$9b Judgment: P&ID chief names Yar’Adua, Lukman, NNPC GMD, 15 others behind contract
Dr. Ibrahim, Ministry’s Head of PolicyMr. Taofiq Tijani, who was at this stage the Technical Assistant to the Minister, Engineer Ikejiani, the Special Technical Adviser to the Minister,Dry David Ige, the Group General Manager/Special Technical Adviser to NNPC Mrs. Uno Adeniji, the General Manager of Planning, Gas and Petroleum of NNPC,Mr. Nuhu Tizhe, the Technical Adviser to the Group Managing Director of NNPC,Mohammed Kuchazi THE controversy over $9.
He said that on 30 November 2012 the Government wrote to inform P&ID of the appointment of Chief Bayo Ojo as the Government’s arbitrator. “The GSPA represented a substantial infrastructure project involving anticipated profits of $5 to $6 billion for P&ID over a 20 year period. It was the culmination of years of research by my team of engineers into the production of clean energy from natural gas.
“In this witness statement I wish to explain how the GSPA came about, and why P&ID was ultimately prevented from implementing it. ? “From information available in the public domain and from our own researches it was clear that there was more than enough Wet Gas off the coast of Calabar to support a gas stripping and propylene plant operation in the Calabar area processing a Wet Gas throughput of 400 MMSCuFD We also became aware that the Government had initiated the building of a pipeline from OML 123 to Calabar . ?
“At the time of our proposal the Special Adviser to the President on Energy and Strategic Matters was Dr. Rilwanu Lukman. I also approached Dr. Lukman and discussed the project with him. He was very supportive of the Project and endorsed our decision to put the project to the President.? “As a result of Dr. Lukman’s prior experience of me and my engineers during the Butanization Project, I believe that he, and therefore the Government, were confident in our abilities to undertake and complete complex Natural Gas-related projects. ?
“There would be two phases. Phase 1 would be the construction by P&ID of the gas stripping plant which would separate the NGLs from Wet Gas, at the end of which process would emerge, amongst other by-products, propane, butane, condensate and Lean Gas. The propane, butane and condensate would be sold on the international markets for P&ID’s account, and the Lean Gas delivered to the Government free of charge.
He added: “On 31 March 2009 we were invited for discussions with the technical working team to the Ministry . The Technical Working Team set about a review of P&ID’s proposal. ? The use of 2 process trains also enabled the delivery of Wet Gas by the Government to be staggered into 2 phases. It was envisaged at this time that each phase would comprise about 180-200 MMSCuFD although in the event the GSPA provided that Phase 1 was 150 MMSCuFD and Phase 2 was 250 MMSCuFD.?
The Government of Nigeria has substantial undiscovered potential gas reserves, discovered but undeveloped gas reserves, developed gas reserves and associated gas reserves in its onshore and offshore territories largely in acreage allocated to international and indigenous operators. The Government shall procure that NNPC shall work with Process and Industrial Developments Limited in the implementation and execution of the Accelerated Gas development Project ; ?
P&ID has undertaken all necessary studies, including the identification of suitable associated and non-associated gas fields and is ready to commence a fast track development campaign to produce gas as stated herein. ?18 ? I should point out that it was in fact the Nigerian P&ID entity which was a party to the MOU. However, clause 15 of the MOU provided that any Party could assign its rights and obligations to an “Affiliate”. An “Affiliate”, as defined in the MOU, was not limited to Nigerian entities. ?“A Joint Operating Committee was set up pursuant to Clause 8 a) of the MOU. By letter dated 5 August 2009 , P&ID nominated Mohammed Kuchazi and I as the P&ID representatives on the JOC.
“A series of meetings commenced, some of which included ‘stakeholders’, such as P&ID, the Government and Addax, some of which were between P&ID and Addax, and, I believe, some of which were between the Government and Addax. For instance, a stakeholders’ meeting, involving Addax, P&ID and the Government, was held on 23 September 2009, and P&ID subsequently met with Addax Petroleum on 14 October 2009.
“It was agreed that Engineer Tijani would set up a meeting the following week with NAPIMS and Addax Petroleum to inform them of the developments and receive their inputs. ? “At the request of the Government, a Letter of Comfort dated 8 December 2009 was obtained by P&ID from an associated company, Industrial Consultants Limited, to remain in effect for 3 years from the date of execution of a final contract, pursuant to which ICIL undertook to provide the finance for the construction of further pipeline of up to 70 km to join up to the Adanga Pipeline. ?
“For instance, the precise make-up of the Wet Gas and the pressure at which it would be delivered into the gas pipeline which would transport it to Calabar. Therefore I thought that it would be important for the Government to ensure that NNPC, DPR and NAPIMS engage with Addax Petroleum and Exxon Mobil as soon as possible in order to get things moving.
“On 28 January 2010 the Ministry convened a stakeholders’ meeting for 9 February 2010, to be chaired by the Minister . I attended on behalf of P&ID. ?
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