Senate Begins Investigation Hearing Of $16billion Egina Deep-Sea Project

 Senate Begins Investigation Hearing Of $16billion Egina Deep-Sea Project

The Senate Ad-Hoc Committee on Investigation of Local Content Elements and Huge Cost variations of the over $16 billion Egina Deep-sea oil project is to commence full investigative hearing on Tuesday with the appearance of major stakeholders in the execution of the almost completed offshore oil project.

Coincidentally the Senate investigation is starting on the same day the Floating Production Storage Offloading (FPSO) vessel component of the project constructed over the years by Samsung Heavy Industry (SHI) at Samsung Yard, GOJE, South Korea will arrived Nigeria on the same day the investigation is commencing having set sail on October 30, 2017. The FPSO on arrival will be integrated to locally fabricated and procured components before it set sail back to deep seas to work on the Egina oil field located at Oil Mining Lease (OML) 130.

The investigative hearing followed the resolution of the Senate on December 4, 2017 to ascertain possible breaches on the Nigerian Oil and Gas Industry Content Development (NOGID) Act 2010 after the project cost being undertaken by Total Upstream Nigeria Limited and initially valued at $6 billion was varied twice to $13 billion and $16.3billion.

Chief Executives of stakeholders already invited for the 5-days investigative hearing includes those of NNPC, NAPIMS, Nigerian Content Monitoring Development Board (NCMDB), Total Upstream Nigeria Limited, SAIPEM Contracting Nigeria Ltd and Samsung Heavy Industry (SHI) among others.

At a pre-hearing meeting of the Senate Ad-Hoc Committee, its chairman Senator Solomon Adeola (APC, Lagos West) had told members of the committee that submissions received so far indicates that the total cost of the almost completed deep-sea oil project expected to produce 200,000 barrels per day may far exceed the varied $16 billion adding that it will be very productive for CEOs of stakeholder organisations who knows the details of these transactions to personally appear as Nigerians want to know the benefits or otherwise of this project costing Nigeria billions of dollars.

Tolani Giwa

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