NPDC Clarifies Oil Revenue Remittance to Federation Account

NPDC Clarifies Oil Revenue Remittance to Federation Account

“According to our records total crude oil lifted from OMLs 60-63 by NPDC during the period May 2013 TO August 2016 is valued at $3.294 bn against the figure of $3.487billion’ . On the allegation that NPDC has been lifting crude oil from divested oil well (OMLs 65, 111 and 119) to the tune of $1.847 billion out of which it paid $100m only, the NPDC MD explained that the OMLs 65, 111 & 119 referred to by the Senate Committee are not part of the divested assets. He argued that the figures given refer to the Good Valuable Consideration obligation payments in respect of the Shell Petroleum Development Company, SPDC divested asset (OMLs 4, 38 &41 and OMLs 26, 30, 34, 40 &42.

‘’The $1.847 billion referred to by the Committee is the total Good and Valuable Consideration (G&VC) determined by DPR for the divested assets. The $100m referred to as paid is part of the G&VC which has been paid by NPDC,’’
he said. NNPC Logo.jog While recognizing the balance of $1.747billion for the G&VC, the NPDC noted that the obligation to pay in the future has not been waived and that the balance as payable to the Federation is recognized in NPDC’s books. On the report that a total of $344.3442m worth of crude oil has been unremitted between January and August 2016 including non-payment of due royalties and taxes within the period, the NPDC faulted the claim. ‘’The committee is invited to note that the actual value of crude oil liftings from all assets divested to NPDC is a total of $584.1 million for the period January to August 2016. NPDC has paid a total of $608.4 million as royalty and PPT,’’ he said. Mr. Matashi, noted that a total of $608, 417, 937 was made by the NPDC as Royalty and Petroleum Profit Tax in 2016. Also Providing response to the issues raised by the Senate committee on the legal and operational status of the NPDC, Matashi explained that like all other indigenous oil and gas companies operating in Nigeria, the NPDC is self-funded which means that gross revenue are not remitted to the Federation Account . He said that the company is however required to pay Royalties to the Department of Petroleum Resources, DPR and Petroleum Profit Tax, PPT to the Federal Inland Revenue Service, FIRS. Matashi however stated that the NPDC is ready to engage all stakeholders to resolve all outstanding payments noting that the Company is already in talks with statutory agencies to arrive at agreed installed payments of historical liabilities. The Co-Chairman of the Senate Ad hoc Committee, Senator Kabiru Marafa expressed the readiness of the Senate to work with the Corporation and other stakeholders to ensure proper accountability and probity in the handling of crude oil proceeds. Source / More on: nnpcgroup Oil and Gas Press Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook]]>

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