Reps call for the enforcement of directive by President Muhammadu halting payment into Joint ventures

Reps call for the enforcement of directive by President Muhammadu  halting payment into Joint ventures

 House of Representatives has called for the enforcement of directives by President Muhammadu Buhari’s directive to halt the payment of multi-billion dollar revenue accruing from Joint ventures with International Oil Companies (IOCs) into the Joint venture accounts.

Chairman, Ad-hoc Committee investigating the Joint venture Agreement entered into by NNPC. Hon. Abubakar Fulata stated this while addressing managements of Nigeria Extractive Industries Transparency Initiative (NEITI), Ogbonnaya Orji represented by Director of Technical Services Dieter Bassi.

NEITI’s Director for Technical Services, Dieter Bassi who assured the Committee he will check the information, however gave  account of various payments made for assets divested to Nigerian Petroleum Development Company Ltd (NPDC) from Nigerian Agip Oil Company Joint Venture.

He told the  Committee that NEITI in its reports over the years, recommended that Joint Venture operations should be operated as separate business, adding that there are a lot of issues on Cash Calls where the Federation is not paid as at when due but relied on the IOCs to pay the money.

The Committee also observed documents signed on the Escravos Gas to Liquid contract  between Nigeria and Chevron, that similar project was executed at the cost of $2 billion in Qatar.

 Responding to questions from the lawmakers, Chevron Chief Executive Officer, Mr. Rick Kennedy, said though,the project have similarity with the one in Nigeria but Chevron does not have interest in the Qatar project as alleged. 

Mr. Monday Ovuede ,Chevron’s Director in charge of Joint venture, on his part  affirmed that similar Escravos Gas to Liquid project was estimated at $1.9 billion in 2005 was reviewed to $2.9 billion but in the course of execution, a number of items occurred that were unforeseen during the time the estimates were made leading to the project gulping 10.3 billion dollars.

 Giving his ruling,  Hon. Fulata directed Chevron management to “Write to Committee, justifying why the expenses on Escravos Gas to Liquid project in Nigeria is way higher than that of Qatar.

Chevron was directed to include the timeline of the venture committee meetings ascertain the reason for the cost increments.

 Chief Executive Officer of Nigerian National Petroleum Corporation (NNPC) Limited, Dr. Mele Kyari who was also before the Adhoc Committee assured to be accountable to the Nigerian people and the National Assembly..

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