The Adhoc Committee investigating the allocation of oil prospecting licences (OPLs) and oil mining leases (OMLs) on Wednesday expressed concern over the non-payment of $565.87million being outstanding of signature bonuses between 2005 and 2007.
The Committee chaired by Gideon Gwani, also expressed displeasure over various infractions in the allocation of the oil blocs, identity of the beneficiaries/winners of the oil blocs and indiscriminate transfer of oil blocs to companies that did not participate in the award process.
The documents presented by Sunday Babalola, Head, Basinal Assessment & Lease Administration who spoke on behalf of Department of Petroleum Resources (DPR) and obtained by BusinessDay, showed that the sum of $764.96 million was paid out of total sum of $1.020 billion signature bonus offered leaving the balance of $255.12 million for the 2005 licensing round.
Out of the total sum of $654.04million signature bonus offered, the sum of $418.53million was paid leaving the balance of $155.000million for year 2006 licensing round.
From the total sum of $817.053 million offered in the 2007 licensing round, the sum of $491.31million was paid leaving the balance of $105.75million yet unpaid by the beneficiaries.
Babalola also denied knowledge of the beneficiaries/winners of the oil blocs, disclosed plans to conduct search at Corporate Affairs Commission (CAC) on the true identity of some of the beneficiaries.
On his part, Victor Nwokolo, chairman House Committee on Petroleum Resources (Upstream) decried the sudden reallocation of oil blocs worth $210 million which was cancelled through Presidential directive for paying $21 million, but was relocated to Stallion Global after payment $55 million without following due process.
While reacting to the presentation of the DPR representative, queried the unilateral decision of DPR to usurp the Presidential directive for the cancellation of 25 oil blocs non-fully paid for and unpaid for as contained in a letter dated 20th January 2006.
Former President Olusegun Obasanjo had in response to the letter written by ex-Minister of State for Petroleum Resources, approved the cancellation of the allocated oil blocs which failed to meet the pre-qualification requirements.
According to Gideon Gwani, chairman of the Adhoc Committee, the reallocated oil blocs which were paid for after the cancellation include: OPL 276 and 283, OPL 236 (Oando), OPL 282 (NAOC), OPL 315 but later paid $172.8 million out of $180 million, OPL 135 (Agip), OPL 280 (Stallion Global) among others.
On her part, Jemila Suara, Permanent Secretary of Federal Ministry of Petroleum Resources who expressed shock over the development, assured that necessary measures will be put in place to entrench accountability and transparency in the oil blocs allocation.
She assured that the information from the ongoing Investigative public hearing will guide the Ministry at the scheduled meeting with stakeholders including NNPC and DPR to rejig the policies guiding the award process and help in avoiding banana peels.
While ruling, the Committee summoned Ibe Kachukwu, Minister of State for Petroleum Resources; Diezani Allison-Madueke, former Minister of Petroleum Resources and King Edmund Maduabebe Daukoru of Nembe Kingdom, a former NNPC Group Managing Director to explain their role in the allocation of oil blocs.
While speaking, Funso Kupolokun, former NNPC Group Managing Director decried the arbitrary powers conferred on the Minister to adopt discretionary powers in the allocation of oil blocs.
In the bid to sanitise the process, Kupolokun emphasised the need to streamline how oil blocs are awarded, stresimg that the process as done previously was complicated.
