House of Reps probes NNPC over Crude Oil Swap Scam

The House of Representatives has resolved to investigate alleged scams in the Refined Product Exchange Agreement, commonly called crude oil swaps contracts, involving the Nigeria National Petroleum Corporation and some companies.

Following a motion sponsored by Michael Enyong, from Akwa Ibom State, the House at its sitting on Wednesday, resolved to constitute an Ad-hoc committee to investigate the NNPC, as well as its subsidiary, Pipelines and Products Marketing Company over the swap contracts.

Mr. Enyong said that crude oil amounting to 445,000 barrels per day was awarded to the nine companies including, Sahara Group, Aiteco, Duke Oil, Mercuria, Glencore, Taleveras Nig. Ltd., Etena Oil and Gas, Tranfigura, a Swiss firm, and Ontario Oil and Gas.

He said a barrel of crude amounts to 159 litres and if a barrel is multiplied by 445,000 barrels, it would amount to 70,775000 litres per day, whereas Nigeria daily consumption is 40,000,000 litres per day.

Mr. Enyong said the House should be disturbed “that the Nigerian Extractive Industries Transparency Initiative in its 2009-2011 and 2012 reports had ascertained that there was massive staggering revenue loss of 8 billion USD due to discrepancy between the value of the crude oil given out and the refined products delivered.

“In year 2011,there was a shortfall of 500,075,32 litres of refined products by the five companies, namely Tranfigura, 173,786600 litres; Vitol, 654,440 litres; Taleveras, I52,308,878 litres; Aiteco, 193,046590 litres; and Ontario Oil and Gas, 180,278,732 litres. ”

The motion was opposed by Obinna Chidoka, PDP, Anambra State, and Mojeed Alabi, APC Osun State.

While Mr. Alabi argued that the motion was lacking in research and date accuracy, Mr. Chidoka said the figures quoted were not correct.

But Victor Ogene, PDP Lagos State supported the motion, citing the amount of money involved and the importance of the subject.