BUSINESS DAY
…$2.3bn lost due to termination of old contract
A fresh wave of allegations has hit the Federal Government over duplicated million-dollar oil contracts awarded by the Federal Executive Council.
The first contract, which was awarded to PE Energy Limited, involves the engineering audit of upstream measurement equipment and facilities in the Nigerian oil and gas upstream sector. The contract cost was not disclosed.
The second contract was for the procurement of pre-field development studies for advanced declaration solution technology (international cargo tracking note) in the Nigerian oil and gas upstream sector. It was awarded to P-Lyne Energy Limited. This contract cost was $2.3 million, and the company was also asked to provide a credit line of N13 billion.
Heineken Lokpobiri, minister of state for petroleum resources (oil), explained after the FEC meeting on July 13, 2024, that the contract for the engineering audit or metering of upstream measurement equipment and facilities, awarded by FEC on July 12, would enable the country to track every cargo of crude oil loaded in Nigeria up to its destination.
Prior contract
In March 2023, under former President Buhari, the Federal Government awarded the contract for the cargo tracking system for 15 years to Antaser Nigeria Limited.
The contract, which was under a public-private partnership (PPP) arrangement, came with a zero cost to the Federal Government and a commitment by Antaser Nigeria Limited to “procure and install” the necessary on and offshore flow metres in all of the country’s exporting points.”
Based on the terms, the government under Buhari said 15 Nigeria crude oil terminals (FPSO platforms), six floating storage and offloading (FSO) platforms and five crude oil terminals (land platforms) would have electronic magnetic flow metres connected to the Antaser system.
The contract, approved by Bureau of Public Procurement (BPP), was projected to yield $2.3 billion over a decade through a 60:40 revenue formula between Antaser and the Nigerian government.
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