NNPC says not withholding oil revenue to government

The Nigerian National Petroleum Corporation (NNPC) on Monday dismissed claims it owed the
federation account unpaid oil revenues, saying large-scale theft of crude and
oil products was responsible for lower-than-expected revenue payments into the

NNPC CEO

government's purse.
     Lawmakers last week said NNPC owed the government N32.65 billion ($2
billion) in oil revenues the corporation earned over January-July, but failed
to remit the money into the federation account.
     "We wish to state without any equivocation that we do not owe the
Federation Accounts any money as at today, taking into account outstanding
subsidies [on fuel imports] and other associated costs of operations and
losses," NNPC spokeswoman Tumini Green said in a statement.
     "In addition to these outstanding payments are material losses that the
corporation incurs on an almost daily basis from crude oil theft, products
theft, pipeline vandalism and other acts of sabotage."
     The NNPC spokeswoman said the government and other relevant agencies
urgently needed to join the NNPC in tackling crude oil theft and pipeline
vandalism. "That way, more funds will be available to the FAAC [federation
account]," she said.
     Parliament last week launched an inquiry into the continued decline in
Nigerian government revenues so far this year, which is causing tensions
between the federal government and the 36 states that depend largely on oil
revenues.
     NNPC manages the government's average 57% equity interest in upstream
joint ventures with foreign firms including Shell, ExxonMobil, Chevron and
Total, which together accounts for 90% of Nigeria's over 2 million b/d of oil
output.
     It also accounts for 60% of gasoline cargoes imported by Nigeria to
bridge shortfalls in domestic fuel supply.
     Nigeria's oil production and exports have been on the decline so far this
year due to oil theft and illegal bunkering.
     NNPC on September 26 said it had earned $20.9 billion from crude exports
over January-July, after oil production averaged 2.19 million b/d, compared
with a target of 2.53 million b/d set by the government.