Oando Plc Favour Ifeoluwa & Akinola Ajibade Oando Plc says it has completed and won the bid for the operatorship of oil block KON 13 in Angola. The firm which recently acquired Eni of Italy’s oil assets in Nigeria, said that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator. It further said hat the asset in which it owns 45 per cent participating interest, has estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER). “Oando Plc, Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a...
By Favour Ifeoluwa & Akinola Ajibade
The House of Representative says that it would investigate the loss of over $60 billion revenue due to inflated cash calls by the Nigerian National Petroleum Company Limited Joint Venture Agreements.
Also, the House has mandated relevant committees to conduct a thorough probe of all NNPCL Joint Venture operations in order to determine income and cash call costs due to each partner and also know whether due process and diligence were followed on the issue.
The resolutions were passed sequel to the adoption of a motion sponsored by Hon. John Chika Okafor on the floor of the plenary on Wednesday.
Hon. Okafor,who moved the motion said NNPCL on behalf of the Federal Government operates Joint Ventures and related agreements with private oil companies in both oil and gas sectors, with the aim of providing sustainable revenue and further enhance the economic development of the nation.
He noted that that the NNPCL, as representatives of the Federal government and Federation have about 60 per cent holding while other partners account for the remaining 40 per cent.
The joint ventures, he said, operate under a “Joint Operating Agreement” that spells out the responsibilities of each of the partners in the ventures.
He noted that: “Due to bloated cash call costs, the NNPCL Upstream Investment Management Services, a unit under the NNPCL in charge of negotiation of costs (both Capex and Opex) have caused huge losses in the neighbourhood of $60bn over the years.
“The activities of NUIMS have resulted in huge revenue losses, fiscal deficits and an alarming debt profile, aware of the need to ensure probity, transparency and value for money in the NNPCL Joint Venture operations.”
Meanwhile, the House has called for the remittance of accrued 5 per cent users’ charge on petrol pump price and diesel to Federal Roads Maintenance Agency FERMA to enable it discharge its functions.
This followed the adoption of a motion by Aderemi Oseni, urging Ministry of Petroleum Resources, NNPCL, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Ministry of Finance and Office of the Account General of the Federation to ensure that the user’s charge are immediately remitted to FERMA under Section 4(1) of the agency’s (Amendment) Act, 2007.
Leading debate on the motion, Oseni said to underscore the importance of funding to road management and maintenance, Section 4(1) of the Federal Roads Maintenance Agency (Amendment) Act, 2007 provides that “The fund of the agency shall consist of 5 per cent users’ charge on pump price of petrol, diesel and of which 40 per cent will accrue to FERMA.”
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