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T H I S D AY • TUESDAY, MAY 24, 2016
BUSINESSWORLD RIG ACCIDENT: EXXONMOBIL TO CLAIM DAMAGES AGAINST CONTRACTOR
company to declare a force majeure on exports of Qua Iboe, Nigeria’s largest export grade on May 13, 2016. The company, however, said while plans for recovery were being finalised, it was working with its joint venture partner –NNPC, to manage potential supply impacts, and with Depthwize to remove the rig and in order to complete the damage assessment. The company however, directed that “inquiries about the incident and clean-up plans should be directed to Depthwize and/or Conoil”. Depthwize is a “world class drilling company, set up to provide leadership and excellence in the largely underdeveloped Nigerian inland and shallow water drilling market”. Monarch is one of the three rigs in the fleet of the company, which owns and operates three rigs, two Swamp barges and one shallow off shore rig. Monarch has been on the Anim field since Anim-1 was spud in June 2015. Conoil had through its subsidiary, Continental Oil and Gas, at the 2007 oil license round, offered $105 million ( then around N13.4 billion) to emerge the highest bidder for OPL 290 on the continental shelf block while Dangote Oil and Gas bidded $21 million for the same oil block. IPMAN: WE ARE READY FOR COMPETITION
proposed palliatives as quickly as possible to cushion the effects of the hike. The government had recently announced a new pump price for petrol which it said should not be above N145 per litre. The Minister of State for Petroleum, Mr. Ibe Kachikwu said the decision was taken to ensure improved supply and competition in the downstream and eventually drive down pump prices, as was experienced with diesel.
Group Business Editor
Chika Amanze-Nwachuku Maritime Editor
John Iwori
AgriBusiness/Industry Editor
Crusoe Osagie
Comms/e-Business Editor
Emma Okonji
Capital Market Editor
Goddy Egene
Senior Correspondent
Raheem Akingbolu (Advertising) Correspondents
Chinedu Eze (Aviation) Linda Eroke (Labour) Eromosele Abiodun (Cap Mkt) Ejiofor Alike (Energy) James Emejo (Nation’s Capital) Obinna Chima (Money Mkt) Reporters
Nume Ekeghe (Money Market) Nosa Alekhuogie (AgriBusiness)
NEWS
Fashola, Contractors Assess Uncompleted NIPP, TCN Projects Chineme Okafor in Abuja The Minister of Power, Works and Housing, Mr. Babatunde Fashola and contractors handling the various electricity projects undertaken by the Niger Delta Power Holding Company Plc (NDPHC) and the Transmission Company of Nigeria (TCN) have agreed to review the status of their projects. Fashola and the contractors have also made commitments to secure the release of power project materials and equipment that are held in Nigeria’s seaports, which NDPHC claimed, contributed to delay in completion of projects by the contractors. A statement from the ministry of power in Abuja explained that a meeting where these agreements were reached was convened by the minister. The meeting according to the ministry was aimed at helping power project contractors overcome the challenges that had stopped them from completing projects awarded to them by the NDPHC and TCN. The statement was signed by the Assistant Director of Press in the ministry, Mr. Haruna Ibrahim. Fashola was quoted in the statement as appealing to the contractors to go back to their sites and ensure speedy completion of the projects, promising that their complaints would be resolved within a reasonable time frame. He further disclosed that the purpose of the meeting was to share the concerns of the contractors and ensure that those who abandoned
their projects are immediately mobilised to resume work on their projects. According to the statement, Fashola was briefed on the status and challenges of projects undertaken for the NDPHC, including issues relating to the evacuation of power from the eastern axis. Such issues according to the statement had to do with the Alaoji- Ikot Ekpene 300kVA double circuit line and the
switching station located at Ikot Ekpene in Akwa Ibom. Both transmission projects are owned by the NDPHC. On the agreements that were reached at the meeting, the statement said contractors were to submit to the minister, a list of projects that have achieved up to 70 per cent completion but for which provisions were not made in the 2016 budget approved for TCN; a list of
contractors who have assured on the completion of their projects before the end of 2016 and relevant information about their projects; and a list of contractors who have completed and handed over projects and details of such projects but are yet to be paid. Also, contractors that have their equipment stuck at the ports and which have attracted accumulated port charges would have the government
intervene to get them released. However, the responsibility of moving out the cargoes from the ports would be borne by owners. Fashola equally called on them to begin to look in-ward and make the most of locally manufactured equipment like transmission towers; clamps and cables in completion of their projects to save them the troubles of looking for foreign exchange for importation.
FOR EFFICIENTTAX COLLECTION
L-R: Director, Administration and Human Resources, Lagos State Internal Revenue Service (LIRS), Mrs. Arinola Kola-Daisi; Executive Chairman, Mr. Olufolarin Ogunsanwo; Director, Tax Audit, Mrs. Bolaji Akintola and the Director, Finance & Account, Mr. Maruf Oludare Tijani, during the 18th Annual Conference of Chattered Institute of Taxation of Nigeria (CITN) in Abuja...recently
FG to Build 30,000 Housing Units in Four Bauchi State Govt Refutes Report on Death of 20 States Pensioners and Housing, SAN Mr. and we are expecting big Dele Ogbodo in Abuja The Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA), have been directed by the federal government to synergise their skills and capabilities to build 30,000 housing units in Abuja, Lagos, Port Harcourt and Kano. The partnership, THISDAY learnt, will also create 2 million jobs for unemployed Nigerians. While the FMBN will provide the financing through its mortgage scheme, the FHA will provide parts of its land located in 34 states across the country for the project. The acting Managing Director of FMBN, Mr. Richard Esin, represented by the Executive Director, Loans and Mortgages, Charles Nyor Ajiva, made the disclosure at the inauguration of the joint committee on housing delivery in Abuja. The FMBN boss said: “Since FHA has land in different locations of this country and FMBN is into mortgage financing, we will use our money to build on the land that they have to produces houses.” According to Esin, the Minister of Power, Works
Babatunde Fashola, advised the two agencies to use their different skills and capabilities through synergy for the production of houses, which is part of President Muhammadu Buhari’s mandate to deliver 1 million houses annually. He said: “In view of special skills and capability for FMBN in financing and FHA in the production of houses, we can actually complement each other in the delivery of houses that actually prompted us to come together and began to think of ways that we can partner and have synergy in the housing delivery.” On the timeline for delivery of the project, he said: “We hope to deliver a minimum of an estate by 12 months and so we are looking at the formalisation of modalities and within 12 months we should be able to get an estate and by next week we will start work. “The minister is working under the president and has prompted the agencies working under him to begin to work towards delivery of houses. “In his last trip to China housing is part of the component that was discussed
Chinese firms in the housing sector to come in to support the housing delivery.” He dispelled insinuation that poor Nigerians do not have access to houses built by FMBN, adding, “What we do in FMBN is to finance houses for Nigerians who contributors to the NHF. “These are government staff and workers, because when we finance an estate it is only the workers who contribute to the NHF that can access.” In a remark, the Managing Director of FHA, Prof. Mohammed Al-Amin, admitted that with the collaboration of the two groups together, the desired objective would be met. He said: “On our part, FHA has land across the country in 34 states of the country and they are all at the level of acquisition or design which we can quickly start work on any of these lands. “We already had a framework of direction to further look at Abuja, Lagos, Port Harcourt, and Kano. And in all these locations there are lands ready for development, in kano we have 300 units, while we have about 300 hectares in Abuja.”
Segun Awofadeji in Bauchi The Bauchi State Government has refuted media reports that 20 pensioners in the state died during the pensioners’ verification exercise in the State. The Chairman of the Nigeria Union of Pensioners in Bauchi State Alhaji Abu Gar, had, last Tuesday, in an interview with journalists in Bauchi, disclosed that 20 of their members have so far died while undergoing the pensioners’ verification exercise. Gar said that the Union was worried over the death of her members. But, in a statement issued in Bauchi, weekend, the Press Secretary to the Bauchi State Governor, Abubakar AL-Sadique, described the report as a “negative media campaign” targeted towards tarnishing the image of the government. He said that the “negative media campaign” was aired during a discussion programme last Thursday in the Television Continental (TVC). “In its discussion programme, ‘Journalists’ Hangout’
of Thursday 12th, 2016, TVC had a promo explaining the issues to be discussed which included the allegation that 20 pensioners died during verification exercise in Bauchi State. “What baffles us such that no where in the programme was anything relating to the alleged death of Pensioners mentioned”, the statement added. The Press Secretary challenged the public to bring proof of the details of any of the deceased saying that since the commencement of the exercise, no life has been lost. “I challenge anybody having proof to substantiate his claim with facts and details of those who lost their lives because, since the commencement of the verification exercise for workers and pensioners, nobody lost his life. “The mere mention of this an issue to be discussed without substantiating it gives away the thing as another piece of hatchet job done to blackmail the state government into submitting to the whims and caprices of agents of doom”, the Press Secretary added.