Vanguard News
Magnus Abe denies involvement in alleged $650m scam
On
Magnus Abe
A member of Nigerian National Petroleum Corporation, NNPC, board, Senator Magnus Abe, Thursday, denied his alleged involvement in a $650 million oil contract scam, insisting that it only exists in the imagination of those interested in ripping Nigeria off.
Abe in a statement noted that the report was designed to create the impression of a major scandal and arm twist the Federal Government in the recent attempt to revoke some oil blocks from a foreign company, Addax Petroleum.
The Abe-led presidential inter-ministerial committee recently submitted a report to FG on the abandoned $1 billion Kaztec Engineering Limited (KEL) fabrication yard, located in Ilase village, Snake Island, Amuwo-Odofin LGA, Lagos State.
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By Perry Okolugbo
In 1998, the Nigerian National Petroleum Corporation (NNPC) entered into a 20-year Production Sharing Contract (PSC) in respect of certain oil mining leases (OMLs) with Addax Petroleum, a company listed on the Toronto Stock Exchange (TSX). The PSC was subsequently extended for a further four years, until 2022. The assets were OMLs 123, 124, 126 and 137.
Under the PSC, Addax fully funded and operated the development of the OMLs, with profit shared between Addax and NNPC. From 1998 until 2009, Addax increased production in these OMLs to about 130,000 bpd. In 2009, Sinopec (a Chinese state-owned company) purchased Addax Petroleum. As a result, Sinopec obtained the rights to these assets.
By Peter Uzoho
A member of the Board of the Nigerian National Petroleum Corporation (NNPC) and former federal lawmaker, Senator Magnus Abe, yesterday debunked his alleged involvement in a so-called $650 million oil contract scam, insisting that it only existed in the imagination of those interested in ripping Nigeria off.
Abe, who insisted that he would continue to defend the country’s interest, was reacting to a report (not by THISDAY) titled: “Petroleum Minister, Cronies Plot Kangaroo NNPC Report to Divert $650 million Oil Contracts to Themselves.”
In a statement he personally signed, Abe noted that the report was designed to create the impression of a major scandal and armtwist the federal government in the recent attempt to revoke some oil blocks from a foreign company, Addax Petroleum.
By curiously questioning the wisdom of President Muhammadu Buhari, who is also the substantive Minister of Petroleum Resources, in canceling the revocation by the Department of Petroleum Resources (DPR) of four oil mining leases belonging to Addax Petroleum Exploration Nigeria Ltd., Senator Magnus Abe goofed and exceeded his brief. Here is why.