Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
The table below outlines NNPC’s reconciliation of the
differences between revenues from crude oil liftings and
cash remitted to the Federation accounts – January 2012
to July 2013 (review period)
Explanations extracted from NNPC’s presentations to the Senate Committee
Item $’ billion Comment
Revenue generated 67.00 Revenue from the sale of crude oil during the review period.
Cost associated with the
maintenance of strategic
reserve
Crude oil and product
losses
(0.46)
Pipeline maintenance and
management costs (0.91)
Other third party
financing
NPDC
Subsidy payments (DPK,
PMS, Q4 2011)
Total Remitted
Demurrage and other costs incurred due to delay of vessels
ready to discharge refined petroleum products and costs
relating to storage of strategic reserves of finished petroleum
products during the review period.
(0.76) Value of crude oil and petroleum products lost as a result of
pipeline vandalism and theft during the review period.
(2.00)
(6.00)
Deduction of direct costs incurred by NNPC to safeguard,
repair and maintain the country’s petroleum products
pipelines during the review period.
Due to liquidity challenges, NNPC was funding Exploration
and Production (Capex and Opex) using external lenders. In
this instance, the NNPC and its Joint Venture (JV) partners
form a Special Purpose Vehicle (SPV) which sources funds
externally. The SPV repays the lender using crude oil from
production. This deduction reflects the value of crude that was
allocated and deducted to repay the lenders during the review
period.
This represents revenues generated by NPDC oil blocks. These
revenues were withheld by NPDC during the review period,
and not remitted into the Federation Accounts.
(9.97) This represents amounts deducted by the NNPC for subsidy
claims on PMS and DPK imports during the review period.
Vanguardngr
47.00
Source: NNPC GMD’s Submission to the Senate (Exhibit A1), PwC Analysis
This represents the net amount paid into the Federation
Accounts out of the revenues generated during the review
period.
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
PwC 10