NNPC, partners swindle FG of $1.8bn, N8.8bn – Report

0

Get real time updates directly on you device, subscribe now.

The flagship subsidiary of the Nigerian National Petroleum Corporation (NNPC), the Nigerian Petroleum Development Company Ltd (NPDC) and one of its Joint Venture partners, Seplat Petroleum Development Company Plc, have reportedly swindled the Federal Government of $1.8bn and N8.8bn from 2013 to 2017.

This was contained in the report of the Special Presidential Investigation Panel for the Recovery of Public Property, led by Mr Okoi Obono-Obla, which stated that the sums of money represented the royalties on oil and gas, concessional rental and gas flaring penalty due to the Federal Government but which the NPDC and Seplat refused to remit.

The report stated, “Analysis of recovered records and other documents collected including statements revealed as follows:

“That NPDC has Joint Venture agreements with the  following nine companies to operate Oil Mining Leases: Seplat/NPDC JV (OML 4, 38 and 41); ND Western (OML 34); Elcrest /NPDC JV (OML 40); Neconde/NPDC JV (OML 42); NAOC (Nig. Agip Oil Coy)/NPDC JV (OML 60, 63); FHN (First Hydrocarbon Nigeria)/NPDC (OML 26); Abura/Oredo/Oziengbe (OML 65, 111); Okono/Okpoho/NPDC JV; and Shoreline/NPDC JV (OML 30).

READ ALSO: Presidency Reacts As Nigerians Describe Buhari’s Campaign Slogan As Next Level To Poverty

“The NPDC and its JV partners have failed to remit to the Federal Government its complete due on royalty (oil); royalty (gas); concessional rental; and gas flared penalty.”

Herald Nigeria gathered that the total sum of $1,824,469,208.36 allegedly not remitted to the Federal Government, the NPDC owes $1,791,045,591,18, while Seplat owes $33,423,617.18.

For the N8,825,778,039.61 due to be paid to the Federal Government, the NPDC was allegedly responsible for N7,523,749,610.15, while Seplat owed N1,302,028,429.46.

The report recommended, “Recovery of $1,824,469,208.36 and N8,825,778,039.61 underpaid assets from NPDC and Seplat Nigeria Limited.

“Recovery of all underpaid assets from regulators and operators of OPLs and OMLs (government and private).”

The SPIPRPP report also stated, among others, that the Department of Petroleum Resources should shed light on the outstanding royalty payments for divested assets amounting to $745,462,045.00.

According to the report,“It is imperative for the Managing Directors of all the following regulators, and operators of OMLs to be interviewed by the SPIP and also avail the panel with records of oil and gas royalty payments; gas flaring penalty payments; and concessional rental payment for analysis, among others:

“The regulator – Department of Petroleum Resources; government Operators of OMLs – NAPIMS and NPDC; JV, PSA and PSC Operators of OMLs; NPDC and Seplat are to attend to the SPIP and agree on terms of paying the underpaid assets from 2013 to 2017 to the government.

“The Department of Petroleum Resources is required by the SPIP to shed more light on the agreement and the approval to defray Shell Petroleum Development Company’s outstanding royalty payments for divested assets amounting to $745,462,045.00 (Atlantic Lifting).

“In addition, the DPR should also explain the defrayal of Nigeria Agip Oil Company’s royalty oil payments using the balance of NAOC’s ‘good and valuable’ consideration valued at $293,102,181.93.”

Leave a Reply

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.