Senate summons British coy over $3.3b oil deal

The Senate Committee on Local Content has summoned a British firm, BP Oil International Limited over a $3.3 billion pre-financing crude oil deal that may have breached the Nigerian Oil and Gas Content Development (NOGICD) Act 2010. In the summon to the Chief Executive Officer, Mr. Robert Dudley, the chairman of the senate committee Senator Solomon Adeola (APC, Lagos West) stated that following complaints from a Nigerian firm, Alsaa Gas and Shipping Nigerian Limited (AGSN) on a $3.3 billion pre-financing crude oil contract, a probable infraction of the NOGICD Act 2010 and possible fraudulent acts against a Nigerian firm may have occurred.

The Nigerian company has provided technical and local industry knowledge support for BP Oil International Limited in the contract process with an agreement for a $0.10 per barrel of crude oil of the deal which was unilaterally revoke by the British firm. The chairman of the Committee pointed out that part of its oversight responsibilities and functions includes to ensure that local companies are not undermined in their dealings with big foreign entities as well as ensuring compliance for NOGICD Act.

The British company whose letter of summons was routed through Ministry of Foreign Affairs as well as copied to is local representative in Lagos is expected to appear on March 28,2018 with “all emails, documents, agreements(signed and unsigned) between yourself, NNPC and AGSN relating to the contract” as well as all “ transactional negotiation documents and offers, term sheets and any legal documents to do with dealings with NNPC in this pre-financing opportunity including all correspondences from GED Finance, Group Managing director and Standard Chartered Bank”.

Senator Adeola who said failure of the British firm to appear before the Committee may lead to invoking parliamentary powers under the 1999 Constitution of the Federal Republic of Nigeria added that it is regrettable that some of the infractions against the spirit and letters of the NOGICD Act are perpetrated with active collaboration of some Nigerians.

Share:

Author: see naija

Leave a Reply

Your email address will not be published.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