Nigeria May Have Lost $10bn In Malabu Oil Deal - Reps
crude oil

Nigeria may have lost $10bn in the controversial Malabu Oil deal in a transaction on Operating Licence 245, the House of Representatives has alleged.

According to the Chairman of the House of Representatives Committee on Financial Crimes, Kayode Oladele, the deal was not for the good of the country.

Advertise With Us

Oladele said this on Wednesday in Abuja at the anti-corruption situation room on public presentation of expert analysis of OPL 245 deal by Human and Environmental Development Agenda in partnership with Resources for Development Center, Canada; Global Witness, Re: Common and CornerHouse.

He said that studies from experts in the oil industry said Nigeria may have lost $4.5bn, $6bn, $9.8bn and $10bn based on lopsided Production Sharing Contracts that excluded some key ingredients of the license like gas.

According to him, the probe was reinforced by the discovery that $1.1bn was paid by SHELL and Agip for OPL 245 disguised as payment to the Federal Government.

“While litigation is ongoing in Milan, Italy against Shell and ENI over charges of bribery with respect to the deal, there are emerging facts to the effect that correspondences in the domains of Shell and ENI show that the multinational companies were alerted ahead by Nigerian civil servants that the transaction was deceptive and that the terms contain hiding clauses which ab-initio ought to have rendered the contract inappropriate,” he said.

“It is shocking to note, based on your expert analysis report, that information contained in the Resolution Agreements regarding OPL 245 which was signed in April 2011 and the Production Sharing Agreement (PSA) signed between ENI and Shell of 21 February 2012, projected resource output upon which the subsisting agreement was based is inconsistent with established industry-standard reserve estimation techniques.

“The new discoveries on the OPL 245, based on your evaluation analysis, further show that the fiscal terms that emerged from the Resolution Agreement of 2011 and the PSA signed between ENI and Shell in 2012 are not consistent with the essence of a normal production sharing system.”