Senate summons British company, BP Oil over $3.3 billion questionable oil deal

Senate Committee on Local Content has summoned a British firm, BP Oil International Limited over a $3.3 billion pre-financing crude oil deal that may have breached the Nigerian Oil and Gas Content Development Act 2010.

Chairman of the Committee, Senator Solomon Adeola, said, the summon was necessary in view of complaints against the oil giant by a Nigerian firm, Alsaa Gas and Shipping Nigeria Limited, which insisted that a $3.3 billion pre-financing of crude oil contract was an infraction of Nigeria’s Local Content Act, 2010.

“The Nigerian company has provided technical and local industry knowledge support for BP Oil International Limited in the contract process with an agreement for a $0.10 per barrel of crude oil of the deal and was unilaterally revoked by the British firm,’ he said.

The chairman further pointed out that: “part of its oversight responsibilities and functions includes to ensure that local companies are not undermined in their dealings with big foreign entities as well as ensuring compliance for NOGICD Act.”

The British Company whose letter of summon was routed through the Ministry of Foreign Affairs is expected to appear on March 28,2018.

They are expected to appear with, “all emails, documents, agreements (signed and unsigned) between NNPC and AGSN relating to the contract” as well as all “ transactional negotiation documents and offers, term sheets and any legal documents to do with dealings with NNPC in this pre-financing opportunity including all correspondences from GED Finance, Group Managing Director and Standard Chartered Bank”.

Adeola said, failure of the British firm to appear before the committee may lead to invoking parliamentary powers under the 1999 Constitution of the Federal Republic of Nigeria, adding that it was regrettable that some of the infractions against the spirit and letters of the Local Content Act were being perpetrated with active collaboration of some Nigerians.