Senate To Summon Kachikwu Over $95bn India, China Oil Deals

Senate To Summon Kachikwu Over $95bn India, China Oil Deals

The Senate, on Tuesday resolved to seek clarifications on the recent crude oil sales Memorandum of Understanding (MoU) entered into by the Federal Government with the governments of India and China.

The Senators wants Dr. Ibe Kachikwu, Minister of State’s for Petroleum Resources to provide a detailed explanation of the $15 billion proposed MoU with India and over $80 billion MoU signed with Chinese firms.

Following discussions on the motion sponsored by Senator Clifford Ordia (Edo Central) who also led the debate, the Senate resolved to invite the Kachikwu to appear before it’s Committees on Petroleum Upstream, Gas; and Foreign Affairs to give a detailed explanation also on the anticipated impact of both deals on the nation’s economy.

“The Senate is aware the Minister of State for Petroleum negotiated a $15 billion investment with India for an upfront payment for crude purchases.”

The Senate also recalled specifically that Kachikwu went on a roadshow in China where an MoU was signed that would lead to investment of over $80 billion in the oil and gas industry.

The Senate also observed that outside these MoUs, the two largest oil companies in China, Sinopec and CNOOC signed investment MoUs with the Minister on behalf of the Federal Government.

Reacting, Senate President Bukola Saraki noted “that it is important that matters like this that have to deal with crude oil processing is brought before the National Assembly to ensure transparency.

“We must also appreciate the efforts of the Minister for coming up with it (the deal), as it will go a long way to boost our economy and technology, but again we must ensure that it is transparent by making us understand the roles clearly.”