Adoke Explains $1bn Malabu Oil Deal

Minister for Justice, Mohammed Bello Adoke

By  Tobi Soniyi 

Attorney General of the Federation (AGF) and Minister for Justice, Mohammed Bello Adoke (SAN),  Sunday in Abuja said the Federal Government only brokered a deal to resolve the long standing dispute between Malabu Oil & Gas Limited (Malabu) and its partners, Shell Nigeria Ultra Deep Limited (SNUD) over the ownership and right to operate block 245.

In a statement he issued, Adoke disclosed that Malabu agreed to relinquish all interest and rights in OPL 245 for the sum of US$ 1,092,040,000 billion as full and final settlement of any and all claims, interests or rights relating to or in connection with block 245.

He said the Federal Govern-ment and some of its ministers who played a part in resolving the dispute were not engaged in round- tripping as claimed in some reports.

The minister said Federal Government only intervened at the instance of Malabu to resolve a crisis which started in July 2001 when block 245 initially allocated to Malabu was revoked.

He also listed various attempts including litigation, out- of- court settlement and arbitral proceedings embarked upon to resolve the dispute.He said: “In 2010, when this administration came to power, Malabu again, petitioned the Federal Government to implement the terms of the out-of-court settlement of 30th November 2006 on the basis of which they had discontinued their Appeal.

“Government also took cognisance of the pending cases instituted by SNUD against Federal Government of Nigeria  and/or Malabu, including Bilateral Investment Treaty (BIT) arbitration No. ARB/ 07/18 pending at the International Centre for the Settlement of Investment Disputes (ICSID Arbitration) to enforce SNUD’s rights to exclusively operate block 245 as Contractor on the basis of the 2003 PSC between Nigeria National Petroleum Corporation NNPC and SNUD and the financial implications of defending these actions on the public purse and opted for amicable resolution of the dispute.”

According to him, to resolve all the contending claims in a satisfactory and holistic manner, due regard was given to the Terms of Settlement of November 30, 2006 which had been reduced to Orders of the Court, the underlying policy of encouraging the participation of indigenous oil and gas companies in the upstream sector of the oil industry and the fact that Shell had substantially de-risked Block 245.

He explained that to accommodate all these interests, a resolution agreement dated April 29, 2011 between the Federal Government of Nigeria and Malabu Oil and Gas Limited was executed wherein the FGN agreed to resolve all the issues with Malabu in respect of Block 245 amicably and Malabu also agreed that in consideration of receiving compensation from the FGN it would settle and waive any and all claims to any interest in OPL 245.

He said: “In furtherance of the Resolution Agreement, SNUD and ENI agreed to pay Malabu through the Federal Government acting as an obligor, the sum of US$ 1,092,040,000 Billion in full and final settlement of any and all claims, interests or rights relating to or in connection with Block 245 and Malabu agreed to settle and waive any and all claims, interests or rights relating  to or in connection with Block 245 and also consented to the re-allocation of Block 245 to Nigerian Agip Exploration Limited (NAE) and Shell Nigeria Exploration and Production Com-pany Limited (SNEPCO).”

According to him, the Federal Government, its agencies and officials in relation to Block 245 only acted as facilitator of the resolution of a long standing dispute between Malabu and SNUD over the ownership and right to operate Block 245.

He said the Federal Government was not aware of any subsisting third party interest in Malabu’s claim to OPL 245 and neither did any person or company apply to be joined in the negotiations as an interested party.

He said government had demonstrated its commitment to attract investment in the oil and gas sector of the economy and encourage genuine investors (local and foreign) by creating the enabling environment for their business to thrive.

The resolution of the lingering dispute over Block 245, he said, was in furtherance of that objective.

Adoke said FGN, its agencies and officials should not be dragged into a purely commercial dispute between Malabu and its purported partners.

It is his view that the allegation of round-tripping levelled against the FGN is without basis and cannot be substantiated having regard the role it played as mere facilitator of an amicable settlement between two disputing parties over a long standing dispute with obvious economic implications for the country.

Excerpts from the statement read: "The attention of the office of the Attorney General of the Federation has been drawn to recent media reports containing allegations of round-tripping against the Federal Government as a result of the settlement agreement it brokered between Malabu Oil and Gas Limited (Malabu) and Shell Nigeria Ultra Deep Limited (SNUD) over their long standing dispute over the ownership and right to operate Block 245.

“In view of the misrepresentations and obvious mischief in reporting the role of the Federal Government, its agencies and officials in the settlement of the dispute, it has become necessary to issue a comprehensive response to these allegations so as to set the records straight and properly explain the role played by the Federal Government, its agencies and officials in accordance with this administration’s commitment to transparency and accountability in governance.

“It will be recalled that in furtherance of the Indigenous Exploration Programme Policy introduced by the Federal Government in the early 1990s to encourage effective development of indigenous capability in the upstream sector of the oil industry, Malabu and other indigenous Oil and Gas companies were allocated Oil Blocks which they were expected to develop in partnership with international oil companies as Technical Partners.

“Malabu was allocated OPL 245 in April, 1998 and in accordance with the terms of the grant, it appointed SNUD as its Technical Partner. The two companies executed relevant Agreements including a Joint Operation Agreement in 2001. Records indicate that SNUD took 40% participating interests in the venture in a farm-in- agreement and also signed agreement with Malabu as its technical partner for the venture.

“Although, Malabu was issued a licence for Block 245 in April 2001, the same licence was subsequently revoked by the Federal Government on 2nd July, 2001. Exxon-Mobil and Shell were invited in April 2002 to bid for OPL 245 despite a subsisting contractual agreements between Malabu and SNUD with respect to OPL 245. Malabu was dissatisfied with the revocation and contended that the circumstances leading to the revocation of its licence on Block 245 was less than transparent and smacked of inducement and connivance from SNUD, its technical partner.

“Malabu also contended that the subsequent re-award of OPL 245 to SNUD by the Federal Government was done under questionable circumstances. It then petitioned the House of Representatives Committee on Petroleum to look into the matter.

It is apposite to note that the House of Representatives Committee on Petroleum found no rational basis for the revocation and reprimanded Shell for its complicity. The Committee also directed the Federal Government to withdraw the re-award, it made to Shell and return OPL 245 to Malabu, the original allotee of the Block.

“Malabu also instituted Suit No. FHC/ABJ/CS/420/2003, before the Federal High Court (FHC), Abuja to enforce its claim to OPL 245. Although, the suit was struck out by the FHC, Malabu lodged Appeal No. CA/A/99M/2006 before the Court Appeal, Abuja, Division. During the pendency of the Appeal, an amicable settlement was entered into between Malabu and the Federal Government and in compliance with the Terms of Settlement executed by the Parties on the 30th of November 2006, OPL 245 was fully and completely restored to Malabu in consideration for its withdrawal of the Appeal.

8.SNUD, apparently dissatisfied with the Terms of Settlement between the Federal Government and Malabu commenced arbitral proceedings against the decision of the Federal Government to restore/re-allocate OPL 245 to Malabu at the International Centre for the Settlement of Investment Disputes in Washington DC, and made representations to government on the impending arbitration. It also commenced a suit against the Government before the Federal High Court, Abuja.

9.Although, several meetings were held between the Presidency, Ministry of Petroleum Resources, SNUD and Malabu, to  resolve the dispute, no satisfactory outcome was achieved. Attempts were also made in 2007 to resolve the dispute by a Committee comprising the Honourable Minister of State, Petroleum Resources, the Attorney General of the Federation and Minister of Justice, Minister of Energy, Group Managing Director, NNPC and DPR, the issues could not be amicably resolved before the administration of Late President Umaru Musa Yar’Adua GCFR came to power.

“It is also important to note that SNUD had entered into a Production Sharing Contract with the NNPC in 2004 upon which their claim to OPL 245 was anchored and had paid $1million out of the $210 million signature bonus to the Federal Government, and kept the balance of $209 million in an Escrow Account with J.P. Morgan pending the resolution of the dispute between Malabu and the Federal Government.”

Police Headquarters


By Christopher Isiguzo   and Ibrahim Shuaibu 

Enugu State Command of the Nigeria Police Force yesterday said it foiled an attempt by suspected armed robbers to rob a commercial bank at Ovoko in Igboeze South Local Government Area  of the state late last week.

The disclosure also came on the heels of the killing of three persons and injuring of one other by suspected gunmen at Gidan Hamisu Gurgu relaxation spot at Gaida quarters of Kano Municipality at the weekend.

A statement made by the Public Relations Officer (PRO) of the Enugu Police Command, Ebere Amaraizu, said one of the robbers was killed while a police officer, Sgt Ozievie Ayebabogna, was injured during the gun duel which ensued between the policemen who were on duty at the bank and the criminals.

Amaraizu, who disclosed that the injured policeman was responding to treatment at a nearby hospital, stated that the command had commenced investigations into the attempted robbery.

The statement added that the Commissioner of Police in the state, Musa Daura, had applauded the “gallantry of the police men on guard duty.”

Meanwhile, an eyewitness said the gunmen had arrived on a motorbike, took position and opened fire sporadically on overcrowded spot mainly patronised by pokers, explaining that the incident occurred around 6p.m.

The gunmen attacked came barely an hour after the visiting Vice-President Namadi Sambo, left the city that witnessed unprecedented security presence in the streets.

According to the account the gunmen armed with assault rifles and were heard speaking fluent local dialect threatened to wipe off all those consciously transgressing against God in the city.

Eyewitness said: “My neighbour, Abdullahi was among the dead, two others I cannot identified after the violent attack lay dead while a man who sustained life threatening injury was being rushed to the hospital as many fled for
safety.

Spokesman of the Police in the state, Deputy Superintendent  of police (DSP), Rilwanu Mohammed Dutse, confirmed the shooting incident, adding that
the command has commenced investigations.

He explains that “we learnt that three people were shot dead by unknown gunmen Saturday evening at Filin Kashu relaxation spot at Gaida, and that one other person sustained injury.”

It could be recall that the bloody attack at a relaxation spot patronized by pokers brought to four number of such violence since the ancient city of Kano came under attack January 20

Women on Rise in Mexican Drug Cartels

Mexican Army soldiers guard Irasema Lopez Garza, partner of Carlos Oliva Castillo, aka "La Rana", alleged leader of the Zetas

The high mortality rate in Mexico's drug war has seen women progress quickly in the shadowy underworld of the cartels and they are increasingly taking on key management roles, a new book says.

"Female Bosses of Narco-Traffic," by Arturo Santamaria, a researcher at the Autonomous University of the State of Sinaloa, traces the ascent of women in drug trafficking organizations, reports AFP.

"The narco-traffickers will become stronger as a result of this," wrote Santamaria. "They will be more difficult to fight because the women appear to be acting smarter."

An estimated 50,000 people have been killed since 2006 in a government crackdown on organized crime that has set off turf wars among rival groups even as they fight off the Mexican military's counter-narcotics units.

Santamaria said the dead have been mainly males belonging to the cartels, which has led to a changing of the guard with younger men and women rising to the top of drug trafficking organizations.

"Widows, daughters, lovers and girlfriends of the men, who are part of the same criminal families," have had to lend a hand, he said.

Interviews with researchers and journalists reproduced in the book tell their story.

"After they killed my father, my brother remained," recalls one of these women. "But he was gunned down in the most recent shootout, and now I have taken the reins."

In the northwestern state of Sinaloa, Mexico's main poppy and marijuana producing region and home to leading drug lords, many young women grew up around the business.

"They absorbed it from the time they were girls. They know what it is and how it works," said Santamaria.

Women were initially recruited into the business to extract juice from poppy, a delicate process requiring gentle handling.

"After that, they started transporting drugs, laundering money and engaging in so-called narco-diplomacy," using their charms to corrupt government or police officials, said Santamaria.

"Later, they started getting involved in operations," he said.

They learned how to manage people, run operations and move money, skills that ultimately prepared them to take over entire operations.

As of October last year, 46 female cartel leaders have been arrested by Mexican authorities, according to the country's attorney general's office.

In the United States, 2,143 Mexican women have been arrested over the past decade for involvement in drug trafficking.

Santamaria said women act with more caution and use deadly force more sparingly than men.

"Maybe this is because they are mothers and have children," argued the researcher, while cautioning that younger women were apt to be as bloodthirsty as men.

Zetas, the dominant cartel in western Mexico, has recruited women as hired killers more actively than other cartels. Unlike the Sinaloa cartel, which prefers to stick within known families, the Zetas hire all over the country.

Manuel Clouthier, a businessman and politician from Sinaloa, said he believed women in the drug trafficking business were more responsible, more loyal and, therefore, more effective.

San Franciscans Celebrate Golden Gate Bridge Anniversary

A tanker is seen passing through under the Golden Gate Bridge

Tens of thousand of people came to San Francisco's waterfront to mark the 75th anniversary of the Golden Gate Bridge, the distinctive orange vermilion structure that attracts some 10 million visitors each year.

According to AFP, the city hosted a massive celebration complete with music, dance vintage cars and motorcycles, as well as a fireworks display showcasing the iconic bridge at the entrance to the San Francisco Bay.

The celebrations took place 75 years to the day after the bridge was opened to the public: to pedestrians on May 27, 1937, and to traffic the next day. At the time, the Golden Gate was the world's longest suspension bridge.

Dreamt up by engineer, Joseph Strauss, the bridge distinguishes itself by its unique colour, chosen by architect Irving Morrow and dubbed International Orange.

The paint originally ensured visibility for passing ships and served as a sealant to protect the bridge from the salty mist from the Golden Gate Strait after which it was named, the entrance to the bay from the Pacific Ocean.

Construction of the bridge took four years. Some 1.7 miles (2.7 kilometres) long, it is 90 feet (27 meters) wide and its two towers reach 746 feet above sea level. Traffic is suspended 220 feet above the water.

Pedestrians and cyclists can access the bridge along with motorists.

But the span also has a grim history as a popular place to commit suicide.

An estimated 1,600 people have died there in instances where the body was recovered, with many more unconfirmed, according to the Los Angeles Times.

Last year alone, 37 people died after jumping off the bridge -- the fourth highest number since it opened, the newspaper said, citing data from bridge authorities.

Events marking the bridge's anniversary are also taking place all year long, and a new visitor centre was opened in early May at the southern entrance.

Ex-Japan PM, Kan, to Speak at Fukushima Probe

Naoto Kan was prime minister when the March 11, 2011 earthquake and tsunami struck

Former Japanese Prime Minister, Naoto Kan is to testify before a parliamentary commission into the Fukushima disaster on his handling of the crisis, which began in March 2011.

Questioning is expected to focus on Kan's response in the hours and days after tsunami damage tipped three nuclear reactors into meltdowns, reports the BBC.

The panel has already heard from lawmakers and nuclear industry experts.

The commission is due to deliver its report in June.

On Sunday, Trade and Industry Minister Yukio Edano - who was the top government spokesman at the time - told the commission there had been no attempt to mislead the public about the severity of the crisis.

He said the government had not fully understood the extent of the damage to the plant.

He also said that Japan had refused a US request to place its nuclear experts in the prime minister's office, citing sovereignty issues.
Fuel pond fears

Naoto Kan is expected to face questions on his early efforts to contain the crisis.

He has been criticised for being hesitant to take emergency powers into his hands at first and then for interfering too much, says the BBC's Roland Buerk in Tokyo.

A breakdown of trust between Mr Kan, bureaucrats and the plant's operator Tepco is said to have hampered the operation, our correspondent adds.

At the Fukushima Daiichi plant itself, the reactors are now stable, Tepco says.

But there is concern about the spent fuel pool on the top floor of the badly damaged reactor number four building.

If it collapses, it could cause another catastrophe, officials have warned. But Tepco says it has reinforced the structure against another earthquake.

Meanwhile, tens of thousands of residents remain evacuated from an exclusion zone around the plant.

UN Council Condemns Syria Govt over Massacre

UN Security Council chambers

The UN Security Council strongly condemned the Syrian government for using artillery in a massacre in which at least 108 people were killed and 300 others injured, reports AFP.

UN officials said the slaughter in Houla -- the subject of an emergency Security Council meeting -- claimed the lives of 49 children and 34 women.

Russia, Syria's main ally, signed up to the Security Council statement which "condemned in the strongest possible terms" the killings in the village near the protest city of Homs.

The statement said the deaths had been confirmed by UN observers and were the result of "attacks that involved a series of government artillery and tank shellings on a residential neighbourhood."

The 15-nation council made a new demand for President Bashar al-Assad to withdraw heavy weapons from populated areas -- in line with the peace plan of UN-Arab League envoy Kofi Annan -- and said that "those responsible for acts of violence must be held accountable."

UN Secretary General Ban Ki-moon and Annan have called the Houla massacre a "flagrant violation of international law".

Thousands of people took part in nationwide protests against the Houla killings on Sunday.

The London-based Syrian Observatory for Human Rights reported that a Syrian military offensive on Sunday left 33 people dead in and around the restive town of Hama, bringing the nationwide death toll for the day to 48.

Britain and France had proposed a UN statement making an even stronger condemnation of the Assad government. But Russia would not agree on the wording and demanded a special meeting before approving the statement.

The Syrian government has denied any responsibility for the deaths and Russia still does not accept that the Damascus government is to blame, its diplomats said.

"It still remains unclear what happened and what triggered what," Russia's deputy UN ambassador Igor Pankin told reporters after the meeting.

"There are substantial grounds to believe that the majority of those who were killed were either slashed, cut by knives, or executed at point blank distance," Pankin said before the meeting.

"It is difficult to imagine that the Syrian government would not only shell... but also use point-black execution" against dozens of women and children, he said.

The government was "not at all" to blame for the Houla massacre, Syrian foreign ministry spokesman Jihad al-Makdissi insisted earlier. Syria's UN envoy Bashar Jaafari said accusations of government responsibility were part of a "tsunami of lies" against Damascus.

A UN source told AFP that an investigation had found that an artillery barrage of Houla on Friday was followed by an attack by militia fighters shortly after.

Major General Robert Mood, head of the UN Supervision Mission in Syria (UNSMIS), gave details of the UN investigation by video conference. He said the opposition Free Syrian Army had given a death toll of 116 but that UN observers had seen 108 bodies.

Mood said there were signs of tank shelling, mortar fire and "physical abuse," and said the deaths were from "shrapnel" and gunfire at "point-blank" range, diplomats at the closed-door UN meeting said.

"The evidence is clear, the evidence is not murky, and there is a clear footprint of the government in this massacre," Germany's UN envoy Peter Wittig told reporters.

Special envoy Annan is to go to Damascus on Monday, the Syrian foreign ministry said. He has said he will renew condemnation of the Houla killings as he seeks to rescue his six-point peace plan.

There are now more than 280 unarmed military observers in Syria to monitor a cessation of hostilities that started on April 12 but lurches closer to collapse each day.

UN leader Ban said the Houla massacre has added to pressure on the UN observers, as some in the conflict-stricken country blame them for an increase in violence. He said the observers were now in a "perilous" position.

US-EXIM Bank to Provide $1.5bn in $10bn Power Deal

Minister of Power,   Barth Nnaji,

By  Damilola Oyedele 

The United States EXIM Bank has signed a Memorandum of Understanding (MoU) with the Federal Government provide $1.5billion as its commitment towards the March 2012 deal with London firm, General Electric to provide 10,000 mega watts of electricity by the year 2020.

The Minister of Power, Prof. Barth Nnaji, made the disclosure in Abuja at a recent meeting with Trade Union Congress (TUC) and the National Electricity Regulatory Commission (NERC), which was initiated by the Minister of Labour and Productivity, Chief Emeka Wogu.

Nnaji added that 10 power plants would be completed between now and the end of next year through partnership with the Independent Power Producers (IPPs), while training would be provided for electricity workers to man the power plants and new sub-stations being built.

He admitted that there was a trust deficit on the part of Nigerians towards the government reforms in the power sector.

“Give us a chance. In fact I will make you a promise; starting from next month, you will begin to see power grow in this country and it will not be reversible. The kind of change we enjoyed after the liberalisation of the telecommunications sector is the same we would have with these reforms in the power sector,” he said.

The meeting was held to clarify the reforms in the power sector after the TUC made queries concerning power issue in Nigeria during the last May Day celebrations in Abuja. Officials of the NLC were absent at the meeting.

Explaining what has been termed as electricity tariff hike which is due to kick off on June 1, 2012, Chairman of NERC, Dr. Sam Amadi, said it was not an increase, but “rather many people would pay less than what they are currently paying for consumption.”

He added that the reforms were also meant to eliminate estimation billing and to increase supply of power so that the regulatory agency can do its work the way it should be done.

Amadi also gave the assurance that all Nigerians would receive meters before the expiration of 18 months; meanwhile he said instead of estimation billing which has been the practice for those who do not have meters, the feeder that supplies each building would be checked to know how much power went through it.

Even though part of the campaign is that the urban poor would pay less, Amadi did not give clear criteria for the agency’s definition of the urban poor.

President General of the TUC, Comrade Peter Esele, however said Nigerians were tired of being given timelines as to when power supply would be constant in Nigeria, “which is why the reforms are being received with skepticism by Nigerians.”

“Not ensuring that power supply is stable before carrying out reforms that could lead to an increase amounts to putting the cart before the horse. If, after spending billions of dollars, the sector is still not attractive, why should we trust the government now? We have not been given reasons why the billions did not improve the sector. I tell you, if Nigerians get 13 hours of stable power daily, they will be willing to pay more,” he added