NNPC under-reported crude oil lifting volume in 2016 by 940,055 -Report
The Nigerian National Petroleum Corporation (NNPC) has been accused of operating in an opaque manner as the post-mortem sub-committee of the Federation Account Allocation Committee (FAAC) said the corporation under-reported its lifting volume of crude oil.
The committee observed that the crude oil lifting volume reported by NNPC in the months of September, October and November, 2016 were under-reported.
According to a document obtained by the Daily Times, the volume of crude oil lifted by the corporation during the period under review was under reported by 940,055 barrels valued at $46.225 million (N14.549 billion).
The variance, the document stated, arose from NNPC/Chevron Cheetah Project. However, the committee pointed out in the document that the NNPC responded that the Cheetah project would be accounted for on quarterly bases, which the committee said it awaits the report.
The committee further observed that Afam Power Station, Osubi Airstrips and Ullage were investments from which revenue previously accrued to the federation account. However, since March 2014 when the sum of $10.892 million was received, no revenue had accrued from these investments.
It stated that the NNPC/CBN JP Morgan Crude Oil and gas Federation Account has a deposit of $15 million base amount for interest income and maintenance of the account.
The amount, the report noted, was made up of $10 million deposit in NNPC/CBN JP Morgan Crude oil sales account and $5 million in NNPC/CBN JP Morgan Gas sales account.
“However, the Sub-Committee observed that in December, 2016, no Interest Income Accrual on NNPC/CBN JP Morgan Crude Oil and Gas Federation Account despite the $15 million base amount as indicated.
The NNPC responded that due to the holiday in December 2016, the interest income could not be credited but informed the Sub-Committee that it was credited on 3rd January, 2017,” the report stated.
Again, it stated that it had severally reported that no revenue has accrued to the federation account from NNPC Joint Ventures (JVs) price reconciliation since April, 2016.
“With persistent call by the sub-committee, NNPC had paid into the federation account the sum of $3.939 million in December 2016,” the document stated.
