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Senators, Uduaghan Save Nigeria's Gas Project

Daily Independent Newspaper
20/10/2008

There is something peculiar to  both chambers of this Sixth National Assembly: Probes. I can no longer count  the number of probes initiated by both the Senate and the House of  Representatives. In fact, even in the Senate, no  one knows which probe is going on until either an Ad-hoc Committee or a  Standing Committee invites newsmen on the beat to cover the event.

Last Monday, it was the turn of  the Senate Committee on Gas to probe an inexplicable upward review of the  Escravos Gas-to-Liquid (EGTL) project, from $1.78 billion to $5.9 billion. The committee's focus was primary  parties to the contract: the Nigeria National Petroleum Corporation (NNPC) and  Chevron.
On the one hand, Senate mandated  the committee to ascertain and seek clarifications on timelines for delivery of  the project, determine the compliance with and enforcement of the contractual  agreement governing the EGTL.

Osita Izunaso voiced the  committee's concern about the inconsistencies shrouding the project. Testifying before the committee,  although Chevron Acting Managing Director, Ezekiel Shadiya, agreed that the  contract was reviewed upward unilaterally, he insisted that a letter was sent  to NNPC/NAPIMS on the factors (the Niger Delta crises, energy concerns and  instability in the global oil market) which caused the variation.

Other factors which contributed  to the incremental costs include escalation and foreign exchange losses, labour  productivity and point forward contingency such as unknown costs to complete in  country logistics, construction, commissioning and start-up, he said.

The committee was unimpressed and  had even made up its mind to recommend in its report to the Senate that the  project be scrapped. But in line with the principle of  fair hearing, the committee decided to invite the Delta State Government to  brief and convince them on the need to continue with the project.

Pronto, the following day, Delta  State Governor, Emmanuel Uduaghan, in company of his representatives from the  state, stormed the Hearing Room 1 venue of the public inquiry.The Governor was already  guaranteed a listening ear in the committee. The Vice-chairman of the  committee, Senator Patrick Osakwe, was already seated when Uduaghan opened the  state's defence of the project.

In fact, it was as if all of  Delta State emptied into the hearing room, to give support both to the project  and to the Governor. Passionately, Uduaghan pleaded  with the Committee to prevail on the NNPC and Chevron Nigerian Limited to  reconcile their variations in the cost of the Escravos Gas-to-Liquid project.

He urged the committee to  consider the greater good and benefits the project would confer on the region  and its youths.

His words: "The EGTL project  is an integral part of the Federal Government's overall domestic gas  utilisation strategy. The project has the potential of utilizing approximately  5,000 manpower capacity around the world, from which approximately 4,000 would  be Nigerians.

"Overall, this project has a  significant impact on the economic growth of Nigeria, the Niger Delta region  and Delta State.

Keywords:
Emmanuel Uduaghan,Escravos Gas-to-Liquid,EGTL, Nigeria National Petroleum Corporation, NNPC, Ezekiel Shadiya, Patrick Osakwe

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