The NLNG has instructed the project contractors not to give access to committees of the
The contractors handling the
The joint committee of the
However, the two contractors have maintained a gag order, citing a non-disclosure agreement signed with NLNG.
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According to the documents, NLNG not only instructed the contractors not to provide the lawmakers with any information regarding the project but also questioned the committee's power to embark on the probe.
NLNG is an incorporated joint venture owned by four entities:
In 2019, the shareholders of the company made the final investment decision for the Train-7 project to expand its gas production capacity from 22 million tonnes per annum to 30 mtpa. The Engineering, Procurement, and Construction (EPC) contract was awarded to a consortium of
Genesis of battle
The battle between the committee, co-chaired by Jarigbe Jarigbe, the chairman of the
The first letter, signed by Messrs Jarigbe and Mutu and dated 27 March, was sent to NLNG, Daewoo,
In the letter, the committee requested access to the contractual agreement signed with NLNG and details of the variations made on the project. The committee also scheduled a hearing for 18 April.
"The purpose of the briefing is to gain clarity on various aspects of the project, including but not limited to the contractual agreements between
The committee added, "Your expertise and first-hand knowledge of the project will be invaluable as the joint committee assesses its impact on our national gas infrastructure and economy. Additionally, your input will aid us in identifying potential areas for legislative support or intervention to ensure the successful execution of this vital project."
Highly placed sources in the committee told this paper that Saipem Managing Director
The lawmakers subsequently adjourned the session until 5 June and sent another set of letters to the contractors, NLNG, the minister, and others.
In the letters, the lawmakers reiterated the demands made in the previous letters.
"Do not give committee any information" -- NLNG
The contractors, through the managing directors --
Meanwhile, the contractors stated that they sought NLNG's consent to share the contract details with the committee. However, NLNG mandated them to decline the request.
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In the letter, NLNG instructed the contractors to decline the request, stating that the lawmakers' actions "are not in accordance with the law and might trigger confidentiality concerns."
"We respectfully reiterate that the disclosure of the EPC Contract Agreement, as well as details of any variation requests concerning the
"However, NLNG has withheld its consent to the disclosure on the basis of a legal opinion rendered by their external solicitors, according to which the invitation and request for documents by the joint committee "are not by the law and might trigger confidentiality concerns," the letter reads in part.
Furthermore, NLNG challenged the limits of the
"Moreover, according to NLNG, 'the investigative power of the
In light of the foregoing, NLNG declined to give its consent "to provide or disclose to the joint committee any information or documentation related to the NLNG project and directed us to share their concerns with the joint committee."
Counter moves
In the letter, NLNG instructed the contractors to demand a resolution of the
"Given the above, considering the provisions of section 88 of the 1999
"We are, therefore, regrettably unable to provide the relevant information, notwithstanding our general disposition to support the joint committee in its law-making efforts. We assure you of our continued commitment to operate within the ambit of the law and appreciate your understanding of our constraints in this instance," the letter reads.
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Meanwhile, Order 20 Rule 58 of the standing rules of the
The contractors and NLNG are scheduled to appear before the committee again on Thursday.
This paper learned from reliable sources within the committee that the last sitting was adjourned to allow the committee to adequately respond.
A committee member, who did not want to be named because he was not authorised to speak, said members are keenly watching how the co-chairmen of the committee, Messrs Jerigbe and Mutu, would respond to NLNG's stance, stating that anything other than the full application of the legislative power of the
The lawmaker stated that "any attempt to sweep this investigation under the carpet will be resisted."
The committee's options could involve seeking the permission of the two chambers to issue a warrant of arrest against everyone involved to compel their appearance.
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