#OpenOilLicense2

It is not news that Nigeria’s oil and gas production falls short of her capacity, and this is a problem. That due process if often not followed in the awarding of oil licenses is a major contributor to this problem because these licenses are granted to companies and elites who lack the requisite technical and financial capacities and consequently fail to develop these assets.

To highlight some of the historical and ongoing problems associated with the current defective oil licensing process, let us briefly consider the notorious and on-going case of the award of Oil Prospecting License (OPL) 245 to Malabu Oil & Gas Limited.

The OPL 245 is a noteworthy and profitable oilfield. It is in fact rumored to be one of Africa’s richest oilfields and also, one of the multiple license awards that have been smothered in public debates and discussions. This is as a result of factors such as the reputation of the oilfield, of course; the involvement of former Heads of State, senior public officials and senior executives of international oil companies; the level of the attested and likely fiscal damage to the economy of the country; international reputational damage to Nigeria and the fact that the case has not been sorted out in almost 20 years.

Anyway, let us specifically analyze the flaws in the licensing process at every point, even from the emergence of the company.

Nine (9) days after Malabu Oil & Gas Limited was incorporated, the company was awarded OPL 245. This occurred without the submission of an application form and other required documents stipulated by the laws that facilitate the process. Hence, the first show of illicit exploitation of power.

The owners of the company included Mohammed Sani (alias for Mohammed Abacha, son of the then Head of State, General Sani Abacha); Kweku Amafegha (a fictional character created by Dan Etete, the then Minister of Petroleum Resources, responsible for the award of the license, who is said to have been in violation of Section 436(b) of the Criminal Code Act which, when convicted, would carry a penalty of seven years imprisonment.); and Wabi Hassan (wife of Hassan Adamu, a close friend of General Sani Abacha and one time Nigeria’s ambassador to the United States of America).

Now, although the award of this license was in violation of a number of laws facilitating the process, several international oil and gas companies got involved in the dealings. This subsequently led to the purchase of the rights by Shell Nigeria Ultra Deep Limited for $1.1billion (which still did not follow the lawful licensing process as there was no public bid prior to the award). Concerns were raised in Nigeria and abroad with regards to the source of funds for this payment and this was the beginning of a string of court proceedings against the key parties involved.

The scandal that surrounded the award of the OPL 245 to Malabu Oil & Gas Limited still has a negative impact on Nigeria 20 years after its occurrence. This outrageous wrongdoing has been brought to international light where it has further marred Nigeria’s reputation as a nation where corruption is championed from the highest political offices. This has led to financial downfall and reputational injury which affects Nigeria’s GDP and its ability to attract foreign investment. The impact doesn’t just end there and like any other corrupt practice, it has a significant effect on the standard of living and welfare of the masses.

If Nigeria fails to address the issues in the oil licensing process, the high negative impact on the socio-economic development will remain. There is a dire need to acknowledge and examine the defective areas in the licensing process, in order to utterly prevent situations similar to the OPL 245 scandal. Opportunities must also be accorded to citizens who possess the right and capabilities to be awarded these licenses.

Join the conversation using the #openoillicense hashtag on Twitter and Facebook and sign the petition (https://www.change.org/p/the-president-of-the-federal-republic-of-nigeria-save-nigeria-s-petroleum-industry-before-it-is-too-late?recruiter=924062734&utm_source=share_petition&utm_medium=copylink&utm_campaign=share_petition) calling on the President to thoroughly examine the process of awarding oil licenses and sign the PIGB into law.

The owners of the company included Mohammed Sani (alias for Mohammed Abacha, son of the then Head of State, General Sani Abacha); Kweku Amafegha (a fictional character created by Dan Etete, the then Minister of Petroleum Resources, responsible for the award of the license, who is said to have been in violation of Section 436(b) of the Criminal Code Act which, when convicted, would carry a penalty of seven years imprisonment.); and Wabi Hassan (wife of Hassan Adamu, a close friend of General Sani Abacha and one time Nigeria’s ambassador to the United States of America).

DankemzI:
I am a Scammer in this country from president to the masses

The owners of the company included Mohammed Sani (alias for Mohammed Abacha, son of the then Head of State, General Sani Abacha.

DankemzI:


Say No More, we no who said Abacha never stole. Yet he and his cartel are RELOOTING THE RETURNED LOOT.

ATIKU will rivive and diversify our Economy
Buhari has successfully completed his poverty schemes

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