Senate Committee To Probe Lease Renewal Contracts By Petroleum Minister, Kachikwu

The Senate has mandated its Committee on Petroleum Resources Upstream to investigate all issues relating to the ongoing lease renewal being undertaken by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu and the Department of Petroleum Resources.

The committee is to report to the Senate the anomalies in the ongoing process and to identify appropriate measures to correct them.

According to the Senate Committee on Petroleum Resources Upstream, there have been too many complaints and petitions since 2017 about the multiplicity of irregularities surrounding the ongoing renewal of oil and gas leases being undertaken by the Minister of State for Petroleum and Department of Petroleum Resources.

According to the sponsor of the motion, Senator Omotayo Alasoadura, Ondo Central, the ongoing lease renewal process is capable of denying government revenue in excess of 10 Billion dollars as a result of illegal discounts and rebates.

In order to nip this in the bud, the red chamber has directed the committee to investigate the alleged lease renewal process and report back with recommendations to address this.

The Minister of Finance, Mrs Kemi Adeosun has been at loggerheads with the Petroleum ministry over its failure to pay into the Federal account in the last few months.

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