The House of Representatives ad hoc committee investigating revenue leakages in the Department of Petroleum Resources (DPR) at the weekend said about N6 trillion from gas sales and royalties is yet to be remitted to the Consolidated Revenue Fund by oil majors operating in the country.

According to the committee Chairman, Jarigbe Agom Jarigbe (PDP, Cross River) the leakages were the result of the faulty Production Sharing Contract (PSC), which gives room for the oil firms to fleece Nigeria of billions of naira revenue.

Specifically, he said the committee uncovered over US$8 billion unremitted accrual from gas sales by Total Oil & Gas Limited between 2007 and 2017; US$170 million by Mobil; US$34 million by Neconde; among others.

“The Production Sharing Contracts (PSC) is faulty and does not provide for the remittance of the proceeds from gas sales. It gives room for most of the oil companies to fleece our revenues.

In the Bonga Field, Total alone has over US$8 billion unremitted gas sales to the Consolidated Revenue Fund between 2007 and 2017. Mobil owes over

US$170m on gas sales from Bonny Terminal; Neconde owes about $34 million in royalty,” the chairman stated.

He also said records from the Central Bank of Nigeria (CBN), JP Morgan, signature bonuses, concession rentals, crude oil, gas and flaring royalties, revealed that Sterling Global Oil Resources Ltd, has no evidence of payment of crude oil and gas sales, despite operating in the upstream sector of the oil industry.

The lawmaker equally frowned at the level of impunity by the oil majors and other actors in the oil industry, and called for total overhaul of the PSC.

As a result, he added, the ad hoc committee has summoned the management of five oil firms namely; Sterling Global Oil Resources Ltd, Neconde Energy Ltd, ND Western Limited, Newcross E & P and Allied Energy Ltd., to provide their evidence of payment of royalties.

“We think all the funds have to be remitted to the Consolidated Revenue Fund. So, we have asked NNPC and DPR to make their submissions to the committee.

I can confirm to you that if we get the fund, the Federal Government will borrow less to finance the deficit budget,” Jarigbe said.

Responding to questions on the non-enforcement of extant laws regulating the oil industry, the lawmaker said there are sanctions such as suspension of export permits, but that there must be political will by the executive to enforce them.

https://www.dailytrust.com.ng/total-mobil-others-yet-to-remit-n6tr-oil-revenue-261151.html

I expected d Minister of Petroleum to have sanitised d petroleum sector ... Jus too many leakages and shady dealings in dat sector and d govt is being shortchanged.. What do I know, he's either unaware of what happens under his nose which is very unlikely or he's got his hands deep in d cookie jar..

Needful required!

Get them to pay NOW!
Stealing is now CORRUPTION!!

Continue . The remitted ones where are dey? dey will collect d 6trillion now nd use it to bid for Election. we are still waiting for d Abacha Loot...

All these ones na for them to comot part of the money settle these politicians.

Not like the ones remitted got to the common man.

they know where they keep the money, Politics is a game of the smart and intelligent, Nigeria itself is Game,
at my age i cant be played by one stupid politician way no get brain

They should do because we need money

So many wrong things happening in Naija

I blame Lord Lugard in everything! The mofo knows all this poo will happend! spits

NNPC is working.
Baru is stealing.
Buhari is collecting.

Nbote:
I expected d Minister of Petroleum to have sanitised d petroleum sector ... Jus too many leakages and shady dealings in dat sector and d govt is being shortchanged..

My brother it is thesame people in the petroleum ministry and NNPC that is short changing the country"thier own country"

This is very bad

Tomorrow now those who stole this money will come and run for a position and claim they have never stole any public funds and then we will have youths hailing them

They should send them out

I think most members of nairaland don't read. The report shows it is as a result of faulty production sharing contracts PSC which allows them to take advantage and not remit proceeds of gas sales.

The report also shows it is from 2007 till 2017

I keep sharing, a lot of work needs to be done in this country. Many laws need to be revisit (there are so many loopholes in many laws), many contractual agreements needs to be revisited and probably renegotiated

zakim:

The House of Representatives ad hoc committee investigating revenue leakages in the Department of Petroleum Resources (DPR) at the weekend said about N6 trillion from gas sales and royalties is yet to be remitted to the Consolidated Revenue Fund by oil majors operating in the country.

According to the committee Chairman, Jarigbe Agom Jarigbe (PDP, Cross River) the leakages were the result of the faulty Production Sharing Contract (PSC), which gives room for the oil firms to fleece Nigeria of billions of naira revenue.

Specifically, he said the committee uncovered over US$8 billion unremitted accrual from gas sales by Total Oil & Gas Limited between 2007 and 2017; US$170 million by Mobil; US$34 million by Neconde; among others.

“The Production Sharing Contracts (PSC) is faulty and does not provide for the remittance of the proceeds from gas sales. It gives room for most of the oil companies to fleece our revenues.

In the Bonga Field, Total alone has over US$8 billion unremitted gas sales to the Consolidated Revenue Fund between 2007 and 2017. Mobil owes over

US$170m on gas sales from Bonny Terminal; Neconde owes about $34 million in royalty,” the chairman stated.

He also said records from the Central Bank of Nigeria (CBN), JP Morgan, signature bonuses, concession rentals, crude oil, gas and flaring royalties, revealed that Sterling Global Oil Resources Ltd, has no evidence of payment of crude oil and gas sales, despite operating in the upstream sector of the oil industry.

The lawmaker equally frowned at the level of impunity by the oil majors and other actors in the oil industry, and called for total overhaul of the PSC.

As a result, he added, the ad hoc committee has summoned the management of five oil firms namely; Sterling Global Oil Resources Ltd, Neconde Energy Ltd, ND Western Limited, Newcross E & P and Allied Energy Ltd., to provide their evidence of payment of royalties.

“We think all the funds have to be remitted to the Consolidated Revenue Fund. So, we have asked NNPC and DPR to make their submissions to the committee.

I can confirm to you that if we get the fund, the Federal Government will borrow less to finance the deficit budget,” Jarigbe said.

Responding to questions on the non-enforcement of extant laws regulating the oil industry, the lawmaker said there are sanctions such as suspension of export permits, but that there must be political will by the executive to enforce them.

https://www.dailytrust.com.ng/total-mobil-others-yet-to-remit-n6tr-oil-revenue-261151.html

Louis005:
Tomorrow now those who stole this money will come and run for a position and claim they have never stole any public funds and then we will have youths hailing them

Bros, go read the material again. It is not about stealing money but about the oil companies taking advantage of faulty contractual negotiations to flees the country.

Navalsadiq:
They should send them out

LOL... We don't just send them out like that. We need them and their resources. We simply need to renegotiate the contracts, because obviously, they are taking advantage of the loopholes in the contract

it was a contract we signed....we didnt do our due diligence...we will live with it.

rottennaija:


LOL... We don't just send them out like that. We need them and their resources. We simply need to renegotiate the contracts, because obviously, they are taking advantage of the loopholes in the contract

abbaapple:



I blame Lord Lugard in everything! The mofo knows all this poo will happend! spits

Don't blame L. Lugard on this, blame Nnamdi Azikwe who insisted that UK shouldn't give us independent separately in 1957 and that delayed our independent till 1960 if not southern Nigeria would have gained her sovereignty along with Ghana in 1957.... But Zik caused this not Lugard.

lol

rottennaija:
I think most members of nairaland don't read. The report shows it is as a result of faulty production sharing contracts PSC which allows them to take advantage and not remit proceeds of gas sales.

The report also shows it is from 2007 till 2017

I keep sharing, a lot of work needs to be done in this country. Many laws need to be revisit (there are so many loopholes in many laws), many contractual agreements needs to be revisited and probably renegotiated

To be honest, nothing is wrong here. It is only on someone view that the PSC is faulty and leaking, hence the loophole to avoid some more remittance of funds . This has to be debated and confirmed or prove otherwise a better approach adopted or the statusquo remains. Not like the IOC/NOC are short paying the country as the PSC is been followed on "as is" basis. Instead of calling names of the oil companies "owing" you money, call out those who made the law to revisit and amend all loophole. Ensure that same is not obtained in subsequent bills being passed.

But this is Nigeria, we all gonna look at it from a PDP/APC angle knowing how well be divide ourselves along partisan politics. The white boys just sits and sip coffee over our rants because they ensure to tighten all ends when signing contracts while we where more after what is my share here. Now the nation cries. Truth is that no one is visit that PSC formula in the next decade..............Buhari wont understand the topic of discussion.

Until we learn to put subject matter expert in critical positions we would never get it right. Just imagine a Rotimi Amaechi saying he was never aware their was any moving train in Nigeria And yes he said so after he was made a minister of Transport......Niccur got no business there brah

Alarmist news.

I used to believe these kinds of news until I started having direct dealings with the legislators on these matters.

The alarms are usually as a result of poor understanding of the structure of oil and gas industry.

Jarus:
Alarmist news.

I used to believe these kinds of news until I started having direct dealings with the legislators on these matters.

The alarms are usually as a result of poor understanding of the structure of oil and gas industry.

Bunch of noisemaking illiterates.

Niger Delta Wealth!

The rest of NIGERIA will do anything to ensure that this country doesn’t break apart.

Imagine the level of wealth these oil producing regions will enjoy when Nigeria splits. For those that will come and cry that the leaders will loot it, save your breath, even with all the looting Tinubu, Fashola did in lagos it did not stop them from doing some minor projects.

Balkanization Will surely do the Niger Delta and the others a lot of good!

rottennaija:
I think most members of nairaland don't read. The report shows it is as a result of faulty production sharing contracts PSC which allows them to take advantage and not remit proceeds of gas sales.

The report also shows it is from 2007 till 2017

I keep sharing, a lot of work needs to be done in this country. Many laws need to be revisit (there are so many loopholes in many laws), many contractual agreements needs to be revisited and probably renegotiated

They only read headlines and then rush to comment, hence most comments are at variance with the content of the story.

Haba ! This is totally wrong !!! The International Oil Companies (IOCs) do not sell GAS, they only flare it or re-inject into the wells for reservoir pressure maintenance. That is part of the reasons they have been reluctant to reinvest in recent years until the Petroleum Industry Bill (PIB) receives the attention it deserves. Oil production is similar to what happens when you answer the call of nature, unfortunately you cannot do #1 without #2. However, because Joint Venture (JV) and Production Sharing Contracts (PSC) that they signed does not cover gas, they have to painfully reinject the gas (instead of using sea water) or flare it off, especially in times of emergency.

The only IOC that I know of selling gas/condensate (OSO Field) is Mobil and that is very clear and fully accounted for.

6trn naira and naija still dey borrow, and her citizens still finding life difficult na wa oo which kind god forsaken country i come from now en ��