United Ijaw * Welcome to United Ijaw on the web. Our preference is national self determination, the independence of Ijawnation as a Sovereign State. A state that promotes sustainable economic and social development, democratic principles, liberty, free enterprise, equal rights and justice. This is our story, this is our struggle. **** On Kaiama Declaration We Stand **** United Nations Under Secretary-General, Dr. Antonio Maria Costa, in Abuja condemned the theft of Nigeria's assets by past corrupt leaders. He said that kleptomaniac leaders stole more than 400 billion dollars from the Nigerian treasury between 1960 and 1999. **** IJAWNATION THINK! THINK. **** Almost $170 billion of the country’s wealth disappeared and ended in the private accounts of individuals between 1999 and 2003 alone... Priye Torulagha ****Nigeria has failed Niger Delta – Nnamani **** Resource Control: Niger-Delta governors are traitors – Evah **** Only the fear of a volcanic social eruption from below can stop barbaric behaviour by holders of political power – Gani Fawehinmi ***** “ if the Confab and Nigerians are not willing to heed to Resource Control, they will take it by force” - Oronto Douglas We Dare To Be Different.
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Oil Audit Shows Missing Billions

The Real Owners/Looters of Nigeria

From: Ayobami Olubiyi
Date: March 4, 2012 7:07:33 AM GMT+01:00
Cc: recipient list not shown: ;
Subject: The Real Owners/Looters of Nigeria: Samuel Diminas

The North is poor, this much no one disputes, the poverty has bred millions of destitutes, who have become instant and easy recruits for Boko-Haram. But the question is: Who impoverished the North? I want to posit that the Core North through their aristocrats and ex-military rulers rake an enormous income from oil money (from the Niger Delta) individually, much more than any Individual/group of individuals from the South, and collectively more than 10 times the entire Niger Delta business men in the oil and gas industry put together.

In this disquisition, I have attempted to show that an estimated 75% of crude oil and gas produced by indigenous companies is controlled by the North. It is an area they have well conquered through General IBB, Abacha and Abdulsalami. However, the loots never get back home. In this first part I will attempt to describe the very uneven nature of the distribution of the nation’s wealth among the Northern aristocratic families and their military generals who for decades looted Nigeria. They did so blatantly, and while Nigeria was weeping about oil windfall loot and others, Nigerians would wail if they know how much of the nation’s resources these folks allocated to themselves and their business fronts before they stepped aside. Let us therefore begin.

To the state of origin of Boko Haram: Borno State.Enter Cavendish Petroleum, the operators of OML 110 – with good yielding OBE field. This oil block was awarded to Alhaji Mai Deribe – the Borno patriarch, who even in death will remain the richest man dead or alive in the history of Borno state- by General Sani Abacha on the 8th of July, 1996. OML 110 has a proven oil reserve in excess of 500 million barrels (More than the entire 300milliom barrels reserve of Sudan). As yet with the capacity to produce about 120,000 barrels of crude oil daily from its OBE 4 and OBE 5 wells .At current production levels, the Mai Deribes net circa N4billion monthly in crude oil sales (Using oil price estimates of $100 p/b). Mai Deribe’s mansion, in allegedly poor Maiduguri is one of the most lavish mansions anywhere on earth; it used to be a tourist attraction, b4 Boko Haram’s tourism deterrent activities -I will then shift to the centre of the Fulani aristocratic hegemony in the North – Kano.

Here. Enter the Fulani Prince Nasiru Ado Bayero, Mallam (Prince) Sanusi Lamido Sanusi’s cousin. He is a Key shareholder and director in Seplat/Platform petroleum operators of the Asuokpu/Umutu Marginal Field with a capacity of 300,000 barrels monthly and A 30mmfcsd gas plant capable of feeding 100MT of LPG. The Ado Bayeros, Yar’Aduas and Atiku Abubakar are Nigerian holders of Intels. It runs a private port that has grounded three Federal ports in the South. Intels is discussed later. Enter South Atlantic Petroleum Limited (SAPETRO). South Atlantic Petroleum (SAPETRO) is a Nigerian Oil Exploration and Production Company that was created in 1995 by General T. Y. Danjuma (also Chairma of ENI Nigeria). General Sani Abacha awarded the Oil Prospecting License (OPL) 246 to SAPETRO in February 1998. The block covers a total area of 2,590km2 (1,000 sq. miles). SAPETRO partnered with Total Upstream Nigeria Ltd (TUPNI) and Brasoil Oil Services Company Nigeria Ltd (Petrobras) to start prospecting on OPL246. Akpo, a condensate field was discovered in April 2000 with the drilling of the first exploration well (Akpo 1) on the block. Other discoveries made on OPL 246 include the Egina Main, Egina South, Preowei and Kuro (Kuro was suspended as a dry gas/minor oil discovery). In June 2006, General TY Danjuma divested part of its contractor rights and obligations to China National Offshore Oil Corporation (CNOOC) for $1 billion (N160bn). Akpo exports about 230,000 barrels of condensate daily.

Condensate export is not regulated by OPEC, so SAPETRO/TOTAL exports as much as possible each day. Egina exports about 75,000 barrels of oil daily.Therefore, Akpo and Egina fields export just over 300,000 barrels of oil/condensate daily (three times what the country Ghana exports). SAPETRO (TY Danjuma) get’s 25% of this. Now, note I have not talked about the gas component – it’s about 2.5 trillion cubic feet. The money SAPETRO nets each month is more than the monthly statutory allocation to any Nigerian state and also more than the oil revenue of Ghana. Do your math. Enter AMNI (or is it AMIN?) International Petroleum Development Company. AMNI owns two oil blocks – OML 112 and OML 117. In the production-sharing contract, AMNI gets 60% for owning the oil block and Total gets 40% for providing technical advice. OML 112 was awarded on the 12/02/1998 while OML 117 was awarded 04/08/1999 all by Gen. Abdulsalami Abubakar. Operations started on both blocks 0n 26/02/2006. The licenses are due to expire 11/02/2018 and 05/08/2019 respectively. (Now you see why the next election is important?).

The Okoro and Setu fields in OML 112 are operated by Afren Energy, a company substantially controlled by Rilwanu Lukman. The Okoro and Setu oil fields have about 50 million barrels in reserve and currently produce/exports just a little below 20,000 barrels per day. The chairman of AMNI International Petroleum and Development Company is Alhaji (Colonel) Sani Bello a Fulani from Kontagora, Niger State. Lest I forget, Alhaji Bello’s son- Abu, is married to General Abdusalami Abubakar’s eldest daughter. Enter Oriental Energy Resources Limited, a company owned by Alhaji Mohammed Indimi, a close friend of General Ibrahim Babangida. Also worthy of note is that General IBB’s first son is married to Alhaji Mohammed Indimi’s daughter – Yakolo Indimi-Babangida, who also serves as a director in the company. Alhaji Indimi hails from Niger State.

Oriental Energy Resources Limited runs three oil blocks: OML 115, the Okwok field and the Ebok field. OML 115 and Okwo are OML PSC, while Ebok is an OML JV. All of them crown offshore oil blocks. OML 115 on its own is 228 sq Km. On OML115 Oriental Energy Resources Limited has 60 per cent while Equity Energy Resources AS, which Alhjai Aliko Dangote’s oil and gas investment vehicle has 40 per cent (Aliko Dangote is from Kano). On Okwok, Addax has 40% and on the Ebok field, Oriental Energy Resources shares with none: its 100%. AMNI produces twice as much as Cavendish Petroleum. Enter Express Petroleum and Gas Limited floated by Alhaji Aminu Dantata, solely for the purpose of fronting for winning oil block(s) even though he and the company are in no way qualified for the award. General Abacha awarded him OML 108 on the 1st of November, 1995. CAMAC Houston, a company owned by Kase Lawal bought 2.5% of Express Petroleum’s 60% holdings. The other 40% on OML 108 is owned by Sheba E&P Limited an IBB tributary company.

SEPCOL operates the Ukpokiti offshore field in Shallow water Nigeria, which was acquired from ConocoPhillips in May 2004. Enter Shebah Exploration And Production Limited (SEPCOL) . It is the operator of the Oil Mining License 108 offshore Nigeria. Head office is in Lagos, but ‘head quartered’ in Minna.

Enter Consolidated Oil. Conoil Producing Limited is an integrated upstream oil and gas company. They are the operator of six blocks in the Niger Delta as well as 25% Equity holder in the Joint Development Zone (JDZ) Block 4. Corporate Head office is in Lagos, but its ‘Headquarters’ is in Minna, Niger State. Conoil signed a technical operator agreement with Continental Oil and Gas Limited (CONOG) to provide 100% funding and technical service agreement to operate blocks OML 59 on a 40% (Conoil) / 60% (CONOG) basis. Conoil entered into a Production Sharing Contract with the NNPC by virtue of an agreement executed on 17th October 2008. Conoil’s has overall potential hydrocarbon resources of over 1.0 Billion Barrels of Oil and 7.0 Trillion Cubic Feet of Gas. General Ibrahim Babangida (IBB owns a substantial interest in conoil held in blind trust [same arrangement in Glo] ) awarded the first oil block to Conoil in 1991. The company produces about 100,000 barrels per day.

Enter Rilwanu Lukman, another Fulani multimillionaire with fronted controlling holdings in Afren, the operators of AMNI oil blocks and also with very key interest in the NNPC/Vitol trading deal, Vitol is a London based oil trading company. Vitol lifts 350,000 barrels of crude oil daily from Nigeria.

Enter Intels and the Yar’Adua , Ado Bayero family and Alhaji Abubakar Atiku. The Oil and Gas Free Zone and Oil Services Centres, as well as Support Bases, are operated from government-owned facilities, leased to Intels under long-term agreements. Intels runs a ‘private port’, a venture that has systematically killed the Calabar, Warri and Port Harcourt ports. There are over one hundred major companies operating at the Intel facility in Port Harcourt. The company makes more money in profit than the government of Rivers, Bayelsa and Delta states put together. I shall give details and figures in the part two of this disquisition.

Finally, for the Part I of this disquisition, I introduce you to NorthEast Petroleum. The name is as clear as the message it sends. I do not need to write so much about NorthEast Petroleum registered as NorEast. NorthEast Petroleum Nigeria Limited is the holder of OPL215 license, covering an area 0f 2,564 square kilometres in water depths between 200 to 1600 metres. NorEast is the parent company of Rayflosh Petroleum was awarded the blocks OPLs 276 & 283 closing thereupon a Joint Venture Agreement with Centrica Resources Nigeria Limited and CCC Oil and Gas. Not surprising, NorthEast Petroleum is owned by another Fulani businessman from the North East, Alhaji Saleh Mohammed Jambo. The license was awarded to him by General Ibrahim Badamosi Babangida in 1991 and then renewed in 2004. So far $50Million has been spent on the very promising Okpoi-1 and Egere -1 exploratory well.

In the Part II, we shall finish the discussion. We will table other North Eastern billionaires who make more money than their states of origin from Niger Delta oil blocks. Sadly, National Bureau of Statistics reports from 2010 show Niger State as the poorest state in the Federation, and the North East the poorest region. With these figures from the National Bureau of Statistics, I rest my case

Insight: Nigeria oil corruption highlighted by audits

ABUJA/LAGOS | Thu Mar 8, 2012 5:28am EST

(Reuters) - Jolted by a public outcry since the start of the year, Nigeria's government has announced a series of measures to address oil industry corruption in the world's eighth biggest producer. It is an issue that may come to define Goodluck Jonathan's presidency.

An important supplier to the United States because of the oil's high gasoline content, Nigeria has attracted billions of dollars of investments from the world's top oil companies. Yet poverty in Africa's second biggest economy is rising, with almost 100 million people living on less than $1 a day, data released last month shows. The percentage of Nigerians living in absolute poverty - those who can afford only the bare essentials of food, shelter and clothing - has risen to around 60 percent.

Two recent audits of the oil industry reviewed by Reuters show billions of dollars in irregularities despite years of government promises to clean it up.

In January hundreds of thousands of Nigerians took part in the biggest protests in the history of Africa's most populous nation. Sparked by a hike in state-subsidized petrol prices, the protests were fuelled by anger at the graft that has for decades channeled oil wealth into the pockets of a minority. Corruption has left oil-dependent Nigeria unable to cater for its basic health, infrastructure or education needs.

Goodluck Jonathan won a presidential election last year that observers said was Nigeria's cleanest since the end of military rule in 1999. Many voters had hopes that he would root out corruption. Amongst the actions announced by Oil Minister Diezani Allison-Madueke in January was the hiring of two accounting firms to audit the industry.

But even as the minister was announcing the new measures, auditors working for the Nigeria Extractive Industries Transparency Initiative (NEITI) - a government-funded watchdog - were winding up another investigation into the oil industry. That study, examining the period 2006-2008, was sent to the relevant government authorities at the end of January. A copy reviewed by Reuters is likely to add to the pressure on Jonathan for reform. It lists discrepancies and shows billions of dollars missing from Nigeria's oil revenues.


Getting a clear picture of how much money Nigeria has lost to corruption over the years is almost impossible. The system is hemorrhaging cash in so many places that accountants often struggle to make sense of it all. The state oil firm, Nigerian National Petroleum Corporation (NNPC), does not measure its output. The government estimates that average output is 2 million to 2.6 million barrels of oil a day, making Nigeria Africa's biggest producer.

"Right now, no one can tell you exactly how much of our crude is extracted from our soil," said Orji Ogbonnaya Orji, who sits on the board of directors of NEITI. "We depend on records from the oil companies. That clearly has to change."

The NEITI audit shows some startling gaps: $540 million missing from $1.675 billion in signature bonuses - these are advance payments to develop fields, a standard producer country demand. Then there's 3.1 million barrels of oil missing from NNPC declarations about its joint ventures compared with the figures released by NNPC's international partners. That equates to 0.25 percent of the output. NNPC also received $3.789 billion in dividends from Nigeria LNG, a liquefied natural gas venture over the 2006-2008 period, but there is no record of those dividends being paid into the federal accounts.

An NNPC spokesman did not respond to requests to explain the irregularities listed in the report in detail. The firm denies malpractice. When asked about corruption last month, NNPC managing director Austin Oniwon replied that the issue was overblown. "Corruption in NNPC is in the imagination of some people," he said.

The NEITI report says foreign oil majors may have underpaid royalties "of $2.33 billion arising from subjective interpretation of volume, pricing," and grading variables. "We are questioning the basis of those calculations," Orji explained. "They are not calculated on the basis of empirical fact. And there is connivance by officials."

Foreign firms also seemed to have underpaid petroleum profit tax by over $1 billion, NEITI said. The report recommended a review of the tax returns of Chevron and Exxon Mobil. Exxon officials were not immediately available to comment. A Chevron spokesman said the firm "complies with all laws and regulations in the locations where we operate, as a matter of long-standing policy Chevron does not release specific financial details."

The NEITI audit has only just been delivered to the government. Another audit, this time by KPMG and focusing on the state oil firm, was delivered to the oil ministry in Nov 2010. The government has not published it. A copy reviewed by Reuters shows similar practices. It notes that NNPC invoices for domestic crude in U.S. dollars but pays the government in naira and that "exchange rates used by NNPC were lower than (those) ... published by the CBN (central bank)", causing a loss of 86.2 billion naira ($550 million) to the treasury from 2007 to 2009.

KPMG also said fuel subsidy claims were based on unverified declarations of fuel imported or refined rather than actual retail sales at pump stations. Analysts say this highlights a scam: fuel import ships - operated by private importers, not just the NNPC - are declared full in order to claim subsidies but are really half empty, having sold to Nigeria's neighbors where prices are higher.

"Some of the issues that were revealed were shocking," the head of the House of Representatives fuel subsidy probe, Farouk Lawan, said. He added government officials had understated NNPC payments by billions of naira. Daily consumption of petrol is 35 million liters, yet importers were being paid for 59 million liters a day.

"That means subsidy is being paid on 24 million liters but is not being consumed by Nigerians," he said. "Either those products were not brought in or they were brought in and diverted or ... smuggled out. Most likely a combination."

Asked about the KPMG report in January, President Jonathan pointed out that he had set the investigation in motion. "If there are queries, we further those queries to them (the NNPC) to answer. If people have been found to be corrupt, the law will take its own course."


At Nigeria's annual oil and gas conference in Abuja at the end of last month, oil men traded business cards with Nigerian politicians. The talk was all optimism, offshore oil platforms and new pipeline technologies.

"Corruption is on everybody's minds but nobody's lips," said Bismarck Rewane of Lagos consultancy Financial Derivatives.

Asked at the conference about corruption, Oil Minister Allison-Madueke said the government was "mindful of the challenges still within the sector ... financial leakages and other deep-rooted inefficiencies," and that "there is undoubtedly a need for change."

Nkem Onyikawa, managing partner of one of the firms involved in a new oil audit, Sada, Idris and Co. said the work would be finished within nine months. Allison-Madueke has also set up three committees to look into bottlenecks to oil reform, including one to hurry up an oil bill seen as vital to transparency that has been stuck for years.

"Several panels and committees have been set up to reform the petroleum industry, and over the years many of these efforts have been stalled," Allison-Madueke said in a recent speech.

Graft has not deterred oil firms from doing business in Nigeria. Last month Exxon signed a 20-year license on a field that makes up nearly a quarter of Nigeria's output.

A foreign oil executive summed it up thus: "Ideally what you want is a clean and transparent oil business, but failing that you want a business where you know the rules and how to play by them."

Last week James Ibori, the former governor of an oil-producing state, pleaded guilty in a London court to corruption, a development many Nigerians welcomed but which highlighted something: No such successful prosecution of a senior figure has happened on home soil. ($1 = 157.7300 naira)

(Additional reporting by Camillus Eboh in Abuja; Writing by Tim Cocks; editing by Jane Baird and Janet McBride)

(This story was corrected to remove reference to Bayelsa state in final paragraph)