An adhoc committee headed by Leo Ogor set up to investigate the sale of OPL 245 to Shell Nigeria Exploration and Production Company and Nigeria Agip Exploration and Production Limited in a deal worth over $1.0bn has recommended the cancellation of the oil block sale and other sanctions for the two oil majors for breach of the 1999 Constitution (as amended), the Petroleum Act and the indigenous concession policy guiding the sale of oil blocks in the country.
A copy of the committee’s report states, “They (NAE) insisted that they did not buy any interest in OPL 245, but ended up having 50 per cent equity in the block, and at the same time, a signatory to the dispute resolution agreement. This is worrisome.”
It further stated, “Indeed, Clause 17 of the resolution agreement commits the Federal Government to indemnify, and even defend SNUD, SNEPCO and NAE from and against all suits, proceedings, claims, demands, losses and liability of any nature or kind, including but not limited to all litigation costs, attorney’s fees, settlement payment, damages and all other related costs and expenses, based on, arising out of, related to or in connection with the resolution agreement and or the issuance of the OPL 245.”
The recommendation of the report on Shell and Agip reads, “That Agip be formally censured or reprimanded by the House for its role in the resolution agreement, which lacked transparency and did not meet international best business practices.
“The resolution agreement was meant to resolve existing disputes between the various parties, which even by Agip’s acknowledgement, they are not party to the disputes. In the process, they cornered 50 per cent equity in OPL 245.
“SNUD be censured or reprimanded by the House for lack of transparency and full disclosure in its bid to acquire OPL 245.”