It is no longer news that 83 per cent of the nation’s oil blocks are in the hands of Northerners and that they were awarded without any clear guidelines. The news is that efforts are being made to prevent a recurrence through the instrumentality of the Petroleum Industry Bill. UDEME AKPAN reports.
When President Goodluck Jonathan sent the nation’s new Petroleum Industry Bill, PIB to the National Assembly last July, he did not envisaged much controversy and delay for some reasons.
First, the former PIB had passed through many stages without much ado before lawmakers abandoned it. Second, Jonathan seemed to have based the activities on the petroleum industry when he stated in the 2013 budget speech that much would be done to boost investment.
Third, many stakeholders were familiar with the various issues as well as the relevance and the urgency for early passage.
Moreover, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke who expressed optimism for the early passage had stated that: “We have had to review it in great detail and rework the bill to reflect as much as possible the entire spectrum of what we considered will be the substantial strategic framework for the petroleum industry and the amalgamation of over 16 laws in the oil and gas sector, that will carry this sector for years to come.”
Unfortunately, this was not to be. The PIB has probably generated much controversy than any other single bill in the contemporary history of law making in Nigeria.
The important bill went through preliminary stages with minor opposition. The disagreement however reached its climax a few weeks ago when some northern legislators came out to state that they would not support the PIB as it was packaged to enhance the cause of the Niger Delta.
Prior to that, the Northern governors had established a committee to advise them on the contents of the bill. Specifically, the Ahmed Mansur-led committee was tasked to study, identify and advice them with implications of the PIB for the northern states.
Specifically, the committee reported that: “on top of the 13.5 per cent statutory derivation from the Federation Account, the mandatory Federal allocation to the Ministry of Niger Delta, the Niger Delta Development Commission (NDDC), levy of three percent of oil operations and the huge amount of federal funds being spent on the Niger Delta Amnesty programme, the new PIB is adding 10 percent of the profit of all oil and gas companies to the Niger Delta states and communities.”
It noted that the PIB did not explicitly recommend the supply of gas to the region who desires to apply it for the socio-economic development. The committee also felt uncomfortable with the proposed establishment of a national oil company, the National Gas Company and the National Petroleum Assets Management Corporation.
Consequently, close watchers of developments at the Senate did not expect a smooth sail for the PIB when the second reading started last Tuesday for some reasons. First, the senators were already divided along two major lines. While some, especially South South legislators were in favour of the PIB; their northern counterparts were completely opposed to the bill because of some factors.
They argued that it was not proper for the PIB to confer excessive powers on the Minister of Petroleum Resources, allocated 10 per cent funds to host communities and failed to provide financial autonomy for the National Frontiers Exploratory Agency vested with the responsibility to carry out oil and gas exploration in the nation.
Reacting, the Niger Delta leaders who felt cheated started to probe into the ownership and control of oil blocks in their region only to uncover that influential northerners control 83 per cent of them. For instance, the Chairman of the Senate Committee on Rules and Business, Senator Ita Enang who called for the abrogation of the blocks warned that the situation was not acceptable. The questions most people ask asking are: Who are these influential northerners? Which are the oil blocks? What are their values?
A document displayed by Enang identified the northerners to include Alhaji Mai Deribe, General T. Y. Danjuma, Mallam (Prince) Sanusi Lamido, Alhaji (Col.) Sani Bello of Kontangora, Dr. Rilwanu Lukman, Alhaji Mohammed Indimi and Alhaji Aminu Dantata.
Enang said that Deribe from Borno State owns Cavendish Petroleum, operator of the OML 110 with average revenue of about N4bn monthly. He said Lamido is majority shareholder and director in Seplat/Platform Petroleum, the operators of the Asuokpu/ Umutu Marginal Field while Danjuma remains the undisputed promoter of South Atlantic Petroleum Limited, SAPETRO, who is also the Chairman of Eni Nigeria Limited.
Available records showed that SAPETRO partnered with Total Upstream Nigeria Limited, TUPNI, and Brasoil Oil Services Company Nigeria Limited to become the CONTINUED FROM PAGE 2 operators of OPL 246. Enang stated that Bello owns AMNI International Petroleum and Development Company, the operators of OML 112 and OML 117. The legislator stated that the former Minister of Petroleum and former Organisation of Petroleum Exporting Countries, OPEC Secretary General, Lukman manages AMNI oil blocs and with very key interest in the NNPC/Vitol trading deal. He stated that: “Oriental Energy Resources Limited, a company owned by Indimi runs three oil blocs: OML 115, the Oldwok field and the Ebok field; Dantata’s Express Petroleum and Gas Limited, operates OML 108, while OML 113 allocated to Yinka Folawiyo Petroleum Limited is owned by Alhaji Wahab Folawiyo.
Enang stated that: “Alhaji Saleh Mohammed Gambo, the operator of North East Petroleum Limited, is the holder of the OPL 215 licence. The company was awarded the blocs OPL 276 and OPL 283 and closing thereupon a Joint Venture Agreement with Centrica Resources Nigeria Limited and CCC Oil and Gas. He stated that INTEL is owned by Atiku, Yar’Adua and Ado Bayero and has substantial stakes in Nigeria’s oil exploration industry both in Nigeria and Sao Tome and Principe.
Enang remarked that: “Mike Adenuga’s Conoil is the oldest indigenous oil exploration industry in Nigeria with six oil blocs, while OPL 291 was awarded to Starcrest Energy Nigeria Limited, owned by Emeka Offor, which was sold to Addax Petroleum.” Available records showed that these oil blocks are located onshore (land) and offshore (water) with some billion barrels of reserves that can sustain commercial production for several years.
A source at the Department of Petroleum Resources, DPR who preferred not to be named put the value of the blocks at billions of dollars. A source in the Ministry of Petroleum stated that: “This should be expected because most former Presidents or Heads of States intervened in the allocation of the blocks without any clear guidelines.
They just gave the blocks to whosoever they wanted without taking advice from anybody. A former Minister of Petroleum Resources, Professor Tam David, in a telephone interview with Saturday Mirror put the blame for the lopsidedness in the allocation of the blocks on former President Ibrahim Babangida. David-West stated that the General Muhammadu Buhari regime which he served as Petroleum Minister did not award any blocks without due process.
The former minister stated that: “It is very unfortunate for a minister to have an oil block. I did not have an oil block because we played the game according to the rules. I did not even have a filling station. Owning an oil block is like getting a gold mine. It amounts to billions of dollars. It shows the high level of corruption and in-discipline in the leadership of the nation.”
David-West however called on the Federal Government to investigate the development in order to correct the anomaly and injustice. He called also called on stakeholders, especially the National Assembly to draft the PIB in a manner that would be impossible for ministers and Presidents to have such enormous powers in the management of the nation’s oil blocks in future.
This is in line with the position of Niger Delta leaders. For instance, the Ijaw National Congress, INC, tasked President Goodluck Jonathan to revoke the oil blocs.
The President of INC, Chief Joshua Benaimaisia accused the northern governors and others for fuelling the anti-Niger Delta activities in the National Assembly. Benaimaisia stated that: “Another war is in the offing in the Niger Delta if the PIB is not passed as it is. This is total respect for the owners of the resources and we may be forced to ask for total resource control.
As he puts it: “We are demanding Jonathan to revoke all oil blocs in the country. Let them bring all the issues to the table so that we can discuss it. We want a national conference. If the PIB bill fails and derivation is not approved for the oil communities, no more oil exploration will take place in the region until things are done properly.
The Prof. Pat Utomi-led United Niger Delta Energy Development Security Strategy, UNDEDSS, also demanded that the Federal Government scrap ownership of all oil blocks in Nigeria.
Speaking to newsmen in Lagos, UNDEDSS, through its Secretary-General, Mr. Tony Uranta, said that government should scrap ownership of all oil blocs and begin at zero point to re-allocate them in the spirit of fairness and equity.
The new PIB was consequently committed to the Joint Committee on Petroleum (Downstream and Upstream, Gas and Judiciary, Human Rights and Legal for further legislative work. The committee has six weeks to conclude public hearing and report to the entire Senate. The Senate President, Senator David Mark seemed to be impressed has appealed to his colleagues to be guided by their sense of patriotism than any other considerations
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