$2.9m oil bloc concessionary debt: revoke licenses- Ribadu to FG
Former Commissioner of Police, Nuru Ribadu has said that the Federal Government should either charge interest on outstanding amounts against owners of concessionary oil blocs which is to the tune of $2.9million, or revoke their licenses.
He made the recommendations in the Petroleum Revenue Special Task Force (PRSTF) report obtained by Business Times.
The Department of Petroleum Resources, DPR, is in charge giving licenses to qualified bidders of oil blocs in Nigeria. There are two types of licenses, OPL (Oil Prospecting license) and OML (Oil Mining License). Winners of oil bloc bids, get the OML which is for a period of 10 years. As a result, before mining in concessional blocs start, concessionaires pay DPR what is known as Signature Bonus to have their licenses signed and stamped.
However, over the years, there have been cases where owners of oil blocs have refused to pay DPR annual concessional fees for operating the oil blocs which ought to have served as a source of revenue for the country.
According to the PRSTF report otherwise known as the Ribadu Report, as a means of further action to be taken against the concessionaires that are yet to pay the huge sum, “proposed actions would be to charge interest on the amounts outstanding, revoke the companies, etc’ licenses,” it said.
According to the report, a review of a schedule of concessions and rentals paid between January 1 2005 and 31 December 2011 was carried out.
It said an outstanding concession rentals of oil blocs due to the Federation amounted to $2.9 million.
Based on the information provided by officials of the Department of Petroleum Resources, there were fifty-seven, 57 concession holders for the period under review.
Total revenue accruing to the nation for the period amounted to $12.7million owed to the federal government.
Out of the $12.7m, payment already received from the concession holders amounted to $9.8million, indicating that $2.9million represents outstanding amounts to be collected by the DPR from the various concessionaires.
