gtag('config', 'G-4J8L8BEK7P');
Connect with us

Hi, what are you looking for?



The House of Representatives has resolved to set up an ad hoc committee to investigate all Joint Venture operations and Production Sharing Contracts in the petroleum sector since 1990.

The panel is to ascertain whether or not the capital expenditure, operations, financials and related frameworks are within the ambit of the law.

The committee is to report back to the House within eight weeks for further legislative action.

Advertisement. Scroll to continue reading.

This is based on the motion moved by some members of the House, Messrs Sergius Ogun, Benjamin Kalu, Sada Soli, Ado Kiri, Isiaka Ibrahim and Mark Gbillah, which was unanimously adopted at the plenary on Thursday.

The motion was titled, ‘Need to Investigate the Structure and Accountability of the Joint Venture Businesses and Production Sharing Contracts of the Nigerian National Petroleum Corporation from 1990 Till Date.

The sponsors noted that Section 88 (1) and (2) of the 1999 Constitution empowers the National Assembly to conduct investigations on the activities of any authority executing or administering laws made by the National Assembly

The lawmakers also noted that Escravos Gas-to-Liquid (EGTL) Project is a JV undertaking by the Nigerian National Petroleum Corporation (now Nigerian National Petroleum Company Limited) and Chevron Nigeria Limited for the construction of a 34,000 barrels-per-day of Gas-to-Liquids (GTL) plant at Escravos, Delta State

Advertisement. Scroll to continue reading.

They further noted that a total of $1.294bn was earmarked for the EGTL project in 2001 and by the time the contract was awarded in 2005, the final approved cost rose to $2.941bn, which was further increased to $8.6bn as of December 31, 2011; and upon completion in 2014, the total project cost was over $10bn.

The House of Representatives is also concerned that although EGTL projects are basically governed by the Heads of Agreement, Carry Agreement and the Venture Agreement in line with various legal regimes such as Companies and Allied Matters Act, Petroleum Profit Tax Act, Companies Income Tax Act in principle, there is a breach of the principles involved.

The House is worried that the Bonga field (OML 118), which is owned by the NNPC but contracted to SNEPCO (55 per cent), ExxonMobil (20 per cent), Agip exploration (12.5 per cent), and Total (12.5 per cent) under the Production Sharing Contract, now seems to be far from being a PSC arrangement as it runs foul to the relevant financial operational laws.

Similarly, the House is disturbed that in the brewing misunderstanding, SPDC and SNEPCO allegedly went into certain gas sales and sharing arrangements without the prior knowledge or consent of the Federal Government via the NNPC, which has resulted in certain shortfalls in revenue into the federation accounts.

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

In other news


The Group General Manager, National Petroleum Investment Management Services (NAPIMS) of the Nigerian National Petroleum Company (NNPC) Limited, Bala Wunti, has said that works...


President Muhammadu Buhari Friday presented the 2023 budget estimates tagged, “Budget of Fiscal Stability and Transition” before the joint session of the National Assembly....


The Speaker of the House of Representatives, Femi Gbajabiamila, says the principal officers of the lawmakers deliberating on the protracted strike by the Academic...


The Nigerian National Petroleum Company (NNPC) Limited on Tuesday, declared a Profit After Tax (PAT) of ₦674 billion for the 2021 financial year. This...


The House of Representatives led by Speaker Femi Gbajabiamila met with members of the Academic Staff Union of Universities on Thursday. The meeting is...


Speaker of the House of Representatives, Femi Gbajabiamila has invited the Minister of Labour and Productivity Chris Ngige to appear before the lawmakers over...