees, 7, 278 of the number were from the regular programmes, 573 from affiliated colleges and 714 were Distance Learning programmes.

    He disclosed that 5, 725 graduates would received diploma certificates, adding that 106 and 102 graduates would receive awards for the 2015/2016 and 2016/2017 academic sessions, respectively.

    The Vice Chancellor disclosed that three lecturers would also be conferred with the title of “Emeritus Professor”, for their outstanding performance and contributions to the development of the university.

    “We remain committed and resilient to excel in our academic pursuit inspite of the challenges posed by the insurgency.

    “The University continued with its services and achieved significant feat in the past nine years,” he said.

    Njodi disclosed that the university with support of the Tertiary Education Trust Fund ( TETFUND ), United States Agency for International Development ( USAID ), corporate organisations and philanthropists executed viable projects in the school.

    He explained that the projects were designed to provide an enabling teaching and learning environment, as well as research, to enhance academic excellence.

    He listed the projects to include Senate Complex Building, Mega House, Veterinary Centre and Instructional Technology Centre.

    Njodi added that the projects were completed and billed for inauguration as part of activities lined up for the convocation ceremony.

    According to him, the Nigeria National Petroleum Corporation ( NNPC ); Nigeria Liquefied Natural Gas (NLNG) and a philanthropist,  Alhaji Muhammadu Indimi, pledged to execute various projects in the University.

    Njodi lauded the Borno State Government, stakeholders, security agencies and members of the public for their support to the University.

    NAN

  • Female soldier allegedly kills woman in Aba

    A female soldier attached to the Ngwa High School Forward Operation Base ( FOB ) whose name is yet to be identified has reportedly killed a woman at Osisioma junction leading to the Nigeria National Petroleum Corporation ( NNPC ) depot off Enugu-Aba-Port Harcourt Expressway.

    The woman whose name was yet to be known at the time of filing this report, The Nation gathered died at the spot having her body riddled with bullets.

    Sources around the Osisioma area told our reporter that the woman who was said to be mentally derailed was caught by bullets while the soldier was dragging her gun with a truck pusher.

    A source at Osisioma, simply identified as Wisdom who claimed to have witnessed the incident while narrating how the woman was killed by flying bullets from the soldier’s rifle ripped the woman’s body apart and said it was an incident that he wished not have witnessed.

    According to Wisdom, the scuffle between the female soldier and the truck pusher threw the environment into pandemonium as the sound of the gun which rented the air attracted other soldiers to the scene, forcing people to abandon their cars and tricycles on the expressway. A situation which resulted to gridlock that lasted for about an hour.

    “The female soldier, I understand, told the truck pusher to take another route, but the truck pusher refused to heed to the instructions of the soldier. The soldier at that point, pushed the truck pusher who then charged at the soldier. The gun which had already being corked by the soldier in an apparent move to scare the truck pusher rented the air and in the process attracted other soldiers to the scene.

    “The woman because of her mental state couldn’t run to safety when the incident was going on. She was in the process hit by several bullets while the man was dragging the gun with the soldier. The man was later whisked away into the Ngwa High School base of the Nigerian Army while the body of the dead woman was equally taken alongside with them.”

    Another source who gave his name as Ifeanyi corroborated Wisdom’s account of the incident and questioned why the truck pusher would engage in open confrontation with a gun wielding soldier and called on the army authorities in the state to initiate investigation into the incident. This is even as he suggested that they (army) should reach out to the families of the bereaved to assuage their pains.

    Authorities of the 144 Battalion and 14Brigade were yet to issue official statement over the incident at the time of filing this report.

  • Senate to probe N3.4b NNPC / Agip security account

    Senate to probe N3.4b NNPC / Agip security account

    The Senate on Tuesday mandated its Committee on Public Accounts to investigate the rationale behind a security account allegedly operated by the Nigeria National Petroleum Corporation ( NNPC ) and Nigerian Agip Oil Company.

    This followed the adoption of a motion moved by Sen. Dino Melaye (Kogi-APC).

    Moving the motion, Melaye said there was the need for the Senate to unravel the objective of the account and source of its funding.

    He alleged that the account opened with the name NNPC/AGIP Oil Company IPP Security Account with address NNPC Garki, Harbert Macauley way is domiciled in First Bank Nigeria Plc with account number 2006367288.

    Melaye allaged that the account had an opening balance of N31.7 billion and a closing balance of N34. 5 billion as at April 25, 2017, adding that there were lodgments and withdrawals since January 2017.

    “A lot of questions are begging for answers as regards this account.

    “While we need to know the objectives of this account, we also need to know the signatories to the account ; is the account known to the Federal Government and what are the sources of the account’s funding.

    “About N2 trillion is kept in various accounts of government, we are operating a Treasury Single Account yet money is kept in various personal accounts.

    “If these monies are properly remitted to government purse, we will have no business borrowing.

    “This Senate will continue to expose any corrupt practice in the country because it is time to protect the future of Nigerians unborn,” Melaye said.

    The Committee has four weeks within which to carry out its investigation.

    NAN

  • Fuel queues must end in seven days, Senate insists

    Fuel queues must end in seven days, Senate insists

    The Senate yesterday insisted that the Nigeria National Petroleum Corporation ( NNPC ), must within seven days, end long queues in fuel stations across the country.

    The resolution followed the unanimous adoption of an interim report of the joint committee on Petroleum Resources, on the lingering fuel crisis in the country.

    Chairman of the committee, Senator Kabiru Marafa, told the Senate in plenary that the joint committee recommended that NNPC be issued a seven day ultimatum to ensure the disappearance of queues from fuel stations across the country.

    The Zamfara Central lawmaker underscored the need for security agencies to ensure effective boarder patrol to check diversion of petroleum products to neighbouring African countries.

    He noted that the report also recommended that the Department for Petroleum Resources (DPR) should double its efforts to enforce compliance with the government regulated pump price.

    Marafa said, “During the recess, the committee moved around some cities including Abuja and Lagos to ascertain the situation on ground. When we think that we are making progress, we just realised that the queues were resurfacing at the stations.

    “We also engaged with the NNPC and other stakeholders and we were informed that there were challenges of supply coupled with massive smuggling of petroleum products to neighbouring countries for higher prices. Also there is the problem of marketers selling above approved pump price.”

    Senate President, Abubakar Bukola Saraki, urged management of NNPC to ensure compliance with the resolution and ensure the disappearance of long queues within the next seven days.

  • End fuel queues in seven days, National Assembly orders NNPC

    End fuel queues in seven days, National Assembly orders NNPC

    A Joint Committee of the Senate and House of Representatives on Petroleum Resources yesterday mandated the Nigeria National Petroleum Corporation ( NNPC ) to end the lingering fuel scarcity and queues  at filling stations within seven days.

    The committee also asked the Nigeria Customs Service and other security agencies especially those at the borders to halt the alleged diversion of fuel tankers from Nigeria to neighbouring countries.

    Chairman Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa gave the ultimatum after a closed door meeting of members of the committee.

    The committee meeting was preceded by another meeting with the Group Managing Director of the NNPC, Engr. Maikanti Baru and other top officials of the oil corporation.

    The lawmakers were said to have demanded explanations from the NNPC on why the fuel shortage had continued to linger with queues returning to major towns and cities across Nigeria.

    Marafa was said to have described the situation as embarrassing and acknowledged that though, NNPC made attempts to end the fuel shortage during the Christmas, the return of the queues in Lagos and Abuja was an indication that the problem was not completely over.

    Marafa was said to have insisted that “This situation has lingered for too long. Members of the public are suffering and when they are suffering, we cannot sit down, fold out hands and say all is well.

    “At a point, you told us the problem has been solved; we also saw that the fuel queues disappeared for some time, but unfortunately the queues have returned. You were even going from station to station monitoring the situation but you have not been able to resolve the issue once and for all.  In any situation, when your best is not good enough, it is very bad and most unfortunate.”

    He told the NNPC to address the committee on the reasons for the resurging long queues at various filling stations; what the NNPC had been doing to resolve the challenge and how long it would take before the queues could disappear completely 

    In a slide presentation, Baru attributed the situation to the on going repair  works on Apapa Wharf road  and the blockage of the road by some accidents vehicles, saying these created  challenges along the route and disrupted the free movement of fuel trucks from the fuel depots to other parts of Lagos.

    The NNPC boss also  blamed the current  fuel crisis on the breakdown of the Jebba/Mokwa road in Kwara State  as well as the crash-landing  of a vessel conveying  PMS along the Escravis/Warri/Oghara route. According to Baru, these two incidents also contributed to slowing down the pace of distribution of available petroleum products to different parts of the country.

    in addition, Baru disclosed that the NNPC was still bugged down by the challenges of product diversion and smuggling of same across the borders. According to him, the price of petrol in neighbouring countries such as Cameroon, Chad, Niger, Benin and Ghana were at least double the price of the product in Nigeria. He explained that this price differential has made the smuggling of the product very attractive.

    Baru however, said the NNPC will continue to tackle the  fuel shortage  by injecting an average of 60million litres of petrol into the market on a daily basis.

    In spite of these explanations, many members of the committee expressed dissatisfaction with the  situation, observing that the NNPC was still working around the symptoms of the fuel crisis and building all its solutions on fuel importation rather than making the nation’s refineries to work to ensure product availability all the year round.

    The committee therefore resolved that the NNPC must change the  narrative on the crisis and end  the queues in seven days without excuses.

  • Senate seeks forensic audit of $16.3b Egina oil project

    Senate seeks forensic audit of $16.3b Egina oil project

    The Senate yesterday mandated the Nigeria National Petroleum Corporation ( NNPC ) to carry out immediate forensic audit for money of the controversial $16.3 billion Egina oil project.

    The upper chamber also asked the NNPC to furnish it with all the documents, including agreements entered into between it and the Total Upstream Nigeria Limited Egina Project.

    The Senate ad-hoc committee on Local Content gave the directive at the continuation of the investigative hearing of the $16.3 billion Egina oil project.

    The project being undertaken by Total Upstream Nigeria Limited, which started in 2013 and is almost 90% completed has not been audited in any form since the commencement of the project estimated to produce 200,000 barrels of oil per day

    Chairman of the committee, Senator Solomon Adeola in his opening remarks, said that the cost of the project was said to have been raised from $6 billion to $16.3 billion.

    Adeola noted that though nobody is on trial, the Senate wanted to ensure that the country was not short changed in the process of the project.

    The Lagos West lawmaker stated that there is need for a value for money audit both for technical and financial audit adding that the investigation will be greatly assisted by the values for money audit of the project as well as reveal adherence to local content law and other applicable laws in the industry.

    The panel chairman said that necessary information that would guide future transactions was also needed by the Senate.

    He insisted that NNPC should, without further delay, initiate value for money audit of the Egina oil projects which must be concluded in record time.

    He noted that until the value for money audit was conducted and successfully concluded, the Senate will not be in a position to support any such project.

    Adeola warned that the auditors must not be part of Total Upstream to ensure that the exercise was credible.

    NNPC Chief Operating Officer (Upstream) Bello Rabiu, in his testimony, told the committee that the contract sum for the Egina oil project remained $16.3 billion and not $6 billion.

    Out of the $16.3 billion, Rabiu said that they have already approved $10 billion for the project.

    On the source of the $16.3 billion, he said that the money belongs to Total Upstream Nigeria Limited.

    Rabiu said, “Total has the money and the technology and they are to produce oil as agreed.”

    The NNPC official noted that even if the money was borrowed, it is seen as Total money.

    According to him, from conception, the agreement was for Total to provide money and technology “how they provide the money is Total business and not the business of NNPC.”

    Rabiu added that any money spent on the project must be approved by the NNPC “and we have so far approved $10 billion for the project.”

    The committee was alarmed that the NNPC was in the dark about the interest rate attached to the money provided by Total.

    It was also worried that a whopping $3 billion was built into the contract sum as miscellaneous expenses.

    On the ownership of the Egina oil block, Rabiu said that it longs to the NNPC since it had never been allocated to anybody.

    Asked if the NNPC has conducted value for money audit since the project started in 2013, Rabiu said no such audit had been carried out.

    The committee wondered why no value for money audit had been carried out on a project of the magnitude of $16.3 billion.

     Nicolas Terraz, Managing Director of Total Upstream Nigeria Limited, (TUPNI) led the company’s delegation to honour your invitation to the investigative hearing on the motion of the Senate on Local Content Elements and Cost variations relating to the Egina oil field.

    Terraz said, “I consider it a topmost priority to appear in person along with the Deputy Managing Director and other related officials of Total Upstream Nigeria Limited, TUPNI, at today’s hearing, not only to demonstrate our respect for the distinguished Senate of the Federal Republic of Nigeria but also to provide some insights as a form of overview on the subject of the investigation. My team and I are grateful for this opportunity.

    “The Egina project, located on OML 130, is the largest oil and gas development currently on-going in Nigeria. The field is being developed by Total Upstream Nigeria Limited (TUPNI) in partnership with NNPC, CNOOC, SAPETRO and PETROBRAS. Operated by Total Upstream Nigeria Ltd, the project was launched in 2013 and is expected to start producing in the 4th quarter of 2018. It will add 200,000 barrels per day to Nigeria’s oil production, or approximately 10% of the country’s total oil production.

    “Being the first major deepwater development project launched after the enactment of the Nigeria Oil & Gas Industry Content Development (NOGICD) Act, the Egina project has the highest level of local content of any such project so far.

    “As operator of the Egina project, Total Upstream Nigeria Ltd fully identifies with the Government aspirations for Nigerian Content and has been working closely with the Nigerian Content Development Monitoring Board (NCDMB) and Nigeria National Petroleum Company (NNPC) to maximize Nigerian Content on the project.

    “In response to the Committee letter of December 15, 2017, TUPNI has provided a detailed submission to the ad-hoc committee on January 8, 2018. To summarize our submission, below are a few local content highlights of the project, all of which were achieved in close collaboration with and under the supervision of the NCDMB.

    “Employment: the project represents a workload of 24 million man-hours worked in Nigeria, or 77% of total project workload, equivalent to a workforce of 3,000 persons on average during 5 years ;

    “ Fabrication : 60,000 tons of equipment is being fabricated in Nigeria for the project ;

    “Infrastructure: several large-scale industrial facilities were developed in Nigeria for the project, including Africa’s first FPSO integration quay, and several existing fabrication yards were upgraded for the project;

    “Capacity development: over 560,000 man-hours of human capacity development training is being performed across Egina contracts.

    “The detailed breakdown of employment, local fabrication and capacity development across the Egina packages is included in the submission made to the Committee on January 8.

    “The Egina project includes pioneering Nigerian Content achievements:

    “The Floating, Production, Storage and Offloading unit (FPSO) of Egina, a 330-meter long vessel designed to process oil and gas from the Egina field, will be berthed at the quayside in Nigeria for integration of locally fabricated modules – a first for Nigeria;

    “ Egina has the highest number of FPSO topside modules (six) to ever be fully fabricated and integrated in Nigeria;

    “The assembly of the Integrated Control and Safety System of the FPSO was fully performed in Nigeria;

    “ Egina includes the fabrication of the largest subsea equipment (manifolds, risers) ever completed in Nigeria.

    “Engineering

    “ Basic Engineering for the Egina Project was performed in Lagos by three Nigerian Companies – NETCO/BATELITWIN, CRESTECH and DOVER – representing 94% of the total man-hours spent.

    “Total’s Egina Project Management team (PMT) and all the main contractors’ PMT offices are based in Nigeria – a first for a Nigerian FPSO project. Locating these teams in Lagos to carry out project management, engineering and procurement activities has resulted in the generation of significant employment opportunities for Nigerians at various skill levels, ranging from top level engineers and managers to office administrative staff.

    “Detailed Engineering for the Egina FPSO Topsides was executed in Nigeria by Samsung with a consortium of Nigerian engineering companies (NETCO, DeltaAfrik and IESL), all based in Lagos, which at the peak employed about 250 Nigerian engineers.

    “To date, around 2.5 million engineering man-hours have been expended in Nigeria out of a total of 3.0 million man-hours (84%).

    “Fabrication

    “The unprecedented record level of Nigerian Content on all the packages of the Egina project has translated into increased work scopes for several fabrication yards at various locations in Nigeria, in some cases calling for significant facility development and capacity expansion investments by the project.

    “Specifically, the following yards were either built or upgraded to support fabrication and integration works of the various components of Egina project:

    “SHI-MCI Yard in Lagos Deep Offshore Logistics Base (LADOL), Lagos: a new fabrication and integration yard, including a new purpose-built 500-meter long integration quay, has been constructed under the FPSO package contract.

    “Aveon Yard, Port Harcourt:  Upgrade of the yard and construction of new facilities was completed for the Subsea Production Systems (SPS).

    “FMC Base, Onne: Upgrade of the facility under the SPS package contract.

    “Saipem Yard in Port Harcourt (SCNL): first Quad-Joint plant in Nigeria enabling to weld 4 pipe joints together in order to gain efficiency and productivity during the offshore installation phase.

    “ Gil Automation Facility, Lagos: Upgrade of facility for the Integrated Control & Safety Systems (ICSS) Panel assembly under the ICSS Package contract.

    “In addition, coating of the 75 kilometres of oil production, water injection and gas line pipes for the Egina project has been fully executed within Nigeria by Pipe Coaters Nigeria Limited (PCNL).

    “I am pleased to inform the ad-hoc committee that the Egina FPSO will be arriving in SHI-MCI yard in Lagos tomorrow, January 24. This is a key milestone for the projet, and will be the first time ever that an FPSO is berthed at quay side in Nigeria for the lifting and integration of locally fabricated modules. I would therefore like to invite this distinguished committee to view this exceptional facility and the magnitude of the works performed in Nigeria.

    “Regarding the project cost, there has been no upward review of the budgeted costs for the Egina Project since the Final Investment Decision was made in 2013, but rather concerted efforts to deliver the project within the budget and even below it.

    “Specifically, as we have earlier stated, the initial budget established in 2013 for the Egina Project was $16,354 million and after extensive cost optimization by TUPNI and the project partners, this figure was revised downwards to $15,751 million in May 2013 and the Final Investment Decision was made on the basis of this reduced budget figure.

    “In this respect, please be assured that it is the highest priority for TUPNI as Operator to control the cost of the project during the execution phase and to deliver the project within budget.

    “Distinguished Senators please permit me to conclude by highlighting the following:

    “With the arrival of the Egina FPSO within the week, the Egina project is very much on course. TUPNI and her partners are committed to the delivery of the project on schedule with first oil expected by December this year. In doing so, we will be adding 200,000 barrels of oil to Nigeria’s oil production.

    “Egina project has recorded many “firsts” in the area of Nigerian content development being the first project of its magnitude since the enactment of the NOGICD Act.

      “There has been no upward review of the budgeted costs of the Egina Project, but rather concerted efforts have been made to deliver the project within and even below the budget. 

    “We urge the distinguished senators to kindly take note that the Egina project was embarked upon at a time of immense uncertainties in the operating, fiscal and regulatory environment. Egina therefore is a symbol of confidence, commitment and faith in Nigeria by TUPNI and her partners.”

    The Total Upstream Nigeria Limited Egina Project with capacity for 200,000 barrels per day, located about 20km from Akpo field lies within the oil mining lease (OML) 130 and covers an area of around 500 square miles.

    Contract for the engineering, procurement, construction and commissioning of a Floating Production, Storage and Offloading (FPSO), unit is said to be strategic to the successful delivery of the entire Egina Project.

  • Leakages: Senate panel mulls liquidation of NNPC  

    Leakages: Senate panel mulls liquidation of NNPC  

    Following the discovery of billions of naira frittered away by revenue generating agencies of the Federal Government, the Senate committee on Finance Tuesday contemplated the liquidation of the Nigeria National Petroleum Corporation (NNPC).

    A member of the committee, Senator Yusuf Abubakar Yusuf, cited unabating financial leakages being perpetrated by revenue generating agencies as part of the reason why budgets are not properly funded.

    The Taraba Central lawmaker who spoke at the budget defence of the Ministry of Finance asked pointedly whether NNPC had been cooperating with relevant agencies in disclosing its financial dealings.

    He said that there was no doubt that NNPC has become a drain pipe doing what it chooses without respect to any authority.

    Yusuf said “We are talking about leakages, is the NNPC cooperating. Why can’t we liquidate NNPC. It is better we liquidate NNPC because it is no longer relevant. They do not respect anybody. They do not respect us. NNPC has become a drain pipe that should be liquidated.”

    Senator Usman Bayero Nafada (Gombe North) said that the findings of the investigation of revenue generating agencies should bother the Minister of Finance, Mrs. Kemi Adeosun.

    Nafada noted that the failure to fund annual budgets should be traced to massive financial leakages in agencies.

    Loss of huge revenue, he said, should be a source of concern to the minister.

    Mrs. Adeosun told the committee that they have started scrutinizing the budget of agencies which was not the case in the past.

    She said that unnecessary budgetary line items are being removed.

    The minister admitted that “there is still a lot of latitude in the agencies that should return money to government.”

    Senator Yahaya Abdullahi asked the Finance Minister why the implementation of the 2017 budget would be truncated “simply because you want to normalize the budget year.”

    Abdullahi said that observations had shown that the 2018 budget proposal has no bearing with the 2017 budget as passed by the National Assembly.

    “What is the whole idea that the budget must begin from January. The entire template you used for budgeting has no bearing whatsoever with reality. It was the template used during the military era. We do the same thing every year and expect a different result. It does not work like that,” Abdullahi said.

    Chairman of the committee, Senator John Owan Enoh wanted Adeosun to explain why the budget performance of her ministry rose to 64 per cent when the trend they observed is low budget performance.

    Senator Joshua Dariye asked the minister to tell Nigerians the budget system the country is operating.

    The Plateau Central senator wanted to know whether the country is operating envelop system of budgeting or Zero based budgeting.

    Dariye added, “If your budget performance is 64 per cent and in other MDA it is 15 per cent, then the economy is not balanced. You need to reconcile this.”

    Mrs. Adeosun said that she has noted the general comments on the budget and would get the economic team to consider and reconcile the observations.

    The minister reiterated the N750 billion has been released to fund capital budget.

    On the type of budget system the country is operation, Mrs. Adeosun said that the Ministry of Budget and National Planning is no longer in the Ministry of Finance.

    She said that the Minister of Budget and National Planning will be in a better position to answer the question.

    Members of the committee said that from the comments of the minister it appeared that the Zero budgeting system is still in operation.

  • Fuel scarcity: Senate summons NNPC GMD

    Fuel scarcity: Senate summons NNPC GMD

    Senate Committee on Petroleum Resources Tuesday invited the Group Managing Director (GMD), Nigeria National Petroleum Corporation (NNPC) Maikanti Baru to throw light on the fear of fuel scarcity in the country.

    The committee also said that it has concluded arrangements to begin nationwide inspection of filling stations following fears of possible fuel scarcity in the country.

    Chairman of the Committee, Senator Kabiru Marafa, stated this while briefing journalists shortly after an investigative hearing on the issues.

    The Zamfara Central lawmaker noted that the Senate would not watch some unpatriotic persons put Nigerians through any form of hardship, particularly given the yuletide period.

    He said that though the Senate had adjourned to begin budget defence, members of the committee would take time out to go on the oversight.

    He added that members of the committee will be divided into subcommittees to make it possible for them to visit all the states of the federation.

    Marafa said, “First thing first. The welfare of Nigerians especially in this season is that a lot of them will be travelling to reunite with their love ones is paramount.

    “We will take time out to embark on a serious oversight. We will break into sub-committees to be able to cover the entire country.

    “We have already mandated the Nigeria National Petroleum Corporation (NNPC) to furnish us with the daily distribution.

    “This is to enable the sub-committees to be armed with detailed evidence of which filling station was given what quantity of fuel.

    “We will also get these details from the filling stations to ascertain when last they got supplies and the quantity sold.

    “We will not stop at that. We will also inspect tanks in filling stations to ensure that Nigerians are not taken advantage of.’’

    The committee has summoned the Group Managing Director of NNPC, Maikanti Baru, to appear before it on Thursday, Dec. 7, having failed to appear before it on Tuesday.

    “Immediately the issue came up, we contacted NNPC to know the situation of things and we were told that the rumours were unfounded and that they have written rejoinders to that effect.

    “However, given the seriousness of the matter, we decided to invite the GMD to come brief us on the development and to enable Nigerians know the situation of things.

    “Unfortunately he wrote informing us of his inability to honour the invitation.

    “We hope he will be back by Thursday to tell Nigerians the true situation. Even if he cannot make it he can send people that are in good authority to speak on his behalf.

    “There is an Executive Director in charge of Downstream who oversees the downstream generally. There is also the Managing Director   of Petroleum and Product Marketing Company.

    “So, whatever it is by next tomorrow we will be able to tell Nigerians what the situation is like and what the Senate is going to do in the event of any eventuality.’’

    The Committee chairman warned filling stations in the habit of hoarding fuel to inflict untold pains on Nigerians to desist as it would not be business as usual.

    Marafa assured that the Senate would work with relevant agencies of government to severely punish any filling station found wanting.

    He said, “By yesterday night all relevant agencies were given a marching order by phone president to get into town to ensure that any filling station that hoards fuel will be appropriately dwelt with.

    `The NNPC has also been directed to look at their supply chain and inform the relevant agencies of their supplies to various stations while they work with that plan to see that anybody found hoarding the product will be sanctioned.

    “We will take appropriate measures also as a committee to ensure that any marketer found wanting would be dealt with,’’ he said.

    Marafa also assured Nigerians that the Senate would do everything possible to break the jinx of unnecessary fuel scarcity in the country during festivities.

    Nigerians, he said, should avoid panic buying and go about their daily activities.

  • $1.8bn oil debt: Court to hear FG’s suit against Omokore, Aluko Nov. 23

    $1.8bn oil debt: Court to hear FG’s suit against Omokore, Aluko Nov. 23

    A Federal High Court in Lagos will resume hearing of Federal Government’s suit seeking recovery of 1.8 billion dollars from two oil firms in Nigeria on Nov. 23.

    The companies are Atlantic Energy Drilling Concepts Nig. Ltd, ( AEDC ) and Atlantic Energy Brass Development Ltd  ( AEBD ).

    Joined as co-defendants in the suit are; Jide Omokore and Kolawole Aluko, Chairman and Director of the two companies, respectively.

    The case, earlier slated for Friday was further adjourned till Nov. 23.

    Although, the trial judge, Justice Oluremi Oguntoyinbo, had sat in the morning to deliver rulings, and entertain some matters, the court, however, rose, as she had to be away on official assignment.

    In the suit, Omokore, Aluko and the two companies, are said to owe the Federal Government, approximately 1.8 billion dollars for crude oil lifted under a Strategic Alliance Agreements (SAT) between them.

    The government had sometimes in 2016, alongside the Nigerian Petroleum Development Company Ltd (NPDC) and Nigeria National Petroleum Corporation ( NNPC ), dragged the defendants to court.

    Government had urged the court to restrain the defendants and their agents from demanding or receiving payments from 19 commercial banks in Nigeria, eight offshore banks, and eight other companies listed before the court.

    The applicants in an affidavit sworn to by one Mr Kehinde Oginni, averred that Omokore, Aluko and the two companies are indebted to government.

    He averred that the defendants by virtue of the SAT agreement were granted licence to lift crude oil and other associated products in Nigeria for sale and for parties to share the profits in agreed terms.

    He averred that the defendants lifted and sold the crude oil and have been paid, but deliberately, refused to pay the government, and unlawfully diverted the profits share of 1.8 billion dollars due to the government to their private use.

    The deponent listed the diversions as follows:

    “Several vehicles with combined value of over N800 million were purchased by the defendants and donated to the Peoples Democratic Party ( PDP ) through its National Chairman, Prince Secondus.

    “Additional vehicles valued at over N130 million were purchased by the defendants and distributed to former Minister of Petroleum, Mrs Dieziani Alison-Maduekwe, and some other managerial staff of NPDC.”

    He also stated that 18 million dollars and N1.1 million were paid to FBN Mortgages Ltd by Aluko as part payment for Block A, consisting of 26 Flats at 46 Gerrard Road Ikoyi Lagos purchased at a total cost of N5 billion

    The deponent also stated that payment of 25 million dollars and N95 million were made to Real Bank for the purpose of part financing the acquisition of AEDC and AEBD companies’ property as well as renovation of some properties.

    The deponent had consequently urged the court, to issue a Mareva Order, restraining the defendants from dissipating all known assets directly or indirectly, including but not limited to assets listed on the face of the motion paper before the court.

    After hearing the submission of applicant’s counsel, Justice Oguntoyinbo had issued an order restraining the defendants and their agents from transacting with the assets of the defendants in banks, houses, land and shares in Nigeria and others located outside Nigeria.

    The banks were ordered to sequestrate all monies and negotiable instruments standing to the credit of the defendants in the sum of 1.8 billion dollars, and keep same in an interest yielding account, pending the determination of the motion on notice.

    The court had also ordered that the ruling should be served on the affected parties through advertisement in Newspapers circulating within and outside the Federal Republic of Nigeria.

    Meanwhile, the defendants had appealed the ruling and filed a motion seeking a stay of proceedings in the suit.

    Apart from the pending application for stay, there is also a pending application filed by a Limited Liability Company, Virtual Properties and Investment Ltd as an intervener.

    The intervener is urging the court to discharge or vary its order, as it relates to Marion Apartments, on the grounds that the property known as Marion Apartments consists of 56 apartments owned and developed by the intervener.

    It added that by virtue of two separate deeds of sublease, the intervener conveyed its interest in 43 out of the 56 apartments to Realblanc Energy Engineering Ltd, an affiliate company of the defendants.

    The intervener says it still retains ownership of 13 out of the 56 apartments in Marion Apartments.

    It avers, therefore, that the order of the court is prejudicial to its interest, and interferes with its right of ownership over these flats.

    NAN

  • $25bn contract: Senate postpones probe of NNPC GMD

    $25bn contract: Senate postpones probe of NNPC GMD

    The Senate Tuesday postponed the planned probe of the Group Managing Director (GMD), Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru, over alleged award of $25 billion contract without due process.

    The upper chamber also resolved to investigate Baru over alleged insubordination and abuse of office as contained in the Minister of State, Petroleum Resources, Mr. Emmanuel Ibe Kachikwu leaked letter to President Muhammadu Buhari.

    Deputy Senate President, Senator Ike Ekweremadu who announced the postponement, said that the investigation will now commence next Tuesday.

    The investigative panel to be chaired by Senator Aliyu Wamakko ought to have started Tuesday.

    Ekweremadu who presided over the plenary did not give any reason for the sudden postponement.

    Sources said that the court case praying the court to stop the Senate from conducting the investigation might have been the reason for the shift.

    Senate President, Abubakar Bukola Saraki constituted the adhoc panel last week following a resolution of the Senate and public outcry over the award of the alleged shady contract.

    The committee was given four weeks to submit its report.

    A source said that earlier meeting scheduled last week by the chairman, Wammako, was also called off at the last minute.

    Wamakko is yet to address the press about the modalities his committee would adopt to conduct the investigation.

    Kachikwu’s letter, addressed to President Buhari was leaked to the press last two weeks.

    In the memo, Kachikwu alleged lack of due process in the award of contract valued at over $25 billion by NNPC.

    In the August 30, 2017 letter, Kachikwu attributed the slow growth in the oil and gas sector to illegal practices by the departments and agencies under his ministry, especially the Nigerian National Petroleum Corporation (NNPC) headed by the GMD of Baru.

    He told President Buhari that the country’s petroleum industry would have recorded tremendous progress, but for Baru’s alleged inaction.

    Kachikwu who also presented five prayers to the President to save the oil sector from collapse, said he was always being blocked from seeing the President. He said he was disturbed that $25 billion contracts were awarded by Baru without his input and that of the board.