Teddy Oscar, Abuja
The House of Representatives has urged the Federal Government to revoke the oil bloc it granted to Shell Nigeria Exploration and Production Company Limited (SNEPCO) and AGIP involving Malabu Oil owned by Mohammed Abacha.
This is contained in the report of an ad hoc committee that investigated the Federal Government and Shell/Agip companies and Malabo Oil and Gas Limited in respect of the Oil Prospecting Licence (OPL 245).
The report was earlier listed for consideration yesterday, but was put off till next Tuesday, following stiff opposition from some lawmakers, who claimed that they had not seen copies of the document.
Headed by Hon. Leo Ogor, deputy House leader, the committee recommended that the agreement be cancelled because “it was based on a highly flawed resolution agreement entered into between Malabu Oil and Gas (owned by Mohammed Abacha) SNEPCO and Nigeria Agip Exploration (NAE) with the federal government acting as obligator.”
The committee observed that the resolution agreement ceded away “our national interest and further committed Nigeria to some unacceptable indemnities and liabilities while acting as an obligator.”
It said: “Clause 17 of the resolution agreement commits the federal government of Nigeria to indemnity, and even defend Shell Nigeria Ultra Deep Ltd (SNUD), SNEPCO, NAE from and against all suits, proceedings, claims, demands, losses and liability of any nature or kind, including but limited to all litigation costs, attorney’s fees, settlement payments, damages and all other related costs and expenses, based on, arising out of or in connection with the resolution agreement and or the issuance of the Oil Prospecting Licences in respect of Block 245.”
The committee said her findings and that of the EFCC indicate that Mohammed Sani Abacha owns 50 percent of Malabu Oil and Gas Ltd, while Kweku Amafegha (Dan Etete) owns 30 percent and Pecos Energy Ltd 20 percent.
Other recommendations include: “that the federal government through the ministry of Petroleum Resources and Office of the Attorney General of the Federation facilitates a new resolution agreement in line with the Petroleum Act, and the Indigenous Concession Programme (ICP) of Government that guided the initial allocation of OPL 245 to Malabu Oil and Gas, as a situation where the resolution agreement diverted 100 percent of the beneficial ownership to two foreign companies is contrary to our national aspirations.
“That NAE be formally censured or reprimanded by the House for its role in the resolution agreement which lacked transparency and did not meet international best business practices. That in line with global best practices, accountability and transparency, individuals and financial institutions linked with and found culpable by the EFCC of receiving and transferring money unlawfully with respect to or arising out of the resolution agreement should be charged to an appropriate court of competent jurisdiction, and any such monies unlawfully transferred should be recovered.”
