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Senate probes Shell over Joint Venture default, seeks $200m refund to FG

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Senate probes Shell over Joint Venture default, seeks $200m refund to FG

 

By John Akubo

For failing to comply with the Petroleum Act thereby breaching the Joint Venture Agreement entered into with the Federal Government the Senate, on Wednesday, constituted an Ad-Hoc Committee to investigate Shell Petroleum Development Company (SPDC)

The Ad-Hoc Committee was mandated to probe the Oil Mining Lease granted to SPDC between 1959 to 1989 and 1989 to 2019 under the SPDC/NNPC Joint Venture agreement.

The Ad-Hoc Committee which was constituted by the Senate President, Ahmad Lawan, has Senator Aliyu Sabi Abdullahi as its Chairman.

Other members on the panel include Senators George Thompson Sekibo, Abdullahi Yahaya, Bassey Albert Akpan, Olamilekan Solomon Adeola, Smart Adeyemi, and Aishatu Dahiru Ahmed.

Accordingly, the chamber demanded a refund of $200 million (USD) or any amount short of what was paid by SPDC, including penalties and interests under the said lease agreements to the coffers of the Federal Government.

The resolution was reached by the chamber after it considered a motion sponsored by Senator George Thompson Sekibo (PDP, Rivers East).

The motion was entitled, “non payment of the sum of $200,000,000 accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement and, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”

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Sekibo, in a presentation, observed that the SPDC/NNPC Joint Venture (JV) agreement, in contravention of the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, granted to the SPDC/NNPC a 30-year Oil Mining Lease from 1959 to 1989.

He observed that doing so constituted an illegal extension of the Oil Mining Lease by 10 years in the first instance, instead of the prescribed term of 20 years, without recourse to the provisions of the Petroleum Act 1969 in paragraph 10 of the First Schedule.

According to the lawmaker, “upon the expiration of the initial Oil Mining Lease in 1989, SPDC/NNPC JV, was granted another 30-year Oil Mining Lease again from 1st July 1989 to 30th June 2019, by the Ministry of Petroleum Resource/DPR instead of the 20 years lease period prescribed by the Petroleum Act, which is contrary to paragraph 10 of the First Schedule to the said Act”.

He disclosed that in the initial additional 10 years Oil Mining Lease of 1969 to 1989, illegally granted to the SPDC/NNPC JV by the Ministry of Petroleum Resources/DPR, the Federal Government lost from fees, taxes, rents, and royalties the sum of $120, 000, 000.

He stated that in the second instance of the extra 10 years the Federal Government also lost a further sum of $80,000,000, making a total of $200,000,000.

He noted that a loss of $200,000,000, which is equivalent to N83, 130, 000, 000 billion, could have been of great value to the economy of the nation.

He observed that the illegal action by the Ministry of Petroleum Resources/DPR as regards the SPDC/NNPC JV may not be the only non-compliant grant as details of other Joint Venture agreements with Chevron Nigeria Limited, ENI Joint Venture, EXXON Mobil Upstream JV, Total E & P Nigeria Limited JV, need to be ascertained through a thorough investigation to verify compliance with the provisions of the extant law.

He expressed worry that the trend of illegal extension of Joint Venture (JV) period from 20 years to 30 years lease period without recourse to the Petroleum Act may have also applied to other Joint Venture agreements with the International Oil Companies (IOCs) and need to be investigated.

Sekibo informed the chamber that SPDC went to Court on the clarity of the lease period and the judgment was not in their favour as regards the additional 10 years lease period in the two instances.

“Regrettably, the court failed to order the SPDC to pay the arrears the 20 years lease period to the tune of $200,000,000 to the Federal Government for the illegal extensions”, he said.

The lawmaker further disclosed that a whistle-blower petitioned the EFCC on the need to recover the sum of $200,000,000 from SPDC for these illegal extensions by the Ministry of Petroleum Resources/DPR and to further investigate all other Joint Venture agreements that involved the aforementioned IOCs.

He noted that the power to make laws for the Federation as vested in the National Assembly by the Constitution also encompasses the power to make laws for the promotion of national prosperity and a dynamic self-reliant economy as provided in section 16(1)(a) of the 1999 Constitution of the Federal Republic of Nigeria as amended.

He emphasised that the Constitution also gives power to each House of the National Assembly to carry out an appropriate investigation on an observed misapplication of the laws enacted by the National Assembly, as provided in Section 88 of the Constitution.

He stated further that Section 89 of the same Constitution provides the process on how such investigation should be carried out.

Accordingly, the Senate resolved to constitute an Ad-Hoc Committee to investigate the non-compliance with the Petroleum Act and the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC/NNPC Joint Venture Agreement; and compel SPDC to refund to the Federal Government the sum of $200,000,000 or any amount short of what was paid, including penalties and interests under the said lease agreement.

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Why Ebola Outbreaks Keep Returning to Africa, Dr Jean Kaseya Explains

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The Director-General of the Africa Centres for Disease Control and Prevention (Africa CDC), Dr Jean Kaseya, has explained why Ebola outbreaks continue to occur in Africa, citing the need for stronger health systems and surveillance mechanisms to prevent and control the spread of infectious diseases.

Kaseya spoke during an interview on Channels Television on Thursday, October 22, while discussing recurring Ebola outbreaks on the continent and the challenges facing public health authorities.

SEE ALSO: JUST IN: Over 3,000 Dead as Ebola Outbreak Ravages DR Congo

He explained that some outbreaks originate from animals and spread to humans through contact with the environment, stressing that effective surveillance and stronger healthcare systems were necessary to address the threat.

“We are in Africa in a specific environment. And as you are saying, this outbreak is coming also from animals to humans. It means we are in contact with our environment,” he said.

“But we can avoid that if we have a strong health system in place, if we have strong surveillance mechanisms in place. And this is what we are working to address.”

The Africa CDC chief also announced plans to convene African health ministers on October 28 to discuss the Ebola Bundibugyo outbreak, which he described as the most geographically widespread outbreak of its kind.

According to Kaseya, three African regions—West, Central and East Africa—have been affected, making coordinated action among countries increasingly important.

“This is why I’m calling even a meeting on the 28th of October of all African ministers, because we see now this outbreak — this Ebola Bundibugyo outbreak — is the most geographically extended outbreak, with three regions in Africa already affected: West, Central and Eastern African regions,” he said.

He also expressed confidence in Africa’s preparedness to respond to public health emergencies, while emphasising the importance of strengthening existing systems to contain outbreaks.

Africa CDC Seeks Cooperation Over Nigeria’s Reported Ebola Case

Kaseya further called for cooperation among Nigeria, Uganda and the Democratic Republic of the Congo (DRC) to clarify the travel history of a woman linked to Nigeria’s reported Ebola case.

He said he had been communicating with health authorities in the three countries to establish the woman’s movements before she returned to Abuja on October 3.

According to him, the woman was born in Uganda and had spent some time there before returning to Nigeria. However, further information was needed to establish whether she had travelled through the DRC or had contact with anyone arriving from the country.

“We are talking to all authorities—with Nigerian authorities, with Ugandan authorities, even to DRC authorities,” Kaseya said.

He urged the woman to provide the relevant information to health officials, noting that it would help authorities determine the circumstances surrounding the case and support the countries involved.

“What we want is collaboration from this person, the lady. She has to tell us, to disclose to the authorities. I need this information, as Nigeria needs this information, because we need also to support Uganda,” he said.

Kaseya added that establishing the woman’s travel history and possible contacts would help prevent misunderstandings between the African countries.

“I think these are the pieces of information we are looking for, and it will help all of us, and it will avoid crisis between African countries,” he added.

 

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Grains-Laden Truck Falls on BRT Lane in Lagos

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A truck carrying grains fell on its side after crashing into a road median at Itowolo, along the Ikorodu axis of Lagos State, early Thursday, occupying the entire Bus Rapid Transit (BRT) lane.

The incident occurred at about 5 a.m. along the route inward Agric and towards Ogolonto, according to the Lagos State Traffic Management Authority (LASTMA), which disclosed the development on Thursday.

SEE ALSO: Lagos: LASTMA Announces Traffic Restrictions Along Route to Toll Gate

The agency identified the vehicle as a white 10-tyre mini truck and confirmed that no casualties were recorded in the accident.

LASTMA said its officers were at the scene managing the situation, while recovery of the fallen vehicle was expected to commence shortly.

Despite the truck occupying the entire BRT lane, the agency said the incident was not affecting traffic flow at the time of its update.

The authority shared the information to alert motorists to the incident and its ongoing response at the scene.

 

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Ogun Police Chief Urges POWA to Turn Skills Centre into Industrial Hub

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The Commissioner of Police in Ogun State, Bode Ojajuni, has urged the Police Officers’ Wives Association (POWA) to transform its skills acquisition centre in Abeokuta into an industrial hub to promote job creation, entrepreneurship and women’s empowerment.

According to a statement signed by the Police Public Relations Officer, DSP Oluseyi B. Babas eyi, on Thursday, Ojajuni made the call on Monday when he led members of the Ogun State Police Command’s Management Team on an inspection visit to the POWA Skills Acquisition Centre at the Command Headquarters, Eleweran, Abeokuta.

SEE ALSO: Wife Dies in Ogun House Fire as Police Take 56-Year-Old Husband Into Custody

During the visit, the POWA Acting Chairperson, Bolanle Adeoye, and members of the association’s executive received the commissioner and conducted him around the facility, including its photography and make-up studios.

The centre is designed to equip POWA members and members of the public with practical vocational skills, promote entrepreneurship and create sustainable livelihood opportunities, particularly for women and young people.

Ojajuni charged POWA to leverage partnerships with government agencies, private sector organisations, manufacturers, vocational institutions and development partners to transform the facility into a thriving industrial hub.

He emphasised that the centre’s vision should go beyond skills acquisition to include enterprise development, productive ventures and employment generation.

According to the statement, the commissioner stressed the need for the initiative to create opportunities for beneficiaries to become self-reliant and contribute meaningfully to economic growth.

Ojajuni also highlighted the relationship between economic empowerment and crime prevention, noting that sustainable livelihoods could help address socio-economic factors associated with criminal activity.

He stressed that the centre could contribute to public safety through crime-prevention awareness, constructive community engagement and opportunities that encourage women and young people to pursue legitimate and productive ventures.

Commending Adeoye and the POWA Ogun State executive for their commitment to human capital development, the commissioner pledged the command’s support for the centre.

He reaffirmed the command’s readiness to encourage strategic collaboration and partnerships that would advance the facility’s development, expand its reach and strengthen its contribution to empowerment and community safety.

The Ogun State Police Command reiterated its commitment to supporting initiatives that promote productive engagement, strengthen community resilience and advance public safety across the state.

 

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