LIES ABOUT NIGERIA OIL BLOCS

It would be the second time that this distinguished senator would demonstrate his
brilliance on serious national issues in recent times. Earlier in January, he
discovered a large hole in the activities of the Senate’s Anti-Terrorism Bill,
which, contrary to best practices in developed countries, made the Office of
the National Security Adviser (NSA), the custodian of the vital law. As it
were, he couldn’t hold on to his excellent point of view, because when the law
was eventually passed, the defect was not corrected. 
As the debate on the Petroleum Industry Bill (PIB) took a divisive turn in the
Upper Chamber, Senator Enang, who may have engaged consultants to dust off
statistics on ownership of oil blocs in the country, impressed on the Senate
that the North was in control of 83 per cent of the oil blocs. And he gave the
names of the oil companies and their owners. 
But an in-depth investigation into oil blocs ownership carried out by Sunday
Trust found the opposite of what was presented by the senator. Instead,
northerners are the least when we consider owners of such assets.
Out of the total 32 marginal oil fields, mostly operated by the indigenous oil
and gas companies, about 20 of the fields are owned by Southern entrepreneurs,
including some companies owned by Bayelsa and Delta states.
Again, Sunday Trust learnt that out of the 169 Oil Mining Lease (OMLs) and Oil
Prospecting License (OPL) in the country, 97 percent  is owned and
operated by the multinationals, which include Shell, Chevron, Exxon Mobil,
Total, Eni and other independent operators.  
Records obtained by Sunday Trust from the Department of Petroleum Resources
showing the companies profiles revealed that some of the vibrant oil fields all
belong to the entrepreneurs from South -West, South-East and Niger Delta.
 Companies such as Oando Plc and Conoil  Plc  are now some of
the major indigenous operators of the oil fields. For instance, Conoil is the
biggest beneficiary with about six oil fields:  OML 59,103,136, 2007, 290,
and 257 while Oando has two fields, which include OPL 236 and   278.
Senator Enang forgot to capture individuals and companies who also belong to
the south, especially the Niger Delta, with very lucrative oil fields that
generate billions of Naira on monthly basis. A segment of his presentation
which queried equity in the distribution of oil blocs has the following on its
list:
1.    Cavendish Petroleum, the operators of the OML 110, awarded
to Alhaji Mai Deribe of Borno State – North East, nets an average of about N4
Billion monthly.
2.    Seplat/Platform Petroleum, operators of the ASUOKPU/UMUTU
Marginal Field with Mallam (Prince) Sanusi Lamido as a major shareholder and
Director.
3.    South Atlantic Petroleum Limited (SAPETRO) established by
General T. Y. Danjuma, who is also the Chairman of Eni Nigeria Limited. SAPETRO
partnered with Total Upstream Nigeria Limited (TUPNI) and Brasoil Oil Services
Company Nigeria Limited to become operators of the OPL 246.
4.    AMNI International Petroleum and Development Company is
owned by Alhaji (Colonel) Sani Bello of Kontangora, Niger State. They are
operators of OML 112 and OML 117. A former Petroleum Minister and former OPEC
Chairman, Rilwanu Lukman, another northerner, manages AMNI Oil blocs and with
very key interests in the NNPC/Vitol trading deal.
5.    Oriental Energy Resources Limited, a company owned by Alhaji
Indimi runs three oil blocs: OML 115, the Oldwok field and the Ebok field.
6.    Alhaji Aminu Dantata’s Express Petroleum and Gas Limited
operates OML 108.
7.    OML 113 allocated to Yinka Folawiyo Petroleum Limited is
owned by Alhaji W. I. Folawiyo.
8.    OPL 291 was awarded to Starcrest Energy Nigeria Limited,
owned by Emeka Offor which was sold by Starcrest to Addax Petroleum. Emeka
Offor still has a stake in Addax operations in Nigeria.
9.    Mike Adenuga’s Conoil is the oldest indigenous oil exploration
industry in Nigeria with 6 oil blocs.
10.    Alhaji Saleh Mohammed Gambo North East Petroleum Limited
is the holder of the OPL 215 License. NOREAST Petroleum, as it is known, was
awarded the blocs OPL 276 and OPL 283 and closing thereupon a Joint Venture
Agreement with Centrica Resources Nigeria Limited and CCC Oil and Gas.
11.    INTEL is owned by Atiku, Yar’adua and Ado Bayero and has
substantial stakes in Nigeria’s oil exploration industry both in Nigeria and
Sao Tome and Principe.
Senator Enang ignored many other companies which include these owned by Dr A.
B. C. Orjiako, Chairman Seplat Petroleum Development Company, the operators of
OMLs 4,38 and 41 from Shell Petroleum Development Company (SPDC) Joint Venture,
SEPLAT.
The company’s profile shows that it has continued production from the assets
with average daily production of about 50,000 bpd (barrels of oil per day) of
oil and 125 MMscfd of gas. All the gas production from the assets is sold to
the Nigerian Gas Company, through existing pipeline networks.
Other Directors of the Seplat include Mr Austin Avuru, MD/CEO, Mr Jean-Francois
Henin (Foreigner), Director, Mr Michel Hochard (Foreigner), Mr Mac Ofurhie,
Director and Alhaji Nasir Ado Bayero, Director.
Another company that escaped the memory of Senator Enang was Midwestern Oil
& Gas Company Plc. The company is owned by the Delta State Government and
some Nigerian entrepreneurs. The company was incorporated in 1999, but
commenced its operations in 2001 with upstream field activities from 2005. The
company is focused on harnessing the opportunities in the exploration and
production section of the oil industry in Nigeria. Records show that Midwestern
produces up to 9,500 bopd from onshore Umusadege field, but hopes to increase
this to 25,000 bopd, in the near future.
Platform Petroleum Limited is owned by Adegoke, Oluwafeyisola Sylvester while
his deputy is Chief Dumo Lulu Briggs. This is another story of the marginal
field that Mr Enang failed to share with his colleagues. Platform Petroleum
Limited was allocated the Asuokpu/Umutu Marginal Field as sole Farmee/Operator.
According to the company, by year end (2009) “we would have fully met our
target of assembling the building blocks for the creation of an enduring,
world-class Nigerian Independent oil company.”
Platform has record of 24 months of continuous crude oil production with less
than 2% production deferment, a 30mmscfd Gas Plant (nearing completion),
capable of feeding 100MT/day of LPG into the local market, a fully-manned
corporate structure consisting of 78 permanent staff and 92 contract/outsourced
staff (all Nigerians).

Sogenal is the operator of the Akepo. The field is one of the six marginal
fields that are currently producing or actively expecting production, out of 30
fields awarded in the marginal field bid round in 2003. 
Sogenal initially farmed out 30 per cent of its interest in the field to Oando
and 10 per cent to Exile Resources, but following Oando’s recent buy-back of
Exile, its stake has increased to 40 per cent. Sogenal retains 60 per cent and
operatorship status. The company is believed to be owned by powerful southern
elders, although details on this are sketchy. 
Dubri Oil Company Limited (DOCL) is believed to be the oldest producing
indigenous upstream oil company in the country. It was incorporated on the 10th
March 1987. It has its incorporated head office at 13A, A. J. Marinho drive
Victoria Island Annexe, Lagos, Nigeria and operational Office at 56 Boundary
Road, GRA, Benin City. It is privately owned, and is the first indigenous
petroleum producing company in Nigeria. The owners are U. J. Itsueli as
Chairman, B. N. Itsueli, Director, A. E. Ihuegbu, Director, Omy Itsueli,
Director C. Seweje, Director and J. O. Onilude, Secretary
The Company has a flow- station within Gelegele community by River Osse in Ovia
North West Local Government Area, Edo State.
Chorus Energy operators of Dr Godswill S. Ihetu, Alade Agbabiaka (SAN), Nigel
Nicholson, Theo Akinyede, Dr Kombo Braide, Paul Jennings, Theo Onyia and
Senator Samaila Mamman recently had entered into a Memorandum of Understanding
with four other marginal Field Operators within the same OML 56 and the nearby
OML 38. The objective is for the companies to collaborate in all aspects of
their operations that would bring economy to their individual operations.
 In 2006, CEL entered into a Farm in Agreement with Septa as financing and
technical partner in the Amoji/Matsogo/Igbolo assets. Septa Energy Nigeria
Limited (Septa) is an affiliate of Seven Energy International (Seven), an indigenous
gas focused Exploration and Production Company currently developing onshore
domestic gas supply projects.
Consolidated Oil Limited is part owner of OML 103 and 458 offshore. The company
is also part of the asset of Dr M Adenuga Mike (Jnr).
Emerald Oil is owned by former Special Adviser of the President on Energy, Dr
Emmanuel O. Egbogah and assisted Jude Amaefule, among others. Emerald Energy
Resources Limited was designated operator by the government and awarded 55%
working interest in OPL 229 (now OML 141) during the Year 2000 Nigerian Oil and
Gas Licensing Rounds, with Amni International Petroleum Development Company Ltd
being awarded a 45% working interest as syndicated partner.
Energia Limited is owned by Mr Amieyeofori Felix, an entrepreneur from Niger
Delta.  The company is the Joint Venture Operator of the Ebendo/Obodeti
Marginal Field (ex- Obodugwa/Obodeti Marginal field) located near Kwale, in
Ndokwa West LGA, Delta State. The field was awarded to Energia and Oando, in a
55%/45% equity split with Energia as the designated Operator in the 2003
Federal Government/DPR Marginal Field rounds.
Britania-U is the operator of Ajapa field.  The firm is owned by Mrs
Catherine Uju Ifejika. The field current daily production is 2,300 bopd. 
Moni Pulo has acquired expertise as the sole operator of its asset, OML 114. In
1992, the Company was awarded Oil Prospecting License (OPL 230).  In 2007,
the company successfully acquired three new oil blocks – OPL 239 in Ondo state,
OPL 234 in Abia/Akwa Ibom states and OPL 231 in Cross River/Akwa Ibom states.
Founded and incorporated by High Chief (Dr) O. B. Lulu-Briggs, in 1992, Moni
Pulo Limited (MPL) represents another interest of the Niger Deltans in the oil
and gas fields.
Elcrest Exploration and Production Nigeria Limited is owned by Sir Emeka Offor.
The company just completed its acquisition of a 45 percent stake in Oil Mining
Lease (OML) 40. With the Federal Government’s approval of the stake assignment
to Elcrest Exploration and Production Company, parties to the oil bloc finally
signed all necessary documents to legalize the divestment deal.

How PIB nearly tore senators apart
Last week, senators were in a battle of wit over the new Petroleum Industry
Bill (PIB). The three days allotted to the debate of the bill had presented a
spectacle of a chamber sharply divided over the controversial bill before
senators sheathed swords and allowed it to pass the crucial second reading on
Thursday. 
The debate, which began on Tuesday, saw a total of 81 senators contributing to
it. The gallery could be likened to a school debate as Senate President David
Mark who assumed the role of a moderator appointed Senator Dahiru Kuta (PDP,
Niger) as time-keeper. Each speaker was given five minutes.
Majority of the legislators were unanimous in their opposition against the
“enormous” powers proposed for the president and the petroleum minister in the
bill. A consensus was equally built on the need to ensure adequate funding and
independence of the proposed National Frontier Exploration Agency. 
The most contentious issue that turned the chamber into a theatre of war was
the provision stating that oil companies would set aside 10 percent of their
upstream activities profit for the communities. Engaged in a war of words over
this were Niger Delta senators and their northern colleagues. While the former
stoutly insisted on this provision, the latter vehemently kicked against it.
Immediately Senate Leader Victor Ndoma Egba (PDP, Cross River) read the lead
debate, Mark curiously asked North-eastern senators to kick-start the debate.
First to respond was Senator Alkali Jajare (ANPP, Yobe South) who viewed the
provision for Host Community Fund as lacking institutional guidelines. 
Senator Ahmed Lawan (ANPP, Yobe North) threw a major firework by alluding to a
newspaper publication blaming Niger Delta’s under-development on the
mismanagement of the 13 percent derivation. He said rather than see other parts
of the nation as parasitic states, Niger Delta governors ought to be queried
for allegedly squandering the N11trn received for 10 years as derivation funds.
He also raised the alarm that the nation had spent huge funds on such
intervention programmes as the creation of the Niger Delta Development
Commission (NDDC), the Amnesty Programme and the Ministry of Niger Delta
Affairs.
Lawan was interrupted by the chairman of the Southern Senators’ Forum, Senator
James Manager (PDP, Delta South), who frankly warned: “Lawan should be careful
and conscious of his utterances. How can he describe governors in Niger Delta
as a failure? Our Standing Order forbids senators from using an insulting
language.”
Mark waded in thus: “Lawan only quoted a newspaper to say monies meant for the
oil producing communities have been misappropriated and that, if that is true,
those governors should be regarded as a failure. Manager, I therefore rule you
out of order. Lawan, go ahead”.
Lawan continued: “Injustice anywhere is injustice everywhere. There should be
no provision for the Host Community Fund in this bill. Those of us from non-oil
producing states are tired. Nigeria belongs to us all and the oil belongs to
Nigerians. This is a wake-up call for the development of alternative sources of
income. I want to see an oil sector that is fairly independent of government,
transparent enough to make revenues and resources known to citizens”.
Apparently fed up with the heat generated by the debate, Mark stepped out of
the gallery though his media aide, Paul Mumeh, later told our correspondent
that his boss left for a dinner with some German parliamentarians. 
At the resumption of the debate on Wednesday, Senators Danjuma Goje (PDP, Gombe
Central) and Abdullahi Adamu’s (PDP, Nasarawa West) insistence that the
proposed 10 percent Host Community Fund was undeserving sparked off another
round of frontal battle from Niger Delta senators.
Senator Ita Enang (Akwa Ibom North-East) rose up to describe the opposition to
the Host Community Fund as highly misplaced. Enang’s claim that northerners
owned over 83 percent of oil blocks in the country elicited rumblings of
annoyance from the northern lawmakers present in the chamber.  
But shocked at Enang’s claim, Mark promptly protected Enang against the
‘rebels’, warning them against distracting Enang who, he said, was making a
very salient point. He however  interrupted Enang asking if he could
substantiate his claim.
Enang answered in the affirmative, saying “When you look at the distribution of
those owning oil blocks and the amount of money that comes from the different
oil blocks to the Federation Account and you see the owners of these oil
blocks, you will agree with me that there is inequity in the distribution of
oil blocks. The oil is produced in the Niger Delta, yet it is the people of the
Northeast and the North-West and a little of the North-Central, almost nothing
of the Southwest and the Southeast, that own and control these oil blocks.
Almost nothing for the South-South, Niger Delta oil producing areas…What I’m
asking now is that oil blocks in the whole country should be revoked and redistributed
according to Federal Character Principle.” At last, PIB passes second reading
on Thursday with an expression of excitement by Mark that what people thought
would tear the Senate apart, in the end, united it more than ever before. 

MOST OIL BLOCS OWNED BY NORTHERNERS NOT PRODUCING
A piece written by one Toyin Akinosho, a geologist and expert in the petroleum
sector revealed that, apart from Senator Enang’s wrong arithmetic on the
distribution of oil blocs in Nigeria, most of the blocs are not producing oil.
Below is an excerpt from the piece, which is self-explanatory:
“The first field the author mentions is Obe field, which, he rightly claims, is
held by Cavendish Petroleum, a company set up by Alhaji Mai Deribe. Alabo-
George lied by saying that the Obe field, the main hydrocarbon pool in OML 110,
contains 500 million barrels of oil reserves.
“The Obe field does not have a proven 20 million barrels. I am not sure it has
10 million barrels. It is not producing as I write. The Obe field has not
produced for five years, since 2007, when Tranfigura, the last technical
partner engaged by Cavendish, walked out.
“In countries where you don’t have the complications that the NNPC brings to
the table here, fields that haven’t proven much more than 500 million barrels
are “rushed” through to development.
“Ghana’s Jubilee field didn’t prove a billion barrels before the country’s
authorities approved a field development plan. Apart from Nigeria, Angola,
Libya, Algeria, Ghana (now, since 2008) and perhaps Equatorial Guinea, no
African country has a billion barrels in proven reserves. 500 million barrels
is half of that.
“…(a) second example (given) of a wealthy northerner swimming in oil money is
Mohammed Indimi, “a Fulani and close friend of General Ibrahim Babangida”. (It)
says “Oriental Energy Resources Limited runs three oil blocks: OML 115, the
Okwok field and the Ebok field. OML 115 and Okwok are OML PSC, while Ebok is an
OML JV. All of them good yielding offshore oil blocks”.
“…True, Indimi’s Oriental Resources holds the three assets. OML 115 is not
producing as I write. No one has certified that there’s a producible field in
the acreage. Ebok is being produced, on Oriental Resources’ behalf, by Afren, a
UK listed company. Last year, the field delivered an average of 8,000 barrels
of Oil per Day (BOPD), according to Afren’s website.  You can google it.
Okwok, as I write, is still in development. Translation: it has produced nary a
drop of oil.
“Aminu Dantata’s Express Petroleum holds the Oil Mining Lease 108, with
technical partners Shebah Petroleum, which bought out Conoco, the original
technical partners. Fine.
“The Ukpokiti field, the main asset on the acreage, produced for quite a while;
and should have made the Dantatas quite rich, over a period of more than seven
years. The field died out at some point and is being revived as I write.
“Another truth: North East Petroleum has NEVER produced a single drop of oil
since that award in the early 90s. There, simply, hasn’t been a discovery worth
the while for operator TOTAL.
“I agree that Theophilus Danjuma, also a Northerner, is entitled to contest for
the award of the man who made the most fortune, at a sitting, on an oil acreage
in Nigeria.
“Danjuma’s company, South Atlantic Petroleum Limited (SAPETRO), made $1 billion
from the deal (with the Chinese). The truth is that China National Overseas
Offshore Company (CNOOC) signed a definitive agreement with SAPETRO to acquire
a 45% working interest in OML 130 for $2.268 billion cash.
“I don’t know how much the broker of the deal took, but I am yet to confirm if
the Nigerian government earned any withholding tax from that transaction. In
spite of what he has earned “upfront”, Danjuma’s SAPETRO gets 25,600 barrels of
Oil per day for its 15% of OML 130 from the Akpo field, which is delivering
175,000 BOPD.
“But if you complain about Northerner Danjuma, what about the Alakijas, a
Yoruba couple whose company, Famfa Oil, is “entitled”, every day, to 25,000
BOPD from Chevron operated Agbami Field, located in deepwater OML 127?.
“These two companies are two of the four largest producing Nigerian companies
today. The other two are Adenuga’s Conoil (25,000 BOPD) and Seplat Petroleum
(37,000 BOPD, operated, 16,000BOPD, equity).
“Only one of those four companies is Northern owned. And it is outright
falsehood that “80 per cent of crude oil and gas produced by indigenous
companies is controlled by the North-East”.
“But, as I said again: which technical and managerial capacity are we building
on the back of the rent collected from these leases. It’s the real job.”