The House of Representatives ad hoc committee constituted to investigate the huge revenue loss from crude oil, worth over $21billion, and debts owed to indigenous companies by International Oil Companies (IOCs), has commenced its work.
At the panel’s inaugural meeting on Wednesday, the Chairman of the panel, Hon. Daniel Reyenieju (PDP, Delta), urged members to bring their legislative experiences to bear in assisting the panel meet its terms of reference.
According to Reyeneiju, “we are expected to investigate the operations of the deep offshore and Inland Basin Production Sharing Contracts Act, PSC, as it concerns the NNPC and IOCs towards determining the reasons for the loss of $21billion, enquire why appropriate steps were not taken, promptly and over an inordinately long period to remedy the situation leading to the loss and possibly recover the revenue.”
He said the second mandate is to “investigate the huge debts being owed to local companies and indigenous contractors by IOCs and gas companies with a view to ensuring that such debts are paid promptly.”
The Chairman said the panel is in line with its mandate and will require the Minister of State for Petroleum Resources, Ibe Kachikwu to provide details of financial transactions between the NNPC and IOCs during the stipulated period.
Other stakeholders required to make inputs are local companies being owed by IOCs. They are required to furnish the committee with details of their respective transactions or contracts.
According to the Chairman, “this is to enable the Committee discharge its duties promptly and effectively.”
“The affected companies are therefore required to submit 10 copies of contract-related documents to the Secretariat on or before 12noon, 27th of February 2018.”
When asked if the Committee’s mandate clashes with others with similar assignments, members explained that the thrust of their mandate was to recover $21billion lost in crude oil sales, first.
They said the aspect of recovering debts for indigenous companies doing contracts with IOCs is an area no other committee in National Assembly has examined before.
Members of the Committee, like Mr Johnson Oghumah from Edo State and Evelyn Oboro from Delta State, said the idea behind the terms of reference is for the House to use its legislative oversight to strengthen indigenous companies whose work in the oil and gas sector has gone largely unrewarded.
The Chairman, while fielding answers on the four-week timeline of the ad hoc committee, stressed that the panel will not hesitate to ask for additional time from the House if it deems such necessary.