$9.6bn award: FG warned not to toy with idea of seizing Bonga oil field

Federal Government has been advised not to toy with the idea of seizing Bonga Deep Water Oil Field in which a British company, Shell, has substantial interest as well as others and Irish businesses as that would amount to suicide.

Oil and gas industry stakeholders also say they are weary if such proposal is not already having negative impact on the signing of the final investment decision on Bonga South West project, expected to engender tremendous impact on the economy when it kicks off. This is because activities on the project may be put on hold, as its promoters may want to wait and see how the whole case with Process & Industrial Developments Limited (P&ID) is resolved.

Other projects that may attract investment inflow are feared may also be affected by controversies that have trailed the award of $9.6 billion to P&ID by a British commercial court.

Godwin Izomor, managing director of MV Vow gas Limited, says seizing the assets of companies, as retaliation to the judgment is not the solution to the problem on ground. He says the situation has not necessitated seizing assets of other companies but rather the government should find an amicable way of resolving the problem. He advises that the Federal Government should engage all interested parties so that the matter can be resolved.

The problem, he explains, has nothing to do with Bonga projects and Bonga should not be dragged into it.

On his part, Diran Fawibe, chairman/ceo of International Energy Services, says seizing the assets of companies in retaliation to the judgment will be counterproductive, adding that there are two approaches to the issue.

One of the approaches is looking at the history of the transactions, especially the comment made by T.Y Danjuma who said the whole idea was his and that he paid $40 million for the preliminary jobs of the contract.

He describes the whole as fraud that not be allowed to repeat itself.

According to Fawibe, the government should appeal the case to stall the seizure of her assets and later on file a suit.

The second approach is that the government should negotiate with P&ID, but not from the position of weakness.

As the $9.6 billion arbitration award and the UK court enforcement judgment against Nigeria in favour of an Irish firm, P&ID, continue to generate controversy, the Presidency hawks are said to have urged the Federal Government to take stern actions to protect the country’s assets threatened by the hefty award.

According to Presidency sources, the actions being proposed include the seizure of Bonga Deep Water Oil Field in which a British company, Shell, has substantial interest as well as other British and Irish businesses.