NORTHERNERS OWN 83% OF OIL BLOCS –SENATORS

*Lawmakers near consensus on draft PIB

South-South senators yesterday alleged serious lopsidedness in the allocation of oil blocs in the country, claiming that northerners own 83 per cent of oil wells not in control of the international oil companies.

This revelation came to light at the debate of the general principles of the Petroleum Industry Bill, PIB, which began on Tuesday and continues today on the floor of the Senate.

Also, the lawmakers yesterday neared consensus on the three major contentious issues of 10 per cent host communities’ funds; perceived excessive powers to the petroleum minister and lack of financial autonomy and independence for the National Frontiers Exploration Agency.

The issues had generated passionate debate in the Senate on Monday.

Speaking the minds of the South-South senators, the Chairman, Senate Committee on Rules and Business, Senator Eta Inang, who alleged that northerners’ dominated the ownership of oil blocs during his contributions to the debate said: “There should be equity and federal character in the allocation of oil blocs in this country.

“Presently, 83 per cent of oil blocs in this country are held by northerners.”

Inang tendered documents to substantiate his claim and listed northerners who own oil blocs to include Alhaji Mai Deribe, General T. Y. Danjuma, Mallam (Prince) Sanusi Lamido, Alhaji (Col.) Sani Bello of Kontangora, Dr. Rilwanu Lukman, Alhaji Mohammed Indimi and Alhaji Aminu Dantata.

The lawmaker said that Deribe from Borno State owns Cavendish Petroleum, operator of the OML 110 with an average revenue of about N4bn monthly.

He added that Seplat/ Platform Petroleum, operators of the Asuokpu/ Umutu Marginal Field has Lamido as a major shareholder and director while South Atlantic Petroleum Limited, SAPETRO, was established by Danjuma, who is also the Chairman of Eni Nigeria Limited. SAPETRO partnered with Total Upstream Nigeria Limited, TUPNI, and Brasoil Oil Services Company Nigeria Limited to become operators of the OPL 246.

Inang added that AMNI International Petroleum and Development Company is owned by Bello. “They are the operators of OML 112 and OML 117; while a former Petroleum Minister and former OPEC President, Lukman, another northerner manages AMNI oil blocs and with very key interest in the NNPC/Vitol trading deal.

“Oriental Energy Resources Limited, a company owned by Indimi runs three oil blocs: OML 115, the Oldwok field and the Ebok field; Dantata’s Express Petroleum and Gas Limited, operates OML 108, while OML 113 allocated to Yinka Folawiyo Petroleum Limited is owned by Alhaji Wahab Folawiyo.

“Alhaji Saleh Mohammed Gambo, the operator of North East Petroleum Limited, is the holder of the OPL 215 licence. The company was awarded the blocs OPL 276 and OPL 283 and closing thereupon a Joint Venture Agreement with Centrica Resources Nigeria Limited and CCC Oil and Gas.

“INTEL is owned by Atiku, Yar’Adua and Ado Bayero and has substantial stakes in Nigeria’s oil exploration industry both in Nigeria and Sao Tome and Principe.

“Mike Adenuga’s Conoil is the oldest indigenous oil exploration industry in Nigeria with six oil blocs, while OPL 291 was awarded to Starcrest Energy Nigeria Limited, owned by Emeka Offor, which was sold to Addax Petroleum,” Inang said.

Meanwhile, the senators yesterday agreed to close ranks and commit the draft bill to the third reading or committee stage, where the contentious issues would be sorted out.

Senator Mohammed Goje, who opened contributions on the bill yesterday, stated that after listening to the contributions of his colleagues the previous day, he had seen the need not to oppose the bill but to support its passage to the next stage where the necessary changes would be effected.

“We should allow the bill to go on and do a surgical operation on it by removing and adjusting the contentious areas,” the lawmaker said.

The former governor said the bill had exposed the inadequacy of the administration of the 13 per cent derivation funds by the governors of the beneficiary states.

He called for the restructuring of the funds to reduce the amount accruing to the governors and increase the amount available to the oil producing communities.

Goje, however, called for a second look at the issues of “excessive powers” given to the minister, 10 per cent host communities’ funds and the need to make the National Frontiers Exploratory Agency independent and self-funded.

He was supported by Senator Gbenga Kaka, who also stressed that “we do not give too much power to the minister of the sector that is the livewire of our economy.”

Former Chairman of the Peoples Democratic Party, PDP, Senator Barnabas Gemade, while welcoming the draft bill as “a piece of legislation that would reform the oil and gas sector,” also raised concerns about the excessive powers to the minister.

He named three critical agencies which the bill created but are under the control of the minister as the Petroleum Technology Development Fund, PTDF; Petroleum Equalisation Fund, PEF, and the Assets Management Company to substantiate his point.

Senator Chris Anyanwu supported the host communities’ funds because, “it removes the alibi for crime by giving the host communities a sense of belonging.”

She listed other countries that had similar laws to include Brazil, Malaysia and Singapore.

The lawmaker said: “It creates room for host communities to be involved in oil production. It also reduces risk elements because it gives the host communities sense of belonging.

“Most importantly, it has provision for sanctions against host communities that engage in vandalism.”

Senator Olufemi Lanlehin however picked holes with Section 191 of the draft bill, which gives the President discretionary power to allocate oil blocs to people.

He argued that such discretionary power was open to abuse if not properly applied and called for the review of such provision.

Senator James Manager backed the host communities’ funds, stressing that “as we are debating this bill now, the oil communities are already jubilating about these funds and you can imagine what their reactions would be if they are denied the funds.”

Also, Senator George Sekibo supported the establishment of the host communities’ funds.

He argued that since the funds apply to all pipeline hosting communities, it meant that virtually all parts of the country would be beneficiaries of the funds.

Senator Ahmed Makarfi’s concern on the host communities’ funds was about the management.

He noted that the bill provides for the minister to manage the funds and the royalties that will be paid by the oil companies.

“How will the communities’ funds be managed? We need to look into the structures that will manage the funds,” he said.

The lawmaker also argued that the funds would not address the issue of oil bunkering since such acts were being perpetrated mainly by the big men and members of the communities.

The debate on the general principles of the bill is expected to be concluded today.

Source: National Mirror