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Kachikwu/Baru Feud: I Approved NNPC Contracts, Says Osinbajo |The Republican News

 

 

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Vice President, Yemi Osinbajo

 

From: Juliana Taiwo-Obalonye, Abuja

Vice President Yemi Osinbajo has admitted to approving contracts for the Nigeria National Petroleum Corporation (NNPC) which had become contentious between the Minister of State for Petroleum Resources, Ibe Kachikwu and the NNPC Group Managing Director (GMD), Maikanti Baru.

Senior Special Assistant on Media and Publicity, Laolu Akande, in a series of tweets on his twitter handle @akandeoj, on Thursday, confirmed that the contracts were approved after due diligence by the Vice President when he acted as President, recently.

Akande said Osinbajo approved the recommendations for the contracts as part of necessary actions to deal with the backlog of unpaid cash calls and incentivise investments.

He said Osinbajo made the clarification in view of media enquiries that followed NNPC’s claim that the contracts were indeed approved by Osinbajo.

The tweets stated: “In response to media inquiries on NNPC joint venture financing, VP Osinbajo, as Ag President approved recommendations after due diligence & adherence to established procedure. Action necessary to deal with a huge backlog of unpaid cash calls which Buhari administration inherited and also to incentivise much needed fresh investments in the oil & gas sector.”

Kachikwu’s letter to the President in which he alleged gross insubordination by the Group Managing Director of the Nigerian National Petroleum Corporation(NNPC) Maikanti Baru, was leaked to the media last week.

He had alleged that Baru using the NNPC awarded $25 billion contracts without following due process.

He had also alleged that the $25 billion contract was struck without consulting the office of the Minister of State for Petroleum Resources or the board of the corporation.

Baru has earlier in the week responded to Kachikwu’s allegations of lack of adherence to due process in the award of NNPC contracts.

He had said in a statement that the allegations were baseless and due process was followed in all of its activities.

On the allegations by the minister that major contracts were never reviewed or discussed by the NNPC Board, Baru said that the law and the rules do not require a review or discussion with the Minister of State or the NNPC Board on contractual matters.

“What is required is the processing and approval of contracts by the NNPC Tenders Board, the President in his executive capacity or as Minister of Petroleum, or the Federal Executive Council (FEC), as the case may be.

“There are therefore situations where all that is required is the approval of the NNPC Tenders Board while, in other cases, based on the threshold, the award must be submitted for presidential approval. Likewise, in some instances, it is FEC approval that is required,” the statement said.

It stated further: “It should be noted that for both the Crude Term Contract and the Direct Sale and Direct Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10 billion and $5 billion respectively placed on them in the claim of Dr Kachikwu.

“It is therefore inappropriate to attach arbitrary values to the shortlists with the aim of classifying the transactions as contracts above NNPC Tenders Board limit. They are merely the short-listing of prospective off-takers of crude oil and suppliers of petroleum products under agreed terms.

“These transactions were not required to be presented as contracts to the Board of NNPC and, of course, the monetary value of any crude oil eventually lifted by any of the companies goes straight into the federation account and not to the company.”

NNPC said Kachikwu was expressly consulted by the GMD and his recommendations were taken contrary to the assertion that he was never involved in the 2017/2018 contracting process for the crude oil. (The Sun)

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Early Oil Exploration Not Financed By The North Or Nigeria But By Foreign Oil Companies |RN

Oil-exploration-in-Nigeria

By Ike A. Offor

A lot of lies have been told by some Northern elder statesmen about how early oil exploration was financed by groundnut proceed from the region and these lies are being spread in some circles and some gullible people do imbibe them and run with them.

But the truth is that these foreign companies financed by themselves their oil explorations and exploitations in Nigeria.

The Republican News has dug up some facts on this and would like to share them with our readers and audiences.

The history of oil exploration in Nigeria dates back to 1907 when Nigerian Bitumen Corporation conducted exploratory work in the country; however, the firm left the country at the onset of World War I.

Thereafter, licenses were given to D’Arcy Exploration Company and Whitehall Petroleum. However, neither company found oil of commercial value and they returned their licenses in 1923. A new license covering 357,000 square miles (920,000 square kilometres) was given to a new firm called Shell D’arcy Petroleum Development Company of Nigeria.

The new firm was a consortium of Shell and British Petroleum (then known as Anglo-Iranian). The company began exploratory work in 1937. The consortium was granted a license to explore oil all over the territory of Nigeria but in 1951 and then between 1955 and 1957, the acreage allotted to the company in the original license was reduced.
Drilling activities started in 1951 and the first test well was drilled in Owerri area. Oil was discovered in non-commercial quantities at Akata, near Eket in 1953. Prior to the Akata find, the company had spent around 6 million pounds in exploratory activities in the country. Shell-BP in the pursuit of commercially available petroleum found oil in Oloibiri, Nigeria in 1956. Other important oil wells discovered during the period were Afam and Bomu in Ogoni territory.

Production of crude oil began in 1957 and in 1960, a total of 847,000 tonnes of crude oil was exported. Towards the end of the 1950s, non-British firms were granted license to explore for oil: Mobil in 1955, Tenneco in 1960, Gulf Oil and later Chevron in 1961, Agip in 1962, and Elf in 1962.
But after nearly 50 years searching for oil in the country, Shell-BP discovered the oil at Oloibiri in the Niger Delta. The first oil field began production in 1958.

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