Senate Committee on Local Content has summoned a British firm, BP Oil International Limited, over a $3.3 billion pre-financing crude oil deal that may have breached the Nigerian Oil and Gas Content Development (NOGICD) Act, 2010.
In the summons to Chief Executive Officer of BP oil, Robert Dudley, Committee Chairman, Solomon Adeola, said due to complaints from a Nigerian firm, Alsaa Gas and Shipping Nigerian Limited (AGSN), on a $3.3 billion pre-financing crude oil contract, a probable infraction of the NOGICD Act and possible fraudulent acts against a Nigerian firm may have occurred.
He said the Nigerian company had provided technical and local industry knowledge support for BP oil in the contract process, with an agreement for a $0.10 per barrel of crude oil of the deal, which was unilaterally revoked by the British firm.
Senator Adeola pointed out that his committee’s oversight responsibilities and functions are to ensure local companies are not undermined in their dealings with big foreign entities, as well as ensuring compliance for NOGICD Act.
The British company, whose letter of summons was routed through the Ministry of Foreign Affairs, as well as copied to its local representative in Lagos, is expected to appear before the panel on March 28 with “all emails, documents, agreements (signed and unsigned) between yourself, Nigerian National Petroleum Corporation (NNPC) and AGSN, relating to the contract,” as well as all “transactional negotiation documents and offers, term sheets and any legal documents to do with dealings with NNPC in this pre-financing opportunity, including all correspondences from GED Finance, group managing director and Standard Chartered Bank.”
Adeola, who said failure of the British firm to appear before the committee may lead to invoking parliamentary powers under the 1999 Constitution, as amended, added that it was regrettable that some of the infractions against the spirit and letters of the NOGICD Act were perpetrated with active collaboration of some Nigerians.