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Tag: Oil Company

  • Reps query oil coys over environmental degradation in Niger Delta

    Reps query oil coys over environmental degradation in Niger Delta

    The House of Representatives Joint Committee on Environment, Petroleum Resources Upstream, Petroleum Resources Downstream and Climate Change has queried oil producing companies operating in the country over the environmental degradation.

    Rep. Pondi Gbabojor, the Chairman of the joint Committee, said this Abuja on Wednesday at the public hearing on Environmental Damage within the oil-producing communities.

    He said that the oil-producing communities had experienced environmental degradation and socio-economic marginalisation following decades of oil exploration and exploitation.

    “The abundant natural resources should have been a source of prosperity and development; rather, the host communities have suffered pollution and land degradation.
    “They also suffer from loss of biodiversity, and deterioration of traditional livelihoods that are inestimable and irreparable,” he said.

    He said that in spite of laws and regulations enacted to safeguard the environment and the established regulatory agencies, the environmental damages in oil-producing communities had persisted.

    He said the committees would identify erring organisations and hold those responsible accountable.

    “Our environment is not just the backdrop of human action but the very essence of life and our sustenance,” he said.

    According to reports, 40 companies were invited to the hearing, but only 35 honored the invitation, including the Ministry of Environment, Dubi Oil Company, Nigerian Agip Oil Limited

    Others were Starling Oil Exploration, Mobil Producing Nigeria Ltd. Resources Exploration and Production Ltd, First Exploration and Petroleum Development . Company among others.

    The oil companies however requested that the committees visited all the affected states that had experienced environmental degradation, especially the Ogoni Land.

    NAN

  • Alleged tax evasion: Reps Committee indicts over 30 oil companies

    Alleged tax evasion: Reps Committee indicts over 30 oil companies

    The report of the House of Representatives ad hoc Committee investigating the Structure and Accountability of Joint Venture (JV) Business and Production Sharing Contract (PSC)of NNPC has indicted several oil companies for alleged tax evasion.

    The report also said the Chairman of the Federal Inland Revenue Service (FIRS), Mr Mamman Nami should be arrested and prosecuted for aiding tax evasion by oil companies.

    In the report obtained by the News Agency of Nigeria (NAN), investigation by the house of representatives committee began from 1991 till date with tax evasion running into trillions of naira.

    The report is expected to be laid before the lawmakers this week.

    The ad hoc committee investigation, chaired by Rep. Abubakar Fulata revealed that the JVs and PSCs of NNPC sold Nigerian oil at lowest cost to their own subsidiaries in a ”tax haven”.

    The committee alleged that the company subsequently sold the same oil to other buyers at full price, while  inflating the cost of their Nigerian production operations and under reported the volume of oil they produced.

    This, apart from outright circumvention of the Nigerian tax laws, the committee said is abusive and contrived tax avoidance scheme to minimise their tax liability.

    The ad hoc committee is praying the house to adopt the recommendations with a view to bringing sanity in the oil and gas operation in Nigeria.

    This according to the report of the committee would be a greater benefits to the citizens.

    The committee report also showed that all international and national oil companies who enjoyed capital allowance in Nigeria had no Certificate of Acceptance of Fixed Asset (CAFA) as prescribed by the Industrial Inspectorate Act.

    The report however said that all oil companies that benefited from capital allowance without obtaining CAFA as prescribed by the Industrial Inspectorate Act be made to refund all the monies to the government treasury.

    NAN reports that on Nov. 1, 2022 the house ad hoc committee investigating the structure and accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCS) of the Nigerian National Petroleum Limited began probing oil companies accused of tax evasion.

    The probe was at the backdrop of alleged tax evasion by some oil companies operating in Nigeria, which led to the constitution of the committee by Speaker Femi Gbajabiamila.

    Fulata at a meeting with stakeholders in the oil and gas industry cited relevant a sections of the 1999 Constitution as amended.

    He said: “This committee is relying on Section 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria as amended and we are asking heads of agencies who failed to forward their submissions to do so.

    “This committee cannot fail in its mandate and we might resort to the use of Police and other security agencies to compel heads of agencies to do so.”

    Fulata decried that tax evasion by oil companies, particularly the International Oil Companies (IOCs) has negatively affected the revenue for the country.

    Fulata has expressed disappointment that several letters of invitation sent out to some organisations were not responded, revealing that those who responded did so shabbily.

    On Nov. 16, 2022, the house committee summoned chairman of the FIRS.

    A representatives of FIRS, a Director and Special Assistant were not permitted by members of the committee to make presentation as they insisted that only the chairman is expected to speak on behalf of FIRS.

    The FIRS representatives had earlier told the committee that the service does not have access to the Stock Certificate of crude oil being lifted.

    The representatives said they only relied on the invoice produced and presented to it by the oil companies, this, the committee referred to as ridiculous.a

  • Alleged tax evasion: Reps panel summons FIRS Chairman

    Alleged tax evasion: Reps panel summons FIRS Chairman

    The House of Representatives Ad hoc Committee Investigating the Structure and Accountability of Joint Venture (JV) Business and Production Sharing Contracts (PSCS) of Nigerian National Petroleum Corporation (NNPC) Ltd has summoned the Chairman of Federal Inland Revenue Service (FIRS).

    The Chairman of the service, Mr Muhammad Nami, was summoned over alleged tax evasion by oil companies.

    Rep. Abubakar Fulata made this known on Wednesday during the committee’s hearing in Abuja.

    He said the non-remittance of appropriate taxes by the oil companies in Nigeria had serious adverse effects on the economy.

    Nami is expected to appear before panel on Nov. 21.

    The committee also expressed worry over the inability of FIRS to have  access to the Stock Certificate of Crude Oil.

    The representatives of FIRS, a Director and Special Assistant were not permitted by members of the committee to make presentation as they insisted that only the chairman is expected to speak on behalf of FIRS.

    The FIRS representatives had earlier told the committee that the service does not have access to the Stock Certificate of crude oil being lifted.

    The representatives said they only relied on the invoice produced and presented to it by the oil companies.

    The committee said it would be ridiculous for FIRS to rely on invoice produced by the oil companies instead of the Stock Certificate which gives clearer pictures of the oil being lifted.

    The committee alleged that oil companies were not paying the required taxes while many of them collected huge amount of money from federation account in the name of joint venture with NNPC.

    The committee said that NNPC continued to pay money running into billions of dollars to oil companies in the name of joint venture despite presidential directive halting it since 2018.

    The representatives of Chevron Nigeria Ltd who appeared before the committee were also sent back.

    The committee however insisted that the Chairman of the company must appear to answer questions regarding their activities in the country.

    The probe panel adjourned sitting to Nov. 21.

  • Police confirm bomb blast at oil company in Imo

    Police confirm bomb blast at oil company in Imo

    The Police in Imo have confirmed a bomb blast at an oil company in Izombe, Oguta Local Government Area of Imo.

    The Command’s spokesperson, CSP Mike Abattam, who confirmed the incident to newsmen in Owerri, said it occurred in the early hours of Wednesday.

    Abattam said the explosion occurred at a facility operated by Addax Petroluem Development Nigeria Limited.

    According to him, Commissioner of Police in Imo, Mohammed Barde, already deployed a squad from the command’s anti-bomb unit, as well as some of its operatives to the area to prevent breakdown of law and order.

    ” It happened, there was a bomb blast this morning at the facility but the commissioner has deployed our men to the site,” Abattam said.

    A witness who pleaded anonymous, however, told the News Agency of Nigeria (NAN) that two persons died in the explosion.

    He said that the two middle aged men were the carriers of the bomb, which exploded and killed them while they were trying to find their way into the flow station through the entrance.

    NAN, however, reports that Addax Petroleum is one of the two oil companies located in the Izombe community.

  • No National Oil Coy worldwide is as transparent as NNPC – Kyari

    No National Oil Coy worldwide is as transparent as NNPC – Kyari

    The Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, has said the NNPC would comply with the House of Representatives Committee on Public Accounts.

     

    In a statement issued in Abuja, Kyari pointed out that NNPC would continue to be accountable and transparent.

     

    This followed the request by the House of Representatives Committee on Public Accounts seeking the appearance of heads of NNPC subsidiaries before the lawmakers.

     

    Kyari said, “We have nothing to hide, Mr Chairman. We recognise that this company belongs to over 200 million Nigerians as its shareholders, thus we have been accountable and transparent and we will continue to remain so.

     

    “No national oil company in the world is as transparent as we are. We shall comply with the House committee’s requirement.”

     

    The committee had on March 16, through a letter signed by its Chairman, Oluwole Oke (PDP: Osun), summoned the 17 subsidiaries of NNPC to respond to audit queries by the Auditor-General for the Federation over the operations of their finances between 2014 and 2019.

  • Photo: PENGASSAN pickets oil company over sack of 64 workers

    Photo: PENGASSAN pickets oil company over sack of 64 workers

    Oil workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), on Tuesday picketed the office of Baker Hughes, a multinational oil company, over sacking of 64 workers.

    The picketing took place at the Mansard House, Victoria Island area of Lagos State.

    Some aggrieved members were seeing chanting solidarity songs, while holding placards of various inscriptions, to drive home their demands.

    Some of the inscriptions on the placards read: “We say no to bad labour practices; “BakerHughes stop denying us our rights.”

    Mr Leroy Musa, Industrial Relations Officer, PENGASSAN, Lagos Zone, said that in spite of the pleas and meetings held with the company’s management, it still locked out the employees.

    “The management was with PENGASSAN discussing conditions for separating members which usually is supposed to be a voluntary separation, agreed by law and signed, before implemented.

    “Our members got to the office only to be locked outside the office on the ground that they have been sacked.

    “No pre-notice, no meetings and nothing to prepare the workers’ minds; we are here to say no to the injustice.

    “PENGASSAN is against this, and we will fight against it,” Musa said.

    Also, the Industrial Relations Officer, PENGASSAN, Baker Hughes Branch, Mr Olisa Igwebike, said the company’s management had breached the agreements made earlier by both parties.

    According to him, due process should have been followed before the management locked out the workers.

    “Typically, once negotiation has been done, we now agreed on the numbers of people that will be laid off and decided that we will be having a meeting afterward to complete all other modalities.

    “When the meeting was to take place, the management locked out all the workers including union members; the management has already broken the process chain.

    “It just means that as an entity, PENGASSAN, the management has no respect for authority, laws of the land and flouted the Department of Petroleum Resources and Ministry of Labour rules,” Igwebike said.

    Responding, Mr Olusegun Obagbemi, the Communications Director, Baker Hughes, confirmed the development.