$16bn Egina Oil Project: Unqualified Firm Got N50bn Contract –Senate Panel

Senate Ad Hoc Committee investigating Local Content and Cost Variation on the $16 Billion Egina deep sea oil project has discovered how an unqualified company, NOV Oil and Gas Nigeria Limited, got  N50 billion contract from Total Upstream Nigeria Limited, contrary to the Nigeria Oil and Gas Industry Content Development (NOGICD) Act of 2010.

The discovery was made when the Managing director of NOV Oil and Gas Nigeria Limited, Mr. Bertrand Huet, appeared before the committee, to brief it on its initial $163 million contract from Total, which was later varied to $200 million (N50 billion).

During questioning by the Senator Solomon Adeola panel, yesterday, on the basis of documents submitted by the company, Total Upstream, NAPIMS and Nigerian Content Development Monitoring Development Board (NCDMB), Huet, a French citizen, admitted that he solely owns the company without any shareholding for Nigerians, a fact that completely disqualifies the company from getting such contract in Nigerian oil and gas sector .

By the NOGICD Act of 2010, all such companies operating in Nigeria oil and gas sector must have a shareholding of 51 percent for Nigerians and 49 percent for others, to be given approval by NCDMB, the regulatory body on Local Content law.

In a statement by his Media Adviser, Chief Kayode Odunaro, senator Adeola stated that the company which got the N50 billion contract is a one man business, solely owned by the managing director and added that the company was solely incorporated to corner some aspects of the Egina project that should have been done by Nigerians,

“There is need to unveil the true identity of NOV Oil and Gas and its operations in Nigeria. Once that is done, to ascertain that the company has not breached Nigerian laws in its ownership structure, we can, then, go into the suspicious variation of its contract from $163 million to $202 million and related matter of non-adherence to Local Content law which denied Nigerians an opportunity for training, capacity building and transfer of technology” the lawmaker stated.

Adeola said as representatives of the people, senators “will not allow any foreigner to do what they cannot do in their countries here in Nigeria or engage in practices that do not meet international best practices which shortchanges the people of Nigeria and Nigerians.”

In a related development, Senator Adeola ordered that two similar companies, AVEON and GILS Automation, engaged in the Egina project, billed to appear before the committee but refused, risk having their chief executives arrested if they refuse to show up in the next 24 hours.

He added that their non-appearance, after being duly invited, suggested they have something to hide in the Egina project.

“The companies should not allow Senate invoke sections 88 and 89 of the 1999 Constitution, as amended, to order for a warrant of their arrest,” said Adeola.

He, however, directed NCDMB executive secretary to stop all dealings and approvals for the companies pending their appearance before the committee.