FG orders oil firm to pay unremitted N81.6bn

FG orders oil firm to pay unremitted N81.6bn

*Begs oil majors not to sack workers

—The Presidency has directed an oil firm
to remit to the account of Nigerian Petroleum
Development Company, NPDC, unremitted funds
amounting to N81.6 billion ($408m).
This came on a day the Federal Government
called on operators in the oil sector to shelve
plans to lay off workers to avoid throwing the
nation into a huge social upheaval.
Oil companies had concluded plans to reduce
their workforce, due to falling oil prices in the
international market which had impacted their
operations.On unremitted revenue, the
Presidency’s instruction, it was learned, came
against the backdrop of revelations by the
chairman of the firm at the Economic and
Financial Crimes Commission, EFCC, that the
company only remitted parts of what it derived
from revenue from four oil blocs.
*EMMANUEL IBE KACHIKWU.
A source said the company which signed a
Strategic Alliance Agreement with NPDC on July
19, 2010, took charge under the agreement of
OML 26 FHN; OML 30 Shoreline; OML 34 Niger
Delta Oil; and OML 42 Neconde and was also to
provide funds, technical services, drill and sell
crude oil.
According to the source, the company was later
accused of lifting crude oil, but remitted only a
fraction of its worth to government.
It was gathered that in 2012, the company paid
$168m into government’s account, but lifted
about three million barrels valued at over $350
million, leaving a balance of $182 million.
The source also said that in 2013, the company
lifted about two million barrels of crude oil
valued at $240 million but paid only $68
million, leaving a balance of $172 million.
Similarly, the company was also alleged to have
in 2014, paid zero cash call, even though it
lifted 500,000 barrels of crude oil valued at $68
million.
The source said, having been armed with these
figures by the EFCC, the Presidency instructed
the company’s chairman to reconcile his
accounts with the NPDC, a subsidiary of
Nigerian National Petroleum Corporation, NNPC,
and remit money amounting to about $408
million or N81.6 billion.
The EFCC, it was learned, recently raided the
business premises of the firm, making away
with documents and computers.
Sources said the oil blocs were awarded to the
company in 2010 in controversial
circumstances by the government of former
President Goodluck Jonathan.
Although efforts to reach the company’s
helmsman proved fruitless, a source close to
the company said it had already submitted to
government plans to pay the several billions it
was owing.
When Vanguard called Senior Special Assistant
to the President on Media & Publicity, Mr. Garba
Shehu, he directed Vanguard to call the NNPC
for confirmation.
Contacted, Group General Manager, Public
Affairs, NNPC, Mr. Ohi Alegbe, said he was not
aware of the development.
FG begs oil majors not to sack workers
Meanwhile, the Federal Government has called
on operators in the oil sector to shelve plans to
sack workers to avoid throwing the nation into
a huge social upheaval.
Speaking through the Minister of Labour and
Employment, Senator Chris Ngige, the
government said a crucial joint labour-oil
sector meeting had been scheduled for next
week to resolve some emerging issues in the
industry.
The minister, who spoke during a meeting with
major oil companies in Nigeria, yesterday,
noted that the nation was already facing a lot of
social security problems and could not afford
more to be created through job cuts.
A statement signed by Olowookere Samuel,
Deputy Director (Press) in the ministry, quoted
Ngige as saying: “The oil majors in Nigeria
must, therefore, bend backwards and see what
they can plough back from their profits to keep
Nigerian workers on their duty posts.”
Ngige assured the oil majors that the present
economic downturn would not last forever,
stressing that they maintained existing jobs,
saying nothing lasts forever. "We have a
downturn today but you can be sure it will not
last forever. If you are not creating new jobs, let
us keep the ones we have. That is what this
government is pleading and we must emphasize
that it is what we want", the minister said.
He said because oil and gas sector remained
the financial back bone of the nation’s economy
for now, any threat of industrial unrest therein
should be nipped in the bud.
Ngige added that he had received a plethora of
petitions from unions in the sector on industrial
and employment relations such as
casualization, redundancy, threat of
retrenchment and unfair labour practices,
among others.
Speaking on behalf of the International Oil
Companies present, including Agip, Mobil
Producing, Chevron, Addax and Total, the
Director of Human Resources and Medical,
Chevron Nigeria Limited, Ihuoma Onyearughe,
appreciated Federal Government’s efforts at
stabilising the economy and ensuring industrial
harmony in the sector.
She appealed for understanding and
collaboration on the part of the government, in
view of the current challenges facing the
industry. “The issue of laying people off is not a
decision that comes lightly. I will not come
here to tell you that people are being laid off or
not.
"The situation in the oil companies is dire. We
want to ask for more understanding in
appreciation of the challenges we face.
Nevertheless, we have heard the minister and
we will take your message back to our various
companies,” she said.
She pleaded with the minister to protect oil
majors from unnecessary harassment by labour
unions who usually closed their eyes to unfair
labour practices by “employment contractors”
who failed to remit workers pension and
compensation funds, but harass and turn the
heat on the oil companies.