Posted by From JAMES OJO, Abuja on
The Ad-hoc committee of the House of Representatives probing the operations of the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries from 1999 to 2008 has made fresh discovery of how the nation lost about N260billion ($2.3billion) in a transaction involving Oil Mining License (OML) 130.
The Ad-hoc committee of the House of Representatives probing the operations of the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries from 1999 to 2008 has made fresh discovery of how the nation lost about N260billion ($2.3billion) in a transaction involving Oil Mining License (OML) 130.
A member of the committee disclosed that OML 130 emanated from Operational Production License (OPL) 246, after oil was struck.
According to the member, who craved for anonymity, the company that benefited from the oil deal, South African Petroleum Limited (SAPETROL) was floated by a retired military general, who was a member of the kitchen cabinet of Obasanjo presidency in the early days of the administration.
Documents retrieved by the committee showed that the company connived with the management of NNPC and sold its equity to CNDOC, a Chinese company for $2.3billion.
ěThis arrangement was at the detriment of the country, as no kobo was accrued to the Federal Government, because the General only signed a Production Sharing Contract (PSC) agreement with the government and transfer the contract rights to the Chinese company for the amount,î he said.
Worst, according to him was that governmentís legal rights to buy fifty percent into the operation of the oil well in order to partake in sharing the money was waived, making it possible for the nation to lose the revenue.
ěThe usual practice in oil business is that a company that wins OPL is given the authority to prospect for oil at its own cost and when it hits oil in commercial quantities, the government comes in to participate by appointing a reputable oil company to manage it and share in the proceeds,î he explained.
But what happened in the case of SAPETROL was that the company only signed a PSC with the NNPC and transferred its contractual rights to CNDOC to operate the OML without paying any money into the coffers of the government.
When the committee resumed its investigation, he assured that the company would be made to account for shortchanging the nation, noting that the committee would be interested in getting to the roots of the matter, based on available records.
As a result, he said that the former Group Managing Director of NNPC, Engineer Funsho Kupolokun, would be invited to shed more lights on OML130.