Eni one of the companies that is involved in the controversial OPL245 has debunked the allegations that were levied against it, saying it hey were totally incorrect.
It also enumerated what it thinks there are certain benefits that Nigeria could get if the field were to have been up and running in 2019.
The company in a report cited by Businessday stated that there are seven incorrect aspects dealt with both by Non-governmental organisation (NGO) which filed petitions with the Court and the Supervisory Authorities, and by certain news media.
The various interpretation given to it activities on OPL 245 Eni says are intended to contest Eni’s probity and transparency, the company said.
According to the company, the acquisition of OPL 245 Block by Shell and Eni has been the subject of incorrect and speculative interpretations since 2011.
It stated that OPL 245 does not grant the right to exploit any acreage, but provides an opportunity to explore the area. This activity required significant investments – amounting to several hundred million euros – and will require further investments worth billions over a number of years to come before having any chance to proceed with full-scale oil production activities.
OPL 245 does not grant the right to exploit any acreage, but provides an opportunity to explore the area. This activity required significant investments – amounting to several hundred million euros – and will require further investments worth billions over a number of years to come before having any chance to proceed with full-scale oil production activities. To date, not a single oil barrel has been drilled.
Eni said it will demonstrate, through objective and documentary evidence, that Eni acted in full compliance with the law and the company procedures.
The project is expected to deliver great benefits to the Nigerian population.
As shown by Openeconomics research centre the development of the block would bring significant economic and social benefits to the Nigerian population, stating further that it is false to claim that it would impoverished Nigerians the more.
The development of the OPL 245 block, if initiated, would imply significant economic and social benefits for the Nigerian population.
In November 2018, the NGOS Re: Common, Global Witness, and The Corner House and Nigeria- based HEDA entrusted the company Resources for Development Consulting with an analysis of the impact of the OPL 245 operation on the Nigerian economy. According to this analysis, the agreement between Shell and Eni and the FGN would reduce Nigeria’s expected incoming taxes by a total of between $4.5 million and $5.9 million (Resources for Development Consulting – Government Revenues from OPL 245.
In March 2019, Eni asked Openeconomics, a spin-off of the Faculty of Economics at the Tor Vergata University in Rome, headed by Professor Pasquale Lucio Scandizzo, to assess the impact of OPL 245 on the Nigerian economy.
Over the course of the 25year project, OPL 245 could lead to a cumulative $ 41 billion increase of Nigeria’s GDP of at 2011 prices, which means an average $1.64 billion increase a year, with a 32per cent capital return.
The country’s tax revenues would increase by $3.9 billion at present values, while indirect benefits would amount to $10.2 billion.
Despite the delays, and assuming production began in 2019, the estimated positive effects would still be largely achievable. In terms of social benefits, the OPL 245 project will help the country achieve the UN Sustainable Development Goals (SDGS). These include:
1.2 million children obtaining access to a five-year primary education cycle 200,00 new jobs, 600,000 people receiving safe and sustainable energy for the first time
An increase in food consumption by poorer families, valued at more than $ 107 million.
