The South-South Reawakeing Group (SSRG) has accused the Nigerian National Petroleum Company Limited (NNPC) and its partner, TotalEnergies Upstream Nigeria Limited of allegedly conniving to undercut the Nigerian Content laws in order to "load" NNPC an extra $107,500 daily cost in hiring an operational rig for the Oil Mining Lease (OML) 130 jointly operated by the two firms.
OML 130 is located in the deepwaters of the Niger Delta adjacent to the Nigeria Sao-Tome Joint Development Zone. The block contains the onstream Akpo gas-condensate field, and Egina, which is under development by TotalEnergies.
SSRG in a statement issued yesterday by its Coordinator, Joseph Ambakaderimo, which was sent to THISDAY, alleged that the NNPC and TotalEnergies were plotting to violate the standard procurement process involved in hiring a rig for OML 130 in the next drilling campaign.
It added that a local oil company, PALMERON Nigeria Limited, had participated and won the open competitive tender for the OML 130 drilling campaign in December 2021 and that the company was awarded a letter of intent with a commitment from TotalEnergies for it to procure the rig and bring it into Nigeria.
PALMERON, according to the group, came up with a plan to own the first Nigeria Drillship via a bareboat charter agreement with an obligation to purchase the rig with an arrangement for the rig to carry the Nigerian flag and along the way, build local capacity and possibly venture into the international market.
Following the successful bid and a little bureaucracy, according to SSRG, PALMERON had written severally to TotalEnergies about other interested parties willing to employ the Drillship and needed to know if TotalEnergies was still interested in the Drillship.
The group stated that each time, TotalEnergies reconfirmed their interest and requested that PALMERON continue to make the rig available for their drilling campaign.
The group further claimed that PALMERON and their partner spent around $1.5 million every month to keep the rig for TotalEnergies since December 2021 following the Letter of Intent.
SSRG, in the statement, condemning what it claimed as an attempt by a high level official of the NNPC to undermine the process.
The statement reads: "Shockingly, in August 2022, TotalEnergies sent a request to award the contract to a consortium comprising TIREX, a company which did not participate in the tender process. This action prompted PALMERON to make a formal complaint to the GCEO of NNPC. PALMERON expressed disappointment and shock about the inappropriateness of how an illegal evaluation was carried out by NAPIMS and TotalEnergies to disadvantage the winner of the Tender.
"It is shocking to know that TotalEnergies and NAPIMS in August was considering awarding the contract to the consortium of TIREX, Derotech and Noble Drilling at a daily rate of $430k as compared to PALMERON lower rate of $322, 500.
"It is unacceptable that the tender process has been frustrated and delayed to accommodate the interest of TIREX/Noble Drilling and Derotech. This action raises some questions why respectable organisations will accommodate such improprieties intentionally planned by some individuals to frustrate the award of the contract to PALMERON by ignoring due process which is undistinguishable to criminality, fraud or abuse of due process and deliberately deceiving others to secure unfair and unlawful gain in favour of another contractor and to avoid fulfilling a legal obligation to award the contract to PALMERON.
"The Letter of Intent (LOI) issued to TIREX consortium is a questionable behaviour, which was not committed in error but rather intentional as it involves a lot of secretive and non-authorised actions of which PALMERON is a victim. (This action is against NNPC and TotalEnergies anti-corruption and anti-bribery policies)."
The petitioner also alleged that the National Petroleum Investment Management Services (NAPIMS), now NUIMS, through a senior official went on to forge documents to project the TIREX consortium, which was not a participant in the December 2021 competitive tender and at the same time push out PALMERON.
However, reacting to the allegations, the Country Communications Manager, TotalEnergies Country Services, Dr Charles Ebereonwu, said in a mail response to THISDAY that the said SSRG was an organisation unknown to the company.
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He added that the statement related to an ongoing confidential, commercial transaction and matters which were subject of an ongoing lawsuit.
"Thank you for your email drawing our attention to an alleged statement by the South-South Reawakening Group (SSRG) which is an organisation unknown to us.
"Please, be informed that the statement relates to an ongoing confidential, commercial transaction and to matters which are a subject of an ongoing lawsuit.
"We are, therefore, unable to comment, and reserve all of our legal rights", Ebereonwu said.
Efforts made to get NNPC's response to the allegations proved abortive as the company's spokesman, Mr. Garba Muhammad refused to respond to messages sent to him by THISDAY, as at the time of filing in this report.
