Audit-Report-on-NNPC
Audit-Report-on-NNPC
Audit-Report-on-NNPC
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Investigative Forensic audit of crude oil revenues and remittances by <strong>NNPC</strong> (January 2012 – July 2013)<br />
B. Other third party financing remittance – $1.37billi<strong>on</strong> was received from the third party financing<br />
arrangements. The arrangement with TEPNL resulted in the payment of $211milli<strong>on</strong> to the<br />
Federati<strong>on</strong> from the USAN Field TMP project which represents Royalty and Profit oil, while the<br />
sum of $1.16billi<strong>on</strong> was received from MPNL from the Satellite Field and Reserve Development<br />
projects.<br />
C. NPDC remittance – Cash payments of $1.7billi<strong>on</strong> representing Petroleum Profit Tax and Royalties<br />
had been remitted.<br />
D. Equity crude and DPR royalty oil remittance – The remittance received from Equity crude sales,<br />
and in favour of DPR royalty oil, was $0.16 billi<strong>on</strong> higher and $0.42billi<strong>on</strong> lower than the Senate<br />
Rec<strong>on</strong>ciliati<strong>on</strong> Committee figures respectively.<br />
2.6. Other Third Party Financing Arrangements<br />
<br />
Under-reported Third Party Financing Revenue of $0.43 billi<strong>on</strong><br />
Mobil Producing Nigeria Limited, in its submissi<strong>on</strong> to the Senate, reported revenue figures of<br />
$518milli<strong>on</strong> 5 and $859milli<strong>on</strong> 6 in respect of the Reserve Development Project (RDP) and Satellite<br />
Field Development Project (SFD) respectively. Total E&P reported a revenue figure of $1.053 billi<strong>on</strong> 7<br />
in respect of the USAN project. These amounts represent royalty and profit oil due to the Federati<strong>on</strong><br />
from these third party financing arrangements. The total revenue generated from third party<br />
financing arrangement was $2.43billi<strong>on</strong> and not $2 billi<strong>on</strong> reported by the Rec<strong>on</strong>ciliati<strong>on</strong> Committee.<br />
<br />
Undisclosed remittance to the Federati<strong>on</strong> account<br />
Out of the total revenue reported by MPNL, $1.158billi<strong>on</strong> 8 had been remitted to the Federati<strong>on</strong><br />
Account as at November 2013. This was c<strong>on</strong>firmed by the Office of the Accountant General of the<br />
Federati<strong>on</strong> at the presentati<strong>on</strong> to the Senate Committee. We also traced these payments to the<br />
CBN/<strong>NNPC</strong> JP Morgan account. The total of $858,750,972 relating to SFD had been remitted while<br />
$300,000,000 out of the $518,069,354 relating to RDP had been remitted. The balance of<br />
$218,069,354 was withheld to service the project finance cost and subsequent remittance of the net<br />
amount, in accordance with the c<strong>on</strong>tract terms.<br />
In respect of the USAN project handled by Total E&P Nigeria Limited, the sum of $193,478,061.15<br />
and $17,943,616 totaling $211,421,677 9 , being Royalty and Profit Oil was remitted to the Federati<strong>on</strong><br />
account<br />
Vanguardngr<br />
5<br />
See Appendix 6.1.13 – RDP valuati<strong>on</strong><br />
6<br />
See Appendix 6.1.14 – SFDP valuati<strong>on</strong><br />
7<br />
See Appendix 6.1.15 – Usan valuati<strong>on</strong><br />
8<br />
See Appendix 6.1.9 – Mobil remittance<br />
9<br />
See Appendix 6.1.8 – TEPNG remittance<br />
C<strong>on</strong>fidential informati<strong>on</strong> for the sole benefit and use of the <str<strong>on</strong>g>Audit</str<strong>on</strong>g>or-General for the Federati<strong>on</strong>.<br />
PwC 27