A House of Representatives committee of 8 members headed, by Hon. Femi Gbajabiamila, is to look into the debt arrangement between the Asset Management Corporation of Nigeria (AMCON) and Zenon Petroleum and Gas Limited and Forte Oil Plc, both owned by Femi Otedola.  The debt, in the region of N141 billion, had been taken over by AMCON which was set up to take over and manage the debts of the failing banks. 

The two Otedola-owned companies were among the 112 companies on the AMCON blacklist submitted to the Central Bank of Nigeria (CBN).  Soon after, however, the two companies reached a settlement with AMCON details of which are not immediately available but NOGintelligence understands that both assets and a cash sum were used in settlement of the outstanding liabilities.

The decision by the House to investigate the deal came after a motion by Hon. Abimbola Daramola who claimed that that the AMCON debt settlement with the two companies did not follow the procedure stated in the Act establishing AMCON, which requires that the details of the deal be disclosed to the National Assembly among other government agencies.

He said: "The House is aware that it was publicly reported that Zenon Petroleum and Gas Limited and Forte OilPlc have paid up an outstanding debt of N140,999,620,395.80 owed the Asset Management Corporation of Nigeria. We are, however, disturbed that the sudden final settlement of this exposure by these organisations was shrouded in secrecy and established under a binding confidentiality agreement."

"We are convinced that the exposure of these organisations whose debts are said to have been finally settled now is the highest with the consequences of causing a systemic rift to the economy," he stated.

The Managing Director of AMCON Mr Mustafa Chike-Obi, said, in defence of the deal, that the settlement involved over six months of negotiations and valuations of assets and that the deal had been ratified by the board.

The Committee is to report its findings to the House in one month's time.

Worried by criticism of lack of transparency in its operations, the Nigerian National Petroleum Corporation (NNPC) has pledged to ensure accountability and transparency in its operations by engaging all stakeholders towards improving ways of doing business.

Speaking during a recent courtesy call by the National Executive Council (NEC) of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to his office, the Group Managing Director of NNPC, Mr. Andy Yakubu admitted meeting some challenges after coming on board.  He however stated that NNPC had recorded a number of achievements in the past 100 or more days, stressing that "if we are to continue at this pace, we'll surely move the nation's economy forward and also change our perception in the eyes of our stakeholders."

Yakub lauded the oil workers' unions for their unflinching support in ensuring continuous industrial harmony in the nation's oil and gas industry, describing them as "partners in progress."

"One of our greatest gifts as NNPC Management is the presence of a strong workforce and supportive in-house unions. In particular, I commend your level of maturity and counsel and I must say without any fear of contradiction that you are partners in progress," he said.

He also said that he appreciated the co-operation of the unions with NNPC in its efforts to confront the challenge of the fuel scarcity being experienced in some major cities of the country, and stressed that such understanding was necessary towards achieving NNPC's set objectives.

"We must sustain this cordial relationship for us to be able to deliver on our mandate and to a larger extent for the benefit of our country'', he added.

Yakubu urged the union officials to continue to engage the NNPC management in meaningful dialogue.

Speaking earlier, the PENGASSAN National President, Mr. Babatunde Ogun, assured Yakubu of the Union's continuous support towards moving the nation's oil and gas industry forward.

"PENGASSAN remains poised to continually provide the necessary support for NNPC and the industry to build a symbiotic relationship that would help grow the industry and the Nigerian economy," Ogun said.

Six firms have won the bids to operate ten electricity distribution companies across the country, a process which may signal the end of efforts by the Federal government to privatise the successor distribution companies (DISCOs) created from the unbundling of the Power Holding Company of Nigeria (PHCN).

Results at the end of the bidding process showed that Lagos-based Integrated Energy Distribution and Marketing Ltd, won the management of the Eko Distribution Company. The company also won the bids to operate the Ikeja, Ibadan and Yola distribution companies, making it the company with the highest wins in the process.

Interstate Electrics Ltd which is part of a consortium that includes Chrome Energy, a subsidiary of Chrome Group, won the bid to operate the Abuja Distribution Company as well as the Enugu Distribution Company. The bid to operate the Benin Distribution company, however, was won by Vigeo Power Consortium, while 4Power Consortium emerged sole bidder for the Port-Harcourt distribution company.

The Kano and Jos distribution companies are to be operated by Sahelian Power SPV Ltd and Aura Energy respectively.

The Director-General of the Bureau for Public Enterprises (BPE) Mrs. Bolanle Onagoruwa, who spoke at the opening of the commercial bids submitted by pre-qualified prospective core investors in Abuja, expressed the hope that the successful bidders would take over the distribution companies and re-establish them as the solid foundation of the Nigerian Electricity supply industry.

She noted that commercial proposals of bidders for five generating companies were successfully opened three weeks ago adding that the process of concluding those transactions is now proceeding steadily.

The Nigerian Navy has since reported that it has located the vessel and plans are in progress to rescue the abducted men. According to a Nigerian Navy spokesperson, the vessel is in Bonny Island in Rivers State. "Necessary machinery has been put in motion to ensure that the abducted crew members are released and the hijackers are apprehended," he said.

Niger Delta communities in Egbema and Gbaramatu Kingdoms in Warri North and Warri South-West Areas of Delta State are mobilising to shut down the operation of Chevron Nigeria Limited in the area for alleged failure of the company to employ Ijaw graduates.

This development, it was learnt, followed the expiration of an ultimatum given to the company by a prominent group in the area, the Niger Delta Indigenous Movement for Radical Change (NDIMRC).  

NOGintelligence gathered that the communities are demanding the employment of 39 Egbema-Gbaramatu applicants, who were successful in the Ogere training programme and interview for the Project Operating Team (POT) organised by Chevron, for the Escravos-Gas-To-Liquid (EGTL) project.

The $9billion Escravos-Gas-To-Liquid plant is one of Chevron's major projects in the area.

It was also learnt that the communities want the reinstatement of Ijaw indigenes, who were allegedly sacked by Chevron on February 7, 2011.

Investigations by NOGintelligence revealed that the communities have joined forces with a group known as KOMBOT Employment Front in their attempt to disrupt the company's operations in Egbema and Gbaramatu territories.

NDIMRC had in a recent ultimatum signed by its President, Nelly Emma; Secretary, John Sailor; and Public Relations Officer, Mukoro Stanley, alleged that Chevron had grossly marginalised Ijaw graduates from Egbema and Gbaramatu kingdoms in the area of employment. NDIMRC noted that the unemployed Ijaw graduates had attended different interviews organised by Chevron for employment, but were not employed.

"Whereas their counterparts from the South-West and South-East were recruited and are currently working with Chevron Nigeria Limited," said NDIMRC.

"We are in total support of the earlier ultimatum given to the company by KOMBOT Employment Front. We are ready for a total show-down with Chevron Nigeria Limited in the days ahead," NDIMRC added. 

The group urged the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke; Group Managing Director of the NNPC, Mr. Andrew Yakubu and the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Ernest Nwapa to prevail on Chevron to employ Ijaw graduates, who passed the company's recruitment interviews.

NDIMRC also cautioned the management of Chevron against what it called blind-folding the people with it existing Global Memorandum of Understanding (GMoU), with the Egbema/Gbaramatu Communities Development Foundation (EGCDF), noting that the oil company was conniving with some selfish leaders of the communities to undermine the general interest of the people.

"The imposition of certain individuals on the communities by the company through its GMoU must stop. Before the GMoU, standard projects were executed in the two kingdoms, but the story is different today. Chevron has stopped embarking on capital projects and if it does at all, what we see are sub-standard projects and we hereby implore the company to suspend the GMoU forthwith. We will not hesitate to head to the Supreme Court if the company refuses to cancel the GMoU. The GMoU is no longer serving the interest of the two kingdoms, but that of few selfish leaders and others in Chevron," NDIMRC added.

In its bid to improve relationships with its host communities, Dubril Oil's Director of Community Relations, Mr Clement Seweje, has announced the latest round of beneficiaries of the company's Community Empowerment Programme. He said: "Today we will be providing empower tools to a total of eighteen beneficiaries, fifteen will be empowered with equipment in the relevant vocations that they have been trained in and three will provided with training equipment."  

According to Mr Seweje, the scheme began in December 2011 and the company has so far spent N10 million to empower 45 people in their host communities through skills acquisition and scholarships. He said: "The programme is an initiative of Dubril Oil Company Ltd to empower women and youths in the host communities and impact oil producing companies here in Edo State." 

Warren Consulting is holding a 5 day oil and gas training seminar in Lagos. The 5 Day MBA in Oil and Gas in Lagos is a practical and interactive upstream programme that develops the manager and senior professional through providing a deeper understanding of the dynamics of the petroleum business.

Attendees leave with a practical perspective on how to create and capture value in the industry. This is a business training program with limited technical content. No previous business training is required to take this course. Delegates leave with the perspective of the Director General of a national oil company; or the CEO of an international oil company; or of the Minister of Petroleum in government.

COURSE DATES
19 - 23 November 2012  and  22 - 26 April 2013

Delegate numbers strictly limited to 20 to allow for good discussion. Visit www.warrenbusinessconsulting.com to register or email info@warrenbusinessconsulting.com for more information. 

Nigerian lawyer Adegbite Adeniji, Partner at Advisory, Legal Consultants, will speak at the international gas flaring forum in London on the 24th -25th of October. The event billed as "Key Achievements of GGFR partners and the Way Forward" is organised by the Global Gas Flaring Reduction public-private partnership (GGFR), a World Bank-led initiative which brings around the table representatives of governments of oil-producing countries, state-owned companies and major international oil companies so that together they can overcome the barriers to reducing gas flaring by sharing global best practices and implementing country specific programs. Visit www.flaringreductionforum.org  to register.