The Senate at its plenary sitting on Tuesday, 22nd November, 2016 directed its Committees on Petroleum Upstream, Downstream and Gas to invite the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu to give a detailed explanation on the subject matter of each Memorandum of Understanding (MOU) signed in China, the proposed MOU with India and the anticipated impact on the Nigerian economy.
Moving the motion titled ‘‘The need for a detailed explanation of the $15 Billion proposed MOU with Indian Government and over $80 Billion MOU signed by Minister of State for Petroleum Resources with Chinese Firms’’, Sen. Clifford Odia (PDP:Edo) mentioned that Dr. Ibe Kachikwu had negotiated a $15 billion investment with India with terms that the Indian Government would make an upfront payment to Nigeria in return for Crude Oil purchases. He also noted that Nigeria and India also agreed to sign an MOU to facilitate investments by India in the Nigerian Oil and Gas Sector specifically in areas such as refining, oil and gas infrastructure and in the training of oil and gas personnel in Nigeria.
Sen. Odia also mentioned that Dr. Kachikwu had carried out a road show in China where Memorandum of Understanding (MOU) worth over $80 billion were signed with 5 Chinese companies which will span five years to be spent on investments in oil and gas infrastructure, pipelines, refineries, power, facility refurbishments and upstream financing. According to him, the Chinese companies involved in the MOU are China North Industries Corporation (NORINCO Group), China Cinda Asset Management Company Limited (CINDA), China National Offshore Oil Corporation (CNOOC), China Petroleum and Chemical Corporation/Addax Petroleum (SINOPEC/ADDAX) and International Chamber of Commerce/China’s National Development and Reform Commission (ICC-NDRC) respectively.
However, Dr. Ordia raised concerns that aside the MOU’s for $80 billion investments, two Chinese oil companies, SINOPEC and CNOOC signed investment MOUs in Nigeria’s Upstream Oil Sub-Sector to the tune of $20 billion. He urged lawmakers to clarify the discrepancy by inviting Dr. Kachikwu to give a detailed explanation on the MOU signed between Nigeria and China and the proposed MOU with India in view to critically assess its impact on the Nigerian economy.
Commenting on the motion, the Senate President, Sen. Bukola Saraki (APC:Kwara) acknowledged the efforts of Dr. Ibe Kachikwu in attempting to bring investments into the country. However, the Senate President emphasized that it was important for the investments to be transparent and in the best interest of Nigeria.
