NNPC SPENDS $75 MILLION IN LEGAL FEES

…MISCONDUCT SHAKES U.S FATE IN OIL DEALINGS WITH NIGERIA

Abubakar Yar’Adua, Acting GMD, NNPC

The Nigerian National Petroleum Corporation, NNPC may have spent over $75 Million (N7.5 Billion) as legal fees in an alleged quest to cover its misconduct concerning breach of joint venture contracts with the Gulf Petro, a Houston, Texas based oil trading company in less than ten years.

Sources told Pointblanknews.com that a big chunk of the money which went into securing the services of legal experts, greasing the palm of international arbiters and other sundry relevant matters was largely disbursed through law firms such as: Hunton & Williams, U.S, Clarke & Paiko, Lagos, Nigeriaand Fulbright and Jaworsky, a top rate U.S based international law firm.

Gulf-Petro Trading Company had in September 6, 2006 dragged the NNPC to the 5th circuit court of Appeal in New Orleans, Louisiana where oral arguments was entertained on alleged bribe of $25 Million to international arbitrators in London, Belgium and the United States.

Former Nigeria High Commissioner to United Kingdom, Prince Bola Ajibola, former Group Managing Director of Nigeria National Petroleum Corporation, Mr. Gaius Obaseki, the Group General Manager, Corporate and Legal, NNPC, Ms. Sena Anthony and Managing Director of Pipeline Product Marketing Company, PPMC, Mr. Dan Nzelu were being accused of paying a total sum of $25 Million from a £25 Million said to have been authorized by President Olusegun Obasanjo for the bribe as bribe to international arbitrators.

But the U.S Company lost out on technical grounds in what the court termed "impermissible attack on the final award in favor of NNPC.”

advertisement

However, in the wake of the deluge of corruption charges against the rank and file of the NNPC, President Musa Yar’Adua had announced the disbarment of the corporation, replacing it with National Petroleum Directorate, the National Oil Company, the Petroleum Inspectorate Commission, the Petroleum Products Distribution Agency, and the National Oil and Gas Assets Holding and Management Company

Meanwhile, United States sources told Pointblanknews.com that NNPC’s and its officials would have to clean up its act if Nigeria must be taken seriously as a potential business substitute in place of Venezuela whose political leader have increasingly become hostile towards Washington.

The sources say that it is true that the U.S is considering increasing its 12 per cent supplies quota from Nigeria to about 25 per cent in line with the intensive lobby initiated under former President Olusegun Obasanjo. “ United States is trying to consider available options in dealing with the threat of nationalization of expatriate oil holding and weekend face-off between Venezuela, Ecuador and Colombia, yet U.S needs to be assured of responsible conduct from Nigeria and other African oil producing countries.”

The lingering judicial face-off between the NNPC and little known American Oil Services Gulf Petrec and Wilbros is said to be giving concern and serious doubts amongst Washington technocrats on “how much could be too much in entrusting Nigeria with increased oil supplies quota to the U.S.”

Another Washington source said that before U.S could pursue such a drastic economic onslaught there must be an adequate demonstration of Nigeria’s ability and will to ensure steady flow and supply of the coveted product in clear reference to the unending specter of demonstrations, kidnappings and sabotage in the Niger Delta.

According to inside sources both in Nigeria and overseas such huge financial muscle made it completely possible for the NNPC to ride rough-shud over expatriate’s investors who often find it extremely difficult to challenge the wisdom of NNPC’s breaches. They often stand very little chances of being able to obtain justice.

As a source puts it “the Nigerian government has to put pressure on NNPC to embrace fairness and justice in its international dealings. The Corporation seems to believe that obtaining a favorable judgment internationally is a matter of being well connected and able to deploy huge sums in bribery.