DPR Director, Chukwueke Redeployed
Daily Champion (Lagos)
NEWS
November 20, 2006
Posted to the web November 21, 2006
By Sopuruchi Onwuka
Lagos
THE crisis rocking the Ministry of Petroleum Resources over the award of oil block in the juicy oil prospecting lease (OPL) 291 has finally led to redeployment of Mr Tony Chukwueke from the Department of Petroleum Resources back to the Ministry as Technical Assistant to the minister.
In his place at DPR is placed an Acting Director, Mrs Chidima Njoku, to run the affairs of the agency that regulates the industry and administers the nation's oil blocks for exploration and production.
Contrary to media reports that Mr Chukwueke was placed on technical suspension for impropriety in the award of deepwater OPL 291 to Starcrest Energy, our sources in Abuja said Mr Chukwueke was never suspended.
The shake up in DPR followed allegations of breach of due process in the award of the block which is close to the Chevron operated billion barrel Agbami field the development of which is currently under project stages.
Mr Tony Chukwueke, a world class technocrat with the pedigree of a quintessential Shell man, was caught in the wed of political intrigues in award of oil blocks during the 2006 mini bid round organised for strategic investors in the nation's economy.
Sources in the ministry who are privy to power game that led to the award of the block to Starcrest Energy said the redeployment of Mr Chukwueke to the minister's office was an indication that he is not found culpable in the flawed deal.
OPL 291 was one of the 18 blocks offered to strategic investors in an open bid to investors all of whom had right of first refusal in preferred oil blocks.
At the end of the process, OPL 291 did not receive any bid and had to be put forward.
Swiss multinational, Addax Petroleum, October 23, announced a farm in into the block upon an agreement with Starcrest Energy, raising questions on when and how the block was awarded to the indigenous company.
Our sources said the subsequent production sharing contract between the consortium and Nigerian National Petroleum Coporation (NNPC) indicated strongly that the deal was directed by the industry.
Both DPR and NNPC are the main parastatals of the Ministry of Petroleum Resources currently in the presidency.
Addax stated in a published statement that its consortium with Starcrest Energy would meet the government objectives in the bid arrangement by paying some $55 million signature bonus on the block and commit another $75 million to stipulated work programme.
It also said it would sink substantial investment in independent power projects in line with government's target of commercializing gas resources and boosting power generation in the country.
