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Undeclared Oil Shipment: FG sues Agip, Total For $635m

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The Federal Government is demanding $635 million from two multinational oil companies, Agip and Total, for undeclared crude oil shipped out of the country between 2011 and 2014.

Two cases have been filed at the Federal High court in Lagos by senior lawyer and Senior advocate of Nigeria, Professor Fabian Ajogwu, who had handled several cases for the Federal Government on aviation, defence, energy, and financial services.

Hearing will begin next week before Justice Olatoregun Isola.

And there are indications that Ajogwu will also be filing claims against other multinationals, such as Chevron and Exxon-Mobil.

The Nigerian Government in the two cases is claiming $490,517,280 from TOTAL E&P NIGERIA LIMITED and $145,848,102 from NIGERIA AGIP OIL COMPANY LIMITED.

The statements of claim filed before the court are accompanied by the sworn affidavits of three US based professionals.

The Nigerian Government contends that sometime in 2014,it realised a decline in its oil export revenue. This necessitated an intelligent gathering of data, which showed that part of the reasons for the decline was the under-declaration of crude oil shipments made by some major oil and gas companies operating in Nigeria.

Professor David Olowokere, a US citizen who is the lead Analyst at Loumos Group LLC, a technology and oil and gas auditing firm based in United States of America, Jerome Stanley, a counsel in the law firm of Henchy & Hackenberg, a law firm based in United States of America and head of the legal team engaged by Loumo Group LLC, made the court statements.

The third deponent is Michael Kanko a citizen and resident of the State of Arizona United States of America, who is the founder and the current Chief Executive Officer of Trade Data Services Company.

A forensic analysis of export records from Nigeria and the import records from respective ports of entry at the United States of America used by Agip and Total showed discrepancies.

The volume of crude Oil declared to have been exported from Nigeria, was less than what was declared to have been imported into United States of America via the same shipment by the same vessel on the same bill of lading.

Some other shipments were not declared by the defendants to the requisite authorities, particularly the pre-shipment inspection agents. In some instances, the crude oil shipments were completely undeclared.

The plaintiff (Nigerian Government ) alleged further that all crude oil and gas shipments /exports from Nigeria are required to be declared and inspected by pre -shipment Agents appointed by the Central Bank of Nigeria of revenue due from the crude oil shipments.

The inspection records are to be deposited with ministry of finance Nigeria .

The Nigerian Government averred that high-technology information technology system including satellite tracking systems were deployed by consultants in gathering the various validated information establishing the shortfalls in the export declarations and the import declaration in the country of destination.

Court documents showed that 57 million barrels of Nigeria crude oil was illegally exported by TOTAL E&P NIGERIA LIMITED, NIGERIA AGIP OIL COMPANY, CHEVRON and other companies and sold to buyers in the United States of America between January 2011 and December 2014. The revenue due to Nigeria as a result of this under-declaration and non-declaration is $12,722,600,327($12.7billionDollars) which translates to N2,493,629,664,092(2.5Trillion Naira) at an official rate of 197 Naira to one US Dollar

In one of the instances cited, TOTAL E&P NIGERIA LIMITED shipped crude oil using a vessel by name TRIATHLON to Tostsa Total oil Trading SA of San Felipe Plaza-Suite 2100,5847 SAN FELIPE, 770557-HOUSTON United States at the port of Philadelphia, Pennsylvania, United States of America with a bill of lading number TCVMTRIATIA 1388. The shipment was not declared to the relevant authorities resulting in the shortfall of 968,784 barrels of crude oil in the value of $106,566240 as revenue to the Government,

Another under-declared crude oil was estimated at 491,850 barrels with a value of $54,103,500. It was shipped aboard a vessel named NORTH STAR and sold to BP Products North America of 501 Westlake Park Boulvard, Houston, TX 77079 United States, at port of Texas City, with bill of lading DROESVD23091101.

On two different occasions 768,990 barrels of crude oil, valued at $84,588,910 was loaded on a vessel named AUTHENTIC. It was Shipped to Socap international limited of Cannon’s court, 22 Victoria Street, Hamilton, HM12.Bermuda at the port of Chester Pennsylvanian, United States bill of lading ALMYSVDM17041101 and17041102

The Nigerian government seeks an order of the court compelling Total E&P Nigeria Limited to pay into the FEDERAL GOVERNMENT OF NIGERIA account with the Central Bank of Nigeria, $245,258,640 being the total value of the missing revenues from the shortfall /under-declared/undeclared crude oil shipments of the Federal Government of Nigeria.

Government also wants the oil firm pay General damages of $245,258,640 and Interest on the said sum at the rate of 21 percent per annum until the entire sum is liquidated.

The case has been adjourned till next week for hearing .

In a separate suit, the Federal Government of Nigeria alleges that NIGERIA AGIP OIL COMPANY LIMITED on 16 June 2014 lifted crude oil on board the vessel named VALUE. The firm shipped the cargo to Philadelphia Energy Solutions of 1735 Market street Philadelphia, PA USA at the port of Wilmington, Delaware, United States of America with Bill of lading number SEUK9HA21304143.

Government claims that the shipment was not declared to relevant authorities resulting in the shortfall of 175,334 barrels of crude oil in the value of $38,573,561as revenue to Federal Government of Nigeria.

On 27 June,2011,Nigerian Agip Oil Company limited lifted crude oil on board a vessel named COSMIC and shipped same to ENI TRADING & SHIPPING B.V. of Strawinskylaan 1641-Tower C/16 1077C XX. Again, government claims that the shipment was not declared to the relevant authorities resulting in a shortfall of 467,614 barrels of crude oil in the value of $107,274,990 as revenue to the Federal Government

Despite letters written by the legal representative of the Federal Government for payment of the shortfall, the company had failed to make any payments to the Federal Government.

The Federal Government of Nigeria now claims against Nigeria Agip Oil company limited:

*An order compelling the company to pay into Federal Government of Nigeria ‘so account with central bank of Nigeria the total sum of $145,848,551being the total value of the missing revenues from the shortfall/under declared/undeclared crude oil of the Federal Government

*Interest at the rate of 21 per cent per annum until the entire sum is liquidated.

*General damages in the sum of $145,848,551.and the cost of this legal action.

There are imminent claims against other Oil exploration companies including Chevron.

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Government

University Of Ibadan (UI) Goes Digital, Releases Timetable for Virtual Academic Session

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University Of Ibadan (UI) Goes Digital, Releases Timetable for Virtual Academic Session

University of Ibadan (UI) on Friday announced it is going ahead with resumption on February 20 despite the second wave of COVID-19.

In a statement released by the school, the First Semester of the 2020/2021 academic session will commence virtually on February 20, 2021.

The virtual academic session will last for 13 straight weeks and end on Friday May 12, 2021, while the matriculation ceremony will hold on Tuesday March 16, 2021.

The University of Ibadan also scheduled one week for the Finalization of Continuous Assessment, to begin from Mon. 17 May and ends Friday 21 May.

The rising number of COVID-19 cases has compelled the Senate to approve the virtual academic session in an effort to ensure the tertiary institution abides by the protocols established by the Federal Government to curb the spread of the pandemic.

“It, therefore, agreed that the 2020/2021 First Semester lectures will be delivered online. In this regard, students will not be accommodated on campus,” a statement from the school said.

“Senate also approved the cancellation of the 2019/2020 session. The next session is, therefore, renamed 2020/2021 Academic Session. Consequently, students who have been admitted for the 2019/2020 session will now be regarded as the 2020/2021 intakes.

“Kindly note that online opening of Registration Portal and Orientation Programme for the 2020/2021 intakes may commence ahead of the Sat 20/02/21 date indicated above,” the statement said.

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House of Representatives Impeached Trump Over Capitol Invasion

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House of Representatives Impeached Trump Over Capitol Invasion

The United States House of Representatives on Wednesday impeached President Trump for the second time after instigating the US Capitol invasion.

Led by Speaker of the House, Nancy Pelosi, 232 representatives, including 10 Republicans, voted to impeach the outgoing president against 197 that voted for him to remain in the office for the next six days when he would handover to the president-elect, Joe Biden.

The ten Republicans were Representatives Liz Cheney of Wyoming, the party’s No. 3 leader in the House; Jaime Herrera Beutler of Washington; John Katko of New York; Adam Kinzinger of Illinois; Fred Upton of Michigan; Dan Newhouse of Washington; Peter Meijer of Michigan; Anthony Gonzalez of Ohio; David Valadao of California; and Tom Rice of South Carolina.

Speaking before the vote, Pelosi said “a constitutional remedy that will ensure that the Republic will be safe from this man who is so resolutely determined to tear down the things that we hold dear and that hold us together.”

“He must go. He is a clear and present danger to the nation that we all love,” she said, adding later, “It gives me no pleasure to say this — it breaks my heart.

Republicans, who unanimously stood behind president Trump in 2019 during his first impeachment, were divided this time over the attack on Capitol.

A Republican representative from California, Kevin McCarthy, said “The president bears responsibility for Wednesday’s attack on Congress by mob rioters,” Mr. McCarthy said. “He should have immediately denounced the mob when he saw what was unfolding.”

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Government

US Congress Declares Joe Biden as The 46th President of The United States After Trump Mob Left

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Joe Biden Economic Impliccations on Nigeria

US Congress Declares Joe Biden as The 46th President of The United States After Trump Mob Left

The joint congress of the United States on Thursday, January 7, 2021 certified Joe Biden as the 46th President of the United States following President Trump’s mob action that disrupted the congress joint proceeding on Wednesday.

After ordering his followers to disrupt proceedings on Wednesday, President Trump later announced that there will be an orderly transition on January 20.

Even though I totally disagree with the outcome of the election, and the facts bear me out, nevertheless there will be an orderly transition on January 20th,” Trump said in a statement issued by White House Deputy Chief of Staff Dan Scavino.

“I have always said we would continue our fight to ensure that only legal votes were counted. While this represents the end of the greatest first term in presidential history, it’s only the beginning of our fight to Make America Great Again!” Trump added.

While the certification was just a mere formality as Biden had secured enough electoral college votes (270) required to clinch the world’s most powerful seat, the refusal of Donald Trump to accept the results of the November 2020 election made the session a keenly watched, especially after Trump mob disrupted a joint session of the Senate.

Also read Facebook, Twitter, Instagram Lock President Trump Out of Their Platforms Following Insurrection

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