New Regulation Likely To Cost Nigeria $48b Investments in Oil Sector
A bid procedure adopted by the Nigerian National Petroleum Corporation (NNPC) may cost the nation Investments in the oil and gas industry worth about $48 billion.
The process has disregarded all due and standard procedures in conducting bids for assets development in the industry.
It was learnt that NNPC ignored all stages regularly undergone during bid periods meant to make certain transparency.
Presently, the Corporation calls individual contractors openly to discuss costs of contracts. Multinational oil companies have threatened to dump some major projects, if the development is not stopped.
According to a letter from the Group Executive Director, Exploration and Production, Abiye Membere, to the multinational companies last month claimed that contracts have been collapsed into one and superintended by Membere.
It was gathered that, before now those contracts usually went through the National Petroleum Investment Management Services (NAPIMS) and others before getting to the Group Managing Director.
According to a source who spoke in confidence, Membere claimed that the new bid approach is meant to lessen cost of projects’ execution.
Continuing, he said, multinationals frowned at the development because it does not support the sanctity of agreement on contracts
“If the multinationals make good their threat, the ExxonMobil’s Erha North Phase 2 put at $5 billion, and Satellite fields Phase 2 also estimated at about $5 billion, Shells Bonga SW/NW estimated $8 billion,
“Total’s Egina field put at about $8 billion, Chevron’s Funiwa Gas Project estimated at $3 billion, Brass LNG estimated at between $12 million – $15 million and Nsiko project also put at about $4 billion, bringing the total projects threatened for abandonment to about $48 billion”.
“Who said that?” was Membere’s reply when he was contacted.
Related Posts
-
FCMB Bank (UK) Limited Launches Personal and Business Banking Proposition to Deepen InclusivenessFCMB Bank (UK) Limited, an independently incorporated subsidiary of...
- August 1, 2018
-
The Worrisome Trend of Sensational Social Media “Journalism” and the Impact On Legitimate Business Concerns: Recent Travails of FCMB, GTBank and First BankOn June 25, 2018 I woke up to yet...
- June 26, 2018
-
Azman Air commences flight operation in SokotoAzman Air Thursday commenced flight operation to Sokoto state....
- February 21, 2015
-
NRC increases Lagos goods trains, eyes fuel haulageThe Nigerian Railway Corporation says it has increased its...
- June 23, 2016
Nigeria News
- LaLiga: That’s the style I want – Flick reacts as Atletico Madrid beat Barcelona
- EPL: Merson names team that cannot be ruled out in title race
- Stampede: Tell Nigerians how you share palliatives without tragedy – Igbokwe to govs, NASS members
- Gwamnatin Kano ta shirya gurfanar da masu kin biyan haraji daga 2025
- Biden signs funding bill to prevent government shutdown