Not less than $400million
proceed from the sale of gas in
the Bonga Deep Sea Oil project
was not utilized, the Senate Adhoc
Committee on Investigation
of Local Content Element on
Total Upstream Nigeria Limited
$16billion Egina Deep Sea Oil
Project and other related projects,
has revealed.
The Senator Solomon Adeola
(APC, Lagos West) led committee
discovered the amount when
the Group Managing Director,
GMD of the Nigerian National
Petroleum Corporation, NNPC,
Mr. Maikanti Baru, represented
by the Group General Manager
of NAPIMS, Mr. Roland Ebuware
was asked about the 200,000
barrel per day Egina Oil project
as so far only the crude oil aspect
is in public domain.
Baru said no agreement is in
place on what to do with the
proceed of the gas from the
project which is to be piped to
Nigerian Liquefied Natural Gas,
NLNG company other than
putting it in an escrow account,
adding that a similar ongoing
project, the Bonga Deep Sea Oil
Project already have $400million
in an Escrow account waiting for
a detail agreement on sharing
formula between the Nigerian
government and the international
oil companies, IOCs.
He regretted that since no
agreement is in place for such
sharing the fund is just lying idle
just as he expected that similar
proceeds from Egina will lie idle
until an agreement on sharing
formula is arrived at adding that
the Senate can come in through
legislation or other instruments
to ensure that such huge funds
are utilized for developmental
Vice chairman of committee,
Senator Godswill Akpabio
(PDP, Akwa Ibom North West),
expressed shock that such huge
funds has been un-utilized for
developmental purposes due
to lack of agreement, stressing
that in an era of serious budget
deficits year in year out, such
funds should have come handy
in North East Development, the
Second Niger Bridge and even
payment of the monthly N5,000
benefits promised by the federal
government to the unemployed
In his contribution, the
Executive Secretary of Nigeria
Content Development
Monitoring Board, NCDMB,
Engineer Simbi Wabote stated
that in execution of the Egina
projects, there are infractions of
the Local Content Act sometimes
occasioned by exigencies of
lack of capacity as well as
infringement of expatriate quota
adding that it is often difficult
to enforce some provisions of
the law as conviction through
litigation process has to take
place before enforcement.
He therefore suggested a need
to amend the Local Content
Act for sanctions for breaches
without the long drawn litigation.

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