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Senate to probe Shell for violation of joint venture agreement, demands refund of $200m to Nigerian govt

The Senate on Wednesday set up an ad hoc committee to probe Shell Petroleum Development Company (SPDC) for alleged non-compliance with the Petroleum Act and violation of Joint Venture Agreement signed with the Federal Government.

The committee headed by Senator Sabi Abdullahi was mandated to investigate the Oil Mining Lease (OML) granted to SPDC from 1959 to 1989, and 1989 to 2019 under the SPDC and Nigerian National Petroleum Corporation (NNPC) Joint Venture agreement.

Other members of the committee are Senators George Thompson Sekibo, Abdullahi Yahaya, Bassey Albert Akpan, Solomon Adeola, Smart Adeyemi and Aishatu Ahmed.

The Senate also demanded a refund of $200 million including penalties and interests under the agreements to the federal government.

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The resolution followed the adoption of a motion titled: “Non-payment of the sum of $200 million accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement,” sponsored by Sekibo.

The lawmaker, who led the debate on the motion at the plenary, said the JV agreement contravened the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, which granted to the SPDC and NNPC a 30-year OML from 1959 to 1989.

He said: “And, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”

The post Senate to probe Shell for violation of joint venture agreement, demands refund of $200m to Nigerian govt appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.

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