By Henry Umoru

ABUJA—THE Senate has begun probe into the Memorandum of Understanding, MoU, of $115 billion the federal government has with Indian and Chinese governments.

The breakdown shows a total of $15 billion by the federal government with the Indian government and the over $80 billion MOU signed by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, with Chinese firms.

Aside from the two MoUs, two largest oil companies in China, Sinopec and CNOOC, signed investment MOUs with the Minister of State for Petroleum Resources, thereby committing the companies to further investments in Nigeria’s Upstream Oil Sub-sector to the tune of $20 billion.

Against this backdrop, the Senate yesterday mandated its Committees on Petroleum Resources (Upstream); Downstream and Gas, Foreign Affairs to summon the Minister of State for Petroleum Resources, Ibe Kachikwu, to give a detailed explanation of the subject matter of each MoU signed in China and the proposed one with India.

The Minister will also explain to the four committees, anticipated impact of the MoUs on the nation’s economy.

The resolutions of the Senate were sequel to a motion by Senator Clifford Ordia, PDP, Edo Central,  titled, The need for a detailed explanation of the $15 Billion proposed MOU with Indian Government and over $80 Billion MOU signed by Minister of State for Petroleum Resources with Chinese Firms.

In his contribution, Senator Ordia said:  “The Senate is aware that the Minister of State for Petroleum negotiated a $15 billion investment with India, where the Indian government would make an upfront payment to Nigeria for crude it purchases.

“The Senate is further aware that the two countries have agreed to sign an MOU to facilitate investments by India in the Nigerian oil and gas sector and specifically in areas such as refining, oil and gas marketing, upstream ventures, the development of gas infrastructure and training of oil and gas personnel in Nigeria.

“The Senate notes that the Minister of State for Petroleum Resources also carried out a roadshow in China where a Memorandum of Understanding, MoU, worth over $80 billion would be spent on investments in oil and gas infrastructure, pipelines, refineries, power, facility refurbishments and upstream financing spanning five years were signed with Chinese companies;

“The Senate further notes that some of the Chinese companies involved in the MoU include China North Industries Corporation, China Cinda Asset Management Company Limited, China National Offshore Oil Corporation, China Petroleum & Chemical Corporation/Addax Petroleum, and International Chamber of Commerce/ China’s National Development and Reform Commission.”