Legislature

Senate panel probes DPR on illegal award of OML 46 to Halkin Oil, despite Buhari’s directives

Published

3 years ago

March 25, 2022

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By Yemi Itodo

The Nigerian Senate is investigating how OML 46 was illegally awarded to Halkin Exploration and Production Company Limited, by the defunct Department of Petroleum Resources (DPR), in contravention of Presidential directive.

The Senate Committee on Ethics, Privileges and Public Petitions, while interfacing with the groups involved at a public hearing on Tuesday, 22nd March, 2022, was informed that, after the revocation of the oil field, the presidency intervened, considered the numerous petitions from the various marginal owners and directed that the fields be rewarded on discretionary basis with preference to the previous owners, including the Atala Oil Field.

The public hearing followed a petition brought before the Senate dated the 5th October 2021, by Sir Daniel Chukwudozie, on behalf of Hardy Oil Nigeria Limited (HONL), against the DPR, for alleged breach of trust, corruption and illegal revocation of OML 46 and re-awarding same to Halkin Exploration and Production Company Limited, in breach of due process.

During the public hearing which was the third in the series, the representative of Hardy Oil, Barr. Ike Onwuchuluba, adopted its presentation dated 24th September 2021, in addition to the annexed documents which the company submitted to the Committee.

He submitted the subject matter of the petition bothered on the OML46 – Atala Marginal Oil Field and the improper way and manner the field that was formerly managed by the trio of Bayelsa Oil Company Limited (BOCL), Hardy Oil Nigeria Limited and Century Exploration and Production (CEPL) was revoked and handed over to a company in very shady and fraudulent circumstances, ipso facto, that Halkin Exploration and Production Limited invested $60,000,000 in the Atala Marginal Field and executed a Farm-In Agreement with BOCL.

Debunking the allegation that there was an investment of $60million and acquisition of 41 percent shares of BOCL by Halkin Exploration and Production Company Limited, Hardy Oil Nigeria Limited said: “The allocation of the field to Halkin Exploration and Production Company Limited was done and secured under fraudulent mis-representation made by Halkin.

Barr Onwuchuluba also told the Senate that the award, which was predicated on two reasons by the defunct DPR was false, adding that, Halkin Exploration and Production Company Limited was an unknown entity to the former Atala Marginal Field owners.

“They did not invest any $60m in the field, did not execute any Farm-in Agreement with BOCL and that Halkin Exploration and Production Company Limited secured OML 46 under false pretense/misrepresentation”, he added.

He also informed the Committee that the man who presented himself as the Managing Director (MD) of Halkin Exploration and Production Company Limited was the immediate past MD of Bayelsa Oil Company Limited as at the time the field was given to Halkin and stands conflicted by holding such dual positions.

“Which means that he was on one leg the MD of BOCL and on another leg the MD of Hakin. So it is not impossible that he may have used his position as the MD of BOCL to alter documents to the benefit of Halkin. And that the failure of DPR to verfy the claims of Halkin from the Atala JV Partners was in breach of the principle of fair hearing”, he submitted.

While emphasizing that the re-awarding of OML46 was under false pretense and to an unknown entity, Ike Onwuchuluba called the attention of the Senate to the fact that, the Atala Marginal Field was developed between 2014 to 2018 by the trio of BOCL, Hardy Oil Nigeria Limited and Century Exploration and Production Ltd whereas Halkin Exploration and Production Company Limited which claimed to have invested $60m in the Atala Marginal Oil Field, was incorporated sometime on the 29th September 2019, long after the field has been developed by the parties.

He further reminded the Committee that, as the original owner of the Oil field, the trio of BOCL, Hardy Oil Nigeria Limited and Century Exploration and Production Ltd have been producing and paying royalties to the account of the federal government of Nigeria and that as at the time the field was purportedly revoked, the JV-partners have an outstanding 20,700 barrels of crude on the site.

He therefore requested that the Senate should look into the matter and urge Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to immediately reinstate Atala Marginal Oil Field OML 46 to the joint venture that owns the Oil field.

In its submissions in support, the Managing Director of Bayelsa Oil Company Limited, Mr. Bello Akpoku stated that:-

“We have availed the Committee with the Memo written to the Honorable Minister of Petroleum Resources, whereby the defunct Department of Petroleum Resources (DPR) stated that the field was allocated to Halkin Exploration and Production Company Limited for two principal reasons namely; that Halkin Exploration and Production Company Limited claimed to have invested $60m to the Atala Marginal Oil Field and second was the alleged acquisition of 41% share of Bayelsa Oil Company Limited shares in the Atala Marginal Oil Field”.

He maintained that “BOCL owned 51% in the Atala Marginal Field and Halkin Exploration and Production Company Limited claim to have acquired 41% of the 51% share thereby making it the largest partner owner of the field is false”.

When he was called to react to the allegations made against him and his company, the MD of Halkin Exploration and Production Company Limited, Mr. Charles Dorgu, who could not put up a defence, claimed to be sick and urged the Committee to give him two weeks extension to come up with his defence to the weighty allegations.

The visibly infuriated Senate Committee, on its part, called on the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to interface with the groups involved and look into the matter critically and report back to them in two weeks.

The lawmakers also frowned at the refusal of Mr. Dorgu to honour their invitations for two consecutive times previously and how he made some fruitless efforts to stop the Committee from hearing the petition by resorting to litigation against the National Assembly.

The Chairman of the Committee, Senator Ayo Akinyelure, thereafter directed the MD of Halkin to provide documented evidences of how the shares were acquired and evidence of the $60million investment, if actually such were made in its submissions to NUPRC.

Legislature

CNG Safety Under Scrutiny: NASS Questions Readiness as Explosions Raise Alarms

Published

2 days ago

January 17, 2025

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National Assembly Complex

The National Assembly has called for a comprehensive reassessment of Nigeria’s Compressed Natural Gas (CNG) initiative following alarming reports of vehicle explosions attributed to uncertified conversions. Lawmakers are urging the Federal Government to prioritize rigorous adaptability tests to ensure the safety and suitability of the technology in Nigeria’s unique environment.

During the 2025 budget defense session of the Joint Committee on Petroleum (Downstream), Petroleum (Upstream), and Gas, Senator Natasha Akpoti (PDP, Kogi Central) questioned the adequacy of research conducted before rolling out the CNG program.

“Nigeria’s bumpy roads and hot climate differ significantly from the smooth and cooler environments where this technology originated. Were these factors considered before introducing CNG?” Akpoti asked.

Her concerns come amid incidents of explosions in CNG-converted vehicles. The Minister of State for Gas, Hon. Ekperikpe Ekpo, attributed these accidents to uncertified conversions carried out by roadside technicians, emphasizing that certified centers adhere to strict safety standards.

Ekpo also assured lawmakers that the technology had been evaluated by a Presidential Committee on CNG and affirmed its long-term viability. “CNG has come to stay,” he stated.

The session also highlighted budgetary concerns, particularly the Ministry of Petroleum’s 2025 capital allocation of N903 million. Lawmakers criticized the sum as inadequate to address Nigeria’s pressing energy challenges.

“For a ministry driving Nigeria’s energy transition, this allocation raises concerns about commitment to infrastructure and innovation,” remarked Hon. Kafilat Ogbara.

As Nigeria seeks to diversify its energy mix, the National Assembly has stressed the need for enhanced safety measures, proper implementation, and increased funding to fully realize the potential of CNG while ensuring public safety and trust.

Legislature

Umahi expresses Frustration over Fixing Nigerian Roads

Published

2 days ago

January 17, 2025

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Dave Umahi

***Seeks Support for Loans as Budgetary Provisions Fall Short

The Minister of Works, Senator David Umahi, has voiced his deep frustration over the state of Nigeria’s road infrastructure, highlighting inadequate yearly budgetary allocations as a major barrier to progress.
Speaking during the 2025 budget defense session before the Senate Committee on Works in Abuja on Friday, Umahi described the financial constraints as overwhelming. “I’ve succeeded in most of my life’s engagements, but I feel frustrated fixing Nigerian roads with these meagre allocations,” he lamented.
Umahi disclosed that President Bola Tinubu inherited 2,064 road projects valued at N13 trillion, but rising costs have pushed the estimated expenditure to N18 trillion. He noted that the N827 billion allocated for road infrastructure in the 2025 budget is grossly insufficient to address the challenges.
“Roads are critical to economic growth and poverty reduction. They create jobs and drive economic activities. However, fixing these roads cannot be achieved with yearly budget provisions alone,” he explained.
The minister urged Nigerians to support the government’s borrowing initiatives, assuring that the funds would directly impact citizens’ lives by boosting economic activities and reducing hunger.
Senators on the committee, led by Senator Mpigi Barinaga, praised Umahi for his efficient management of scarce resources and supported his call for alternative funding mechanisms. They acknowledged the scale of the work required and admitted that the proposed budget falls far short of what is needed to resolve Nigeria’s road infrastructure crisis.
The session concluded with a shared resolve to explore additional funding options to tackle the nation’s road challenges effectively.

Legislature

In another rowdy session, Lawmakers Demand Accountability Amidst Budget Defense Chaos

Published

2 days ago

January 17, 2025

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Heineken Lokpobiri

***Minister Lokpobiri Assures of Reforms, Apologizes for Lapses

The 2025 budget defense session for the petroleum sector took a contentious turn on Friday as the Senate and House of Representatives Joint Committee on Petroleum (Upstream, Midstream, Downstream, and Gas) erupted into disorder. Tensions flared over delays in budget documentation, with lawmakers decrying the Ministry of Petroleum Resources’ perceived lack of preparedness and respect for legislative protocols.

The meeting, chaired by Senator Jarigbe Agom Jarigbe, was already fraught with logistical challenges. The cramped committee room, bursting with lawmakers and ministry officials, became the backdrop for a fiery exchange that highlighted the strained relationship between the legislative and executive branches. Calls to relocate the session to a more accommodating venue went unheeded, adding to the frustration.

Before the session could proceed, Hon. Kelechi Nwogu raised a procedural objection, pointing out the absence of vital budget documents. “We cannot engage in a meaningful discussion without the necessary materials. This undermines the integrity of the process,” Nwogu asserted.

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, faced sharp criticism for the disorganization. Hon. Ado Doguwa, Co-Chairman of the Joint Committee, accused the Ministry of fostering an adversarial relationship with the legislature. “Minister, we see you only once a year, and even then, the lack of collaboration is glaring. This is unacceptable,” Doguwa said, his frustration evident.

Lokpobiri, in an attempt to salvage the situation, apologized for the lapses. “Distinguished Senators and Honourable Members, I deeply regret this oversight. It was not intentional. The budget documents are being distributed as we speak,” he said. He assured lawmakers that the Ministry remained committed to supporting legislative oversight and improving future engagements.

However, Lokpobiri’s lighthearted remark that the documents were being delivered in “Ghana Must Go” bags—containing no money—elicited mixed reactions. While some lawmakers chuckled, others viewed it as a diversion from the seriousness of the issue.

Doguwa, accepting the apology, stressed the need for strict adherence to legislative guidelines. “While we appreciate the apology, the late submission of documents is a breach of procedure. This cannot continue. We demand accountability and timely cooperation moving forward,” he said.

The session ultimately ended in stalemate, with lawmakers insisting on postponing the meeting until all necessary documents had been reviewed. The debacle underscores the persistent challenges of executive-legislative coordination in Nigeria’s budgetary process, particularly in critical sectors like petroleum.

As the Joint Committee prepares to reconvene, stakeholders will be watching closely to see if the Ministry of Petroleum Resources can rebuild trust and ensure a smoother process in the future.