NNPC’s Group Executive Director, Alhaji Ishiaka Razak, at a meeting with the Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday, admitted that the Oil blocks transferred to it’s subsidiary, the Nigerian Petroleum Development Company (NPDC), valued at the cost of $1.8 billion but for which $100 million has been paid, was not patently conducted.
Available at the proceedings of the meeting respectively, were the Chairman of NEITI’s Board, Dr. Kayode Fayemi who is also the Minister of Solid Minerals; NEITI’s Executive Secretary, Mr. Waziri Adio and Razak who represented the Group Managing Director of NNPC and Minister of State for Petroleum, Dr. Ibe Kachikwu.
According to NEITI, the meeting was arranged to resolve the frosty working relationship between both organisations, as well as bridge the information gap between them in the implementation of their respective mandates. Mr. Razak declared NNPC’s full commitment and involvement with NEITI in the gas and oil sector.
“We in the new management team of NNPC have reviewed that transaction and totally agree with NEITI that the transaction was not transparent and should be investigated” said Mr Razak concerning the transfer of oil blocks; OMLs 26, 30, 34, 42, 4, 38 and 41
In NEITI’s 2012 oil and gas audit report, it was stated that Nigeria may have lost billions of Naira from the transaction. Its audit findings were further buttressed by a PwC audit report which also said the NPDC had yet to complete the payment for the assigned assets, with only $100 million paid out of the total value of $1.85 billion assigned by the Department of Petroleum Resources (DPR).
NNPC and NEITI had in the past held different positions on this transaction, with the former insisting that the transaction was duly completed.
