How House Cttee Canceled $260m Contracts on Usan Deepwater Field
Fresh facts have emerged on how the House of Representatives Joint Committee on Petroleum Resources (Upstream) and Public Procurement recommended the termination of $260 million contracts approved illegally by the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the NNPC in Usan deepwater field in Oil Mining Lease (OML) 136, following THISDAY’s exclusive report on the contract scandal.
In the 16-page report submitted to the House recently, which was obtained by THISDAY, the joint committee also recommended that ESSO Exploration and Production Nigeria Limited, a subsidiary of ExxonMobil should mobilise the bonafide contractor for the project, Tilone Subsea Limited to handle the provision of the Offshore Inspection Maintenance and Repair (OIMR) vessel as well as the Workclass Remotely Operated Vehicle (WROV) for the Usan project.
THISDAY had reported that in fragrant violation of due process and without approval from both the NNPC’s Board and the corporation’s Group Executive Committee (GEC), NAPIMS fraudulently granted approval for ESSO Exploration and Production Nigeria Limited, a subsidiary of ExxonMobil, to award four single source contracts at a total value of $260 million.
It was gathered that without any form of tendering process, NAPIMS had via three memos dated October 13, 2014; February 10, 2015 and April 16, 2015, all with the same reference – NAP/PSC/ MM/07.01, single handedly nominated four companies to execute the contracts.
The controversial contracts involve the provision of DP2DP3 Construction Platform Vessel; Provision of DP2 4800 DWT Platform Support Vessel (PSV); and provision of Fast Supply Intervention Vessel (FSIV) for Usan deepwater project.
ESSO took over the operatorship of Usan field from Total Upstream Nigeria Limited (TUPNI) on February 1, 2014, and inherited all contracts running on the Usan field.
The resolution by the House of Representatives to probe the contracts followed a motion sponsored by Hon. Gabriel Kolawole (Ondo APC), on February 25, 2016.
The lawmaker, displaying a copy of THISDAY report (where the story had been published) dated February 4, 2016, lauded the medium for what he described as a good investigative piece.
Kolawole referred to the report titled: “How NAPIMS Allegedly Approved $260m Contracts Illegally for ExxonMobil’s Usan Field.”
The Speaker, Hon. Yakubu Dogara, had put the motion to a vote, which was unanimously backed by the lawmakers.
In the report submitted to the House, the Joint Committee charged the NNPC and the joint venture companies to “always adhere to due process in their transactions to eliminate prolonged disputes that may negatively impact investments.”