NEITI Audit: NNPC Failed to Remit $13bn NLNG Earnings in Eight Years
Tue May 24, 2016 10:31:am Business
2.7K By sosa hills
Five months after failing to meet the deadline set for the release of the 2013 Petroleum Industry Audit, the Nigeria Extractive Industries Transparency Initiative (NEITI) finally made the report public on Monday.
The Minister of Solid Minerals Development and Chairman of the NEITI Board, Dr. Kayode Fayemi, who presented the report in Abuja, said it was delayed due to the dissolution of the board and the need for the new board to understand the audit report.
Details of the report showed that Nigeria earned $58.07 billion from the petroleum industry in 2013, eight percent lower from $62.9 billion which she earned in 2012.
Crude oil production for the year was 800,488,000 barrels, made up of production from all sources and various agreements.
The report however pointed out that the "total volume of crude lifted through the different contract agreements was 800,338,000 barrels. The difference of 150,000 barrels is because not everything produced is lifted," he said.
According to the report, "the total revenue flow to the federation from all sources in 2013 came to $58.07 billion. This included revenues from crude oil sales, taxes, royalties and other incomes. The revenues realised in 2013 represented a decline of eight percent when compared with the $62.9 billion realised in 2012.
"This decline was attributed to the drop in oil and gas sales following the divestment of federation equity in some Oil Mining Leases (OMLs), crude losses as a result of destruction of production facilities, pipeline vandalism and crude oil theft," Kayode said.
The minister stated that the audit also showed that $3.8 billion and N358.3 billion are still outstanding payments due to the federation from the Nigerian National Petroleum Corporation (NNPC) and all of its subsidiaries.
"These outstanding payments were due from unpaid consideration from the divested OMLs, cash-call refunds from National Petroleum Investment and Management Services (NAPIMS), and Nigerian Petroleum Development Company (NPDC) liftings from National Agip Oil Company (NAOC/AGIP) joint ventures", he added.
According to him, "due to the absence of a new fiscal regime for the industry, the sum of $599.98 million was reported in the audit as underpayments to the federation from petroleum profit taxes and royalties by oil and gas companies as a result of the use of different pricing methodology by the government and the companies."
Fayemi noted that the report put the total value of crude oil losses to the federation, as reported by three JV companies in 2013, at $4.7 billion.
This, he explained, represented an increase of 46 percent over that of 2012.
"For downstream, COMD (Crude Oil Marketing Department of the NNPC) records showed that out of 38.263 million barrels allocated to the refineries in 2013 for local refining, 2.401mb were lost through theft and vandalism.
On the controversial failure by the NNPC to remit dividends from the Nigeria Liquefied Natural Gas (NLNG) into the Federation Account, Fayemi said the report showed that the corporation has not remitted $12.9 billion it received from NLNG to the government.
The Minister of Solid Minerals Development and Chairman of the NEITI Board, Dr. Kayode Fayemi, who presented the report in Abuja, said it was delayed due to the dissolution of the board and the need for the new board to understand the audit report.
Details of the report showed that Nigeria earned $58.07 billion from the petroleum industry in 2013, eight percent lower from $62.9 billion which she earned in 2012.
Crude oil production for the year was 800,488,000 barrels, made up of production from all sources and various agreements.
The report however pointed out that the "total volume of crude lifted through the different contract agreements was 800,338,000 barrels. The difference of 150,000 barrels is because not everything produced is lifted," he said.
According to the report, "the total revenue flow to the federation from all sources in 2013 came to $58.07 billion. This included revenues from crude oil sales, taxes, royalties and other incomes. The revenues realised in 2013 represented a decline of eight percent when compared with the $62.9 billion realised in 2012.
"This decline was attributed to the drop in oil and gas sales following the divestment of federation equity in some Oil Mining Leases (OMLs), crude losses as a result of destruction of production facilities, pipeline vandalism and crude oil theft," Kayode said.
The minister stated that the audit also showed that $3.8 billion and N358.3 billion are still outstanding payments due to the federation from the Nigerian National Petroleum Corporation (NNPC) and all of its subsidiaries.
"These outstanding payments were due from unpaid consideration from the divested OMLs, cash-call refunds from National Petroleum Investment and Management Services (NAPIMS), and Nigerian Petroleum Development Company (NPDC) liftings from National Agip Oil Company (NAOC/AGIP) joint ventures", he added.
According to him, "due to the absence of a new fiscal regime for the industry, the sum of $599.98 million was reported in the audit as underpayments to the federation from petroleum profit taxes and royalties by oil and gas companies as a result of the use of different pricing methodology by the government and the companies."
Fayemi noted that the report put the total value of crude oil losses to the federation, as reported by three JV companies in 2013, at $4.7 billion.
This, he explained, represented an increase of 46 percent over that of 2012.
"For downstream, COMD (Crude Oil Marketing Department of the NNPC) records showed that out of 38.263 million barrels allocated to the refineries in 2013 for local refining, 2.401mb were lost through theft and vandalism.
On the controversial failure by the NNPC to remit dividends from the Nigeria Liquefied Natural Gas (NLNG) into the Federation Account, Fayemi said the report showed that the corporation has not remitted $12.9 billion it received from NLNG to the government.
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