Senate Summons Kachikwu Over $115bn Oil Deal

The Nigerian Senate  has summoned the Minister of State for Petroleum Resources, Ibe Kachikwu over  a  proposed Memorandum of Understanding involving about $115 billion, which the ministry seeks to enter with Indian government and Chinese Firms .

The  Minister is to appear before the Senate Committees on Petroleum Upstream and Gas, to give a detailed account of the MoU.

The summons  formed part of the prayers of  a motion titled  “the need for detailed explanation of the MoU with Indian Government and over $80 billion MoU signed by Minister of Petroleum Resources with Chinese Firms”. moved by Senator Clifford Ordia.

Leading debate on the motion,  Senator Ordia gave the breakdown of the oil deal as including: a $15 billion investment with India, where the Indian government would make an upfront payment to Nigeria for crude oil purchases as negotiated by the Minister of State for Petroleum.

The next MoU is  worth $80 billion to be spent on investments in oil and gas infrastructure, pipelines, refineries, power, facility refurbishments and upstream financing spanning five years which the minister also signed with Chinese companies.

Ordia in the motion also revealed that aside these MoUs, the two largest oil companies in China, Sinopec and CNOOC, also signed investment MoUs worth $20 billion with the Minister of State for Petroleum Resources.

The senate therefore  summoned the minister to appear before its joint committee to explain how the China and India deals will benefit the Nigerian economy, particularly now the country is in recession.

The Senator had told the Senate that  the two countries have agreed to sign the  MoUs  to facilitate investments by India in the Nigerian oil and gas sector and specifically in areas such as refining, oil and gas marketing, upstream ventures, development of gas infrastructure and the training of oil and gas personnel in the country.

 

Nneka Amaechi-Nnadi, Abuja