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Nigeria Is Currently Experiencing Decline In Oil Theft – NNPC

The Nigerian National Petroleum Corporation (NNPC)

The Nigerian National Petroleum Corporation (NNPC)

Group Managing Director of the Nigerian National Petroleum Corporation NNPC, Kyari has come out to explain the reason for the decline in oil theft.

He recently spoke at the resumed investigative hearing of the Ad-hoc Committee of the House of Representatives investigating crude oil theft, and Nigerians have been reacting.

According to him, the decrease in the theft is as a result of the concerted efforts made by the corporation and the security agencies, so he is indeed proud.

He added that from where it was in 2015 till today, there is a significant decline in the losses Nigeria has suffered when it comes to oil vandalism.

His words, “From where it was in 2015 till today, there’s significant decline in the losses that we suffer in terms of other things or vandals in the country. And this didn’t come from the blues, but there were concerted efforts by the industry, by NNPC and also I must commend the security agencies to curtail the excesses but they still do occur.”

“And I take responsibility for whatever gaps, we will provide them so that the House will be properly provides with the information that are required for further action and analysis that you will like to take.”

“There are always discrepancies in the data between NNPC and other agencies of government, even between us and our partners. And this is also not surprising because typical practice in the industry is the point of recording, audit, the timing of recording always determines what numbers that you return with because it’s a very very mobile environment because the data you have today is not the same thing tomorrow.”

“This may not be far from the very fact that even though you have average of 57% equity in all our JVs, belonging to the NNPC, you do not have the right to lift 57% of the that equity or almost 60% as the case may be. In some assets we have 60%, in some we have 55.”

“In all cases, you cannot lift that equity level because there are a number of financing arrangements that are on ground which mandate you to cede some of your production to your partners so that you can pay up for their own contribution to those loans. So to that extent, you see it as under-lift but when the details are brought on the table, you will discover that those are unavoidable and you so have to pay back for loans that you have taken.”

“When you have multiple accounts of government on taxes and for royalties, and for profit oil all of them end up in the consolidated crude revenue account so when you look at them in isolation it will appear as if there’s an underpayment or short payment on many of these accounts but in reality, when the consolidated accounts are looked at they will turn out to be correct.”

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