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Tag: petroleum

  • LEKOIL sues Petroleum Ministry over OPL 310

    LEKOIL Limited, an oil exploration and production company, has commenced legal proceedings against the Ministry of Petroleum Resources over government’s failure to grant consent to its (LEKOIL’ s) investment in  Oil Prospecting  Lease (OPL) 310, offshore Nigeria, following acquisition of interests previously held by Afren Plc in the oil block.

    According to the plaintiff, “despite progressing exploration and appraisal activities on OPL 310 as previously announced, LEKOIL has, to date, not received Ministerial consent for its acquisition of the additional 22.86 per cent interest in OPL 310 or a satisfactory explanation of why such consent has not been forthcoming.  “As a result, the company has taken the decision to apply to the Federal High Court for a declaration that is expected to expedite the consent process and preserve the unexpired tenure in the licence”.

    LEKOIL said: “On 1 February 2013, Mayfair Assets and Trust Limited, a subsidiary of LEKOIL, farmed into Afren Investments Oil and Gas (Nigeria) Limited’s (AIOGNL) interest in OPL 310 for a 17.14 per cent participating interest and 30 per cent economic interest, subject to Ministerial Consent from Nigeria’s Minister of Petroleum Resources.  Ministerial Consent was granted for the interest on 9 June 2017.

    “On 31 July 2015, Afrenplc, the parent company of Afren Oil & Gas that held interests in the OPL 310 licence, was put into administration and its assets put up for sale.  On 1 December 2015, LEKOIL announced an agreement with the administrator of Afren and Afren Nigeria Holding Limited to acquire the shares of AIOGNL, which held a 22.86 per cent participating interest in OPL 310.  This interest was also subject to Ministerial Consent from the Minister of Petroleum Resources.  The acquisition meant that LEKOIL would hold a consolidated participating interest of 40 per cent and an economic interest of 70 per cent in OPL310 and would become the technical and financial partner of Optimum Petroleum Development Company, the operator and local partner in OPL310, which retains a 60 per cent participating interest.”

    The plaintiff further affirmed that an application for the transfer of the 22.86 per cent interest was duly made by Afren Nigeria in January 2016.  As the transaction was not undertaken on the basis of an Assigned Interest in the oil block, approval by Optimum was not required under the JOA between Optimum and Afren.  In March 2016, LEKOIL was notified by the Ministry of Petroleum Resources that the necessary due diligence exercise would be conducted that month.  The due diligence exercise did not take place and has not been rescheduled by the Department of Petroleum Resources since then.

    OPL 310 is an offshore license, which includes the potentially large Ogo oil discovery, which is located in shallow water offshore Lagos.

    LEKOIL said: ‘The delay in regulatory consent for LEKOIL on the block stands in the way of the company’s plans for the development of a work programme for the Ogo field (the only discovery on the block).

    On 1 December 2015, the company announced an agreement with the administrator of Afren and Afren Nigeria Holding Limited to acquire the shares of AIOGNL, which held a 22.86 per cent participating interest in OPL 310 for a total consideration of US$13 million.  Post-acquisition, the company holds a 40 per cent working interest and 70 per cent economic interest in the block, with AIOGL’s 22.86 per cent working interest and 40 per cent economic interest subject to Ministerial consent.

  • We will end fuel scarcity, says MD Azikel Petroleum

    We will end fuel scarcity, says MD Azikel Petroleum

    The incessant fuel scarcity plaquing the country will soon become a thing of the past, a Bayelsa based industrialist, Dr. Azibapu Eruani, has said.

    Eruani, an operator of a  privately owned refinery about to commence operation, told journalists that the yearly fuel scarcity debacle, particularly during festive periods in the country, is inexcusable, pointing out that this challenge has become embarrassing and biting, as it has virtually crippled economic activities in the country.

    Eruani said the challenge persists  because the efficiency level of existing refineries is too low to satisfy consumers demand; just as the nation depend solely on importation of fuel for local consumption.

    He said the present administration led by President Muhammadu Buhari took a pragmatic step to redress low supply, importation of fuel and price hike, by issuing licenses to private refineries to Nigerian businessmen, Azikel Group inclusive.

    He said Azikel Petroleum has achieved 65 per cent completion; and that it would soon begin operation, stating that when all licensed privately owned refineries begin to dispense fuel, it would shore up production capacity and fuel scarcity and insufficiency would be outlawed, and that Nigeria would be like other countries where availability of petroleum product would no longer be an issues.

    He said: ‘’Azikel Petroleum refinery, phase 1, 12, 000 bpsd hydro-skimming refinery, would produce, premium motor spirit, liquefied Petroleum gas, heavy fuel oil, Kerosene and diesel, which is scalable as it will increase geometrically in the phase 2 level of production with over 50,000 bpsd.”

    He said Azikel Group is irrevocably committed to bridging the industrial deficit in Bayelsa, saying; “we are on a fast lane of making history, building the first hydro-skimming privately owned refinery in the state and the Niger Delta, and as we pioneer this course others would follow’’ Eruani submitted.

    ‘’It might be difficult yesterday, but we have moved beyond the point of difficulty to success, and we believe that fuel scarcity in Nigeria would be a thing of the past soon.

    He dismissed the erroneous impression that Bayelsa is a militant state, stressing that the people are enterprising and a whole lots of small and medium business is also thriving in the state.

    Eruani alluded that the multiplier effect of adequate supply of petroleum product in the country would drastically reduce the problem of unemployment, which is responsible for brain drain, illegal means to greener pasture, particularly the Libya returnees, as well as other in pathetic conditions faced by young Nigerians in other countries.

    He shared the optimism that synergy between the private sector and government at all levels is needed to advance technology driven industrialization to absorb graduates from our universities, as a well as create room for middle and low class manpower.

    The Azikel Group President noted that subsidiaries under the group have created industrialization in Bayelsa and the Niger Delta, stressing that with over 1000 employees from the six geo-political zones and still counting, we have reduced unemployment challenge in the state, Niger Delta and in the country.

  • Petroleum Ministry’s maiden oil, gas trade show coming

    Petroleum Ministry’s maiden oil, gas trade show coming

    The Ministry of Petroleum Resources will assemble upstream, mid-stream and downstream oil and gas experts from around the world for its inaugural Nigeria International Petroleum Summit (NIPS) scheduled for next February, at the International Conference Centre (ICC), Abuja.

    According to the summit’s Project Director, James Shindi, this will be the biggest technical and strategic business conference in the petroleum sector in Africa, as it will present best practices and emerging technologies to engineers, scientists, the academia, managers and executives.

    The conference will exhibit companies that would feature the latest products and services.

    ‘’Industry professionals and companies know the value and return on investment of meeting and networking at gathering such as this, where the world will meet Nigeria oil and gas.  Simply put, this event will explore innovations and technologies covering all things upstream, mid-stream and downstream,’’ the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said.

    This will be reinforced through the attendance of  key political leaders, government officials and industry’s specialists from the National Oil Company(NOC) and other relevant government bodies and chief executive officers (CEOs) of National and international oil companies, multinationals and multilateral organisations, the academia and other relevant stakeholders, among others.

    Vice President Yemi Osinbajo launched the Nigeria International Petroleum Summit 2018 in the presence of 19 African Ministers of Petroleum and delegates who attended the African Petroleum Producers Organisation (APPO) meeting in Abuja.

  • Petroleum, bank, electricity workers threaten to ‘cripple’ economy

    TRADE unions under the United Labour Congress of Nigeria (ULC) yesterday issued a “final seven-day strike notice” to the Federal Government for failing to meet its demands.

    It warned Nigerians to stock up on food ahead of the nationwide industrial action, which it said will “cripple” the economy, if its demands are not met.

    ULC said it reached the decision after an emergency joint meeting of its National Action Committee.

    At the meeting were leaders of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the National Union of Electricity Employees (NUEE), National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), among other affiliates.

    ULC’s President Comrade Joe Ajaero, who read a communiqué issued at the end of the meeting, said it gave a 14-day ultimatum to the Federal Government on August 22, which expired on September 8.

    It said the Federal Government responded through the Ministry of Labour but failed to adequately address the critical issues raised.

    ULC said it rejected the Federal Government’s response, hence its decision to issue another seven-day final strike notice, which will expire on September 15.

    “We hope that the Federal Government understands the goodwill contained in this seven days final notice and seizes the opportunity to meet the demands as made on them.

    “In the event of Federal Government’s refusal to accommodate these demands, we shall be compelled to embark on the proposed strike without further warnings.

    “ULC urges all Nigerians to, therefore, take precaution and stock up on basic necessities as the strike will be very effective,” Ajaero said.

    The union, which split from the Nigerian Labour Congress (NLC), said it took the “painful” decision having exhausted all peaceful processes towards an amicable resolution of the dispute”.

    Among ULC’s 11-point demands is that the Federal Government bans the stationing of the soldiers and policemen in its workplaces and factory premises.

    “This will stop employers, who are now colluding with the Army and other security ‘agencies from setting up garrisons in our factories for the purposes of intimidating and harassing workers to deny them their rights and privileges.

     “The Army and the Police should immediately withdraw their garrisons in the different workplaces, where they are currently stationed,” the group said.

    It urged the Federal Ministry of Labour to sets up a task force to carry out factory inspections, as most of the factories were “death traps”.

    It called for a review of the privatisation of the Power Holding Company of Nigeria (PHCN).

    ULC asked the Federal Government to immediately prevail on the Asset Management Corporation of Nigeria and the receiver manager of Delta Steel Company in Ovwian Aladja, who allegedly short-paid workers by 75 per cent, to quickly rectify it and repay the deficit.

    It demanded immediate payment of the arrears of salaries owed Nigerian workers at all levels of government without exception.

    It asked the Federal Government to honour its 2009 agreement with university lecturers under the umbrella of the Academic Staff Union of Universities (ASUU) and to begin negotiations with them on new issues so that universities will re-open.

    ULC said the roads leading to the petroleum refineries and depots nationwide should be repaired to avoid loss of lives and wastage of products and properties.

    It called for the withdrawal of a proposed Bill at the National Assembly seeking to control free speech, which it said was couched as a Bill against Hate Speech, saying its real intention was to protect the ruling elite from being held accountable by the citizenry.

    “The withholding of registration certificate of the ULC should be stopped and the certificate released forthwith so that the nation’s industrial relations clime will be made more inclusive and robust,” ULC demanded.

    It called for the immediate inauguration of a national minimum wage negotiating committee.

  • ‘Govt to spend N3.4tr on petroleum products’ import’

    ‘Govt to spend N3.4tr on petroleum products’ import’

    • Requires $1.2b to fix refineries

    The Federal Government would spend N3.4trillion on the importation of petroleum products this year, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has said.

    Kachikwu, who spoke yesterday in Abuja, denied reports ascribed to him that  government was concessioning its refineries.

    He said government has no plans to concession the refineries, but was only making arrangements for private financing of the their repairs, saying claims that Oando has won the contract for financing the repair of the refineries, is not true.

    He said Nigeria that currently consumes 35million litres daily, has domestic refining capacity of six million liters, which is about 25 per cent of the demand.

    He said: “The importation of products even between January and December of this year, amounts to 20million metric tonnes and amounting to N3.4 trillion. The logistic cost of that importation, shipping, clearing and all that is about N1.34trillion.”

    Kachikwu said owing to this domestic and demand situation, the government had to plan for the improvement of its domestic refining capacity, saying government raised a technical and steering committees on the financing of the refineries. He said the report will be presented to the National Assembly and Federal Executive Council upon conclusion.

    The minister said that from piping, about $1.1billion to $1.2billion (depending of the category), will be required to fix the refineries.

    His words: “Internally, we have been able to determine the amount we want to do this work, in terms of what work is required to be done. And the total cumulative amount, is the $1.1, $1.2b type category, depending on the refineries, with specific breakdown. That of course does not include the cost of piping.”

    On why government has decided to deal with Chioda, Sapiem and GGC, Kachikwu said that Chioda built Kaduna refinery, Sapiem built Warri refineries, while CGC built the PortHacourt refineries, stating that these companies, have the designs, engineering outlay and upgrade capability for the refineries.

    He said government opted for this arrangement because of rising cost, saying very few people will undertake the financing .  “So that is why we have created a business model that tie them to the Direct Sale, Direct Purchase (DSDP) Programme and that is still working and that is still work in progress.

    “When they finish this and are done with the analysis, I will expect that they will then invite everybody who is interested to the commercial terms, before we get to the Federal Executive Council, National Assembly and Mr. President. We haven’t reached there and so nobody can say contracts have been given.”

    Kachikwu advised the International Oil Companies to invest in building refineries in Nigeria in order to avoid the negative effects of dip in oil prices.

    More importantly, he said, “we need to address IOCs in terms of what they need to do to help local refining, because if you encourage all these refining capabilities whenever they run out of crude availability, we need to look at them, why are you taking out crude when you can get the same pricing equivalent in local refining.”

  • Petroleum marketers in Ekiti suspend strike

    Petroleum marketers in Ekiti suspend strike

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) in Ekiti on Sunday suspended its strike.

    NAN reports that IPMAN embarked on the action on May 25, over demolition of some petrol stations and the revocation of some Certificate of Occupancy by the Gov. Ayo Fayose.

    The suspension of the strike is contained in a communiqué issued in Osogbo at the end of a peace meeting called by Gov. Rauf Aregbesola of Osun.

    The communiqué, which was signed by Aregbesola, Fayose and the representatives of the marketers, was made available to newsmen at Osun Government House where the peace meeting was held.

    According to the communiqué, an ad hoc committee would be constituted to fashion out in clear terms the conditions and guidelines for the establishment and operations of filling stations in Ekiti state.

    It stated that the committee, to comprise of representatives of Ekiti state government and oil and gas stakeholders, shall begin work on June 7.

    “In the spirit of reconciliation, the Ekiti government has agreed to pleas for reversal of the revocation of some Certificates of Occupancy of landed properties on which filling stations are built, except the ones on waterways and canals,” the communique said.

    It also stated that the Ekiti government had agreed to stop further demolitions pending the outcome of the committee’s report.

    “The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), IPMAN and other related oil and gas unions, hereby, suspend the industrial action embarked upon by their members, with immediate effect,” it said.

    Fayose, while speaking with journalists after the meeting, commended the black marketers, who had taken over the streets of Ado Ekiti and other towns.

    He said their services cushioned the effect of the scarcity caused by the strike.

    Fayose, however, said that with the fuel marketers resuming operations, black marketers were sure to fizzle out.

    On his part, Aregbesola said the resolution of the crisis was a confirmation that the people had the capacity to resolve their differences.

    He commended the maturity of his Ekiti state counterpart and the fuel marketers for allowing the crisis to be successfully resolved. (NAN)

  • Ijaw youths reject PIB passed by Senate

    Ijaw youths reject PIB passed by Senate

    Ijaw youths have rejected the Petroleum Industry Governance Bill (PIGB) recently passed into law by the Senate.

    The youths under the auspices of the Ijaw Youth Council (IYC) Worldwide, said passing such version of the Petroleum Industry Bill (PIB) portrayed members of the Senate as insensitive lawmakers.

    IYC in a statement signed by its Spokesman, Mr. Henry Iyalla, said the PIGB which failed to provide special funds for oil-producing communities would not guarantee peace in the Niger Delta region.

    Iyalla said: “We condemn the show of insensitivity by the Nigerian Senate on the recent passage of the Petroleum Industry Governance Bill (PIGB) which makes it clear that the only interest the government has in the Niger Delta Region is control of her oil.

    “It is unfortunate that at a time when we expect the Government to show commitment in the development of the region we have to contend with the celebration of an ill-conceived idea to divide the Petroleum Industry Bill (PIB) into greed-driven mushroom bits”.

    He insisted that the only PIB that would ensure peace in the region and calm frayed nerves must include the Oil Communities Fund Act.

    He said such Act would give the Niger Delta people a stake in the industry and provide avenues to alleviate the suffering of the people in the region adding that without such funds any governance structure put in place in the region would fail.

    He said: “It must be stated that for oil and gas related activities to operate smoothly within the Niger Delta Region, the National Assembly saddled with the responsibility of law-making should immediately take further steps for the quick passage of the Host Community Bill.

    “This is to guarantee 10% of the net profit of upstream oil companies on both onshore areas and offshore shallow areas to the community.

    “Otherwise, the Niger Delta would see the recent passage of the PIGB as a calculated move aimed at making laws for the smooth governance of exploitation and exploration of the abundant oil reserve within the region without any consideration to host communities.

    “The Ijaw Youth Council would not be part of a divide and rule method of governance within the oil and gas operations in the region.

    “It should be known by all relevant Arms of Government that the singular passage of the PIGB will not deliver the full benefits of the intended reforms except the other aspects of the Petroleum Industry Bill (PIB) are legislated upon.

    “The passage of the complete Petroleum Industry Bill (PIB) is the only guarantee for a smooth and conducive operational environment in the Niger Delta, as the people of the region cannot guarantee conducive operational base without the protection of their interest”.

  • $1.04bn block: How Diezani ceded OPL 245 to Malabu Oil in 2010

    $1.04bn block: How Diezani ceded OPL 245 to Malabu Oil in 2010

    •What Mohammed Abacha told FG on the firm’s shareholders’ crisis

    More trouble awaits a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, following fresh revelations yesterday that she has been fingered in the ceding of the controversial $1.04billion OPL 245 to Malabu Oil.

    It was also learnt that contrary to their claim, the Abacha family in December 2012 sought  the Federal Government intervention in the shareholders’ dispute in Malabu Oil and Gas Limited.

    But the government in January 2013 asked aggrieved shareholders to go to court, a development which was unacceptable to the Abachas at that time.

    These facts have emanated from the  ongoing investigation of the controversial oil block by the Economic and Financial Crimes Commission(EFCC).

    Findings by our correspondent revealed that detectives have obtained more documents, implicating Diezani in the oil block deal and confirming the interest of the Abacha family.

    Although the ex-minister is still holed up in London pending a trial in a UK court, it was learnt that she has a case to answer on the Malabu Oil block.

    A top source, who spoke in confidence, said: “The ongoing probe of the controversial oil block has shown that Diezani was central to the ceding of the oil block to Malabu Oil and Gas Limited.

    “Some documents available to detectives have clearly shown that she has some explanation to give on how the oil block was returned to Malabu.

    “At the appropriate time, the EFCC may seek inter-agency collaboration with the appropriate authorities in the United Kingdom to enable its detectives to interrogate Diezani.”

    Responding to a question, the source added: “There are many suspects we are closing in on the Malabu Oil block. More will still face trial.”

    In a July 2nd 2010 letter to the Managing Director of Malabu Oil and Gas Limited, Diezani asked the company to pay US$210million as signature bonus.

    The letter, ICSID Case No. ARE/07/18, said: “Further to the Settlement Agreement between the Federal Government of Nigeria and Malabu Oil and Gas Ltd dated  November 2006, your company is hereby allocated OPI 245 subject to the payment of the sum of US$210million as signature bonus into the Federal Government designated account less the sum of US$2,040,000 already paid by your company in respect of the said block within ninety days (90 days) from the date of receipt of this letter.

    “Please note that failure to pay the above mentioned within the stipulated period will amount to forfeiture of the allocation without further notice from the office.

    “Please, accept the assurance of my highest regards.”

    As at press time, findings confirmed that the Abacha family begged the Federal Government to intervene in the shareholders’ dispute in Malabu Oil and Gas Limited.

    But  after failure by shareholders to meet, the government asked those aggrieved to go to court.

    It was learnt that a company, ‘Enervate Consult Limited’, approached the former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Bello Adoke (SAN), for “urgent intervention in the dispute among shareholders of Malabu Oil and Gas Limited.

    The AGF through a letter,  HAGF/GEN/SA3/2012/1 of December 18, 2012 and signed by a Special Assistant to the ex-minister, Mr. Pius Oteh, sought clarification from the Abachas on the status of Enervate Consult Limited.

    The letter said: “I am directed to you that the Honourable Attoney-General of the Federation and Minister of Justice (HAGF) is in receipt of a letter dated today, 18th December, 2012 from a certain ‘Enervate Consult Limited’ in respect of the above described matter.

    “The said company has indicated in the said letter that it is representing your interests towards the resolution of the alleged dispute among shareholders of Malabu Oil and Gas Limited over ownership rights.

    “The HAGF requests that you confirm that the said ‘Enervate Consult Limited’ has been so instructed by you to represent your interests in the matter.

    “Please, accept the assurance of the good wishes of the Honourable Attorney-General of the Federation and Minister of Justice.”

    But  Mohammed Abacha disowned the consulting firm and chose to handle the shareholding crisis through two representatives-Abdullahi Haruna and Reuben Okpanachi Atabo Esq.

    In a December 18, 2012 letter to the ex-AGF and Minister of Justice, Mohammed Bello Adoke(SAN), the scion of Abacha family, Alh. Mohammed Abacha said: “I acknowledge the receipt of your letter with reference no. HAGF/GEN/SA3/2012/1 dated 18th December, 2012 on the above subject and want to thank you immensely for the warm reception accorded me and my team in your office today.

    “I want to formally inform you that I want to directly handle the current stage of efforts to resolve the outstanding shareholders dispute would want to be presented at all meetings by Abdullahi Haruna and Reuben Okpanachi Atabo Esq.”

    On March 21, 2017, Mohammed Abacha approached a Federal High Court in Abuja, asking it to declare him and a firm, Pecos Energy Ltd, as genuine owners of Malabu Oil & Gas Limited.

    The EFCC had filed two  charges against some people suspected to have played some roles in the auctioning of the oil block.

    The commission 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 Petroleum Resources, Chief Dan Etete, a former Attorney-General of the Federation, Mr. Bello Adoke (SAN), 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.

    In another separate charge, the EFCC sued  Etete, Adoke, Abubakar and eight others over alleged $801million bribe in respect of the auctioning of the Malabu Oil block.

    The others are Shell Nigeria Exploration Production Company Limited;  Nigeria Agip  Exploration Limited; ENI SPA; Malabu Oil and Gas Limited; Ralph Wetzels (ex- Director of SNEPCO), Casula Roberto(Italian) whilst being the Director of AGIP; Pujatti Stefeno(Italian) while being the Director in AGIP; and Burafato Sebastiano (Italian).

    All the suspects have denied the charges.

  • 26 ships with petroleum products, food, arrive Lagos

    26 ships with petroleum products, food, arrive Lagos

    Twenty-six ships laden with petroleum products, food items and other goods are expected to arrive Apapa and Tin-Can Island Ports in Lagos from March 23 to April 15.

    The Nigerian Ports Authority (NPA) made this known in its publication- Shipping Position- a copy of which was made available on Thursday in Lagos.

    The News Agency of Nigeria (NAN) reports that four of the expected ships would berth with petrol.

    NPA said the remaining 22 ships contained buck wheat, general cargoes, bulk sugar, steel products, soya bean, base oil, crude palm olein, frozen fish, bulk corn, empty containers and containers laden with goods.

    It said that nine ships had arrived the ports, waiting to berth with bulk fertiliser, buck wheat, diesel, crude palm olein and petrol.

    The 18 other ships at the ports were discharging empty containers, bulk wheat, containers, gypsum, bulk sugar, containers, bulk gas, aviation fuel, diesel and petrol. (NAN)

  • Senate uncovers N10tr petroleum industry fraud

    •NNPC, independent marketers implicated

    The Senate said at the weekend it discovered a N10 trillion fraud allegedly perpetrated by officials of the Nigeria National Petroleum Corporation (NNPC) between 2006 and last year.

    It said officials of the NNPC  connived with independent oil marketers and some others in the petroleum industry in the deal.

    Senate Joint Committee on Upstream and Downstream and Gas broke the news at a briefing in Abuja.

    Chairmen, Senate Committee on Petroleum (downstream) Kabiru Marafa, who spoke on behalf of the joint committee, said of the N10 trillion, NNPC is to account for N5.2 trillion it collected as subsidy from the Federal Government for importation of petroleum products, particularly  Premium Motor Spirit (PMS) between 2006 and 2016

    The amount, he said, was aside the 445,000 barrels of crude oil allocated to it on yearly basis for the country’s refineries for local consumption.

    Marafa (Zamfara Central) noted that records showed that during the period under investigation, “NNPC imported fuel into the country that was more than 40 per cent of local consumption apart from gross under-utilisation of the 445,000 barrels it collected for local refining for local consumption on yearly basis”.

    He said: “NNPC, being the custodian of crude oil resources of the nation, is responsible for 51 per cent of petroleum products importation into the country over the years aside the 445,000 crude allocations it gives itself on yearly basis for sales for local refining. It must account for the N5.2 trillion available records show that it has spent on subsidy on its own 51 per cent of petroleum products importation between 2006 and 2016 aside the N3.8 trillion spent on similar subsidy for independent marketers and about $1.5 billion yet to be accounted for by other key players in the industry,” he said.

    Marafa added that the committee also discovered another dimension of fraud in the industry through disappearance of PMS from storage leased by NNPC without any accountability and or return of the value of the stolen product.

    He said it was discovered that 100 million litres of PMS worth N14 billion was stolen by two different companies without sanction by the NNPC.

    Marafa said: “This committee has established the missing of 100 million litres of PMS from such storage arrangement. We expected NNPC to have taken action against the two companies that carried out the theft. But since it has not, we hereby order it to do so immediately, precisely within this week, failure of which we shall make the whole details known to the public.

    “All key players in the sector along with their collaborators who have taken the country for a ride during the period under review, must be brought to book through exhaustive investigation to be conducted soon because President Muhammadu Buhari and the Senate leadership are very much interested in unmasking those behind the scam perpetrated during the Presidency of former Presidents Olusegun Obasanjo, late Umaru Musa Yar’Adua, Goodluck Jonathan and by extension, the present presidency.

    “President Buhari is highly supportive of this move by the Senate and we shall not fail in carrying out the needed holistic investigation on obvious sharp practices in the sector. Needed documents for the onerous task are already in our possession.”

    The committee listed those to appear before it for further hearing as past and present chief executives of NNPC, their counterparts from the independent marketers, licensed inspection agency, Nigeria Ports Authority, Federal Inland Revenue Service (FIRS), Customs Service and NIMASA.

    Marafa said the whistle-blower approach being adopted by the Federal Government in unravelling fraudulent practices of corrupt public officials would be adopted in fishing out those involved in the massive oil sector fraud.

    The joint committee chairman warned that sanctions await players in the sector who might want to frustrate the investigation by deliberately refusing to honour invitation sent to them or concealing needed information.