THE House Representatives
on Wednesday urg
ed the Nigerian National Petroleum Corporation, NNPC and its Joint Venture Partners to always adhere to due process in their transactions to eliminate prolong disputes that may negatively impact on investments.
The House resolution followed an investigation into $260 million contracts allegedly awarded by the National Petroleum Investment Management Services ( NAPIMS), a subsidiary of NNPC in violation of due process and without approval from both the NNPC’s board and the Corporation’s Group Executive Committee (GEC).
The House while considering the recommendations of the committee on Petroleum Resources, Upstream approved the following recommendations, “Also urge the NNPC and its Joint Venture Partners to always adhere to due process in their transactions to eliminate prolong disputes that may negatively impact on investments;
” Given that since the contract for the provision of the DP2-DP3 Construction Platform Support Vessel single sourced to GMT Energy Limited is already ongoing, the Contractor should be given enough termination notice by demobilizing it at a date not later than the first year anniversary of the commencement date of the contract.;
“That given both the Nigerian content human capital development and financial investment already made by Tilone Subsea Limited,mother committee recommends that the NNPC Board do approve the NAPIMS memorandum of 30 December 2013 which cleared NAPIMS Contract Review Committee on 10 July 2014 referenced A10-190614 for the provision of OIMR Vessel and WROV for Usan operations in OML 138;
” That EEPNL should mobilize Tilone Subsea Limited to provide OIMR Vessel and WROV Services to meet its requirement after the demobilization of GMT Energy Limited.”
Also, the House has approved the governance aspect of the Petroleum Industry Bill that provides for transparency and international best practices in the country’s oil sector.
The bill among others unbundles the NNPC and approves the merger of subsidiaries.
The report considered by the House is of the Ad-hoc committee on Petroleum Industry on a bill for an Act to provide for the governance and institutional framework for the Petroleum Industry and for other matters related.