P&ID: NNPC Reveals Fresh 11 Contract Breaches That May Sink Nigeria
While the dust is yet to settle on the ill-fated Process and Industrial Developments (P&ID) N9.6 billion judgement debt, the Nigerian National Petroleum Corporation (NNPC) has uncovered fresh contract breaches that will harm Nigeria’s economic fortunes if and when pursued and implemented.
NNPC management revealed this in a letter addressed to the Economic and Financial Crimes Commission (EFCC) seeking its assistance in probing how the 11 extra deals are tied to the failed P&ID contract.
Consequently, the EFCC has raised a team of detectives to probe the deals.
Presently, Nigeria is before a London court trying to reverse the $9.6 billion arbitral judgment in the botched P&ID deal [(Propane Dehydration (12-24 months) 88.198MMscf/d].
The federal government claims that the gas agreement was dubiously signed with the Ministry of Petroleum Resources without passing through due process.
ElombahNews gathered that 11 agreements signed with different firms have been breached and the companies are waiting for the outcome of the P&ID litigation before the will proceed for claims.
Some of the 11 companies were alleged to have initiated arbitration process against the Federal Government.
It was learnt that the Federal Ministry of Petroleum Resources on January 10, 2010 entered into separate agreements with P&ID and 12 other pre-qualified investors for gas production facilities at the nation’s oil fields.
A source, who spoke in confidence to the Nation, said Nigeria is in a serious danger because 11 other firms have issues with the Federal Government on the gas projects.
According to him, the Ministry of Petroleum Resources actually on January 10, 2010 entered into a deal with P&ID and 12 other pre-qualified investors for accelerated development of gas production facilities at the nation’s oil fields.
The oil fields, as disclosed, included those on offshore, land swamp in different flare points. Both the government and the investors have their obligations spelt out in the MoU.
Meanwhile, the two parties have defaulted with the P&ID and 11 companies seeking compensation or payment of damages.
“Some of these firms have initiated arbitration process,” he said, while “a few others are awaiting the outcome of Nigeria’s case at the UK Court of Appeal to make a stronger case for payment of damages.
“The concern of those in NNPC and other government officials is about how much Nigeria will now pay for the botched Gas Supply and Processing Agreement (GSPA).
“This is why the government is ready to give P&ID a good fight in the UK and in the United States.”
See below the breached agreements:
- Octopol Energy Limited (LPG Extraction (12-15 months) 4.676MMscf/d, 3.039MMscf/d, 4.800MMscf/d, 2.100MMscf/d, 13.4MMscf/d;
- Petrolog Oil &Gas Limited (CNG (9-24 months) 8.76MMscf/d, 20.600MMscf/d;
- GFD Energy Nigeria Ltd (GFD) (2million MT Floating LNG) 5.7MMscf/d, 7.5MMscf/d, 2.2MMscf/d, 9.2MMscf/d;
- Global Gas &refining Limited (GGRL) (LPG Extraction) 11.300MMscf/d, 12.398MMscf/d, 8.35MMscf/d.
- Davubic Energy Development Comp. Ltd (LPG Extraction) 8.4MMscf/d, 21.516MMscf/d, 18.1MMscf/d;
- Consortium of Drake Oil Limited & Partners (DOL) 7.42MMscf/d, 6.856MMscf/d, 14.564MMscf/d;
- Tricity Oil Nigeria Ltd 1.266MMscf/d, 4.977MMscf/d, 2.026MMscf/d, 4.979MMscf/d, 3.777MMscf/d.
- Colechurch International Ltd (LPG Extraction) 3.778MMscf/d, 3.335MMscf/d, 2.539MMscf/d, 2.071MMscf/d, 13.10MMscf/d, 1.000MMscf/d;
- Eurafic Oil &Gas Ltd (LPG Extraction) 3.256MMscf/d, 5.075MMscf/d, 12.00MMscf/d;
- Ibeto Group (LPG Extraction) 23.00MMscf/d, 34.3MMscf/d,
- Borkir International Company Ltd. 26.558MMscf/d, 26.7MMscf/d.