Senate will investigate Shell for breaking JV deal, seeks $200 million repayment to Nigerian government

In order to investigate Shell Petroleum Development Company (SPDC) for alleged violations of the Petroleum Act and the Joint Venture Agreement inked with the Federal Government, the Senate established an ad hoc committee on Wednesday.

The Oil Mining Lease (OML) awarded to SPDC from 1959 to 1989 and 1989 to 2019 under the SPDC and Nigerian National Petroleum Corporation (NNPC) Joint Venture Agreement is the subject of an investigation by the committee led by Senator Sabi Abdullahi.

Senators George Thompson Sekibo, Abdullahi Yahaya, Bassey Albert Akpan, Solomon Adeola, Smart Adeyemi, and Aishatu Ahmed are also on the committee.

The Senate also ordered that the federal government receive a refund of $200 million, inclusive of fines and interest under the agreements.

The resolution followed the adoption of a motion titled: “Non-payment of the sum of $200 million accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the SPDC/NNPC Joint Venture Agreement,” sponsored by Sekibo.

The lawmaker, who led the debate on the motion at the plenary, said the JV agreement contravened the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, which granted to the SPDC and NNPC a 30-year OML from 1959 to 1989.

He said: “And, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum Resources/Department of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.”