A destroyed refinery By Favour Ifeoluwa & Akinola Ajibade The Nigerian National Petroleum Company Limited( NNPCL) says it has destroyed 134 illegal refineries in the last few weeks. Also, the company said 63 illegal pipeline connections were uncovered during the the weeks . The corporation, In a visual report, stated that at about 2 am on Sunday, a joint team of security agents discovered a large wooden boat illicitly loading stolen crude oil from Barge AGS01 within the OML 18 operating area, noted intelligence report a large wooden wooden boat was caught receiving crude oil from the barge. According to the state-owned oil firm, while the barge was towed away with a tugboat in custody, five speedboats used in towing the large wooden boat to the illegal loading site were also detained and the particulars of the tugboats and barge used for the operation were reportedly seized for further investigation. It further said that two large boats, which involve
By Favour Ifeoluwa & Akinola Ajibade
The House of Representative says that it would investigate the loss of over $60 billion revenue due to inflated cash calls by the Nigerian National Petroleum Company Limited Joint Venture Agreements.
Also, the House has mandated relevant committees to conduct a thorough probe of all NNPCL Joint Venture operations in order to determine income and cash call costs due to each partner and also know whether due process and diligence were followed on the issue.
The resolutions were passed sequel to the adoption of a motion sponsored by Hon. John Chika Okafor on the floor of the plenary on Wednesday.
Hon. Okafor,who moved the motion said NNPCL on behalf of the Federal Government operates Joint Ventures and related agreements with private oil companies in both oil and gas sectors, with the aim of providing sustainable revenue and further enhance the economic development of the nation.
He noted that that the NNPCL, as representatives of the Federal government and Federation have about 60 per cent holding while other partners account for the remaining 40 per cent.
The joint ventures, he said, operate under a “Joint Operating Agreement” that spells out the responsibilities of each of the partners in the ventures.
He noted that: “Due to bloated cash call costs, the NNPCL Upstream Investment Management Services, a unit under the NNPCL in charge of negotiation of costs (both Capex and Opex) have caused huge losses in the neighbourhood of $60bn over the years.
“The activities of NUIMS have resulted in huge revenue losses, fiscal deficits and an alarming debt profile, aware of the need to ensure probity, transparency and value for money in the NNPCL Joint Venture operations.”
Meanwhile, the House has called for the remittance of accrued 5 per cent users’ charge on petrol pump price and diesel to Federal Roads Maintenance Agency FERMA to enable it discharge its functions.
This followed the adoption of a motion by Aderemi Oseni, urging Ministry of Petroleum Resources, NNPCL, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Ministry of Finance and Office of the Account General of the Federation to ensure that the user’s charge are immediately remitted to FERMA under Section 4(1) of the agency’s (Amendment) Act, 2007.
Leading debate on the motion, Oseni said to underscore the importance of funding to road management and maintenance, Section 4(1) of the Federal Roads Maintenance Agency (Amendment) Act, 2007 provides that “The fund of the agency shall consist of 5 per cent users’ charge on pump price of petrol, diesel and of which 40 per cent will accrue to FERMA.”
Comments
Post a Comment