OIL AND GAS INDUSTRY

1
OIL AND GAS INDUSTRY

• Investigating Corruption In
• Nigerias Oil and Gas Industry
• By Sunday Dare
• News Digest International Magazine

2
FACT FILE NIGERIA-OIL AND GAS

• A. 6th largest producer of oil on the world
• B.5th largest supplier to the USA providing
  about 15 per cent of US supplies
• C.Africas leading oil producer for decades
  overtaken 2-months ago by Angola.
• D.Nigeria produces about 1.2 million barrels of
  oil per day (this has dropped dramatically to
  about half)
• E.Nigeria earns about 24 billion dollars
  annually from its Oil sector
• F. Nigerias Oil and Gas industry is a heaven of
  corruption (all stakeholders have been involved
  in one form of corruption or another)
• G. About 4 major oil multi-national companies are
  in joint venture partnership with Nigerias
  national oil company NNPC
• H. The three major shareholders in the oil sector
  are Nigerian government Oil Multi-nationals
  (Chevron Shell Exxon Mobil and Texaco) and the
  Niger Delta people.

3
CONTINUE-FACT FILE NIGERIA-OIL AND GAS 

• I. Nigerias remains one of the six most corrupt
  countries in the world according to TI rating.
  (Corruption is fueled by wealth from oil industry
  
• J. Nigeria has one of the largest reserves of
  Natural Gas (LNG) in the world. (It has been
  flared for decades now it is been harnessed for
  commercial purposes)
•  

4
INTERNATIONAL CONNECTION

• CORRUPTION IS A DIFFICULT PROBLEM FOR AN ENERGY
  INDUSTRY BASED OVERSEAS ESPECIALLY IN DEALING
  WITH A COUNTRY LIKE NIGERIA WITH ITS REPUTATION
  FOR CORRUPTION

5
FACT FILE NIGERIA GAS

• -Nigeria has the 10th largest proven reserves of
  Natural Gas (LNG) in the world.
• -Nigeria is believed to at present have more Gas
  reserves than oil. About 160 trillion cubic feet.
  Will last 109 years.
• -Current annual production figure is 17 million
  tons per year
• -USA is expected to provide the biggest market
  for Nigerias LNG and the worlds leading GAS
  exporter in 5-6 years

6
CORRUPTION IN NIGERIAS GAS INDUSTRY

• -In a rush to build gas plants and infrastructure
  to package Nigerias gas for the export market
  corruption has reared its head. The project
  commenced in 1999
• -A 4 BILLION gas plant has been conceived to be
  built on Bonny Island off Nigerias coast
• -Contract was awarded to a group of international
  companies notable among which was a subsidiary of
  Halliburton an American company.
• -Halliburton and top Nigerian oil officials
  currently under investigation for bribery scandal
  to the tune of 137 million.
• -Consultancy- total 137 million reportedly paid
  out to Nigerian officials and foreign consultants
  in order to avoid competitive bidding.

7
CORRUPTION IN NIGERIAS GAS INDUSTRY contd

• -Jeffery Tessler the foreign consultant hired by
  Halliburton was paid 32.5 million for his brief
  which was to maintain favorable relationships
  with government officials
• -After revelations investigations have commenced
  by the US government and Nigerias corruption
  agency EFCC into the bribery scandal to win the
  contracts.
• -Construction of the first second third and
  fourth trains of the Gas Plant has been completed
  with the completion of the fifth train near
  jeopardy due to corruption.
•  

8
MEDIA INVESTIGATIONSWhat we are doing and how

•  

9
INVESTIGATING THE GAS BRIBERY SCANDAL

• 1-Background- Collecting all relevant materials
  to development of Nigerias Gas industry (Policy
  papers history of gas flaring plans for the
  development of the sector)
• 2-Researching all that has be published or done
  on the gas corruption scandal. (NPR did a
  brilliant series tilted Promise and Peril on
  the gas industry and corruption in Nigeria)
• 3-Finding all documents relating the to the bids
  submitted by all foreign companies for the
  construction of the Gas plant.
• 4-Working with/Interview EFCC officials who have
  been involved in the investigation in the last
  two years and secure relevant documents.
• 5-Finding the case files for each of the people
  and company under investigation (from Nigerias
  Economic and Financial Crime Commission EFCC)
• 6-Halliburton Identifying LNG Nigerias
  officials and cabinet ministers involved in the
  final decision to give Halliburton the contract
  how they got and how the money was paid out.

10
INVESTIGATING THE GAS BRIBERY SCANDAL contd

• 7-Perusing records of all oil and gas contracts
  handled by Halliburton in Africa with a view to
  finding a pattern of payoffs or skipping
  competitive bidding
• 8-Following the money-Find out to whom and which
  bank accounts (local and foreign) the bribe
  monies was paid into.
• 9-Interviewing/investigating all those connected
  with the bribery scandal
• 10-Background check on Jeffery Tesler
  Halliburtons consultant who handled the slush
  payments. Seek to interview him.
• 11-Halliburton-digging into their work in Africa.
  Zero in on the Nigerian Gas plant contract and
  interview Halliburton officials. Find out Dick
  Cheneys role in all of this since the pay out
  happened under his watch.
• 12-USA- get information and interviews with US
  officials handling the case. Visit the website of
  SEC to see the filings of Halliburton. Reveal
  information about US laws against paying bribes
  overseas in order to secure contracts
• 13-Most of the corruption/payouts took place
  outside Nigeria. Find out the modus operandi of
  such deals which are very prevalent and
  involving several African government officials.
•