An oil installation in Niger Delta. BP has agreed to pay around Sh1
trillion to a businessman involved in a suspicious energy deal in
Senegal. PHOTO | PIUS UTOMI EKPEI | AFP
BP has agreed to pay around $10 billion (Sh1 trillion) to a businessman involved in a suspicious energy deal.
The energy giant bought Frank Timis' stake in a gas field off the coast of Senegal for $250 million in 2017.
But
documents obtained by BBC Panorama and Africa Eye reveal that BP will
also pay his company between $9 billion (Sh900 billion) and $12 billion
(Sh1.2 trillion) in royalties.
Both BP and Mr Timis deny any wrongdoing.
Here is a statement by Mr Timis:
Statement on behalf of Frank Timis and Timis Corporation
"These allegations are entirely false. There has been no
wrongdoing whatsoever in relation to the Saint-Louis Offshore Profond
and Caya Offshore Profond oil and gas concessions.
The
reality is that the Concession - which was awarded by President Wade -
was a highly risky and speculative investment that came with substantial
and costly investment obligations. At the time the Concessions were
awarded, no hydrocarbons had been discovered and there was a significant
possibility that they never would be. Over the previous 40 years,
numerous multinational oil and gas companies had the opportunity to
fully explore and develop the concession but didn't take it, no doubt
because of the substantial risks involved. As at 2014, it was still not
known whether the Concession would yield any viable oil or gas fields.
Following
the substantial pioneer capital, drive and experience of Mr Timis, and
his credible relationships with other oil and gas developers, the
Concession now has the potential to generate many billions of dollars
revenue for the people of Senegal and provide gas to generate power
which can be supplied across the whole of West Africa, to the benefit of
many millions more people.
We are proud of our work and reiterate that these baseless claims are rejected."
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