Senators, Uduaghan Save Nigeria's Gas Project
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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