The Nigerian Senate will investigate oil company Shell Plc over alleged illegal extensions of oil exploration leases, and it will seek a refund of $200 million that it claims was accrued during the period.
The upper house of parliament has mandated a seven-member committee to investigate oil exploration leases granted to Shell’s Nigerian division from 1959 to 1989 and from 1989 to 2019 under a joint venture agreement with state-owned NNPC.
The Senate said the decision to investigate was following the non-payment of $200 million accruals from Shell’s oil mining lease under its joint venture with NNPC and illegal renewal of leases by the government’s oil ministry and petroleum regulator.
Chevron and ExxonMobil are two oil companies that work in Nigeria through joint ventures with the government-run NNPC.
The Ministry of Petroleum extended oil exploration leases for Shell and its joint venture partner NNPC in violation of the law, according to the Senate, costing the government fees, taxes, rents, and royalties.
