The Minister for Petroleum of the Federal Republic of Nigeria, Diezani Alison-Madueke or Dizzy Anny (as called in some quarters) is in the news again, and as usual not for anything positive. The sale of onshore oil blocks in the western Niger Delta region has always gone unnoticed by the Nigerian public due to the seemingly secret manner by which the bidding process and selections are made, except when the deal goes bad or when those who have their flash lights on the oil and gas industry expose some of the inner workings of the industry.
Though a done deal already, in September last year the OML 30 was sold to private investors through a process that cannot be clearly defined and who by no known or public bidding was awarded the oil block. The OML 30 was sold to Heritage Oil, alongside its partner Shoreline Energy limited, a subsidiary of Shoreline Power.
Tony Buckingham, the founder and CEO of Heritage Oil joined forces with Kola Karim of Shoreline Energy to purchase the OML 30. While Mr Buckingham used to be well known in certain circles as the man to meet, as he was into supply of arms and ammunition to mercenaries in Angola and Sierra Leone, not to forget the Equatorial Guinea, his deals in mining and investments in oil.
Outside his resume, not much is known about Mr Kola Karim, who is of Nigerian nationality. Mr Kola Karim is the Group Managing Director/ Chief Executive Officer of Shoreline Energy International. to his educational credit, in 1988, he bagged a diploma in Management, City University London and a diploma in Financial Services. In 2001, he undertook a General Management Programme at the Harvard Business School, studying for his MBA. Between 1994-1999, Mr Kola Karim was the Managing Director and Chief Executive Officer, Koda Trading Company. Mr Kola Karim is a Member of Institute of Directors Nigeria, Lagos Polo Club, Lagos Motor Boat Club and Ikoyi Club 1938.
In April 2011, Mike Adenuga made attempts to buy shell’s OML 30 for the sum of 1.29 billion dollars, but was refused the sale by the petroleum minister, Mrs Diezani Alison Madueke. Barely eleven months later, In September 2012 the same oil block was being sold to Hyrvbll
eritage Oil for 850 million dollars. This clearly shows a difference of 250 million dollars.
Last week, on the 9th of January 2013 to be precise, international London based financial magazine ‘Financial Times’ released an article detailing a few facts which questioned once again the characters and credibility of the buyers of the OML 30 Oil Block, and the process leading to the sale.
Given these details it is clear that this deal was done under questionable circumstances. The secrecy with which the government handles oil deals goes a long way to show that transparency and the elimination of corruption remain but a mirage. With a long list of government cronies who can brag of one oil block or the other, it’s easy to see why the fight against corruption remains an empty boast.
