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UPDATE

$16.35 Billion Egina Oil Field: Senate Wants NNPC To Conduct Value-For-Money Audit

The Senate has directed state owned oil company, Nigeria National Petroleum Corporation (NNPC) to immediately begin a thorough-value-for money audit of Egina oil project currently being undertaken by Total Nigeria
Senate reached the decision on Tuesday as its ad-hoc committee on local content headed by senator Solomon Olamilekan began probe of local content elements and cost variations of Egina project.
The senate panel believes the cost of the project put at $16.35 billion is outrageous.
It therefore wants NNPC to immediately begin financial and technical audit of the project.
NNPC has 16 weeks to complete its audit.
The committee said the audit is to have information that can guide it on other future projects and to decide if the Egina project is of economic benefit to Nigeria.
Two other similar projects (Zabazaba, Bonga southwest) are currently being planned between Nigeria and Total.
But without sufficient report on the success or otherwise of egina oil project, senate panel vowed to withdraw support for any similar project.
Egina oil project was conceived in 1993 as a Production Sharing Contract (PSC) between NNPC, total and other sub contractors.
Under the arrangement, total is to provide the money for the completion of the project which it hopes to recoup over a period of 25 years before handing ownership to Nigeria.
The lawmakers queried the cost of funding
And wants NNPC audit to verify claims by total including claims that $3 billion will be spent on miscellaneous items.
This is as NNPC said it has so far approved $10 billion out of the $16.35 billion for the egina project.
Managing director, TOTAL Nigeria said his company would provide a detailed breakdown of the $3 billion earmarked for miscellaneous items.
He said Egina project is on course and of mutual benefit to both Nigeria and his company.

Total said it has high level of local content and is working with NNPC to maximize local content on the project.
The senate panel was not satisfied with information from Nigerian Content Development & Monitoring Board (NCDMB) concerning the Egina project.
It therefore asked it to return on Wednesday with more information.

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