Reps probe $27bn loss in NNPC’s production sharing contracts
…As House adjourns hurriedly after Shiites stormed assembly
Henry Omunu, Abuja
The House of Representatives on Wednesday launched an investigation into the $27 billion loss incurred by the Federal Government arising from the current stakes in production sharing contract between the Nigerian National Petroleum Corporation (NNPC) with international oil companies operating in the country.
The revelation over the alleged loss followed the debate on the second reading of a bill for an Act to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, 2004, to review the share of the government’s revenue under the production sharing contracts.
Though the bill passed through second reading and was eventually committed to the House Committee on Petroleum Resources (upstream), the House however, resolved to investigate the allegation of revenue loss amounting to $27 billion in the production sharing contracts since 1999 till date.
The bill seeks to increase the Federal Government’s share of the revenue accruing from the trading of crude oil.
Leading the debate, Deputy Majority Leader, Rep. Idris Wase, said the bill seeks to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, 2004, to review the share of the government of the federation in the additional revenue under the production sharing contracts and for other related matters.
Section 16 (3) as proposed in the bill, seeks to amend Section 16 of the principal Act and add a new sub-section (3) immediately after sub-section (2), which states that “in accordance with the provisions of sub-section (1) of this section: (a) a royalty rate by price of 50 per cent shall apply for the additional revenue in the contract area of the production sharing contracts under this Act.”
“And (b) that “the additional revenue shall be determined by the product of the volume of crude oil or condensate sold and the difference between the actual nominal sales price of the oil or condensate and the nominal value of $20 per barrel (1993 real terms) at the time of sales, provided that the value of $20 per barrel, (1993 real terms) shall be determined based on relevant US all items consumer price index as published by the US Bureau of Labor Statistics.”
In another development, the House hurriedly cut short plenary on Wednesday over fears that protesting members of the Islamic movement of Nigeria (Shiittes movement) may have overran security operatives at the National Assembly.
It was alleged that members of the Islamic Movement of Nigeria (IMN) broke into the premises of the National Assembly complex, forcing federal lawmakers to hurriedly adjourn plenary.
The protesting IMN members reportedly overpowered security men and broke down the first gate before proceeding towards the second gate.
The Islamic group protesting the continued detention of Ibrahim Elzakzaky, their leader had forcefully gained entry into the premises of the white house complex, and on being notified, Deputy Speaker Yusuf Lasun, who was presiding over the consideration of reports at the committee of the whole, requested the sergeant- at- arms to confirm.
The response from the official police of the parliament may have confirmed the development, forcing the lawmakers to hurriedly adjourn. Lasun reportedly noted that there was need to take precautionary measures.
However, as the time of filing this report, more security operatives have been deployed around the National Assembly complex.
