Search Site: OnlineNigeria

Close






Senate probes ex-GMDs, Obaseki, Kupolokun, others over gas project

Posted by From BASHIR UMAR, Abuja on 2008/06/29 | Views: 2348 |

Senate probes ex-GMDs, Obaseki, Kupolokun, others over gas project


The Senate has summoned all former and serving top officials of the Nigerian National Petroleum Corporation (NNPC), including the former Group Managing Director (GMDs) and those from Chevron Oil to appear before it to answer questions bordering on the Escravos Gas Liquid (EGTL), following its stoppage ten years after the approval of the feasibility of the plant.

The Senate has summoned all former and serving top officials of the Nigerian National Petroleum Corporation (NNPC), including the former Group Managing Director (GMDs) and those from Chevron Oil to appear before it to answer questions bordering on the Escravos Gas Liquid (EGTL), following its stoppage ten years after the approval of the feasibility of the plant.

Consequent upon this, the upper chamber of the National Assembly has ordered full scale public investigation into alleged inflation of costs contributing to the dumping of the project which costs were believed to have been inflated from N69.2 billion to disputed N351 billion by the NNPC.

Following stoppage of the project ten years after approval of its feasibility study, the Senate is angered that the delay has resulted in the escalation of the project cost from the N120 billion ($1.05 billion) earlier projected to a current cost estimate placed at N819 billion ($7 billion) resulting in increased expenditure burden for the nation.
Senateís position followed the adoption of a motion by Senator Osita Izunaso, chairman, Senate Committee on Gas who drew its attention to stalling of the project which was approved for construction since 1998.

Among those expected to testify in the probe include Mr. Jackson Gaius Obaseki and Engineer Funso Kupolokun, both former group managing directors of the corporation, as well as successive managers of the project which had been stalled in the last ten years.

Presenting the motion on the floor, Izunaso said the project for the plant which is to produce and convert Liquefied Petroleum Gas (LPG) to GTL diesel and naphtha for domestic and international market had been sabotaged by NNPC top officials and private partners resulting in huge economic loss to the nation.

Izunaso blamed NNPC officials for the inflation of cost, as well as the dumping of the project, adding that the officials compromised the integrity of the corporation and the interest of the nation.
According to him, while a similar project in Quatar was executed at N69.2 billion ($592 million) that of Escravos was put at a disputed N351 billion ($2.9 billion).

While blaming Obaseki for allegedly not capturing the exact implication of the project to former President Olusegun Obasanjo for approval, Izunaso said Engineer Kupolokun discarded Obasekiís position by reviewing the cost estimate which he said resulted in the escalation in the contract value.
All the senators who contributed, including Senators Nkechi Nwaogu, Emmanuel Paulker, Patrick Osakwe, Bassey Ewa Henshaw, Bode Olajumoke, among others supported the motion and insisted on an open investigation into the matter.

Senator Henshaw prayed the Senate to extend the probe to other gas projects in the country. This proposal was, however, rejected by senators.

Read Full Story Here.... :
Leave Comment Here :



Add Comment

* Required information
1000
Captcha Image

Comments (1)

Gravatar
New
Fay(Katy, Texas, US)says...

Actually translates to bravehearted.