NPDC faults senate committee on revenue derivation

The Managing Director of the Nigerian Petroleum Development Company (NPDC), Yusuf Matashi, has faulted the figures quoted as revenue derived by the company from crude oil sales.

Earlier reports by the Nigerian Extractive Industries Transparency Initiative (NEITI) indicate that the company and NNPC failed to remit a total of $4.7billion and N318.2billion to the federation account as contained in a 2014 audit report by NEITI.

But The Cable reports that Matashi, in a presentation to the senate committee on recovery of unremitted revenue, explained that the value of crude oil lifted by NPDC between May 2013 and August 2016 was $3.294billion as against the $3.487 claimed by the committee.

He told the senate committee that the government is no longer funding the assets but it is providing funding for production and lifting of oil by itself.

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The NPDC Managing Director was quoted to have said that: “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 billion against the figure of $3.487billion”.

He denied that the NPDC has been lifting crude oil from OMLs 65, 111, and 119 to the tune of $1.847billion, arguing that the OMLs 65, 111 and 119 referred to by the senate were not part of the divested assets.

He was again quoted to have said that: “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 also faulted the claim that a total sum of $344.34m worth of crude had been unremitted between January and August 2016, noting that the actual value of crude oil lifting from all assets divested to the NPDC between January and August 2016 was $584.1million.
 

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