Reps flag-off probe of over $21bn crude oil revenue loss

by | February 14, 2018 6:49 pm



The Ad-hoc committee investigating the loss of crude oil worth over $21 billion and huge debts being owed indigenous companies by International Oil Companies (IOCs) flagged-off its activities commenced legislative business on Wednesday.

Daniel Reyenieju, who chaired the inaugural meeting of the Ad-hoc Committee, reiterated the resolve of the Committee to ensure transparency and fairness to all the stakeholders.

“We are expected to investigate the operations of the Deep Offshore and Inland Basin Production Sharing Contracts Act (PSC), as it concerns the NNPC and IOCs towards determining the reasons for the loss of $21 billion, enquire why appropriate steps were not taken promptly and over an inordinately long period to remedy the situation which to the loss and possibly recover the revenue.

“Accordingly, the House, requires the Minister of State for Petroleum Resources to provide it with details of financial transactions between the NNPC and IOCs during the period.

“Review the PSC, the Joint Operating Agreement and other relevant agreements, with the view to regularising all the anomalies that might have led to the loss of revenue.

“In view of the above, the Ad-hoc Committee hereby call on all local companies being owed, to furnish it with details of their respective transactions or contracts,” the Delta lawmaker said.

The affected companies are therefore required to submit 10 copies of contract related documents to the Secretariat on or before 12noon, 27th of February 2018.

He added that the second referral was to “investigate the huge debts being owed local companies and indigenous contractors by IOCs and gas companies with the view to ensuring that such debts are paid promptly.”

According to him, the Ad-hoc Committee is expected to submit its report within four weeks.

Also speaking, Johnson Oghumah (PDP-Edo) and Evelyn Oboro (PDP-Delta), explained that the idea behind the terms of reference was for the House to use its legislative oversight to strengthen indigenous companies whose works in the oil and gas sector have largely gone unrewarded.

 
KEHINDE AKINTOLA, Abuja

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