Reps ask NNPC to strengthen NAPIMS for joint venture monitoring

• Re-award $260m to Nigerian firm
• Summon Buratai over disputed Delta land

The House of Representatives yesterday urged the Nigerian National Petroleum Corporation (NNPC) to strengthen the National Petroleum Investment Management Services (NAPIMS).

The lawmakers gave the advice at the plenary presided over by the Deputy Speaker, Sulaimon Lasun, when they adopted the report of the Victor Nwokolo- led joint committee on Petroleum Resources (Upstream) and Public Procurement that probed into the $260 million contract awarded by NAPIMS.

According to them, NAPIMS needs to be strengthened for strict monitoring of the activities of joint venture partners in order to protect the nation’s interests.The lawmakers further urged the NNPC and its joint venture partners to always adhere to due process in their transactions to eliminate prolonged disputes that may negatively impact on investments.

They observed that since the contract for the provision of the DP2-DP3 construction platform support vessel single sourced to GMT Energy Limited is already ongoing, the contractor should be given enough termination notice by demobilizing it at a date not later than the first year anniversary of the commencement date.

They further directed that due to the human capital development and financial investments already made by Tilone Subsea Limited, the NNPC board should approve the NAPIMS’ memorandum of 30 December, 2013 which cleared the agency’s contract review committee on 10 July, 2014 for the provision of OIMR vessel and WROV services for Usan operations in OML 138.

The House thereby maintained that Esso Exploration and Production Nigeria Limited (EEPNL) should mobilise Tilone Subsea Limited to provide the OIMR vessel and WROV services to meet its requirement after the demobilization of GMT Energy Limited.

The House intervention was preempted by allegations that NAPIMS, a subsidiary of the NNPC, in violation of due process and without approval from both the NNPC’s board and the Group Executive Committee (GEC), granted approval for ESSO, a subsidiary of ExxonMobil, to award four single source contracts for projects in the Usan Deepwater Project at a total value of $260 million without any form of tendering process.

Also yesterday, the House Committee on Public Petitions summoned the Chief of Army Staff, Lt Gen.Tukur Buratai, to explain the circumstances surrounding the alleged sale of land belonging to natives of Effurun in Uvwie Kingdom, Delta State.The chairman of the committee, Uzoma Nkem-Abonta (PDP, Abia) issued the summon during proceedings of the panel yesterday at the National Assembly complex, Abuja.

Dissatisfied with the conduct of Major Daniel Ehicheoya who stood in for the Nigerian Army over the issue, Nkem-Abonta directed the army chief to appear before the committee to shed light into the matter on January 30, 2018. He also directed the Nigeria Army authorities and other parties involved the dispute to stay away from the land pending the determination of the matter.