Reps to investigate production sharing agreements between NNPC, oil coys since 1990
The House of Representatives has resolved to set up an Ad-hoc committee to investigate the structure and accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSC) of the Nigerian National Petroleum Corporation since 1990. The House adopted a motion jointly sponsored by Sergius Ose Ogun, Benjamin Kalu, Sada Soli Jibiya, Ado Sani […]
Members of the House of Representatives during plenary on resumption from their annual recess at the National Assembly in Abuja
The House of Representatives has resolved to set up an Ad-hoc committee to investigate the structure and accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSC) of the Nigerian National Petroleum Corporation since 1990.
The House adopted a motion jointly sponsored by Sergius Ose Ogun, Benjamin Kalu, Sada Soli Jibiya, Ado Sani Kiri, Isiaka Ibrahim Oyekunle and Mark Gbillah presented at the plenary on Thursday.
Presenting the motion on behalf of the sponsors, Sada Soli Jibia stated that, there is a need to fully investigate all Joint Venture (JV) operations and Production Sharing Contracts (PSCs) in the oil & gas sector since 1990.
According to him, the aim was to ascertain whether or not the capital expenditure, operations, financials and related frameworks are within the ambit of the law.
Jibia noted that there are many multi-billion dollars JVs and PSCs between the NNPC and other oil companies, which prompted the House to investigate in line with sections 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria.
He said: “Escravos Gas-to-Liquid (EGTL) Project is a Joint Venture (JV) undertaking by the Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited for the construction of a 34,000 barrels per day (BPD) of Gas-to-Liquids (GTL) Plant at Escravos, Delta State”.
According to him, $1.294 billion was earmarked for the EGTL project in 2001 and by the time the contract was awarded in 2005, the final approved cost rose to $2.941 billion, which was further increased to $8.6 billion as of 31st December 2011, and upon completion in 2014, the total project cost was over $10 billion.
He added: “The Offshore Gas Gathering System (OGGS), which was designed to gather gas from various upstream projects in the Niger Delta region under a PSC and JV arrangement with companies such as SNEPCO, SPDC, NLNG has now become mired in some operational misunderstandings”.
The Ad-hoc committee is to investigate and report back to the House within eight weeks for further legislative action.