Energy

Reps probe loss of $21bn crude in Nigeria

Published

6 years ago

February 15, 2018

Olu Emmanuel

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The Lower chamber of the National Assembly, the House of Representatives, has commenced investigations into the loss of crude oil in Nigeria worth $21 billion.

The House of Representatives set up an Ad Hoc Committee to investigate the roles of International Oil Companies, IOCs, in fleecing indigenous firms in Nigeria.

The House had directed the committee to investigate within four weeks debts owed to indigenous companies by International Oil Companies (IOCs).

Chairman of the Ad Hoc Committee, Daniel Reyenieju (Delta-PDP), promised that the committee would work with determination to unravel the causes of the $21 billion oil revenue loss.

“We are expected to investigate the operations of the deep offshore and Inland Basin Production Sharing Contracts Act (PSC) as it concerns the Nigerian National Petroleum Corporation (NNPC) and the International Oil Companies (IOCs) towards determining the reasons for the loss of $21 billion,” Daniel Reyenieju had declared.

He said the committee would also enquire why appropriate steps were not taken over a long period to remedy the situation which led to the alleged loss and possibly recover the revenue.

He added that the second referral was to investigate the debts owed to local companies and indigenous contractors by IOCs and gas companies with a view to ensuring the debts were paid.

The Minister of State for Petroleum Resources, Ibe Kachikwu, is expected to provide the committee with details of financial transactions between the NNPC and IOCs during the period in view.

The Committee also invited all local companies being owed to furnish it with details of their respective transactions or contracts.

The House of Representatives had in January set up the ad hoc committee to investigate alleged huge debts being owed local companies and indigenous contractors by International Oil and Gas Companies.

It also mandated the committee to ensure that such debts are paid promptly.