Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
2012
Pumped
m 3
Received
m 3
Variance
m 3
Variance
(bbls)
NNPC’s Figures 5,313,158 4,847,425 (465,733) (2,929,364)
Independent
Surveyor’s <strong>Report</strong> 5,317,737 4,808,362 (509,375) (3,258,031)
Difference (4,579) 39,063 43,642 328,667
Table G3 – Comparison of Variances in Crude Oil Losses in 2012
2013
Pumped Received Variance
Variance
m 3
m 3
m 3
(bbls)
Independent Surveyor’s
<strong>Report</strong> 3,265,874 2,991,025 (274,849) (1,728,732)
Schedule from NNPC 3,187,708 2,920,049 (267,659) (1,657,025)
Difference 78,166 70,976 (7,190) (71,707)
Table G4 – Comparison of variances in crude oil losses in 2013
Valuation of Crude Oil loss
NNPC applied a conversion rate of $100/barrel to value the crude oil difference between the quantity
pumped and quantity received at the refineries. We adopted the monthly average Platts price, given
that the revenue generated from crude oil lifted during the review period was accounted for using
Platts price and the pricing options depending on the contract.
It will be unrealistic to adopt a parallel conversion rate of $100 per barrel to value the quantities of
crude lost during oil movements/transfers. Applying the monthly average Platts price to value the
crude oil losses amounted to $73,851,144.93 higher than PPMC’s valuation, as shown in table below;
Conversion Rate Amount $
Using $100/ barrel (292,936,421.68)
Using Monthly average of (358,804,942.37)
Platts price
Difference: 2012 65,868,520.69
Using $100/ barrel (172,873,241.00)
Using Monthly average of (180,855,865.24)
Platts price
Difference: 2013 7,982,624.24
2012 + 2013 73,851,144.93
Vanguardngr
Table G5 – Valuation of Crude Oil Losses
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
PwC 100