Shell, NLNG owes Nigeria $30bn- Ribadu Reports

Shell is yet to pay into the Federation Account, a total of N137.572 billion ($946.878 million) made from gas sales from the Bonga oil field, according to the NNPC (NAPIMS) Financial Statements for the year ended 31 December 2009, the Ribadu Petroleum Revenue Special Task Force has revealed. Shell is the production sharing contractor operating the field. Included in the amount is the sum of N17.325billion which is the gas tax payable on the amount, the Ribadu report shows. The Nigerian Liquefied Natural Gas (NLNG) has also been accused by the Task Force of short changing the Federation Account, of revenues to the tune of $29 billion, over a 10 year period. The Ribadu Task Force observed that the price at which Liquefied Natural Gas, is sold to NLNG “seems too generous, compared to prices obtainable on the international market. “The estimated cumulative of the deficit between value obtainable on the international market and what is currently being obtained from NLNG, over the 10 year period, amounts to approximately US$29 billion” the Ribadu report states. This brings the cumulative debt from both organisations to the Federation to $30 billion. Another shocking disclosure by the Ribadu Task Force, is that the Nigerian National Petroleum Corporation (NNPC) and its 16 subsidiaries ran an operational deficit, or spent N298 billion more than they earned in 2009. The N298 billion deficits or loss was shown in the Group’s 2009 audited financial statement, the last audited financial statement that was available for the the Ribadu Committee to take a look at. There were no audited statements for 2010 and 2011. NNPC is however also owed N27 billion, including current debt, total overdue, disputed debt and total debt outstanding, by the major marketers of petroleum products. The corporation on the other hand, is yet to pay suppliers of petroleum products approximately US$3.6 billion (N565 billion), of which US$2.7 billion (N423 billion) represents amounts outstanding for over 365 days as at December 31, 2011. The Task Force however admitted that the NNPC does not receive the required capital to grow its assets or meet operating costs, forcing the corporation to increasingly rely on the FGN for lines of credit, and deduction of oil revenue due to the Federation Account. The Task Force makes several recommendations on the restructuring of NNPC. The recommendations include asking that the Federal Government set up a process independent of the NNPC, to review the use of oil traders and NNPC’s system for selling crude, on grounds of value for money and probity. That the Federal Government undertakes a strategic review of all NNPC subsidiaries before the PIB passes, with a view to privatising, repositioning or scrapping non-performing, redundant or irrelevant business units. The NNPC should be required to make a full public report of the amount, costs and terms of all cash call debts; improve reporting of this information to the National Assembly as part of the annual budget and oversight process; Pass an oil sector transparency law that requires all oil companies active in Nigeria to report all payments, costs and earnings for each license or transaction, and to publish all contracts and licenses. Other recommendations include that the Federal Government create a special, properly-trained Oil and Gas Sector Financial Crimes Unit for law enforcement; Appoint a new NEITI Board, establish an embedded and independent office of transformation for the sector, implement an aggressive debt collection process for outstanding signature bonus payments; revoke blocks from non-paying firms; sanction those agencies that failed to collect and conduct an independent process audit of all upstream cost control rules and mechanisms, including the use of cross-country price benchmarking.

Shell biggest oil spill in Nigeria.

http://www.afripol.org/afripol/item/428-shell-biggest-oil-spill-in-nigeria.html

Petroleum Revenue Special Task Force Report finally Out.

Ribadu Committee Report Says Government Officials Colluded With Oil Companies To Cheat Nigeria Of Tens of Billions Of Dollars. A confidential report issued by the

set up last February by Dieziani Alison-Madueke, the Minister of Petroleum Resources, has found that Nigeria lost $29 billion dollars in the last decade to deals struck between corrupt government officials and the oil companies. Chaired by Nuhu Ribadu, the pioneer chairman of the Economic and Financial Crimes Commission, the 17-person committee produced the 146-page confidential report, which was seen by Reuters. Some of the highlights of the report, according to Reuters, include: • Nigeria loses out on $29 bln on cut-price gas deals • State-oil company sells itself cheap oil and gas • Oil ministers hand out discretionary oil licences • Hundreds of millions in missing bonuses, royalties • Traders buy crude oil "without formal contracts" Although Mrs. Alison-Madueke admitted receiving the report last month, she told Reuters yesterday it was only a draft. Reuters said the one it saw was marked “Final Report.” The Reuters story, as reported by Reuters Joe Brock: ABUJA, Oct 24 (Reuters) - Nigeria lost out on tens of billions of dollars in oil and gas revenues over the last decade from cut price deals struck between multinational oil companies and government officials, a confidential report seen by Reuters says. A team headed by the former head of the anti-corruption agency Nuhu Ribadu produced the 146-page study on an oil ministry request. It covers the year 2002 to the present.

Faulty Aircraft Forces Aero Contractors To Abort Flight

The airline spokesperson says the fault was a minor technical fault. Aero Contractors, one of the few airlines still flying the local routes in Nigeria, might have had an accident save for a passenger’s prompt intervention. At about 2:30 pm Monday, the Aero aircraft was set to leave the Murtala Muhammed International Airport in Ikeja Lagos, when one of the passengers who sat close to the left wing of the craft spotted gas leaking from one of the valves conveying gas to the part called ‘ailerons’ which connects the wings of the aircraft to ensure stability during take-off and landing. The passenger alerted the members of the airplane’s crew, consequently all passengers were asked to evacuate the plane. The passengers in the flight – AJ 171 scheduled for Margaret Ekpo International Airport, Calabar by 2.30 p.m. had to return to departure lounge. “All boarding formalities were completed and the aircraft door shut ready for take-off. The aircraft had actually been taxied through the run-way to the take-off point when, after about ten minutes, the pilot taxied it back to the hanger,” one of the passengers aboard the flight, wishing to remain anonymous told PREMIUM TIMES. “The flight crew was later to report to the passengers that the flight had to be delayed and aircraft taxied back to the hanger for minor repairs as safety precaution following reports of fuel leakage spotted from its left wing,” the source said. Disrupted plans The incident botched the flight by

from Lagos to Calabar that was scheduled after 2:30 pm on Monday. Most of the affected passengers – families, workers and business people were returning from Lagos to Calabar after the long holiday declared by the Federal Government last week to commemorate the Muslim Eid-el-Kabir celebrations. After all passengers were evacuated from the aircraft, they returned to the departure hall to wait for alternative arrangements by the airline’s management. The passengers waited in despair for several hours till about 6 pm before the finally departed Lagos for their destination. This is the second time in seven days that Aero Contractors has had to disrupt its operations over what it termed ‘minor technical faults’ On Wednesday, October 24, at about 11: 30, flight number AJ125 from to Abuja 12:15 was disrupted after a crew member announced that there was a minor technical issue with the aircraft’s engine. Subsequently all passengers alighted the flight for “safety precaution”. It took about one hour for a replacement to convey the passengers. The Airline’s response The airlines’ consultant, Simon Tumba, who spoke with PREMIUM TIMES, tried to allay apprehensions. He attributed the delay to a minor technical fault which he said has to be fixed as a safety precaution. “As I am talking to you, the flight is already airborne. It was a minor technical fault that had to be taken care of as a safety precaution in line with our company’s standard routine practice to ensure the safety of our passengers,” Mr. Tumba said.

Naija @ 52 *Journey so far!

President Goodluck Jonathan during presidential change of guards parade at the forecourt of the presidential villa in Abuja on Monday. The president marked a low-keyed 52-year Independence Day celebration holed up in the Presidential Villa for security reasons.

Nnaji Panel Uncovers N546m PHCN pension stashed in London bank since 1970

Nnaji Panel Uncovers N546m PHCN pension
stashed in London bank since 1970.
**it was to settle the salaries and pension of
expatriate workers then.
**PHCN workers lied about Govt deducting
25% of their salaries.
**our High Commissioner in UK can help in
retrieving the money.”
A panel set up by the federal government to
investigate pension fund of the Power
Holding Company of Nigeria (PHCN) has
unearthed £2.2million (N546 million) lying in
an account at the Barclays Bank of London,
United Kingdom.
The account was opened in the 1960s or 70s,
the committee chairman, Mr. Joseph Ajiboye
told Daily Trust.
Former minister of Power Prof Barth Nnaji
had on July 18, 2012 inaugurated an eight-
member probe panel to investigate the status
of pension in the power sector vis-à-vis the
Pension Laws since 1979.
Ajiboye said effort to retrieve the money was
met with “bottleneck” and brick wall but
assured that “the Nigerian High
Commissioner in London can help in
retrieving the money.”
He said today’s PHCN started as Niger Dam
Authority to Electricity Company of Nigeria
(ECN). The account was meant to settle the
salaries and pension of expatriate workers
then but that the committee learnt the last
expatriate has died and “there was no longer
reason to keep the account.”
On the controversial 25 percent allegedly
deducted from PHCN workers salary, Ajiboye
explained that findings from meetings held
with the Nigerian Union of Pensioners and
pay slips of up to April 2012 presented by
PHCN workers revealed that there was no
evidence of deduction from any workers
salary.
In his remarks, minister of state for power
Darius Ishaku expressed the hope that the
report will aid in finding a lasting solution to
the lingering feud between PHCN workers
and government saying the “only issue left
with labour has now been transferred to
office of the Secretary to the Federal
Government (SGF).” - daily trust.

Is Oil Discovery in Lake Chad, good news or bad news.

The Nigerian National Petroleum Corporation, NNPC announced the discovery of crude oil in about 3350 square metres in the Lake Chad Basin, that links the Northern Part of Nigeria.
In a continent where natural resources are often plundered to the detriment of ordinary people, impoverished Chad the new oil frontier could become a model of fairness.
Sequel to this outstanding discovery, reports busted that Vice President Namadi Sambo of Nigeria is leading the commencement of steps towards engaging “Willing and ready investors that will facilitate speedy and timely exploration in the second phase of the exercise”
During a meeting with experts within the NNPC and other public sectors at the state House, Abuja, the Vice President said at the federal government is happy that surveys have indicated the presence of Oil in the Chad Basin.
More information coming soon.................