Senate Probes Seven Oil Firms Over $21bn Unremitted Funds
http://www.hrlnews.com/2019/10/senate-probes-seven-oil-firms-over-21bn.html
The Nigerian Senate on Wednesday mandated three of its
committees to investigate seven international oil companies over their
alleged refusal to remit about $21bn to the national treasury, according
to a report by PUNCH.
The decision of the upper legislative chamber was sequel to a motion
by the Vice Chairman, Senate Committee on Petroleum Resources, Ifeanyi
Ubah.
Ubah had drawn the attention of his colleagues to the IOCs alleged
refusal to honour the provisions of the Production Sharing Contracts
Act.
The Act of the National Assembly according to the senator, regulates
the sharing of additional revenue between the Nigerian National
Petroleum Corporation and the various oil companies.
The Deep Offshore and Inland Basin Production Sharing Contract Act
Cap D3 LFN 2004 (PSC Act) became effective on January 1, 1993.
He said the legislation was supposed to be reviewed after 15 years.
He said as a result of the non-review of the PSC Act, the Nigerian
Government had lost about $21bn over a period of 20 years as confirmed
by the Minister of State for Petroleum Resources after a meeting of the
Federal Executive Council on December 14, 2017.
He, therefore, stressed the need to thoroughly investigate reasons
for the failure to review the salient provisions of the PSC Act.
He said beyond the crude oil price of $20, the share of the Nigerian
Government in the additional revenue was adjusted to the extent that the
PSCs shall be economically beneficial to the government in accordance
with the provisions of the Act.
The Senate after a debate on the issue mandated committees on
Petroleum Resources (Upstream); Judiciary and Legal Matters, and that of
Finance, to investigate reasons for the failure to review the salient
provisions of the PSC Act.