Senate summons British firm over $3.3bn oil deal

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A British firm, BP Oil International Limited, has been summoned by the Senate Committee on Local Content over a $3.3 billion pre-financing crude oil deal, which the committee suspected may have breached the Oil and Gas Content Development, NOGICD, Act 2010.

Chairman of the committee, Senator Solomon Adeola (Lagos West), according to a statement issued in Abuja by his media adviser,  Chief Kayode Odunaro, sent the invitation letter to the firm’s Chief Executive Officer, Mr. Robert Dudley.

Adeola noted that following complaints from a Nigerian firm, Alsaa Gas and Shipping Nigerian Limited, AGSN, on a $3.3 billion pre-financing crude oil contract, a probable infraction of the NOGICD Act 2010 and possible fraudulent acts against a Nigerian firm may have occurred.

He said the Nigerian company has provided technical and local industry knowledge support for BP Oil International Limited in the contract process with an agreement for a $0.10 per barrel of crude oil of the deal, which was unilaterally revoke by the British firm.

The committee chairman noted that part of its oversight responsibilities and functions include to ensure that local companies are not undermined in their dealings with big foreign entities as well as ensuring compliance for NOGICD Act.

The British company, whose letter of summons was routed through Ministry of Foreign Affairs as well as copied to is local representative in Lagos, is expected to appear on March 28, 2018 with “all emails, documents, agreements(signed and unsigned) between yourself, NNPC and AGSN relating to the contract” as well as all “ transactional negotiation documents and offers, term sheets and any legal documents to do with dealings with NNPC in this pre-financing opportunity, including all correspondences from GED Finance, Group Managing Director and Standard Chartered Bank.”

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