One of the outcomes of the two-day visit of President
Goodluck Jonathan’s state visit to Jamaica, which coincided with the
celebration of the country’s Golden Jubilee is the resolve for Nigeria and
Jamaica to re-visit their interests in the multi-million dollars oil and gas
trade with a view to boosting bilateral ties in the trade of the commodities
which was first suspended in 1993 by the military regime of the late General
Sani Abacha.
Both Jonathan and Jamaica’s Prime Minister, Simpson
Miller were worried about the suspension
of the two countries technical cooperation in oil and agreed on a bilateral
talks to start exploring possibilities of cooperation in this area. According
to a communiqué issued in Jamaica at the end of the talks, the two leaders
“expressed concern over the status of Jamaica-Nigeria technical cooperation in
oil, as the Jamaica-Nigeria oil facility had been suspended.
In May 2012, at the
Global African Diaspora Summit in Johannesburg, the two leaders had co-chaired similar
high-powered bilateral meetings on matters of mutual interest between the two
countries including energy, trade, air services, sports, cultural and technical
cooperation. Security concerns and the desire by Jamaica to get a steady supply
of crude oil from a favourable partner were said to have motivated the first
oil deal between the two countries in 1978 when President Olusegun Obasanjo was
the military leader of Nigeria. The then prime minister, Michael Manley of
Jamaica, who was seeking to partner friendly countries signed the deal which
fetched the Petroleum Corporation of Jamaica (PCJ), via the instrumentality of
Vitol SA and Trafigura Limited, a net income of some US$4.6 million before it
was cancelled in 1993.
It was decided by the
Abacha government that Jamaica and other benefactors would have to re-negotiate
new agreements with Nigeria. This prompted the PCJ to try the renegotiation of
the deal for seven years without success, until Obasanjo returned to power in
1999.
A new deal was
concluded a year later and PCJ immediately sought a new trader, settling with
Trafigura for a US7.5 cents per barrel commission. This was later increased to
US12 cents, which profit was used by PCJ to finance research on oil exploration,
renewable energy, conservation and the possibilities of LNG. However, the
contract with the Dutch firm, Trafigura, ended in controversy in 2007 over a
$31 million payment made to the then ruling People’s National Party (PNP) of
Jamaica.
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