Discretionary allocation of oil blocks entails that a president can reward a mistress who performs wonderfully with an oil block with capacity for cumulative yield of over $20 billion dollars without recourse to any process outside of manhood attachments. Babangida, Abacha, Abdulsalami and Obasanjo awarded discretionary oil blocks to friends, associates, family members, party chieftains, security chiefs and all categories of bootlickers, spokespersons and cult members without any laid down procedures.
The recipients of such oil blocks will get funds from ever willing offshore financiers and partners to graciously settle the benefactors, the awarders, facilitators and the Commander-in-Chief through fronts. These settlements mostly paid into foreign accounts runs into hundreds of millions of dollars according to the potential yield of the block. Sometimes, the awarder (sharer of national cake and direct intermediaries) demand additional stakes in the bidding company. The awarder sends fronts as part of the directorship and management of the bidding firms without leaving a link to them. That is how the oil block national cake is distributed to a few Nigerians.
Signature bonuses which are paid when an investor successfully bids, wins and signs agreement with the petroleum ministry, running into tens of millions and sometimes hundreds of millions of naira ,is often waived off. There is actually no waiver; rather a diversion of what would have been paid to government t coffers is paid into private purse as appreciation gifts. That is why those in the Petroleum Ministry dread retirement as though it signifies going to hell fire. No matter how little your influence, something substantial must enter your hands especially in hard currency. The nation loses billions of dollars in diverted revenue whenever any round of auction occurs.
OML 110 with high yield OBE oil fields was given Cavendish Petroleum owned by Alhaji Mai Daribe, the Borno Patriarch in 1996 by Sanni Abacha. OBE oil field has estimated over 500 million barrels of oil. In layman’s language and using average benchmark of $100 dollars per barrel, translates to $50 billion dollars worth of oil reserve. When you remove the taxes, royalties and sundry duties worth about 60% of the reserve payable over time you get about $20billion dollars worth of oil in the hands of a family.
OPL 246 was awarded to SAPETRO, a company owned by General Theophilus Danjuma, by Sanni Abacha in 1998. Akpo condensate exports about 300,000 barrels of crude daily.
OML 112 and OML 117 were awarded to AMNI International Petroleum Development Company owned by Colonel Sanni Bello in 1999. Sanni Bello is an inlaw to Abdulsalami Abubakar, former Head of State of Nigeria.
OML 115, OLDWOK Field and EBOK field was awarded to Alhaji Mohammed Indimi from Niger State. Indimi is an inlaw to former Military President Ibrahim Babangida.
OML 215 is operated by Nor East Petroleum Limited owned by Alhaji Saleh Mohammed Gambo.
OML 108 is operated by Express Petroleum Company Limited is owned by Alhaji Aminu Dantata.
OML II3 allocated to Yinka Folawiyo Pet Ltd is owned by Alhaji W.I. folawiyo.
ASUOKPU/UMUTU marginal oil fields is operated by Seplat Petroleum. Seplat is owned by Prince Nasiru Ado Bayero, cousin to the Central Bank Governor Lamido Sanusi. This oil field has the capacity of 300,000 barrels of oil daily. This translates to $30million dollars daily at average benchmark of $100 dollars per barrel. Deducting all sundry taxes, royalties etc , this field can yield $12billion dollars daily for the owners .
Intel owned by Atiku, Yarádua and Ado Bayero has substantial stakes in Nigeria’s oil exploration industry both in Nigeria and Principe and Sao Tome.
AMNI owns two oil blocks OML 112 and OML 117 which it runs Afren plc and Vitol has substantial stakes in oil blocks. Afren plc is operating EBOK oil fields in OML 67. Vitol lifts 300,000 barrels of Nigerian oil daily. Rilwanu Lukman, former OPEC Chairman has stakes in all these named three companies.
OPL 245 was awarded to Malabu Oil& Gas Company by Sanni Abacha. Dan Etete, Abacha’s oil minister owns Malabu Oil. In 2000, Vice President Atiku Abubakar convinced Obasanjo to revoke OPL 245 given to Malabu Oil. Etete had earlier rejected Atiku’s demand for substantial stakes in the high yield OPL 245 and it attracted the venom of Ota Majesty who revoked the licence. However, in 2006, Obasanjo had mercy on Dan Etete and gave him back his oil block worth over $20 billion dollars.
OPL 289 and OPL 233 was awarded during Obasanjo era to Peter Odili fronts, Cleanwater Consortium, consisting of Clenwater Refinery and RivGas Petroleum and Gas Company. Odili’s brother in law, Okey Ezenwa manages the consortium as Vice Chairman.
OPL 286 is managed by Focus Energy in partnership with BG Group, a British oil concern. Andy Uba has stakes in Focus Energy and his modus operandi is such that you can never see his name in any listings yet he controls OPL and OML through proxies.
OPL 291 was awarded to Starcrest Energy Nigeria Limited, owned by Emeka Offor by Obasanjo . Immediately after the award, Starcrest sold the oil block to Addax Petroleum Development Company Limited (ADDAX) Addax paid Sir Emeka Offor a farming fee of $35million dollars and still paid the signature bonus to the government. Emeka Offor still retains stake in ADDAX operations in Nigeria.
Mike Adenuga’s Conoil is the oldest indigenous oil exploration industry in Nigeria. Conoil has six oil blocks and exports above 200,000 barrels of crude daily.
The oil block national cake sharing fiesta could take twists according to the mood of the Commander-in –Chief at the particular time. In 2006, Obasanjo revoked OPL 246 which Abacha gave to Danjuma because he refused to support the tenure elongation bid of the Ota Majesty. In 2000, Obasanjo had earlier revoked OPL 241 given to Dan Etete under the advice Atiku. However, when the Obasanjo-Atiku faceoff started, the Ota Majesty made a u-turn and handed back the oil block to Etete.
During the time of Late President Yarádua , a panel headed by Olusegun Ogunjana was set up to investigate the level of transparency in the award of oil blocks. The panel recommended that 25 oil blocks awarded by the Obasanjo be revoked because the manner they were obtained failed to meet the best practices in the industry. Sadiq Mahmood, permanent secretary in the Ministry of Petroleum endorsed the report to then president with all its recommendations. As a result of the report Yarádua revoked eleven oil blocks.
In April 2011 Mike Adenuga attempted to buy Shell’s OML 30 for $1.2 billion dollars. The Minister for Petroleum and Nigeria’s most powerful woman refused the sale of the OML30 to Adenuga citing national interest. This block was later sold to Heritage Oil for $800 million dollars eleven months later.
This oil block business is so lucrative that Danjuma’s Sapetro divested of its investment in Akpo condensate for $1billion dollars. This business is second to none in Nigeria. That is why any attempt to investigate the activities in this sector will always be futile. The money is so much that they give bribes in millions of dollars. A birthday gift or child naming gift from an oil block owner to a government official could be as paltry as $2million dollars, and if the official’s father died, the condolence gift could reach mere $3 million dollars. When they want to bribe legislators, it is in millions of dollars and any ongoing investigation ends within weeks. They are so confident that with excess money they can buy up Nigeria and they are succeeding.
In the name of competitive bidding, which Obasanjo introduced in 2005, Officials bring companies overnight and through processes best described as secretive and voodooist they award blocks to party faithful, fronts and phoney companies. They collect gratifications running into hundreds of millions of dollars which is paid into offshore account and the nation loses billions of dollars of revenue to private pockets.
During the third term agenda, Obasanjo was deceived that the allocation of oil block to party faithfuls is to fund the third term agenda. With the failure of the third term, the beneficiaries went home with their fortunes and thanked God or Allah for buttering their bread. Senator Andy Uba co ordinate the award of the last rounds of oil block by Obasanjo in 2005 and 2007. The then minister of petroleum, Edwin Daukoru was a mere errand boy who took instructions from the presidential aide.
The regime of President Goodluck is not showing any signs of changing the status quo. Controversies have trailed the activities of the Minister of Petroleum and many players in the Industry accuse her of demanding stakes from every oil deal. It is hoped that President Goodluck Jonathan will remember his transformational promise to Nigerians and endeavour to face the hawks in the oil industry. The angst in the air is so much that if this monster of illegal allocation of oil block is not addressed, the much touted revolution could begin all of a sudden and all who condoned this illegality at the expense of hungry Nigerians may have nowhere to hide.
The religious leaders should tell these oil block beneficiaries, awarders, fronts, brokers and all involved in short changing the Nigerian people to find means or returning all these back to the Nigerian people, through massive development projects. They should curtail their constant visits to Mecca, Medina and Jerusalem for prayers and attend to the poverty they spread in the land. They should build affordable secondary schools, universities, specialist hospitals, roads, silos, etc for the Nigerian people. They should fund talent development programmes and sponsor activities capable of alleviating poverty. The voice of impoverished Nigerians is crying daily and if care is not taken the God who delivered Nigeria from Abacha dark days will visit them with calamities untold. With the rot in this oil block awarding system and other loot all over the Nigerian nation, something worse than revolution may happen.
Editor’s note: This guest post is written by Obinna Akukwe, Post was earlier published on AfricanHeraldexpress