- The Nigerian government is set to recover some funds from international oil companies operating in the country
- This was disclosed by the Attorney-General of the Federation (AGF), Abubakar Malami (SAN)
- Malami said Nigeria has been short-changed by the oil majors’ refusal to comply to certain governance procedures
Attorney-General of the Federation (AGF), Abubakar Malami (SAN), says Nigeria is determined to recover over $62billion from multi-national oil companies for under-payment to the country since 1998.
Under the country’s joint operating agreement, Nigeria is authorised to review the existing profit-sharing formula with its partners once crude oil prices at the international oil market rise above $20 per barrel.
Malami, however, said that Nigeria was unable to enforce the law since October 1998 when oil prices rose above the agreed threshold.
The minister told that the joint venture partners with the Nigerian Nation Petroleum Corporation (NNPC) have been reluctant to adjust the sharing formula.
The six international oil companies are Shell Petroleum Development Company, Mobil Producing Nigeria Unlimited, Chevron Nigeria Limited, Nigeria Agip Oil Company, TotalElf Nigeria, and Pan Ocean Oil Company.
Apart from Shell, which holds 55 percent equity in Shell/NNPC joint venture, all others control at least 60% of the interests in the shares.
with the provision of the 1990 joint oil production sharing contracts, which allows the government to review revenue sharing formula when oil price rises above $20 per barrel.
He said federal the government had no option than to begin to pursue the enforcement of the provisions of the agreement to recover the amounts the oil majors under-paid the government considering Nigeria's financial situation at the moment.
The minister put the figure expected from the oil giants conservatively at about $62 billion.
“Computing the amount that should be credited to the Nigerian government if the law was effectively applied will translate to about $62 billion,” he told Reuters.
Meanwhile, the national chairman of the Nigerian Institution of Metallurgical, Mining and Materials Engineers (NIMMME), Engr. Dr. Ayodeji Adeyemo has stated that Nigeria can generate almost $300billion from iron ore and lead.
Adeyemo made the comment on Thursday, October 10 during his inaugural address at his investiture as the 10th chairman of the NIMMME in Abuja.
He said with the available reserves of iron ore and lead, Nigeria can generate $280billion and $12billion respectively.
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