The House of Representatives Ad-hoc Committee on Joint Ventures and Production Sharing Contracts have demanded from the Shell Petroleum Development Company SPDC and the Shell Explorations and Production Company Limited SNEPCO a list of all the companies subsidiaries enjoying capital allowances.
Chairman of the House Ad-hoc Committee Hon.Abubakar Fulata gave the ruling at an investigative hearing of the committee where the Managing Director of Shell Companies in Nigeria Mr Osagie Osunor and management staff did oral presentation to the panel.
The lawmaker said the Committee is in possession of some documents showing that most comapanies operating in Nigeria that are enjoying capital allowances do not ‘ve the backing of the nation’s laws in terms of certificates.
He also demanded from the SPDC, SNEPCO and other invited companies the requisite cafa certificates that were issued by the nation’s tax authorities as well as other relevant documents to aid the committee’s assignment.
He asked most of the invited companies chief executive officers if they enjoyed capital allowance and other incentives and for how long they ‘ve been benefiting from such reliefs.
Other members of the probe panel notably Hons.Mark, Gbillah, Benjamin Kalu and Chinyere Igwe also requested for other relevant documents including the companies statement of accounts.
In his response, the MD of Shell Companies in Nigeria said that the SPDC and SNEPCO are two offshore business entities owned by the Shell BP in Nigeria and they are into joint ventures with the Nigerian National Petroleum Corporation NNPC and other oil companies.
He further stated that SPDC is the operator of the joint venture and the NNPC is that concessioner and added tha the two companies had been enjoying capital allowances from the the inception of their operations in the oil industry in Nigeria.
In his ruling on the matter, the Ad-hoc Committee Chairman Hon.Fulata demanded a list of all the SPDC and SNEPCO companies enjoy capital allowances from inception to date.
Some other invited companies at the investigative hearing include NewCross Petroleum Exploration Company Limited and its subsidiaries which their chief executive officer and other staff were also grilled by the committee for its joint ventures and other activities in the oil and gas sector.
