Hector Igbikiowubo
27 April 2006
Abuja — THE Federal Government has offered the Chinese state oil firm four oil exploration licences in exchange for a four-billion-dollar investment in the country's infrastructure as part of plans to boost investment and achieve exponential growth for the wider Nigerian economy.
President Hu Jintao arrived Abuja yesterday at the start of a two-day visit to Nigeria.
The two countries thereafter signed seven development agreements granting Nigeria export credit to the tune of $500 million.
Mr Tony Chukwueke, Director-General of the Department of Petroleum Resources (DPR) told Vanguard in Lagos yesterday that the 14 oil blocs in the 2006 mini bid round had companies with the "rights of first refusal" attached to them, adding that the round was being organised to avoid engaging in the discretionary award of oil blocs.
"We ask those engaged in the bidding exercise for this round to deposit 25 per cent of whatever bid they have posted and after a winner has emerged, we ask whoever has a 'right of first refusal' to match the bid. If you can't match the bid, then the bloc goes to the highest bidder," he said.
The DPR helmsman said both Nigeria and China had agreed to a draft proposal which would see China repairing the Kaduna Refining and Petrochemicals Company, while undertaking other investment projects in return for exercising the "right of first refusal" on the blocs.
"It is part of the memorandum of understanding we have with the Chinese, who are committed to invest four billion dollars in the Nigerian economy," he said.
He explained that while government was particular about ensuring that each of the bidding firms bring a downstream investment portfolio of two billion and above to the table, government has cleared two Niger Delta companies to participate in the round as part of efforts to encourage the active involvement of the area and its people in the exploitation of hydrocarbon resources.
The Niger Delta companies are" Cleanwaters Consortium and Ni-Delta United Oil Company, while the remaining nine participating companies are: ONGC Mittal, Global Steel Holding, INC Natural Resources Exploration, China National Petroleum Corporation (CNPC), Transnational Corporation, NAOC/Lotus, ONGC Videsh, BG/Sahara and CPC/Starcrest Energy.
Nine of the oil blocs on offer were relinquished by operators of the 1993-1998 Production Sharing Contracts (PSC) through mandatory adherence to existing regulation, while the other four blocs are those withdrawn from the 2005 bid round for which the winners defaulted in payment of signature bonus.
The operators of the 1991-1998 PSCs had to relinquish 50 per cent of the blocs awarded to them, to government in line with plans to ensure rapid development of hydrocarbon resources.
These oil and gas blocs are: OPLs 209 (from Mobil's Erha oil field), 212 (from Shell's Bonga deepwater field), 211 213, 216, 217, 218, 220 and 246 (from Total's Akpo oil field), while those withdrawn from the 2005 round for which winners defaulted includes: 289, 233, 281 and 471.
Chinese President in Nigeria
Meanwhile, President Hu was received at the Nnamdi Azikiwe International Airport, Abuja, by President Olusegun Obasanjo, members of the Federal Executive Council, diplomats and some members of the Chinese community in Nigeria.
Hu, who arrived on board a China Air flight at 3.05 local time was treated to a 21 gun salute by a detachment of the Brigade of Guards of the Nigerian Army. He also inspected a guard of honour mounted by the Guards Brigade.
The Chinese leader arrived in Abuja from Morocco with his wife and will be heading to Kenya in continuation of a week-long African tour.
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