Nigerian senate summons British oil giant BP over allegation of infraction of local content law

NIGERIAN senators have summoned senior executives of British petroleum giant BP Oil International to answer questions regarding a $3.3bn pre-financing deal that may have breached the Nigerian Oil and Gas Content Development Act 2010.

Yesterday, the Senate Committee on Local Content wrote a letter of summons to the company through the foreign ministry, asking its representatives to appear on March 28. Committee chairman Senator Solomon Adeola, said, the summon was necessary in view of complaints against the oil giant by a local firm, Alsaa Gas and Shipping Nigeria (AGSN), which insisted that a $3.3bn pre-financing of crude oil contract was an infraction of Nigeria’s Local Content Act, 2010.

Senator Adeola said: “The Nigerian company has provided technical and local industry knowledge support for BP Oil International in the contract process with an agreement for a $0.10 per barrel of crude oil of the deal, which was unilaterally revoked by the British firm. Part of our oversight responsibilities and functions includes to ensure that local companies are not undermined in their dealings with big foreign entities as well as ensuring compliance for Nogicd Act.”

He added that BP is expected to appear with all emails, documents and agreements between the Nigerian National Petroleum Corporation and AGSN relating to the contract. BP is also expected to come along with all transactional negotiation documents and offers, term sheets and any legal documents to do with dealings with NNPC in this pre-financing opportunity including all correspondences from GED Finance and Standard Chartered Bank.

According to Senator Adeola, the failure of the British firm to appear before the committee may lead to invoking parliamentary powers under the 1999 Constitution of the Federal Republic of Nigeria. He added that it was regrettable that some of the infractions against the spirit and letters of the Local Content Act were being perpetrated with the active collaboration of some Nigerians.