NIGERIA REPS PROBE DIVESTMENTS IN OIL BLOCKS BY IOCS

The House of Representatives passed a resolution to investigate the divestments of some oil blocks in the Niger Delta region by International Oil Companies (IOCs).

The probe will verify the alleged sale of Oil Mining Lease (OML) 29 and other OMLs by Shell Petroleum Development Company (SPDC), among others.
The House resolved to set up an ad-hoc committee to establish the validity of the transactions and report back within two weeks.

This decision was reached after a motion on the matter by Rep Irona Alphonsus Gerald (PDP, Imo).

In the last two years, Shell and other oil majors have sold oil blocks worth over $5 billion.
In his motion, Rep Gerald said item 12 (1) of the First Schedule of the Petroleum Act stipulates that 10 years after a grant of an OML, one and half of the area of the lease shall be relinquished to the federal government.
He said further that “OML 29 has been in the custody of Shell Petroleum Development Company (SPDC) for more than 52 years and one-half of the area of the lease has not been relinquished to the federal government as stipulated by the act.”

He regretted that against the stipulation of the act, Shell “had sold OML 29 and other OMLs,” saying the outright sale was in direct contravention of the act and undermines national interest.
He further expressed concern that Shell and other oil majors might have “hidden under the cover of waivers usually granted by the Hon minister of petroleum resources to embark on the sale of the OMLs.”
The motion was unanimously adopted by lawmakers present at plenary.

Credit: Daily Trust News