Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
4.3.4. Key Findings
4.3.4.1. Under-reported third party revenue of $0.43 billion
MPN, in its submission to the Senate, reported revenue figures of $518,069,354 35 and $858,750,973 36
in respect of the Reserve Development and Satellite Field projects engaged in with NNPC. This
amounted to a total revenue of $1,376,820,327.00. TEPNG on the other hand, reported a revenue
figure of $1,053,519,002 37 in respect of the Usan project engaged in with NNPC. This revenue
represents royalty and profit oil due to the Federation from these third party financing arrangements.
The total revenue generated from third party financing was therefore $2,430,339,330, a figure which
is $430,339,330 higher than the $2 billion reported by NNPC at the Senate Committee hearings.
Source Volumes (bbls) Values ($)
Mobil Producing 12,360,117 1,376,820,327
TEPNG 9,951,474 1,053,519,002
Total 22,311,591 2,430,339,330
Table c2– Total revenue generated from third party financing
Source – Mobil and Total submission to the Senate
4.3.4.2. Undisclosed third party financing remittance to the Federation of
$1.3 billion
Out of the total revenue of $1.37 billion reported by MPN, $1.158billion 38 had been remitted to the
Federation Account as at November 2013. This was confirmed by the Office of the Accountant
General of the Federation 39 . The total of $858,750,973 relating to SFDP had been remitted while
$300,000,000 out of the $518,069,354 relating to RDP had been remitted. The balance of
$218,069,354.32 relates to the amount held back to service the financing cost. Balance after servicing
the financing cost is to be distributed to the federation account as soon as the condition precedent is
met.
We independently confirmed the payment of the sum of $300million into JP Morgan’s CBN/NNPC
Crude Oil and Gas Revenue Account on 15 November 2013 while the payment of the $858,750,973
was paid in seven (7) tranches into the same account.
In respect of the USAN project handled by TEPNG, the sum of $193,478,061 and $17,943,616 totaling
$211,421,677 40 , being Royalty and Profit Oil was remitted to the JP Morgan accounts.
Vanguardngr
35
See Appendix 6.1.13 – RDP valuation
36
See Appendix 6.1.14 – SFDP valuation
37
See Appendix 6.1.15 – Usan valuation
38
See Appendix 6.1.9 – Mobil remittance
39
Source: Accountant General of the Federation’s submission to Senate Hearing and response to PwC’s letter
40
See Appendix 6.1.8 – TEPNG remittance
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
PwC 62