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Some experts in the oil and gas industry have advised the Federal Government to ensure proper implementation of the Petroleum Industry Act (PIA), and transparency in future marginal fields licensing bids.
The experts gave the advice in seperate interviews with the News Agency of Nigeria in Lagos on Tuesday against the backdrop of the just concluded 20202021 marginal fields bid.
Mr Ayodele Oni, Partner, Broomfield Law Practice, told NAN that the just concluded 20202021 bid was a brilliant idea by the government to raise funds.
Oni alleged that the exercise was conducted in secrecy, and that many people complained that the process was not transparent.
He, however, said there were some positives in the sense that a number of bidders were able to come up with funds to buy the assets and there were newer and better rules.
“Other than those, the defunct Department of Petroleum (DPR) did not do a great job,” he said.
On the success of the bid, he said apart from the government raising funds through the exercise, it involved more indigenous players and had the potential to increase production.
He, however, said the exercise brought together strange bedfellows, and that it lacked sufficient transparency.
Oni identified other challenges to include claims of corruption, inordinate delays and the list of preferred bidders, which was never issued publicly.
He said the owners of the marginal fields would now be independent of head lessors and have their own Petroleum Mining Lease (PMLs) under the PIA.
“Also, we expect a more transparent process in future Marginal Field Licensing Bid Round.
“The powers of the minister have been reduced with better checks and balances.
“The PIA should be properly implemented and transparency should be entrenched in the next bid round,” he said.
Similarly, Mr Joe Nwakwue, an oil and gas consultant, said it was too soon to make an informed assessment of the just concluded 20202021 marginal fields licensing bid.
Nwakwue noted that from the detailed study of prior exercises, awarding assets to multiple parties posed lots of challenges.
He said one was constrained to observe the rather high signature bonuses paid, noting that it might make it difficult for the awardees to raise funds for field development.
Nwakwue, who is also the former Chairman, Society of Petroleum Engineers (SPE), Nigerian Council, said completing the award process in such an uncertain environment was clearly a plus but challenges of funding and technical capacity persisted.
“Awards to multiple parties except where they jointly bid should be avoided.
“We also need to be very clear on the objective of the licensing round; are we raising money or given blocks to parties that have what it takes to develop and monetise the assets,” he said.
NewsSourceCredit: NAN
The Senate Committee on Ethics, Privileges and Public Petitions is investigating the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for allegedly re-allocating Atala Marginal Oil Field (OML 46) in Bayelsa to another firm.
The NUPRC came under fire in the senate over its alleged revocation and illegal re-allocation of the oil field owned by Bayelsa Government to Halkin Exploration and Production Company Limited (Halkin E&P).
Chairman of the committee, Sen. Ayo Akinyelure made this known at the weekend in Abuja.
The News Agency of Nigeria reports that trouble over the oil field started on April 6, 2020 when the then regulatory agency, Department of Petroleum Resources (DPR), now NUPRC, revoked the operating licence of the Atala JV Partners on the Marginal Oil Field.
This was over alleged inability to bring the Atala Field to production.
But the trio of BOCL , Hardy Oil Nigeria Limited and Century Exploration and Production Limited ( CEPL), kicked against the revocation.
This was on the ground that as original operators of the oil field, explorations and productions had been made and royalties paid into account of the Federal Government of Nigeria and that as at the time, the field was purportedly revoked, the JV-partners had an outstanding 20, 700 barrels of crude on the site.
Specifically, Akinyelure said that, ” NUPRC which is now the new regulatory agency that you represent here is not expected to take side on the disputed oil field.
” Since DPR is inherited by NUPRC, the new agency, must furnish this committee with written directive from President Buhari , upon which award of the Atala Oil Field was made to Halkin E and P and not previous operators as clearly stated in the presidential directive quashing the revocation.
” Perhaps, in running away from the fact and getting away with the oil field award, Halkin stopped appearing before this committee after previous appearances by resorting to litigation in the court of law” .
” What this Committee wants from NUPRC, being the inheritor of DPR , is written presidential directive on the Oil Field award to Halkin E&P and nothing more”.
The various parties are expected again at the senate panel this week.
NewsSourceCredit: NAN
President Vladimir Putin on Wednesday ordered Russia’s first mobilisation since World War II and backed a plan to annex swathes of Ukraine, warning the West he was not bluffing when he said he’d be ready to use nuclear weapons to defend Russia.
In the biggest escalation of the Ukraine war since Moscow’s Feb. 24 invasion, Putin explicitly raised the spectre of a nuclear conflict, approved a plan to annex a chunk of Ukraine the size of Hungary, and called up 300,000 reservists.
“If the territorial integrity of our country is threatened, we will without doubt use all available means to protect Russia and our people – this is not a bluff,” Putin said in a televised address to the nation.
Citing NATO expansion towards Russia’s borders, Putin said the West was plotting to destroy his country, engaging in “nuclear blackmail” by allegedly discussing the potential use of nuclear weapons against Moscow, and accused the United States, the European Union and Britain of encouraging Ukraine to push military operations into Russia itself.
“In its aggressive anti-Russian policy, the West has crossed every line,” Putin said.
“This is not a bluff.
And those who try to blackmail us with nuclear weapons should know that the weathervane can turn and point towards them,” he added.
The address, which followed a critical Russian battlefield defeat in northeastern Ukraine, fuelled speculation about the course of the war, the 69-year-old Kremlin chief’s own future, and showed Putin was doubling down on what he calls his “special military operation” in Ukraine.
In essence, Putin is betting that by increasing the risk of a direct confrontation between the U.
S.-led NATO military alliance and Russia — a step towards World War Three – the West will blink over its support for Ukraine, something it has shown no sign of doing so far.
Putin’s war in Ukraine has killed tens of thousands, unleashed an inflationary wave through the global economy and triggered the worst confrontation with the West since the 1962 Cuban Missile Crisis, when many feared nuclear war imminent.
Putin signed a decree on partially mobilising Russia’s reserves, arguing that Russian soldiers were effectively facing the full force of the “collective West” which has been supplying Kyiv’s forces with advanced weapons, training and intelligence.
Speaking shortly after Putin, Defence Minister Sergei Shoigu said that Russia would draft some 300,000 additional personnel out of some 25 million potential fighters at Moscow’s disposal.
The mobilisation, the first since the Soviet Union battled Nazi Germany in World War Two, begins immediately.
Such a move is risky for Putin, who has so far tried to preserve a semblance of peace in the capital and other major cities where support for the war is lower than in the provinces.
Ever since Putin was handed the nuclear briefcase by Boris Yeltsin on the last day of 1999, his overriding priority has been to restore at least some of the great power status which Moscow lost when the Soviet Union collapsed in 1991.
Putin has repeatedly railed against the United States for driving NATO’s eastward expansion, especially its courting of ex-Soviet republics such as Ukraine and Georgia which Russia regards as part of its own sphere of influence, an idea both nations reject.
Putin said that top government officials in several unnamed “leading” NATO countries had spoken of potentially using nuclear weapons against Russia.
He also accused the West of risking “nuclear catastrophe,” by allowing Ukraine to shell the Zaporizhzhia nuclear power plant which is under Russian control, something Kyiv has denied.
Putin gave his explicit support to referendums that will be held in coming days in swathes of Ukraine controlled by Russian troops – the first step to formal annexation of a chunk of Ukraine the size of Hungary.
The self-styled Donetsk (DPR) and the Luhansk People’s Republics (LPR), which Putin recognised as independent just before the invasion, and Russian-installed officials in the Kherson and Zaporizhzhia regions have asked for votes.
“We will support the decision on their future, which will be made by the majority of residents in the Donetsk and Luhansk People’s Republics, Zaporizhzhia and Kherson,” Putin said.
“We cannot, have no moral right to hand over people close to us to the executioners, we cannot but respond to their sincere desire to determine their own fate.
”
That paves the way for the formal annexation of about 15 per cent of Ukrainian territory.
The West and Ukraine have condemned the referendum plan as an illegal sham and vowed never to accept its results.
French President Emmanuel Macron said the plans were “a parody.
” Kyiv has denied persecuting ethnic Russians or Russian-speakers.
But by formally annexing Ukrainian territories, Putin is giving himself the potential pretext to use nuclear weapons from Russia’s arsenal, the largest in the world.
Russia’s nuclear doctrine allows the use of such weapons if weapons of mass destruction are used against it or if the Russian state faces an existential threat from conventional weapons.
“It is in our historical tradition, in the fate of our people, to stop those striving for world domination, who threaten the dismemberment and enslavement of our Motherland, our Fatherland,” Putin said.
“We will do it now, and it will be so,” said Putin.
“I believe in your support.
”
YEE
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NewsSourceCredit: NAN
Stakeholders stress need to end oil theft
Stakeholders stress need to end oil theft
Bunkering
By Reporters
Port Harcourt, Sept. 15, 2023 Critical takeholders have underscored the need to tackle illegal oil bunkering in the Niger Delta, lamenting that the country’s revenue is dwindling drastically due to the activities of oil thieves.
The stakeholders who spoke in separate interviews with the News Agency of Nigeria in some of the South-South states, described oil theft as disastrous to Nigeria’s economy and environment.
They avocated the use of technology to track the movement of the stolen oil to foreign destinations, saying that the quantity taken to such countries constituted the major loss in Nigeria’s oil sector.
The respondents are of the opinion that Nigeria should collaborate with governments of the countries where the stolen crude is taken to, so as to effectively check the economic crime.
An Uyo-base policy analyst and social commentator, Mr Tijah Bolton-Akpan, said that Nigeria lacked modern stock taking technology for oil sector operations.
According to him, the nation is unable to quantify the amount of crude lost to illegal bunkering.
”There is artisanal crude theft and there is also industry level theft by international criminals with the support of local collaborators.
“There is urgent need to identify these unpatriotic local collaborators within the oil and gas industry, security agencies and other sectors and deal with them decisively.
”We can track the quantity of crude theft if we have the technology to detect where crude is being intercepted,” he said.
Bolton-Akpan, the Chief Executive Officer, Policy Alert, said that Nigeria’s export earning was 80 per cent dependent on oil, and interruptions in oil production and sales had affected the nation’s ability to deliver social services.
”The situation has created a twin revenue and debt crisis, worsened by the exchange rate challenge and deepening inflation.
”When oil facilities are compromised for theft the environment is polluted, social security is challenged and the affected communities become volatile,” he said.
He urged the Federal Government to strengthen cooperation with governments of the countries where Nigeria’s stolen crude is taken to, in order to check the crime .
”Some of the stolen crude is moved to foreign destinations for refining.
An effective cooperation will expose the criminals.
”The country should also take the security of oil facilities seriously.
We are not serious about securing our oil facilities,” he said.
Dr Goodnews Aniete, an environmentalist and public health advocate also based in Uyo, said the activities of illegal oil thieves did not affect only the economy.
Aniete said the activity had hugely threatened public health in the south-south due to the emission of carbons into the air, through illegal refining.
”In trying to illegally tap crude from pipelines, the oil thieves have spilled a large quantity thereby damaging the environment.
”In some communities, the flora and fauna have been damaged.
Some species of aquatic lives have been exterminated.
”We should work as a people to tackle this monster.
It does no good to the society,” he said.
He also urged government to deploy appropriate technology to monitor the amount of crude stolen from Nigeria and the countries they were taken to.
Aniete further stated that the greed of a few unpatriotic individuals should not override the need to protect public health.
He said that residents of communities where illegal oil refineries were located were at a huge risk of possible health challenge and should cooperate with security agencies to bring the perpetrators to book.
”The health implication may not become immediately manifest but the effect will surely come later in life,” he said.
However, the Nigeria and Security and Civil Defense Corps (NSCDC) says it employs tactics to effectively tackle oil theft and related crimes in the Niger Delta.
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The Commandant of the corps in Akwa Ibom, Mr Suleiman Mafara, told NAN that the command had created strategic checkpoints to stop and search vehicles conveying petroleum products in the state.
Mafara said that to tackle those transporting illegally refined petroleum products, the command had ensured that only genuine products entered and left Akwa Ibom.
“Akwa Ibom is largely a transit state, the measure has proven effective in checking and curtailing the illegal activities.
“Vehicles, including trucks conveying petroleum products without authentic waybills from authorised depot’s and tank farms are impounded and suspects arrested,” he said.
He said that the command was synergising and collaborating with other critical stakeholders in the oil and gas industry as well as sister security agencies to tackle the crime.
Mafara said the Nigeria Union of Petroleum and Natural Gas Workers (NUPE and the Independent Petroleum Marketers Association of Nigeria (IPMAN), had helped the command to identify and arrest those conveying petroleum products with falsified documents.
“Our personnel work with IPMAN, DPR and NUPENG to verify genuine waybills, while bearers of falsified ones are arrested and their trucks impounded.
“Intelligence has played a major role in the corp’s arresting, bursting of illegal refineries and prevention of pipeline vandalism,” he said.
Mafara charged all field intelligence officers to intensify efforts and work with their informants to generate timely and actionable intelligence that would help combat the menace.
He said that prosecution and securing conviction of arrested oil thieves was expected to serve as a deterrent to potential criminals.
The comandant noted that the challenges of fighting oil theft and pipeline vandalism in Akwa Ibom differed from what obtained in other Niger Delta states.
“Over 85 per cent of the oil explored in Akwa Ibom is in the high sea which is mainly operated by ExxonMobil via QIT terminal.
“The corps has a lot of personnel within and around the facility offering 24-hour protection for the pipelines and operation generally,” he said.
He said NSCDC in Akwa Ibom was committed to fighting illegal oil bunkering which was inimical to the environment and economy.
The commandant said that the collateral implications of illegal oil bunkering on the society could not be quantified.
”We are prepared to play our roles.
We urge the public to support us with reliable intelligence,” he added.
On his part, the Chairman, IPMAN, Rivers chapter, Mr Joseph Obele, also said in Port Harcourt that the country lost crude to illegal refiners who burst pipelines to access it.
He equally said greater quantity of crude was lost to international theives aided by corrupt officials in the oil and gas industry to steal the product.
Obele however expressed hope that speedy implementation of the Petroleum Industry Act (PIA) would help to check the trend.
Attributing oil theft in the Niger Delta to deprivation faced by the region, he urged the federal government to ensure speedy implementation of the PIA which appropriates 3 per cent equity to oil producing communities.
According to the IPMAN chairman, until indigenes of the region begin to own commensurate stakes in the oil and gas economy, the challenge of oil theft will linger.
The lecturer in the Department of Business and Entrepreneurship, Rivers State Polytechnique, said corrupt officials in the sector always remained silent whenever issues of oil theft was discussed.
According to him, the bulk of theft around the oil sector happens in cooperate offices.
He urged oil bearing communities to adequately support security agencies in their mandate to protect oil facilities and expose acts of sabotage in the industry.
In Etche community, Mr Charles Utong, a fisherman also said that crude oil theft had negatively impacted on fishing and other aquatic lives in the area thereby lowering the local economy.
He urged government to ensure adequate pipeline survivance and environmental implementation of conservation policies that would protect aquatic lives and sustain fishing livelihood.
Also, Mr Sam Etengung, a leader in the community, said there was need to stop illegal oil bunkering in the Niger Delta to improve the country’s revenue and protect the region’s environment.
“Government has a lot to do; oil producing communities and other stakeholders need to check oil theft.
“Government has to meet with the communities as these activities are usually linked to youths in the communities.
“These youths have often alleged negligence by oil companies and lack of social infrastructure by government,” he said.
He also said that even the local women now chose to do illicit crude oil trade rather than conventional fishing and farming.
However, Mr Erastus Awortu, Chairman, Andoni Local Government Area of the state has commended Rivers government for its efforts to ending illegal oil bunkery in the state.
He said that the state government, through the supervision of the security agencies and local government chairmen, had stepped up actions towards ending the crime.
NewsSourceCredit: NAN
From 31 July to 3 August 2022, the DPD RI secretariat led by DPR RI Secretary General, Mr. Dr. Rahman Hadi, undertook a comparative study visit to the Parliament of South Africa in Cape Town. Members of the delegation consisted of Dr. Mesranian, M.Dev.Plg, Chief of the Second Trial Office; Hartawan, S.IP, Chief of the Finance Office; Mahyu Darma, SH, MH, Head of the Office of Protocol and Media; Nurul Husna, S.Si and Rehan Febri Herdamanu, ST, DPD Secretariat. The DPD RI Secretariat Benchmarking Visit to the South African Parliament was to (1) ascertain the mechanism and administration of the South African Parliamentary Secretariat to support the functions of the local members of the DPD (National Council of Provinces); (2) know the trial mechanism in the South African parliament; (3) know the pattern of financial responsibility of each DPD member. The issues discussed at the DPD RI delegation meeting with the South African parliament secretariat were: 1.1 The South African Parliament building suffered a fire accident in early January 2022. The Parliament building has not been renovated to date. Members of parliament use part of the space in the secretariat of parliament for daily tasks. Along with the current conditions of the pandemic, the role of the secretariat in dealing with South African parliamentarians and administrative tasks was affected. 1.2 The members of the South African DPD are 90 people who come from nine provinces in South Africa. Each province consists of 10 members of the DPD (National Council of Provinces). The minister (assistant to the president) also remains a member of parliament. 1.3 The House of Parliament consists of a combination of 400 members of parliament (National Assembly) and 90 members of the DPD (National Council of Provinces). 1.4 The South African Parliamentary Secretariat is a joint secretariat intended to support the work of the members of the DPR (National Assembly) and the members of the DPD (National Council of Provinces). Unlike in Indonesia, the members of the parliamentary secretariat in South Africa are not state officials. 1.5 All trials are open to the public, except for intelligence and broadcast via social media platforms. The public can also attend the trial in person by first submitting an online form. The activities went well. The Secretary General of DPD RI expressed his appreciation for the acceptance of the South African parliamentary secretariat and invited them to come to Indonesia. The delegation received comprehensive data and information related to the functions and duties of the South African Parliamentary Secretariat to support the work and functions of the members of the DPD. The delegation exchanged information and deepened material with the secretariat of the South African parliament and visited the South African parliament on the last day.
Dr Segun Aina, Group Chairman, Odu’a Investment Company Ltd., said the company would pay dividend of N418.4 million to its shareholders for the financial year ended Dec. 31, 2021.
Aina said this at the company’s 40th Annual General Meeting on Wednesday in Lagos.
The figure represented 15 per cent increase when compared with the N364 million paid in 2020.
According to him, this marks the eighth consecutive year that the company is declaring and paying dividend to shareholders.
In attendance were shareholders represented by the Secretaries to the State Governments (SSGs) of Oyo, Ondo, Ogun, Osun, Ekiti and Lagos States.
All resolutions presented for shareholders’ approval were adopted.
Aina said profit before tax grew by 149.8 per cent from N3.75 billion achieved in 2020 to N9.37 billion in 2021.
He said the growth was driven by the increased focus on the different areas of the business and gains in investments.
The out-going chairman assured the shareholders of the company that the Board had put in various best practice governance policies in the year under review.
This, he added, would ensure the company’s investments created sustainable impact in the ensuing years.
Aina thanked the shareholders for the great privilege and rare honour given to him by shareholders to be the Group Chairman of Odu’a Investment between May 2020 and June 2022.
Aina also urged his fellow directors and management to remain focused on the delivery of the company’s five Years“SRC-2025” (Sweat, Revive and Create 2025) Strategic Thrust.
Commenting on the result, the Group Managing , Mr Adewale Raji, said profit before tax for 2021 included revaluation gains of N7.11 billion from the company’s investment properties portfolio, which was N2.63 billion in 2020.
According to him, if this accounting gains are stripped off, the normalised profit before tax for 2021 will be N2.26 billion and N1.12 billion for 2022, representing an appreciable 102 per cent growth.
Raji also reported that the company celebrated 45 years in November 2021 since it commenced operations, and that as part of the celebrations the Odu’a Investment Foundation was established to positively influence the next generation of youths.
He said that would be achieved with focus on health, education and youth empowerment.
“Our Agric Investment Subsidiary, South West Agriculture Company (SWAGCO) Ltd., has begun to make significant effort in investing in agriculture opportunities that will drive capacity development for a new generation of commercial farmers and entrepreneurs.
“We have committed a large proportion of our land bank towards these efforts focusing on cassava, maize, paddy rice and dairy.
“The company’s investment in oil and gas, through acquisition of part of BITA Marginal Field, and the setting up of BITA Exploration & Production Ltd., with our JV partner is gathering momentum,” Raji said.
According to him, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that replaced DPR is currently finalising the model for licensing and contracting documents that will govern the operations of the 2020 Marginal Field Bid Winners.
“This is the critical hurdle to scale to make the coast clear for a field development plan and approval that will lead to achieving ‘’First Oil,’ he said.
As Aina ends his tenure in the Board of Odu’a Investment Company Ltd., the new chairman, Mr Bimbo Ashiru, former Commisioner for Commerce and Industry in Ogun, said his plan is to achieve the company’s target of N40 billion profit after tax by 2035.
Ashiru was a two-term commissioner for Commerce and Industry in Ogun State from 2011 to 2018.
“Be rest assured that we are a team and there is nothing special that I could do than to focus on the 2035 target. We will be reaching a minimum target of 40 billiion profit after tax.
“On other businesses, we are going to ensure we are doing the right thing.
Odu’a will be one of the giants in the oil industries.
“In the area of hospitality, we want to ensure that we have the world class hotels in Nigeria. What I am bringing is my experience, pedigree and what I have done in the past,” Ashiru said.
Also, Gov. Rotimi Akeredolu of Ondo State, commended the Board and management of the company for the impressive performance.
Akeredolu thanked the management of Odu’a for achieving all the fundamentals suggested by the states in order to have a better performance.
Also his counterpart, Gov. Dapo Abiodun of Ogun, congratulated the new chairman, saying that “he has what it takes to run the affairs of the company.”
He enjoined the board to ensure a better performance in the next financial year that would be more visible.
He assured of the state’s full support to the growth of Odu’a Investment Company Ltd.
NewsSourceCredit: NAN
The Senate, on Wednesday at plenary constituted an Ad Hoc Committee to investigate Shell Petroleum Development Company (SPDC) over non-compliance with the Petroleum Act and violation of Joint Venture Agreement entered i with the Federal Government. The Ad Hoc committee was mandated to investigate the Oil Mining Lease granted to SPDC between 1959 to 1989, and 1989 to 2019 under the SPDC and NNPC Joint Venture agreement. The committee, constituted by the Senate President Ahmad Lawan, has Sen. Sabi Abdullahi (APC- Niger) as Chairman. Other members include Senators George Thompson Sekibo,(PDP-Rivers) Abdullahi Yahaya, (PDP-Kebbi) Bassey Albert Akpan,(PDP-Akwa Ibom) Solomon Adeola,(APC-Lagos) Smart Adeyemi(APC-Kogi) and Aishatu Ahmed. ((APC-Adamawa). Senate demanded a refund of 200 million dollars , any amount short of what was paid by SPDC, including penalties and interests under the lease agreements to the Federal Government. The resolution was reached after it considered a motion sponsored by Sen. George Sekibo (PDP- Rivers ). The motion entitled: “Non payment of the sum of 200 million dollars accruals from the Oil Mining Lease (OML), by Shell Petroleum Development Company of Nigeria Limited under the Joint Venture Agreement. “And, illegal and unlawful renewal of Oil Mining Leases by the Ministry of Petroleum of Petroleum Resources (DPR) contrary to the provision of paragraph 10 of the First Schedule to the Petroleum Act 1969 (now Section 86(1) and 86(6) of the Petroleum Industry Act 2022.” Sekibo, in his lead debate noted that the Joint Venture (JV) agreement was in contravention of the provisions of the Petroleum Act 1969, by the defunct Department of Petroleum Resources (DPR) and the Ministry of Petroleum Resources, granted to the SPDC, NNPC a 30-year Oil Mining Lease from 1959 to 1989. He observed that doing so constituted an illegal extension of the Oil Mining Lease by 10 years in the first instance, instead of the prescribed term of 20 years, without recourse to the provisions of the Petroleum Act 1969 in paragraph 10 of the First Schedule. He said upon the expiration of the initial Oil Mining Lease in 1989, SPDC and NNPC JV, was granted another 30-year Oil Mining Lease again from 1st July 1989 to 30th June, 2019, by the Ministry of Petroluem and DPR instead of the 20 years lease prescribed by the Petroleum Act. This, he said, is contrary to paragraph 10 of the First Schedule to the said act. He revealed that in the initial additional 10 years Oil Mining Lease of 1969 to 1989, illegally granted to the SPDC and NNPC JV by the Ministry of Petroleum Resources and DPR, the Federal Government lost from fees, taxes, rents and royalties the sum of 120 million dollars. He stated that in the second instance of the extra 10 years the Federal Government also lost a further sum of 80 million dollars, amounting to a total of 200 million dollars. He said the loss of 200 million dollars which was equivalent to N83.130 billion, could have been of great value to the economy of the nation. He expressed worry that that the trend of illegal extension of Joint Venture (JV) period from 20 years to 30 years lease period without recourse to the Petroleum Act may have also applied to other Joint Venture agreements with the International Oil Companies (IOCs) and need to be investigated. He disclosed that a whistle-blower petitioned the EFCC on the need to recover the fund from SPDC for the illegal extensions by the Ministry of Petroleum Resources, DPR and to further investigate all other Joint Venture agreements that involved the aforementioned IOCs. He noted that the power to make laws for the Federation as vested in the National Assembly by the Constitution also encompasses the power to make laws for the promotion of national prosperity and a dynamic self-reliant economy as provided in section 16(1)(a) of the 1999 Constitution of the Federal Republic of Nigeria as amended. He said the Constitution also give power to the National Assembly to carry out appropriate investigation on misapplication of the laws enacted by the National Assembly, as provided in Section 88 of the Constitution. NewsSourceCredit: NAN
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has obtained the necessary approvals to implement the Advance Declaration of Cargo regime in upstream oil operations, to reduce the export of stolen crude oil.
NUPRC says this will ensure that shipments of crude oil and gas exported from Nigeria have a unique identifier confirming all documentation regarding the exported shipment.
Mr. Gbenga Komolafe, Executive Director of the NUPRC Commission (CCE), said this on Friday in Abuja in a stakeholder engagement with journalists while highlighting his initiatives to curb oil theft in Nigeria.
Komolafe said this meant that any cargo that did not have the unique identifier would not be legitimately exported from the country.
He said that, in accordance with the directive of President Muhammadu Buhari, he developed additional initiatives to collaborate with oil and gas operating companies (including NNPC) and the upper level of the Nigerian security forces to end the threat.
He said the commission had started a large-scale audit of crude oil theft and upstream asset integrity audit assessment to establish the actual figures of crude oil theft in the upstream oil industry.
This, he said, was in view of the recent controversial figures on the theft volumes released by some operators in the industry, which negatively impact the Federation's income.
"This is very important as the nation derives its royalties from net crude oil revenues," he said.
Similarly, he said that in line with its statutory duties as a regulator, the commission obtained the necessary approvals to guarantee the installation of metering equipment (LACT Units) in the upstream oil industry, using Original Equipment Manufacturers (OEM).
He revealed that this would prevent possible manipulation of figures that could result in a reduction in the Federation's oil and gas revenues.
On his reforms, he said that in line with section 314 of the PIA, 2021, he had successfully implemented the delimitation of personnel between the commission and the Petroleum Regulatory Authority (MDPRA).
Later, he said the commission had begun workforce auditing, job mapping and skills development programs designed to optimize human capital.
“The Commission completed the separation of Enterprise Data Warehouse (EDW) from the legacy DPR and implemented automation of business workflow processes.
“The processes are the Revenue Ledger and Information System (RLIS) portal for companies to submit all foreign and local royalty payments and the National Balance of Payments portal for reporting inbound and outbound direct investments associated with the export of crude oil.
"Others are the development of the Asset Management Web Portal (AMWP) for Marginal Fields and Oil Facilities and e-Library, which provides access to all internal resources, including checklists, SOPs, templates and reference materials," said Komolafe. .
The CCE, however, noted that the commission was deliberate in identifying and sanctioning new projects and new field developments to help boost domestic oil production.
“We will continue to work with all the interested parties in the strategic areas and we will do so, without prejudice to the medium and long-term strategies.
“We will continue to implement some immediate (short-term) oil profit strategies in light of the current bullish realities in international crude prices,” he said. (
(NAN)
Four Federal Government agencies have generated a total of N28.02 trillion between 2017 and 2019, the Nigeria Extractive Industries Transparency Initiative (NEITI) report has said.
The agencies are: the Nigerian National Petroleum Company Ltd. (NNPC); Federal Inland Revenue Services (FIRS); Department of Petroleum Resources (DPR) now Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and Ministry of Mines and Steel Development (MMSD).
NEITI said on Thursday that the information and data were contained in the latest Fiscal Allocation and Statutory Disbursement (FASD) report, it recently published covering 2017 to 2019.
The report stated that out of the amount, N22.68 trillion was remitted to the Federation Account.
The NEITI FASD report revealed that FIRS generated the sum of N13.48 trillion within the period under review with Petroleum Profit Tax (PPT) accounting for N5.80 trillion (43.09 per cent).
It added that Value-Added Tax (VAT) and other taxes accounted for 32 per cent and 24 per cent respectively while it recorded highest revenue collection of N5.02 trillion in 2018.
The report said that a total sum of N8.82 trillion was generated by the NNPC within the period.
It said the breakdown showed that N4.55 trillion came from domestic crude sales, while export receipts accounted for N4.27 trillion.
It further disclosed that N5.33 trillion was deducted at source for Joint Venture (JV) cash call and others, leaving the net amount of N3.49 trillion, transferred to the Federation Account.
“During the period under consideration, a total of N8.82 trillion was generated. However, only N3.49 trillion (39.55 per cent) was remitted to the Federation Account due to deductions at source by NNPC for JV cash calls.
“The deductions at source by NNPC negate the principle of Federation Account,” the report said.
From the report, DPR (now NUPRC) generated N3.53 trillion for the three years under review, with royalty payments accounting for N3.40 trillion (96.41 per cent).
It said the agency, however, transferred N3.53 trillion to the Federation Account.
It said the audit established that the surplus of N6.72 billion was as a result of unremitted receipts from prior year.
The report further revealed that the Ministry of Mines and Steel Development (MMSD) generated N12.498 billion within the three years period.
The breakdown showed that Mining Inspectorate Department (MID) contributed N6.43 billion while Mining Cadastral Office (MCO) accounted for N6.06 billion.
The breakdown of the figures also showed that minerals and non-minerals revenue contributed N12.84 trillion (56.61 per cent) and N6.57 trillion (28.97 per cent) respectively, while VAT accounted for N3.27 trillion (14.42 per cent).
According to the report, the audit covers four federal revenue generating and 11 beneficiary agencies that are involved in the management of extractive industries funds.
It said it also covered nine selected states: Akwa-Ibom; Bayelsa; Delta; Gombe; Imo; Kano; Nasarawa; Ondo and Rivers.
It listed the beneficiary agencies as: the Niger Delta Development Commission; Tertiary Education Trust Fund; Petroleum Trust Development Fund; Petroleum Equalisation Funds; Ecological Fund and Stabilisation Funds.
Others are: the Nigerian Sovereign Investment Authority (NSIA); Development of Natural Resources Fund (DNRF); Excess Crude Account (ECA); Nigeria Content Development and Monitoring Board (NCDMB) and Petroleum Products Pricing Regulatory Agency (PPPRA).
On the NDDC, NEITI report revealed that 755.96 billion Naira was generated by the commission within the period under consideration.
The breakdown showed that N551.08 billion (73 per cent) was contributed by oil and gas companies, while the balance of 203.90 billion Naira (27 per cent) was Federal Government’s contribution to the commission.
The report further revealed that the total expenditure by the commission during the period under review was N882.3 billion.
Analysis of the expenditure showed that N778.29 billion (88.20 per cent) expended on development projects, while operational cost accounted for N104.07 billion (11.80 per cent) of the total.
According to the report, NEITI audit established that there was a gap between actual development projects expenditure as per audited financial statements and project monitoring list provided by the commission in the sum of N522.60 billion.
“While N679 billion was reported in NDDC’s financial statement, the project monitoring list reported expenditure of N157 billion on physical projects among the nine member states,” it said.
The report however, disclosed that 40 oil and gas companies defaulted in their payment obligation to the commission.
It said that the PTDF revenue for the period under review was put at N155.34 billion and 95 per cent came from signature bonus paid by oil and gas companies which was the main revenue source to the agency.
NEITI report revealed that out of N86.34 billion utilised by the agency within the period under review, N59.84 billion was spent on core operating expenses while N26.35 billion and N143 million was for administrative expenses and capital respectively.
The report noted that the PTDF extended funding to 125 approved institutions, 43 locals and 82 foreign institutions.
According to the NEITI report there was low expenditure compared with the revenue released during the years under review as only 56 per cent of revenue was utilised.
NEITI report put total receipts by Nigeria Content Development and Monitoring Board (NCDMB) for the three years under review at N126.73 billion.
It noted that one per cent of the NCDMB payment accounted for N116.95 billion (92 per cent) of the revenue.
The Federal Government stopped funding the agency from its budget in 2017.
According to the report, 48.07 per cent of the revenue was used for operating expenses while 51 per cent was used for capital expenditure.
NEITI report disclosed that PPPRA received a total of N27.68 billion as subventions for the three years period.
It noted that the regime of subsidy payment on petroleum product was discontinued within the period under review.
The publication of FASD report is in fulfilment of the Nigeria’s obligation to the global Extractive Industries Transparency Initiative (EITI) and in compliance with the provisions of the NEITI Act 2007.
(NAN)
The Nigerian Navy turned over the seized vessel - MTT4 and 20 suspected oil thieves on Saturday to officials at the Economic and Financial Crimes Commission, EFCC, in Bayelsa.
Commodore Patrick Effah, the commander of the Nigerian Navy Soroh ship, NNS, delivered the ship to the EFCC in Brass, Bayelsa.
Effah said the ship was loaded with 700,000 liters of illegally sourced crude oil.
He said the ship was intercepted on December 6, 2021 on the Akassa River, while the crew was arrested for leniency in the theft of crude oil.
He said that the delivery to the commission was in compliance with the directives of the naval headquarters, adding that the vessel and its crew were accomplices in the crime bordering on economic sabotage.
“The Nigerian Navy has been given the mandate to apprehend any ship suspected of committing illegalities in the Nigerian maritime domain, however, by law, we are unable to prosecute offenders.
"We are directed to turn over the seized vessels to the EFCC for further investigation and possible prosecution," he said.
Anthony Mark, EFCC team officer, Port Harcourt Zone Office, who received the vessel, reiterated the commission's willingness to conduct a full investigation into the matter.
"We will carry out a thorough investigation with a view to determining the level of participation, the content of the vessel and the prosecution of those involved," he said.
The Nigerian News Agency reports that officials from the Department of Petroleum Resources, DPR, collected samples of the container's contents for further laboratory analysis.
YAYA
