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Controversy Trails Port Harcourt Refinery Takeover
Controversy has continued to trail the proposed take-over of Port Harcourt refinery by Oando Plc, recently given wide reportage by the media.
The media attention however, appeared to have unsettled the management of Oando, which readily issued a statement in form of clarification, signed by its Chief Strategy and Corporate Services Officer, Ainoije Alex Irune, explaining that:
The company stated that with the concerted efforts of the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) to aggressively drive private sector led refineries rehabilitation and expansion programmes, Oando as local partner to NAOC/ENI will support the active rehabilitation of PHRC on activities of terminalling, logistics, structuring and funding.
It explained that active negotiations are ongoing and it is expected that a final agreement will be reached by the end of July, 2017.
But ENI was one of the firms whose name featured prominently in the Malabu Scandal, a scandal involving an alleged bribery saga between company representatives and officials of the Nigerian government.
Its officials denied the charge. Although mentioned as being involved, former President Goodlcuk Jonathan denied any participation in the alleged bribery supposedly paid to him through proxies.
However, according to the Bureau of Public Enterprises, BPE, privatisation of refineries, chronicle of events, obtained by Sunday Vanguard, the PHRC transaction process effectively commenced in March 2004.
It stated, “Bids by four bidders were received at the deadline of December 2, 2005: They included Essar Infrastructure of India; Oando Plc; Refinee Petroplus; and Transcorp Plc (now Bluestar Oil Service Limited Consortium).
“On evaluation, it was discovered that all the four bidders did not meet the minimum qualification benchmark apparently due to misunderstanding of the provisions of the Request of Proposals circulated by CSFB.”
According to the BPE, “All the bidders’ technical bids were evaluated and recommended for the financial bid opening, scheduled for July 2006.
“The Bureau subsequently received a letter from the Honourable Minister of State for Petroleum Resources (now Minister of Energy) conveying Federal Government’s directive to suspend the conclusion of the privatisation of PHRC to enable government investigate a complaint by one of the bidders.
“The Economic Management Team (EMT) intervened to rescue the transaction and (complied) with the Policy Support Instrument (PSI). Subsequently, the transaction was re-opened and fresh advertisements for expressions of interest were placed in December 2006.
The deadline for submission of EOIs was January 19, 2007.” BPE further stated that six bids were received from the following prospective investors: Mittal Investments Limited, Indorama International Finance Limited, Global Oil and Energy, LinkGlobal International Limited, Taleveras Group and Oil Works Limited (DFP Project Finance Limited).
BPE explained that “following evaluation of new Expression of Interests, EOI, approval was granted for prequalification of eight consortia.
The firms recommended to proceed to the next stage included Essar Infrastructure of India, Oando Plc, Refinee Petroplus and Bluestar Oil Services Limited Consortium.
Others included Mittal Investments Limited, Indorama International Finance Limited, LinkGlobal International Limited and Global Oil and Energy. “BNP Paribas was engaged to conduct fresh valuation of the refineries.” BPE noted that at the financial bid opening, Bluestar Oil Services Limited Consortium emerged the preferred bidder with a bid of $561 million.
Other bidders were disqualified for breaching bidding rules. Refinee Petroplus was said to not to have presented the bank draft for 50 percent of their bid, while the bank draft (allegedly) provided by Oando Plc did not sum up to the 50 percent of their bid price as required in the bidding rules.
“NCP”, BPE then concluded, “subsequently approved Bluestar Oil Services as the core investor in PHRC.
Bluestar completed payment for the full amount of their bid price of $561 million on Friday May 25, 2007, and share certificate for PHRC was handed over to Bluestar Oil Services Limited on May 28, 2007,” BPE added.
Though the refinery was handed down over to Bluestar a day before former President Olusegun Obasanjo handed over power to late President Umar Yar’ Adua, the latter cancelled the privatisation exercise done for all the refineries.
Prior to that, the Petroleum and Natural Gas Senior Staff Association, PENGASSAN and Petroleum and the National Union of Petroleum and Natural Gas workers, NUPENG, had protested that sale of the nation’s refineries.
When our correspondent contacted the two unions, neither of them responded to calls nor text messages. But according to Oando, it “shares the vision of the Nigerian Government to become a petroleum product self-sufficient country in the short to medium term and ultimately be a net exporter of such products.
“Accordingly, pursuant to the Memorandum of Understanding (MOU) reached by the Federal Government and NAOC/ENI, Oando will partner with NAOC/ENI in the proposed rehabilitation of the Port Harcourt refinery (PHRC).
This will be based on a repair, operate and maintain (ROM) agreement which will see PHRC’s capacity grow from its current 30 percent to 100 percent, its main capacity of 210,000 BPSD.”
Nobel Laureate, Professor Wole Soyinka, has called on Nigerians to reject silence in the face of extrajudicial killings and other abuses of human rights.
Soyinka stressed that accountability and civic courage remain essential to rebuilding public confidence in the nation’s institutions.
He made the call during the 28th Wole Soyinka Lecture held in Port Harcourt, last Friday as part of activities marking his 92nd birthday.
The lecture, themed “Reclaiming the Nigerian State through Accountability, Justice and Civic Courage,” drew participants from different sectors of society.
The renowned playwright and human rights advocate said the country’s greatest tragedy was not only the unlawful killings carried out by state and non-state actors, but also the silence that often follows such incidents, allowing perpetrators to evade justice.
According to him, indifference by citizens to abuses of power and violations of fundamental human rights has contributed to the persistence of extrajudicial killings and other forms of injustice across the country.
Soyinka said he dedicated this year’s lecture to victims of unlawful killings, noting that the event was intended to honour individuals who had lost their lives as a result of failures within the justice system and society’s inability to protect the sanctity of human life.
He stressed that the lecture was dedicated to what he described as the basic unit of every society – the human being, and urged Nigerians to place greater value on human dignity irrespective of ethnicity, religion or social status.
The Nobel Laureate recalled several incidents of violence, including the fatal shooting and killing of a young man in Ugheli in Delta State by a police officer, and the mob killing of Deborah Yakubu in Sokoto State sometime ago, lamenting that many of those responsible are yet to face justice.
He expressed concern that some perpetrators of violent crimes had openly admitted their actions without fear of prosecution, describing such situations as evidence of serious failures within the nation’s justice system.
Soyinka maintained that when justice is delayed or denied, public confidence in state institutions continues to erode, thereby encouraging further violations of human rights.
Responding to critics who accuse him of promoting religious or ethnic divisions whenever he spoke on such issues, Soyinka dismissed the allegations and pointed out that his advocacy has always centred on the protection of human life and the rule of law.
He urged Nigerians to remain vigilant and continue demanding justice in cases of alleged extrajudicial killings, including the recent shooting of a young man by a police officer, stressing that every life deserves equal protection under the law.
The literary icon also recalled an earlier pledge by a past incoming president to make public the files relating to unresolved assassinations and extrajudicial killings, questioning the status of the promised investigations.
He challenged citizens to continue asking questions about unresolved cases, insisting that justice, accountability and respect for human dignity are indispensable to building a peaceful, democratic and inclusive Nigerian society.
The Federal Airports Authority of Nigeria (FAAN) has clarified that there was no fire at Terminal 2 of the Murtala Muhammed International Airport, Lagos, contrary to its earlier advisory.
Earlier yesterday, FAAN had announced that a fire incident had occurred at Terminal 2 of the nation’s busiest airport, and assured that its Aerodrome Rescue and Firefighting Service had been deployed to contain the situation.
There were also reports that activities were briefly disrupted at the airport yesterday after smoke was seen inside parts of the terminal.
Videos circulating online showed passengers kept standing outside the terminal while firefighters responded to the incident.
However, in an update issued less than two hours later by the Director of Public Affairs and Consumer Protection, Henry Agbebire, and posted on FAAN’s official X handle, the authority said preliminary findings showed that the smoke seen at the terminal was caused by the discharge of the facility’s FM-200 fire suppression system.
“Further to our earlier advisory regarding the incident at Terminal 2 of the Murtala Muhammed International Airport, Lagos, the Federal Airports Authority of Nigeria (FAAN) wishes to provide the following update,” the statement read.
“Preliminary findings indicate that there was no fire at the terminal. The smoke observed within the affected area resulted from the discharge of the terminal’s FM-200 fire suppression system. The reason for the activation of the fire suppression system is currently being investigated,” FAAN stated.
The authority said normal operations had resumed at the terminal while investigations were ongoing to determine the cause of the incident.
“Normal operations have since resumed at the terminal, while detailed investigations are ongoing to determine the exact cause of the incident,” the statement added.
The authority thanked passengers, airlines, airport users and other stakeholders for their understanding and cooperation.
FAAN appreciated the understanding and cooperation of passengers, airlines, airport users and all stakeholders, and reiterated its commitment to the safety and security of all airport operations.