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Doubts Over Fox Petroleum $7.5bn NNPCL Investment as Firm Fails to Deliver Indian Project

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…repeats 2016 investment pledges that never materialized

…last updated its financials on 31 Mar, 2015

Analysts tell MoneyCentral that the Nigerian National Petroleum Company Limited (NNPCL) should be careful about a claim by Indian based Fox Petroleum Group, which said yesterday, that $7.5 billion will be injected into NNPC in the next three years.

“The problem is that Fox Petroleum made a similar pledge in 2016 about investing in Nigeria, without following through. NNPCL and President Tinubu should be careful about any Memorandum of Understanding (MoU), it signs to avoid any future judgement debt against it and the country,” an energy sector analyst said.

The federal government agreed to pay $496 million to settle a multi-billion dollar claim from Global Steel Holdings Limited, following the termination of a contract to upgrade the country’s steel plants.

Fox Petroleum Energy Trading Nigeria Ltd., said in 2016 it would soon commence its investment in the exploration and processing of crude oil in Nigeria.

Mr Kabo Sunday, the company’s Managing Director/Country representative (Nigeria), told the News Agency of Nigeria (NAN) in Abuja then that they would be investing billions of dollars in the Nigerian petroleum sector.

He said the company, which has as its Chairman/Managing Director, Mr Ajay Kumar, was already working with Federal Government`s institutions for the needed approval.

Fox Petroleum has also not delivered on a $1.3 billion MoU it signed with the government of Karnataka in India.

In September 2014 Fox Petroleum proposed to the Government of Karnataka the development of a floating storage regasification unit (FSRU) at Karwar, with capacity of 7 mtpa, and the MoU was signed in April 2016.

In January 2017 Hyundai Heavy Industries won a US$563 million contract to build the FSRU. The project will include a LNG plant at Karawar. The FSRU is expected to be completed by late-2018.

There have been no development updates in over four years, and the project is presumed to be cancelled as of 2021.

For its proposed Nigerian investment, according to the Chairman of the Fox Petroleum Group, Dr. Ajay Kumar, Fox Petroleum wants to enter into fund investment provision role by releasing US $2.5 Billion yearly over a consecutive 3-year period meant to “acquire, invest and operate energy-producing assets in Nigeria as part of NNPCL’s growth strategy following its incorporation as a limited liability company as promulgated under the Petroleum Industry Act (PIA).”

FOX Petroleum Limited is a Non-govt company, incorporated on 20 Mar, 2009. It’s a public unlisted company and is classified as ‘company limited by shares’.

Company’s authorized capital stands at Rs 5.0 lakhs (500,000 rupees) and has 100.0% paid-up capital which is Rs 5.0 lakhs.

FOX Petroleum Limited last annual general meet (AGM) happened on 30 Sep, 2015. The company last updated its financials on 31 Mar, 2015 as per India’s Ministry of Corporate Affairs (MCA).

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