…probe 35,000 missing PMS
The House of Representatives on Wednesday queried Department of Petroleum Resources (DPR) over alleged loss of $153 million expected signature bonus from the award of Oil Prospecting License (OPL) 280.
Gideon Gwani, chairman, Adhoc Committee investigating the status of payments of signature bonuses on all oil-blocks awarded since 1999, demanded for relevant approval for the downward review of the signature bonus on OPL 280 from $210 million to $57 million.
According to the committee, the oil bloc was initially awarded to Sterling Oil Energy at the sum of $210 million, was reawarded to the same company without in breach of extant laws.
Gwani threatened that the officials found culpable will be prosecuted by relevant security agencies if DPR fail to produce the evidence, argued that such sabotage act tantamounts to the fact that the nation was fleeced in the deal.
While responding to the Committee’s inquiry, Edu Inyang, DPR’s representative explained that the decision to review the payable amount downward was taken at a high level meeting that did not involve the DPR.
He explained that after the initial award of the oil-bloc to Sterling at $210 million signature bonus, the company paid the sum of $21 million being 10 percent as down-payment after which it complained of the high rate and gave its intention to discontinue the contract.
According to Inyang, it was at this stage that OPL 280 was withdrawn from Sterling and re-awarded to another company, only for the bloc to be withdrawn from the second company and re-awarded to Sterling after the conveyance of meeting from ‘above’, for a rock-bottom signature fee of $57 million.
While responding to question on why the oil bloc was not awarded to the second highest bidder, which bided a much more preferred $110 million in the initial bidding session, the DPR representative noted that when instructions are passed down from higher quarters, nobody at the DPR level dare raise an eye-brow or disobey.
Worried by the non-appearance of some of the Chief Executive Officers of the oil companies, the lawmakers unanimously resolved to hold the last session of investigative public hearing in Lagos state.
While ruling, Gwani warned any erring CEO of the Oil companies who fail to appear before the committee will be sanctioned appropriately in line with the extant laws and House Rules, adding that the committee will be left with no option than to compel them through relevant legislative instruments to appear in Abuja.
In a related development, the Adhoc Committee investigating the review of pump price of Premium Motor Spirit (PMS) summoned Managing Director of Tota Plc over alleged missing 35,000 metric tons of PMS.
Nnanna Igbokwe, chairman of the Committee issued the directive after perusing all the documents submitted by DPR and Petroleum Pricing Marketing Company (PPMC) and other agencies.
He explained that the Committee could not trace about 35,000 metric tons of the PMS under the custody of Sea Clippers Shipping Company hired by Total to convey the products.
The committee also expressed displeasure over the 35 queries issued against Total Plc on its failure to adhere to rules of engagement on crude oil lifting.
Igbokwe said: “The documents we have before us which was submitted by you (Total) and DPR showed that 35,000 metric tons of Nigerian people’s PMS is missing. Where did Nigeria National Petroleum Cooperation ask you to deliver the product?”
While responding, Olalere Babasola, who spoke on behalf of Total Plc requested for more time to submit the authorization letter by NNPC regarding where the product was discharged.
“I am quite convinced that we discharged the PMS because it is the NNPC that authorizes where to discharge products,” Babasola said.
While ruling on the matter, the Chairman said, “in view of the fact that Total cannot give the committee the whereabouts of the 35,000 metric tons, the MD of Total is hereby summoned to appear before the committee,”
To this end, Igbokwe directed Total Plc to provide statement of fact, electronic receipts and clearance certificate for all products lifted and discharged as well as documents showing Total’s indebtedness to federal government.
