The revenue is 4.88
per cent higher than the $32.63 billion realised in 2018.
Nigeria realised
$34.22 billion from the oil and gas sector in 2019, the Nigeria Extractive
Industries Transparency Initiative (NEITI) has disclosed in its latest audit
report.
The report showed the
revenue was 4.88 per cent higher than the $32.63 billion realised in 2018.
The 2019 report
covered 98 entities, including 88 oil and gas companies, nine government
agencies and the Nigerian Liquefied Natural Gas (NLNG).
A breakdown of the
earnings showed that payments by the companies accounted for $18.90 billion,
while flows from the government’s sales of crude oil and gas accounted for
$15.32 billion.
Details of the report
showed that 10 years (2010-2019) aggregate financial flows from the oil and gas
sector to the government amounted to $418.544 billion, with the highest revenue
flow of $68.442 recorded in 2011, while the lowest revenue flow of $17.055 was
recorded in 2016.
According to NEITI,
the total crude oil production in 2019 was 735.244 mmbbls (million barrels of
oil or natural gas liquids), representing an increase of 4.87 per cent over the
701.101mmbbls recorded in 2018.
Production sharing
contracts (PSCs) contributed the highest volumes of 312.042 mmbbls followed by
Joint Venture (JV) and Sole Risk (SR) which recorded 310,284mmbbls and
89.824mmbbls respectively. Others are Marginal Fields (MFs) and Service
Contracts (SCs) which accounted for 21,762mmbbls and 1,330mmbbls respectively.
Similarly, the sum of
N126.664 billion was incurred by the Corporation as costs for pipeline repairs
and maintenance which showed a difference of N96.378billion from the approved
sum of N30.287billion for that purpose.
The report also
pointed out that N31.844 billion was also deducted for crude and product losses
due to theft and sabotage in 2019.
On gas production, the
NEITI report showed that 3,047,507.32 mmscf was produced in 2019. This
represents an increase of 4.8percent when compared to the 2,909,143.56mmscf
reported in 2018. In addition, $247.794million was realized from gas sales for
the year under review.
The 2019 oil and gas
report also explained that the total cash call for 2019 was $5.512billion
(US$2.898 billion and N797.324billion). There was an outstanding Cash-call
legacy liability of $1.900billion as at 31st December 2019.
Recommendations
The report made
recommendations on how to improve transparency and accountability in the
sector.
Some of the
recommendations were that the Office of the Accountant General of the
Federation (OAGF) should advise the NNPC to prepare its budget on a gross basis
by stating its gross revenue and costs.
The report also noted
that the practice, if adopted, will improve transparency and accountability in
NNPC’s transactions on behalf of the federation.
It recommended that
NNPC should carry-out detailed reconciliation on transportation revenues
regularly as a mechanism for checks and balances. It also observed that
entities are reporting crude losses higher than the fiscalised production and
recommended that the DPR should take steps to reduce losses by the terminal
operators.
It also highlighted
the outstanding liabilities by companies as of 2019 year end and advised the
respective government agencies to recover the debts.
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