THE Federal Government on Wednesday expressed concerns about its ability to get $62 billion claims as arrears of profits due from 1998 under the production sharing contracts (PSCs) between the Nigerian National Petroleum Corporation (NNPC) and its joint venture partners.
This came as the Federal Executive Council meeting presided over by President Muhammadu Buhari approved a total of N5.4billion in contract awards involving the Ministries of Petroleum, Aviation and Transportation.
Minister of State, Petroleum Resources, Timipre Sylvia, Minister of Aviation, Hadi Sirika, and Minister of State Transportation, Gbemisola Saraki, briefed State House correspondents after the Council meeting at the Presidential Villa, Abuja,
Sylva, who disclosed that the government has opened talks on the said claims, said: “Well, we have started discussions. Let us consider that as a lost opportunity, the money was not in a cupboard, they have taken it.
“Nobody can bring out that kind of money, I mean, we can’t get $62billion. We can maybe get something from them but not $62billion. It’s an opportunity we have lost.
“We have already started discussions with them but that is what is clear that it is a lost opportunity really.
“The amendment of the bill cannot be retroactive. Laws cannot be retroactive, we have to look forward,” he said.
It would be recalled that the international oil companies have taken the matter before the Federal High Court in Lagos and are denying any liability.
The six international oil companies with joint operating agreements with the NNPC include Shell Petroleum Development Company, Mobil Producing Nigeria Unlimited and Chevron Nigeria Limited.
The others are Nigeria Agip Oil Company, TotalElf Nigeria and Pan Ocean Oil Company.
On the N5.4billion approved for contract awards involving the Ministries of Petroleum, Aviation and Transportation, Sylva explained that the funds would specifically be used for the construction of Oil and Gas parks, indoor shooting range to boost aviation security and the purchase of 300 buoys for Nigerian waterways.
Sylva said FEC approved N3billion for the establishment of two Oil and Gas parks in Akwa Ibom and Bayelsa states.
According to him, the parks are to support the development of Oil and Gas tools.
He said that the parks would create additional 1,000 jobs and improve security in the Niger Delta region.
”The ministry of petroleum presented two memos for the establishment of oil and gas parks. Two oil and gas parks were approved in council, one in Akwa Ibom and the other in Bayelsa State.
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”These parks are to support the development and manufacturing of oil and gas tools. As some of you know, in some countries, the service sector of the oil industry is sometimes even bigger than the oil industry itself. Unfortunate in Nigeria that sector has not really grown so much. Now, this administration is really committed to developing the service sector and that is why the oil and gas parks are being built.
”These parks will create a lot of jobs, we are looking at about 1000 additional jobs and of course it will also improve the security of the Niger Delta, ” the minister said.
Sirika, also explained that FEC approved N2.4 billion for the construction of indoor shooting range for aviation security.
This, he said, was in line with the approval for airport officials to bear arms towards boosting security at Nigerian airports.
The Minister of State for Transportation, Gbemi Saraki, said FEC approved 300 buoys for River Niger, between Lokoja and Onitsha.
The contract, she said, will cost N581 million.
”Today in council two memoranda were considered for aviation. This first is the construction of an indoor shooting range for aviation security. Recall some time ago Mr. President in conformity with the Act established Federal Airport Authority of Nigeria, FAAN, had approved that aviation security carry arms for improved security and you also recall that these aviation personnel were trained and still receiving training and profiling and all things that will make them efficient at the DSS and other sister organizations.
”And adding to that, they need tools and equipment to play the role they ought to play to keep us safe and secure. So a contract was awarded to Messrs Donteck it is a Nigerian in an association with another company called Action Targets of the US and the total contract sum is two billion, four hundred and thirteen million, nine hundred and sixty-three thousand thirty-five naira and seventy-five kobo. This includes all of the taxes and the completion period, of course, is two months and that has been graciously approved by His Excellency Mr. President. This is in line with suggestions and recommendations by the UN counter-terrorism unit and also the International Civil Aviation Organisation, ICAO.
”The memoranda that were considered and approved by council today was the ratification of the instrument of International Civil Aviation Organisation Treaties. They are five in number, there is the protocol to amend the convention for the separation of unlawful seizure of aircraft which is called The Hague Convention of 1970.
”The other one is the protocol to amend the convention for the separation of unlawful acts against the safety of civil aviation which is the Montréal Convention of 1971. Another one is the protocol to amend the convention on offences and certain other acts committed on board aircraft. This one also is called the Montréal Protocol of 2014.
”The fourth one is the protocol to amend Article 50 (a) of the Convention on International Civil Aviation Organisation, ICAO, called the Chicago Convention of December 1944. The fifth one is the protocol to amend Article 56 of the Convention of International Civil Aviation Organisation, the ICAO Convention, December 1944 at Montreal. The significance of all of these is to improve safety and security.”
Gbemi Saraki said: ”The memos that were approved by the council on behalf of the ministry of transportation was for the purchase and installation of 300 buoys on the River Niger for the Nigerian Waterways. It’s actually a repeated procurement, the first one was done in 2017 -2018 which was from Baro to Onitsha and this time we are taking it from Onitsha to Lokoja.
”It is much more, this is 300, that was 200 it is obvious to ensure that our waterways are navigable for all the vessels that will run the ports that go through.
”So the Council appreciates the importance of the safety of vessels, lives and property and it was approved. It is a six months contract that will generate approximately between a hundred and hundred and twenty direct jobs and various indirect jobs because these buoys float so they have to actually cast and have a concrete base that sits on.
”Obviously opening up of that area is part of Mr President’s programme to have the infrastructural system in Nigeria improves and strengthen because that is how it will generate wealth for everybody. The amount is N581 million and it was awarded to Messrs Marina Energy Limited.”
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