Senate to summon Kachikwu over $15 billion oil deal with India

Chris Emetoh, Abuja

In order to get more clarifications on the proposed $15 billion proposed Memorandum of Understanding (MoU) with the Indian Government in the oil and gas sector, the Senate is to summon the Minister of State for Petroleum
Resources, Mr. Ibe Kachukwu.

Mr. Kachukwu is also expected to throw more light on the over $80billion MoU he signed with Chinese firms in the same sector.The resolution followed a motion on “The need for a detailed explanation of the $15billion proposed investment with Indian Government and over  $80billion MoU signed by the Minister of State for Petroleum with Chinese  firms” sponsored by Senator Clifford Odia (Edo Central).

The upper chamber said that the minister should appear before its joint committee on Petroleum Upstream, Gas and Foreign Affairs to proffer a detailed explanation of the subject matter of each of the MOU signed in China and the proposed MoU with India and their anticipated impact on the country’s economy.
Senator Odia in his lead debate informed Senate that theMinister of State for Petroleum negotiated a $15 billion investment with India where the India Government would make an upfront payment to Nigeria for crude oil purchase.
He said that the two countries have agreed to sign an MoU to facilitate investments by India in the Nigerian oil and gas sector and specifically in areas such as refining, oil and gas marketing, upstream ventures, development of gas infrastructure and the training of oil and gas personnel in the country.
According to Ofia, ” the minister also carried out a road-show in China where MoU worth over $80 billion to be spent on investments in oil and gas infrastructure, pipe lines refineries, power, facility refurbishment and upstream financing spanning five years were signed with Chinese companies”.
Senator Odia listed the Chinese firms involved in the MoU to include China North Industries Corporation (NORINCO Group), China Cinda Asset Management Company Limited (CINDA), China National Offshore Oil Corporation, China Petroleum, China Petroleum &Chemical Corporation/Addax Petroleum and International Chamber of Commerce/ China National Development and Reform Commission.
He observed that outside the MoUs for $80 billion investment, the two largest oil companies in China, Sinopec and CNOOC, signed investment MoUs with the minister committing the companies to further investments in the country’s upstream oil sub-sector to the tune of $20 billion.
Senate Leader, Senator Mohammed Ali Ndume wanted to know whether the minister has the power to endorse any MoU involving billions of dollars
without the participation and endorsement of the National Assembly. Senator Abdullahi Adamu explained that what the minister did was ‘a mere intention that has not matured.”
Senator Adamu noted that when the deal matures, the National Assembly would be brought into the deal.