Minister of Petroleum, Diezani Alison-Madueke collaborated with Shell Petroleum Development Company (SPDC) Limited in a N58.9trn illicit oil deal, members of five oil-producing communities in Delta State claimed on Friday.
The embittered community men staged a protest at the National Assembly, threatening actions that would cost the country four trillion cubic feet of gas asset worth $15.72trn.
According to members of the communities — Itsekiri Ethnic Nationality, Ijaw Ethnic Nationality, Urhobo Ethnic Nationality, Isoko Ethnic Nationality and Ndokwa Ethnic Nationality — who were led by Chief Emami Ayiri, Chief Aribogha Johnny, Olorogun Jaro Egbo, Zino Onaemor and Emmanuel Orwti respectively,
the minister secretly transferred production rights in OMLs 26, 30, 34, and 42 to Atlantic Energy Drilling Concept Limited, allegedly owned by Mr. Jide Omokore just two days before the 2011 dissolution of the Federal Executive Council (FEC).
“We, members of the oil-producing communities, are compelled to bring to the notice of the National Assembly the manner and /or mode upon which the allocation of the oil mining leases were fraudulently allocated by the Minister of Petroleum Resources, the officials of the ministry and the SPDC,” the communities wrote in a petition to the heads of both chambers of the Assembly.
“Mr. Jide Omokore’s Atlantic Energy Drilling Concept Limited neither tendered for, nor bided for the blocks. By this deal, 60 per cent of NNDC’s 55 per cent stake of these assets is about five billion barrels, which when calculated with the 2013 crude oil benchmark comes to $380 billion or N58.9trillion. This figure is exclusive of the four trillion cubic feet (4TCF) of gas asset in the blocks valued at $15.72 trillion.”
They alleged that on OML 26, 30, 34 and 42, Mrs Deiziani Allison-Madueke’s entertained no bid under the guise of a ‘Strategic Alliance Agreement’ that earned the Federation Account an upfront cash payment of little more than $50m as initial entrance fee from Atlantic Energy while SPDC’s open and competitive bidding process, though excluding indigenes of the area on the other hand, got $1.3bn from Heritage Oil Plc, for its 45 per cent joint venture beneficial stake of the same block.
“Clearly, the true market value of the OML 30 assets divested to Atlantic Energy by NPDC, if the open and competitive bidding process mandated by Public Procurement Act had been followed, should not be any less than $800m,” the petition added.
Deputy Majority Leader of the Senate, Abdul Ningi, addressed the communities, whose protest paralysed legislative activities in the morning, saying the matter would be investigated. He urged them to allow the Senate investigate the matter within one month.
Spokesperson to the Petroleum Minister, Mr. Kelvin Alonso acknowledged the process, saying the minister was aware but denying involvement in any shady deal.
“Yes, we are aware and the minister is also aware of the development this afternoon at the National Assembly,” he said. “But I can only get any comment or reaction from her when I am able to meet with her.”
