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Reps Call For Review Of Malabu Oil Contract

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The chairman, House Committee on Finance, Kayode Oladele, has charged the federal government to review the controversial OPL 245 oil licence struck by Shell and Eni (Agip) with the Nigerian government in 2011.

Speaking at an anti-corruption situation room on public presentation on the contract organised by HEDA Resource Centre in partnership with Global Witness, yesterday, he said the call has become necessary in view of the recent revelation that the country lost expected revenue estimated at about $6 billion from the deal.

He stated that the discovery further confirmed the national assembly’s position that the deal was not in the interest of the nation.

In a presentation, titled: “Government Revenues from OPL 245 Assessing the Impact of Different Fiscal Terms,” president, Resources for Development Consulting, Dr. Don Hubert, said three different sets of fiscal terms had governed block 245 since 2003.

He listed them as the 2003 Production Sharing Contract (PSC) signed by Shell and subsequently rescinded; the terms of the 2005 Model PSC that applied to the original Nigerian contractor Malabu after its license was reinstated in 2006, and the terms contained in the 2011 Resolution Agreement (RA) and the associated 2012 Production Sharing Agreement (PSA) applicable since Eni and Shell jointly acquired the block.





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