BEVERLY HILLS, October 14, (THEWILL) – The Minister of Justice and Attorney General of the Federation, Abubakar Malami (SAN) has described the controversial $1.1bn award of Oil Prospecting Licence 245, better known as ‘Malabu Oil Deal,’ as complex.
Malami, when he appeared before an ad hoc committee of the House of Representatives investigating the deal, revealed that the Federal Government had no conclusive position on the deal due to the complexities involved.
He disclosed that the FG had launched an ongoing investigation into the deal and would not take a position until all the complexities in the deal had been resolved.
He stated that there were many national and international litigations arising from the series of transactions involving parties to Malabu Oil Deal.
He revealed that the Federal Government, Shell, Malabu Oil and Gas, Agip and many individuals had at one point or another, entered into litigation and agreements on the deal adding that within Malabu Oil itself, there were divided interests, such that it was difficult to ascertain which of the interests signed what agreement.
“We have multiple contentions. There is Mohammed Abacha, we have Dan Etete, Atiku Abubakar, Hassan Adamu; they are all laying claims to entities,” he told the committee.
“In the chequered history of the oil well, since 1998, the Federal Government revoked the licence and re-awarded it many times.
“So, whatever I am providing to this committee is provisional. The investigation is ongoing and it is not conclusive.
“There are many areas to look at. We will take a comprehensive position and revert to the committee as soon as possible.”
The committee, Chaired by Razak Atunwa, has the mandate of the House to reopen investigation into the controversial sale of the oil block which occupies an area of 1,958 square kilometres and holds up to 9.2 billion barrels of crude oil.
It alleged that Chief Dan Etete, a former minister under the administration of the late Gen. Sani Abacha, awarded the block to himself in 1998, using Malabu Oil and Gas.
“He awarded it to himself for just $20m, out which he paid only $2m,” the committee stated.
“Former President Olusegun Obasanjo revoked the deal, but it was later sold to Shell at $210m, a development, which sparked off a series of legal tussles.
“While Malabu was still in court, a former AGF, Mr. Mohammed Adoke, and a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, were alleged to have contrived a series of complex agreements of a questionable nature.
“The summary of the agreement was that Shell and Nigeria Agip Exploration paid $1.1bn to the Federal Government for the oil block.
“However, instead of paying the money into the Federation Account, Adoke and Alison-Madueke caused the money to be transferred to Malabu, which then spirited the money to various foreign bank accounts.
“In this regard, it is alleged that companies such as AA Oil Ltd. were engaged to launder the funds.”
However, Shell through its lawyer, Richard Akinjide, had written to challenge the jurisdiction of the committee to investigate the deal on the grounds of the many litigations surrounding it.
Already, the Economic and Financial Crimes Commission (EFCC) has appeared before the committee and assured lawmakers of its readiness to offer available information in its disposal to aid the investigation by the House.
Story by David Oputah
