Chevron queried by Senate over increment of Gas-To- Liquid contract by $7b

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The Senate Committee on Gas on Monday commenced investigation into the alleged inflation of the contract sum of the Escravos Gas-To-Liquid Project from $2.9 billion to $10.3 billion. It queried Chevron Nigeria Limited for increasing the contract sum without recourse to its partner, the Nigerian National Petroleum Corporation (NNPC), Eagle Online reports.

The Chairman of the Committee, Senator Bassey Akpan (PDP Akwa Ibom North-East), berated CNL for increasing the contract sum, stressing that the company had violated the terms of the Joint Venture Agreement. The committee also asked why the share ratio on the EGTL project was 75 per cent to Chevron and 25 per cent to NNPC when all other similar ventures between the two were 60 to 40 per cent.

In his response, the Director, NNPC/Chevron Joint Venture, Monday Ovuede, said CNL did not violate the Joint venture Agreement as it had invited the NNPC on several occasions to meetings on the matter. Ovuede said at the time when it was evident that the contract had to be reviewed, it called for meetings on several occasions, which the NNPC shunned. He said the company was therefore left with two choices: either to forget the over $2 billion investment and abandon the project or go ahead with the project.