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Stop Oil Bloc Allocation Probe, Traditional Rulers Urge Senate

It is not news that the senate committee on petroleum upstream, headed by Emmanuel Paulker has commenced a probe into allegations that the Minister of … Continue reading Stop Oil Bloc Allocation Probe, Traditional Rulers Urge Senate


It is not news that the senate committee on petroleum upstream, headed by Emmanuel Paulker has commenced a probe into allegations that the Minister of Petroleum, Diezani Allison Madueke illegally transferred  four oil blocs which amounts to the sum of N58.9 trillion to Atlantic Energy Drilling Concept Limited, owned by Jide Omokore.

However a group of traditional rulers from Ndokwa in Delta State on Tuesday said the probe is unnecessary as the transfer meets the requirement for local content which is an act of the National Assembly.

They also argued that transferring oil blocs to Nigerian owned company will further help the plight of host communities since they are Nigerians, they will understand the needs of the people better.

They however urged the National Assembly to abandon the probe and instead make efforts to pass the Petroleum Industry Bill (PIB) to strengthen the nation’s petroleum sector.

It would be recalled that members of the Delta State Oil-Producing Communities had in a petition to the Committee of both the Senate and the House of Representatives alleged the secret transfer of oil blocks OMLs 26, 30, 34 and 42 to Atlantic Energy and Drilling Concept without following the due process, prompting the committee to issue summons to all stakeholders in the oil sector who are linked with the oil blocks allocation.

In the petition forwarded to the National Assembly, the communities said the ownership of these oil blocs was transferred without tendering and bidding process by the Nigerian Petroleum Development Company (NPDC) and Petroleum Minister to Atlantic energy Drilling concepts and the proven reserves in the block is five billion barrels valued at US $380 billion, about N58.9 trillion alleging that the true value of OML 30 would have been US$800 million if the NPDC had carried out competitive bidding but that the said OML 30 fetched the federation the sum of $50 million as initial entrance fee whereas they claimed that shell received $1.3 billion for its 49 per cent for its equity interest in the  same block therefore the transaction violates the provisions of the Public procurement Act.

Responding to the letters of summon issued to the Minister of Petroleum, the Group Managing Director of the Nigerian National Petroleum Corporation(NNPC), Shell Petroleum Development Company (SDPC)  among others over the claims by the community, the NNPC on its path stated that Mr Omokore’s Atlantic Energy Drilling Concept Limited should be cleared of any wrongdoing as it insisted that the strategic Alliance Agreement entered into with the company ensured that the NNPC received funds to finance  its 55 % equity interests in the affects oil blocks.

The response which was endorsed by the Group Managing Director, Andrew Yakubu indicated that the deal neither violated the Public Procurement Act nor denied government of ownership of the oil blocks and that the oil blocs does not amount to a bidding process for the allocation of oil blocks and that the Agreement is in furtherance of funding cash call obligations from alternative sources.