Business
FG Open To Malabu Oil Well Restoration – NUPRC
The Federal Government has expressed its readiness to restore the production of the Oil Prospecting Licence (OPL) 245, also known as Malabu Oil Well, in order to boost Nigeria’s crude oil output.
This follows Italy’s Eni’s (ENI.MI), suspension of arbitration, Monday, regarding an oilfield dispute with the Nigerian government, buying time to hold a conversion on the licence from prospecting to mining, Reuters reports.
The suspension is coming barely three days after Nigeria withdrew civil claims totalling $1.1 billion against Eni related to allegations of corruption in the OPL 245 deal.
Recall that The Tide’s source reported that the Federal Government is now ready to benefit from what is considered one of the juiciest oil blocks in Africa, the controversial OPL 245, for the first time in 25 years in a bid to ramp up Nigeria’s oil production output.
The oil block is estimated to hold over nine billion barrels of crude oil, nearly a quarter of the nation’s total proven oil reserves.
Confirming this report, the Nigerian Upstream Petroleum Regulation Commission (NUPRC) told the source that the Federal Government is open to the restoration of the Malabu Oil well.
The commission, however, said it was not in a position to provide further information on plans to activate the oil well but will do that after court proceedings have been completed and the issue is no longer subjudice.
In an emailed response to the source’s enquiry, the Head, Public Affairs and Communications, NUPRC, Mrs Olaide Shonola said, “The FGN is open to the restoration of the Malabu Oil well.
“However, more information will be provided after court proceedings have been completed and no longer subjudice”.
Meanwhile, Eni confirmed the suspension of the arbitration regarding OPL 245 oilfield at the World Bank’s dispute settlement body.
“Eni … has agreed with the Federal Government of Nigeria to mutually and temporarily suspend the arbitration proceedings in order to discuss with the government the necessary steps for achieving the conversion of the licence from prospecting into mining (extraction)”, an Eni spokesperson told the source.
Recall that Bloomberg had reported that Nigeria will waive the claims before Italy’s highest court “unconditionally” and “with immediate effect” no later than November 17.
The country also “irrevocably” waived the right to any further legal action in Italy against Eni, its affiliates, and current and past officers regarding rights for the field, known as Oil Prospecting License 245, or OPL 245.
Eni confirmed receipt of the letter and said in a statement that it was ready to consider, together with the government of Nigeria, the necessary steps for conversion of the prospective licence to one that will allow the development of the oil block.
According to Bloomberg, the Ministry of Justice was not immediately able to respond to a request for comment.
Operations at the country’s oil block have been halted for more than a decade by a series of trials and competing legal claims.
The area is considered to be potentially one of the richest concessions in the country, with recoverable reserves of 560 million barrels, according to Eni’s estimates.
Eni’s suspension of the World Bank arbitration means the company and its partner Shell Plc can finally begin to develop OPL 245.
Eni, Shell, and some of their former and current managers had already been definitively acquitted last year in a criminal case in Milan, in which they were accused of knowing that much of the $1.1bn they paid to acquire OPL 245 would be distributed as bribes.
Even after that verdict, a civil suit continued, with Nigeria seeking combined compensation of $3.5bn from Eni and Shell, claiming the amount reflected the real value of the licence purchased in 2011 by the two companies.
Authoritative sources say the Bola Tinubu administration is open to releasing the oil block to prospective developers, including local and foreign investors.
Specifically, it was learnt that Shell with headquarters in the Netherlands, and ENI, an Italian energy firm, which had both been involved in previous attempts to develop the oil field, are favoured to get President Tinubu’s nod.
In fact, an Oil Mining Licence, OML, may be issued to the two international oil companies, both of whom have been collaborating on the controversial oil block and the scandal-ridden OPL.
Already, the April 29, 1998 controversial licence to Malabu Oil & Gas Limited has now expired over two years ago and both Shell and ENI – the Dutch and Italian IOCs which had been involved in the oil block deals – have indicated willingness to partake in further development of the block if the Tinubu Presidency grants approval.
A statement from ENI says to further develop the oil block, investments running into billions would still have to be made by whoever gets the mining licence.
An Aso Villa source confirmed that the president is keen to explore the oil block, especially considering its huge reserves at a time that Nigeria’s oil output is struggling to meet its OPEC quota.
At the last count, in June this year OPEC had to reduce Nigeria’s future quota by over 20 percent from 1.74 mb/d to 1.38mb/d. This new quota will become effective next January if Nigeria’s output remains low.
Already the Federal Government has decided to end the legal cases abroad on the contention around the ownership of the oil block.
However, the former Attorney-General of the federation, Mohammed Adoke, SAN, who was the country’s chief law officer when an agreement was signed for Nigeria to be paid $1.1billion for OPL 245, is still facing prosecution in Nigeria on various allegations, including fraud and money laundering.
But inside sources say no conclusive evidence has been found to prove the allegations against Adoke, on which grounds the former AGF is seeking an exoneration with the emergence of a new administration.
The case against Adoke was brought by the Economic and Financial Crimes Commission (EFCC), and the case files are still open.
But investigators say certain properties were traced to Adoke suspected to have been bought with proceeds of the bribes drawn from the settlement of the case.
However, Adoke was said to have shown proof that the property was purchased through a bank loan.
Adoke also argued that he got then President Goodluck Jonathan’s approval for the agreement which saw the $1.1bn settlement money moved from Nigeria’s JP Morgan account in New York to two Nigerian banks where the money was allegedly shared to individuals, according to investigation documents seen by Empowered Newswire.
Specifically, it is believed that $800 million was paid to Malabu out of the over $1billion settlement. Nigeria got only about $200 million.
Several local and international court cases were instituted since the OPL 245 was questionably awarded on April 29, 1998 to Malabu Oil and Gas, RC 334442, owned by then petroleum resources minister, Dan Etete, and members of the late General Sani Abacha when he was the Head of State.
Meanwhile, authoritative sources also confirmed that the Federal Government is in fact aware that Malabu Oil and Gas, owned by Dan Etete and members of the late General Sani Abacha never paid up the signature bonus of $20 million it was obliged to pay within 30 days of the licence grant.
Sources said Malabu initially only paid $2.04 million on May 15, 1999. The legal opinion, according to senior lawyers in the Tinubu administration, is that in fact “Malabu never earned a legal title to OPL 245”.
In 2019 President Muhammadu Buhari rejected a request from ENI seeking to convert the OPL into a mining licence. In the circumstances, authoritative sources say President Tinubu is much more favourably disposed to granting the request now.
Veterinary doctors have tasked governments at all levels and stakeholders to drive the agricultural sector with innovative and technological investments to upscale food production and boost food security.
President, Faculty of Veterinary Medicine, University of Nigeria, Nsukka, Alumni Association, Prof Lawrence Aka, made the call in an event in Abuja, following the current excruciating hunger and hardship Nigerians are grappling with.
In the event, which was focused on “Adopting Technological Innovations in Veterinary Practice, Livestock Production and General Agricultural Practices for Food Security, Economic Growth, Poverty Alleviation, Youth Employment and National Security”, Aka noted that agriculture, which is the backbone of human civilization, is at a crossroads, particularly in Nigeria.
According to him, agriculture is faced with challenges such as climate change, population growth, and diminishing natural resources, hence the need to reimagine and reinvent better ways to cultivate lands to improve national economy to nourish the people.
“The solution lies in innovation – leveraging technology to transform agriculture into a more sustainable, efficient, and productive sector.The subject of our discussion today is one that sits at the nexus of our survival and prosperity: ‘The adoption of innovative technology in agricultural production as a catalyst for economic growth and a pillar of national security’.
“In an era marked by rapid technological advancement, and our unique agricultural potential, agriculture remains the cornerstone of our economic stability and sustenance. Yet, it faces unprecedented neglect and challenges from climate change, population growth, resource depletion and lack of political will for its development.
“To navigate these challenges, we must pivot towards innovation and technology. This transition is not just an opportunity for growth but a necessity for our survival as a developing nation.
“There is no doubt that the current state of agriculture in our country does not match the potential it has in revamping all aspects of our existence as it relates to our economy, food security, youth empowerment, poverty alleviation and national security.
“The theme of this symposium has been chosen in recognition of the need for a diversification of our national economic agenda through an embrace of innovative and technologically-driven agricultural practices.
“Nigeria is uniquely blessed with enormous factors that positively drive abundant food production for local consumption and export.
“Unfortunately, this has hitherto been neglected to the detriment of improved economy, poverty alleviation, food sufficiency and national security hence the existing unimaginable level of poverty and youth unemployment. There is no dishonor in a country being poor.
Barely 48 hours after Multichoice alerted subscribers to a three-day technical downtime, telecommunication companies have expressed concern over possible connectivity disruptions as construction advances on the 700km Lagos-Calabar Coastal Highway.
While the DStv and GOtv owner acknowledged the anticipated impact of the ongoing Lagos-Calabar construction project on their uplink facilities, telcos have expressed broader concerns emphasising the vital role of telecommunication service and the effect of possible anticipated technical disruption.
The Lagos-Calabar coastal highway corridor serves as a crucial landing point for multiple submarine cables connecting Nigeria to Europe
The cables, including the West Africa Cable System (WACS), MainOne, Glo1, ACE, and NCSCS, are vital for international communications and data transmission in the country.
The Federal Executive Council approved Phase One of the ambitious 700-km Lagos-Calabar coastal highway project in February, entrusting the task to Hitech Construction Company Limited.
The highway project was designed to connect Lagos to Cross River, passing through the coastal states of Ogun, Ondo, Delta, Edo Bayelsa, Rivers, and Akwa Ibom, before culminating in Cross River.
The demolition of numerous properties and recreational centres in Lagos has been carried out to expedite the construction of the highway.
In the light of the developments, telcos stressed the necessity of stakeholder consultations with the Ministry of Works to address potential risks and implement robust mitigation measures.
While dialogue with the Federal Government is yet to happen, telcos have warned Hitech Construction to exercise caution to prevent damage to critical national infrastructure.
Speaking to newsmen, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed that the Ministry of Works had yet to engage the telcos on environmental impact assessment.
The ALTON Chairman said the Ministry of Works, headed by David Umahi, had engaged some stakeholders but excluded the telecom operators.
“The Ministry of Works has not approached us, and I’m unsure if environmental impact assessments have been conducted. The route is crucial for the landing of numerous submarine cables, so caution is essential.
“Some members have reached out to them, urging caution. As the Chairman of the industry, I can affirm that ALTON members were not consulted regarding the assessment of the undersea cable within that right of way”, he explained.
Adebayo revealed that some of its members had written to the works ministry on the matter over the need for a dialogue. He, however, said the body had yet to get any response.
He added that the Nigerian Communications Commission (NCC) had been engaged to facilitate talks with the ministry.
“We’ve informed the Nigeria Communications Commission about this issue, and they are attempting to contact the Ministry of Works. However, I can confirm that neither we nor any of our members were contacted. This is on record. We were not included in the stakeholder consultations, and we’re concerned about the actions being taken”, he stated.
Experts in aviation under the auspices of Aviation Safety Roundtable Initiative (ASRTI) havae urged President Bola Tinubu to suspend taxes, tariffs and endless charges hindering development of the aviation industry in the country.
The Aviation Roundtable (ART) also called on Tinubu to initiate policies that would address airlines’ survival and growth with a view to lowering the swift increase in domestic airfares.
In a statement released at the end of its Business Meeting in Lagos, the ART President, Air Comdr. Demola Onitiju (rtd), called on the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, to constitute governing boards for the Nigerian Civil Aviation Authority, (NCAA), and other agencies in the sector.
“The ART has been a consistent advocate of NCAA’s autonomy consistent with the Act establishing it and global best practices. We do this to ensure that it is adequately insulated from short-term political pressure.
“In the Nigerian circumstances, the NCAA is expected to be both benign and harsh in its spontaneous enforcement of standards and rules to retain our trust.
“In order to create a conducive environment for aviation and tourism to thrive, the ART urges the renewed hope agenda of President Bola Tinubu to initiate deliberate policies to review and suspend taxes, tariffs and charges (within a given time frame) in order to bring succour to aviation and allied businesses in Nigeria.
“Such policies should address airlines survival and growth with a view to lowering the recent astronomical increase in air fare on the domestic scene.
“The Consumer Rights Protection directorate in the NCAA should live up to its billing in ensuring maximum comfort and compensation for the traveling public promptly where infractions are established”, he stated.
Corlins Walter
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