Audit-Report-on-NNPC
Audit-Report-on-NNPC
Audit-Report-on-NNPC
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Investigative Forensic audit of crude oil revenues and remittances by <strong>NNPC</strong> (January 2012 – July 2013)<br />
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staff. In turn, Septa receives allocati<strong>on</strong> of cost oil sufficient to recover its costs as well as share<br />
of profit oil up<strong>on</strong> the full recovery of development costs.<br />
Agip Energy 67 : AENR and NPDC went into a Service C<strong>on</strong>tract agreement and signed a<br />
Memorandum of Understanding (MOU) in December 2000 for the development of offshore<br />
fields, Ok<strong>on</strong>o and Okpohu in OML 119, under a joint operatorship. NPDC later assumed full<br />
operatorship of the fields with a sharing formula of 30% and 70% in favour of AENR and<br />
NPDC respectively.<br />
4.5.2. Procedures Performed<br />
The following were the procedures performed to meet our objectives:<br />
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Requested for but did not receive the following from NPDC:<br />
o Detailed breakdown of the crude oil assets transferred to NPDC<br />
o Terms of divestment and c<strong>on</strong>tract documents involving the assets taken over<br />
o Strategic Alliance agreements between NPDC and counterparties<br />
o M<strong>on</strong>thly volume allocati<strong>on</strong>s to Strategic Alliance Partners<br />
o M<strong>on</strong>thly balance of NPDC crude over/under lifts by Strategic Alliance partners<br />
o List of receiving banks, account numbers and bank statements for NPDC crude<br />
proceeds<br />
Held a meeting with the former Group Executive Director, Explorati<strong>on</strong> & Producti<strong>on</strong> of<br />
<strong>NNPC</strong>, Dr Joseph Dawha and former MD NPDC Mallam Hamidu Namtari, to inform them of<br />
our engagement and request further meetings to obtain an understanding of NPDC’s<br />
processes particularly around its operati<strong>on</strong>s, business objectives and internal<br />
accounting/financial reporting, etc.<br />
Visited <strong>NNPC</strong> and NPDC websites to obtain further understanding of the company’s<br />
operati<strong>on</strong>s.<br />
Reviewed NPDC’s submissi<strong>on</strong>s to the Senate Committee to fully understand company’s<br />
official positi<strong>on</strong> <strong>on</strong> the revenues relating to the liftings from its assets during the review<br />
period.<br />
Obtained informati<strong>on</strong> <strong>on</strong> the volumes and prices of crude oil lifted in favor of NPDC during<br />
the period under review from COMD and DPR, to verify the figures quoted by NPDC at the<br />
Senate.<br />
Vanguardngr<br />
Verified pricing informati<strong>on</strong> and recomputed values based <strong>on</strong> lifting profile obtained from<br />
COMD and DPR.<br />
C<strong>on</strong>firmed royalty and tax payments to informati<strong>on</strong> provided by DPR and FIRS by tracing<br />
amounts to DPR and FIRS accounts with JP Morgan.<br />
Documented findings and c<strong>on</strong>clusi<strong>on</strong>s.<br />
67<br />
Source http://www.eni.com/en_NG/eni-in-nigeria/eni-profile/eni-profile.shtml<br />
We did not gain access to NPDC and as such had no official informati<strong>on</strong> <strong>on</strong> the Service C<strong>on</strong>tract.<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 81