Stanley Nkwazema
23 April 2008
Abuja — The House of Representatives has set up a committee of 26 members to probe the activities of the Nigerian National Petroleum Corporation (NNPC), its subsidiaries, and the Directorate of Petroleum Resources (DPR).
The probe period, originally planned to cover May 1999 to May 2007 when Chief Olusegun Obasanjo was president, has now been extended to cover till date.
The panel will be led by the Chairman of the House Committee on Gas, Hon. Igo Aguma.
Also named as "leaders" of the committee are Chairman of the House Committee on Petroleum Resources (Upstream), Hon. Tam Brisibe, Chairman of the House Committee on Petroleum (Downstream), Hon. Claver Ikisipko and Chairman of the House Committee on Inter-Governmental Affairs, Hon. Leo Okuwe Ogo.
The House Speaker, Hon. Dimeji Bankole, listed other members as Matthew Babale, Chinyere Ike, Abike Dabiri, David Idoko, Abdul-Aziz Abdulahi, Aro Bamidele, Bello Sulaiman, Adamu Anas, Igwe Paulinus, Ajibade Muraina, Bala Banye, Bethel Amadi, Yowarse Hembe, Abbas Olopoenia and Yusuf ..
Aguma, while explaining the finer details of the committee's work, said they would follow the constitution and invite every party involved.
"There will be no sacred cows. Anybody who had dealings with the sector during the period will come and testify. We have to determine the quantity of oil and gas we have, how many barrels that have been refined and also examine the operations and activities of the DPR, NNPC and its subsidiaries," he said. "You will agree with me that Nigerians have been getting less than the desired results even with the increase of price of crude in the international market. We don't know the quantity we produce and the revenue we derive from it. It is all about making information available to all Nigerians and cooperating with Nigerians on transparency," he added.
The committee has two months to submit its report.
Hon. Halims Ochuko Agoda (Ethiope/Delta), who raised the motion which was seconded by Hon. Bethel Nnaemeke Amadi, said: "I have no doubt in my mind that if this motion is critically analysed, the good people of Nigeria and President Umaru Yar'Adua will be on the threshold of history. It is to take stock of the petroleum sector in the country and to position it for national development".
When the Speaker finally put the motion to test, there was no single member who opposed it. But the prayers of the sponsors were amended when some members added that the date should be extended from 1999 till date, rather than excluding the Yar'Adua era.
Meanwhile, the Director of DPR, Dr Tony Chukwueke, yesterday explained why some governors were listed as having been awarded oil blocks when he appeared before the House Committee on Petroleum (Upstream).
On why Jigawa State government was mentioned as one of the winners in the document he submitted, Chukwueke explained: "Jigawa made a proposal to produce ethanol in the state. They said they were going to invest $400 million in the project. The then governor led a push to produce ethanol and the former President Olusegun Obasanjo said they should be encouraged and they were qualified to participate in the bid and they were successful."
On the name of former Bauchi State governor, Alhaji Adamu Muazu, listed as the promoter of Radiant Oil, Chukwueke told the committee that Nigerians from all walks of life were not barred from pushing for oil blocks except they are serving civil servants.
"Governors represented the states. In some cases, we bundled seven governors together to form a reputable company for them to get the blocks. Bauchi governor was introduced as a serving governor who was promoting Radiant Oil. In the past, oil blocks were given to Nigerian individuals whereby they turned around to hawk them.
"We always wanted a spokesperson who can assure us they will meet up. Everybody who applied to be the Local Content Vehicle was considered. The Niger Delta people also participated and so many of them were successful," he said.
Chukwueke also disclosed that owing to the fact that DPR insists on the implementation of the agreements to invest in the downstream sector signed by the various companies before they got the blocks, most of the projects are now being carried out.
He cited the case of the Koreans who are now developing the Oben/Kaduna gas pipeline, as well as the Indians who are also doing a similar project.
Chukwueke admitted that China Petroleum Corporation /Starkrest Petroleum was included to bid for oil blocks after 10 companies had already been shortlisted in the last administration.
He said this was done with the approval of Obasanjo. Chukwueke, who shuttled between two committees of the House at the National Assembly Complex in a bid to defend the actions of his agency, stated that after 10 companies had been shortlisted following the initial approval of the former president, the two companies came later saying the Obasanjo had given the go-ahead that they should be included in the bid.
"They registered to bid but they have since relinquished the plot and the Starkrest and Addax are now operating the oil blocks," he said.
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