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$62bn PSC Revenue: Shell Battles FG Over Demand For $13.65bn

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The Shell Nigeria Exploration and Production Company Limited (SNEPCo) has vowed to battle the Federal Government over its demand for a share of about $13.65billion in the $62billion which five international oil companies allegedly owe Nigeria following the 2018 Supreme Court’s judgment on Production Sharing Contracts (PSCs) between the country and the firms.
The other four IOCs include, Total Exploration & Production Company Limited, Nigerian Agip Oil Company (NAOC), Mobil Producing Nigeria Unlimited and Chevron Nigeria Limited.
The apex court’s verdict enabled the Federal Government to increase its share of income from the PSCs.
Shell is opposing the demand for a total of $13,651,034,052.59 by the Federal Government on the grounds that it was planning to commence arbitration proceedings in respect of the issue.
The firm, which accused the Federal Government of unilaterally making adjustments in the PSC in respect of the Oil Mining Lease 118 in enforcing the apex court’s verdict, sought a court order stopping the government from taking further action on its demand for the money until its planned arbitration is concluded.
The company filed the suit, marked FHC/ABJ/CS/154, before the Federal High Court in Abuja, in which it sought an injunction against the government.
The four other IOCs from whom the Federal Government had demanded various sums of money based on the Supreme Court’s verdict filed similar suits at the Federal High Court in Lagos.
Parts of the court documents filed by Shell were seen by our correspondent, last Saturday.
The documents indicated that the Federal Government demanded $13,651,034,052.59 from Shell, through a letter dated January 14, 2019, issued on its behalf by Trobell International Nigeria Limited.
Trobell is joined as the second respondent in the Shell’s suit, while the Nigerian National Petroleum Corporation (NNPC) is joined as the first respondent and the Attorney-General of the Federation as the third.
Shell’s suit filed through its lawyer, Ogunmuyiwa Balogun of the Olaniwun Ajayi law firm, is anchored on section 251(1)(r) of the Nigeria Constitution, section 53 of the Arbitration and Conciliation Act, Article 26(3) of the Arbitration Rules, section 11 and 13(1) of the Federal High Court Act and Order 28 Rule 1 of the Federal High Court (Civil Procedure) Rules.
But Trobell, in its response to the suit, had asked the court to dismiss the suit for lack of jurisdiction.
The firm’s preliminary objection filed through its lawyer, Oladapo Agboola was made available to newsmen, last Saturday.
It argued that the matter could not be “re-litigated” after the Supreme Court had made a pronouncement on it.
It also argued among others that the affidavit filed in support of the suit contained extraneous issues which the court could not rely on.

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Senate Resumes Work On MTEF/FSP, Next Week

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The Senate Committee on Finance, yesterday, said it would begin legislative work on the 2021-2023 Medium Term Expenditure and Fiscal Strategy Paper (MTEF/FSP) on Wednesday, August 19.
The Chairman, Senate Committee on Finance, Senator Solomon Adeola (APC Lagos West), disclosed in a statement made available to journalists in Abuja, adding that invitations have been sent to ministries, departments and agencies (MDAs) of the government with presentations to make on the document.
Adeola, in the statement signed by his media aide, Kayode Odunaro, said the MDAs were to appear before the Senate Joint Committee on Finance, and National Planning.
He noted that there was need to examine the rationale for pegging the price of crude oil at $40 per barrel and a projected crude oil production of 1.86 million barrels per day (mbpd), in the MTEF/FSP document.
He  said, ”We are kick-starting the process on Wednesday with Government-Owned Enterprises (GOEs) like NNPC, NCC, NPA, Customs Service, NIMASA, DPR and others, followed by the Ministry of Finance and its agencies, and subsequently, all revenue generating agencies”.
The lawmaker called on heads of MDAs to be prepared to defend their projections “as the Joint Committee intends to present the report to the Senate in plenary immediately on resumption from its ongoing vacation in tandem with the desire of the upper chamber to pass the 2021 budget in December.”
Adeola insisted that there was need for thorough scrutiny of the MTEF/FSP document in view of the fluid nature of the world economy following the disruptive impact of Covid-19 pandemic and the vagaries of the international market for crude oil and its attendant effects on the nation’s sources of revenue.
According to him, “There is a need for all stakeholders to come together to critically study the fundamentals of the ‘new normal’ forced on the global economy by the Covid-19 pandemic.
“With the instability witnessed in the price of crude oil at the international market and the sluggish world economy with some nations falling into recession, there is a need to assess our situation critically and be realistic about our revenues sources for budgets going forward”.

 

By: Nneka Amaechi-Nnadi, Abuja

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Take Off Of National Senior Citizens’ Centre Underway, FG Assures

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The Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq, has said plans are on the way to build a centre for the old people.
Farouq, according to a statement by her Special Assistant on Strategic Communication, Halima Oyelade, said this at a meeting with the Coalition of Societies for the Rights of the Older Persons in Nigeria (COSROPIN) in Abuja, yesterday.
“She assured members of the coalition that the ministry is working toward the successful take-off of the National Senior Citizen’s Centre,” the statement said.
It read further: “According to the Minister, a law establishing the centre is already in place. When operational this centre will among other things identify needs, opportunities, and training of senior citizens and provide recreational, sports, educational, health and social programmes and facilities designed for the full enjoyment and benefit of senior citizens.
“Responding, the President of the COSROPIN, Senator Eze Ajoku, thanked the Honourable Minister for the Covid-19 Palliatives, the group had received to cushion the effects of the pandemic.
“He then briefed the minister on activities of the coalition which include following up on the National Policy on Aging, pursuing non-contributory health insurance for older persons, enumeration of older citizens as well as the Older Persons Rights and Privilege Bill which according to him had passed second reading at the Senate.
“He asked for the minister’s support in the actualization of these initiatives.
“The Honourable Minister assured the coalition of the ministry’s support adding that older citizens are one of the key vulnerable groups that are of concern to the ministry.
“She further noted that most of them have been of service to the nation in their prime and still have a lot to offer due to their wealth of experience.
“The ministry will, therefore, ensure it gives due attention to issues concerning their well-being while ensuring it carries them along in the structuring and take-off of the National Senior Citizens Centre.”

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World Powers Deny Us Weapons To Fight Insurgency, FG Cries Out

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The Federal Government has appealed to the world powers not to be weighed by unsubstantiated arguments to deny the country vital platforms and weapons to fight insecurity.
The Minister of Information and Culture, Alhaji Lai Mohammed, made the appeal, yesterday, when he featured on the News Agency of Nigeria Forum in Abuja.
“I want to use this opportunity to say that the international community can help us better than they are doing right now.
“To fight terrorists we need platforms and weapons.
“When the international community is weighed by unsubstantiated arguments to deny the country of vital platforms and weapons to fight insecurity, you cannot turn round to accuse the country of not fighting terrorism,’ he said.
The minister buttresses the claim, saying “certain world powers have refused to even sell to us certain vital weapons.”
“For more than two to three years now, we have paid for certain vital weapons that they have not released to us and they even refused to give us spare parts.
“I think our appeal to them is that they should please help Nigeria to provide us with these sensitive platforms so that we can fight insecurity more effectively.”
The minister said for Nigerians to fairly assess the efforts of the Federal Government in the fight against insecurity, they should compare where the country was pre-2015 and today.

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