Business
Mittal Under Fire in Abuja
By African Energy Intelligence 14/7/08
Jul 16, 2008 - 8:55:55 AM

Issued last week, the first report of the ad hoc committee set up to investigate how oil permits were awarded in the past 10 years has recommended that three blocks handed out in 2007 be withdrawn from their owners. They are OPL 226 awarded to Essar Exploration and Production Limited and OPL 2005 and 2006 that went to Sterling Global Resources.

Incorporated in Mauritius, Essar Exploration and Production Ltd. has no clear link with the Essar conglomerate of the Ruja family that is active in telecommunications, steel and oil. As for Sterling Group, it registered in Nigeria on May 22, 2007, or three days after the awarding of permits on May 19. Sterling Global is linked to Indonesia’s Indorama group, which bought the Eleme petrochemical complex in Port Harcourt in 2006.

After examining the licensing round in 2007, the panel is expected to look at awards in 2006. The Nigerian investigators are to examine how Mittal Investment SARL, in conjunction with India's state-owned ONCG, won two permits in Nigeria's offshore, OPL 285 and 279 (formerly Exxon’s OPL 209 and 212). Following a series of disputes that hampered the Mittal and ONGC tandem from functioning, the two licenses are being managed in general by Mittal, which paid a front end bonus of USD 65 million for OPL 279 and USD 50 million for OPL 285.

In return for the acreage, the group of Indian businessman Lakshi Mittal pledged to invest in a 200 MW power plant, a refinery and in a railway linking eastern Nigeria to the western part of the country. None of the investments has materialized.

A 10% stake in Mittal’s two licenses has gone to Emo Oil, a Nigerian firm owned by businessman Emmanuel Oje. Another firm owned by Oje, NJ Exploration Services, is present on OPL 323 that was awarded in 2005 to the Korea National Oil Company (KNOC). As Africa Energy Intelligence reported in its last issue (467), KNOC’s license is now the object of an investigation as well.

In 2006, and with ONGC still as its partner, Mittal also won exploration zones on Total’s former OPL 246 which became OML 130.

 


Source: Ocnus.net 2008