Oil & Gas

NNPC Set To Increase Federal Government Revenue by $30 Billion

501

…As Baru Inaugurates Anti-Corruption Committee

The Nigerian National Petroleum Corporation (NNPC) has disclosed that the four major investments it recently embarked upon with key upstream joint venture partners are capable of providing incremental revenue to the national treasury by over $30 billion within the next 10 years.

Speaking at the inauguration of the reconstituted NNPC Anti-Corruption Committee in Abuja on Monday, Group Managing Director of the Corporation, Dr. Maikanti Baru, said the investments which attracted a haul of close to $3.8 billion in foreign direct investments would serve as vehicle to fast-track the prevailing post Cash-Call exit era.

The GMD listed the critical Joint Venture alternative financing upstream investments to include: The $1.2 billion multi-year drilling for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited, codenamed project Cheetah and the NNPC/First E&P JV and Schlumberger tripartite $800 million alternative funding agreement for the development of the Anyalu and Madu fields in the Niger Delta.

Also listed are the agreements executed in London last week for the $1billon NNPC/SPDC JV Project Santolina and the NNPC/Chevron $780 million Project Falcon on Sonam, hitherto financed through JV Cash Call.

Dr. Baru commended the NNPC finance and technical teams for being able to attract the much needed foreign investment at a period when it has become increasingly difficult to attract foreign credit facilities.

“These four projects alone are going to raise incremental revenues to Nigeria of over $30 billion over the life of the projects in less than 10 years. They will also serve as part of the vehicle for exiting JV Cash Calls. We have to pay our arrears of about $6billion that were incurred pre-2016 and we are also paying up a tranche of about $1billion 2016 arrears. We started in April 2017 with the payment of $400million and we will pay the balance before the anniversary of the first payment,’’ he said.

The GMD explained that the arrangement would allow the Corporation to subsequently operate from the production revenue less the first line charge to government which is the royalties and petroleum profit tax.

He said that whatever profit that accrues afterwards would be remitted to the government after deduction of production cost.
Drawing a correlation between the quest for revenue and the anti-corruption campaign, the GMD said members of staff must never allow corrupt practices to distract from the great task ahead.

The GMD traced NNPC’s involvement in the anti-corruption campaign to the year 2000 when the Federal Government directed all its Ministries, Departments and Agencies (MDAs) to establish in-house Anti-Corruption Committees.
“NNPC was the first to put one in place within a month, precisely in October 2000”, he noted
Dr. Baru was a chairman of the committee.

He noted that since then, the NNPC Anti-Corruption Committee had consistently carried out its mission of eradicating corruption in NNPC through organizing sensitization campaigns, workshops, seminars and Federal Government publications on issues concerning corruption and economic crimes.

While thanking the former committee members that served at various times for a job well done, Dr. Baru urged the new members to surpass the achievements of the past committees in line with the present administration’s anti-graft agenda.
He emphasized that with the prevailing global economic reality; the only survival strategy at a time like this was to change from old ways of doing business and embrace the best practice of transparency, accountability and honesty with integrity.

The new NNPC Anti-Corruption Committee is headed by Mr. Mike Stanley Balami, a Group General Manager in the Finance and Account Directorate and a veteran anti-corruption crusader.

Mr. Balami pledged the readiness of members of the committee to work in harmony towards achieving a corruption-free NNPC.
He urged all heads of Strategic Business Units and Corporate Services Units to reconstitute and inaugurate their Anti-Corruption units to work closely with the Corporate Anti-Corruption Committee to ensure a corruption-free NNPC.

Leave a comment

Related Articles

NNPC Ltd. hosts NSC boss, pledges support for revitalization of Nigerian football

In a significant move to boost Nigerian football, the Nigerian National Petroleum...

Crude oil thieves now use SUVs to beat security operatives – Rivers NSCDC

A new method of stealing crude oil and transporting illegally refined petroleum...

Breaking: NNPC Ltd. achieves milestone oil production of 1.8 mbpd

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced a significant...

NNPC Ltd. appoints two Executive Vice Presidents, Chief Financial Officer

The Board of Directors of the Nigeria National Petroleum Company Limited (NNPC...

NNPC Ltd. Unveils Plan to Resolve Nigeria’s Energy Trilemma

Nigerian National Petroleum Company Limited (NNPC Ltd) Group CEO, Mr. Mele Kyari,...

Breaking: IPMAN Secures Direct Supply Deal with Dangote Refinery, Promises Steady, Affordable Fuel Nationwide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a landmark...

Port Harcourt helicopter crash: 16 days after, NSIB recovers Black Box

Sixteen days after the Port Harcourt chopper crash, the Nigerian Safety Investigation...

NNPC Ltd. disclaims video of adulterated fuel sold in bottles, jerrycans

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has issued a strong...

Protest: Kyari not responsible for fuel price hike – NNPC Ltd

The Nigerian National Petroleum Company Limited (NNPCL) has come out strongly in...

NNPC Ltd. Advocates Collaboration, Transparency in Global Energy Decarbonization

The Nigerian National Petroleum Company Limited (NNPC Ltd) has called for increased...

$26bln African Atlantic Gas Pipeline Project Gains Momentum

The federal government, in collaboration with the Economic Community of West African...

ECOWAS, Nigeria, Morocco, Mauritania Commit to $26bln African Atlantic Gas Pipeline Project

“The project, conceived in 2016 during King Mohammed VI of Morocco’s visit...

Troops crack down on oil thieves in Niger Delta

The Nigerian Army’s 6 Division, in collaboration with other security agencies, has...

Adokiye Tombomieye, ex-NNPC Ltd. VP Upstream, canvasses skills transfer, knowledge sharing among young engineers under mentorship

A former Executive Vice President, Upstream, Nigerian National Petroleum Company Ltd. (NNPC...

NUPRC Approves Seplat-ExxonMobil Divestment, Launches “Operation 1 Million”

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has given the green light...

NNPC Retail Sensitizes Auto Mechanics on CNG Adoption, Unveils Oleum Lubricant Range

NNPC Retail Limited, a subsidiary of NNPC Ltd, has taken a significant...

NNPC Ltd. reiterates commitment to peace, prosperity in Niger Delta

The Nigerian National Petroleum Company Limited (NNPC Ltd) has reaffirmed its dedication...

I didn’t ask NNPC Ltd to give up running own refineries – Oil Minister of State, Lokpobiri

Contrary to reports making the rounds, the Minister of State for Petroleum...

Nigeria faces potential gas supply crisis by 2030, says NUPRC Chief

Nigeria may experience a significant gas supply crisis by 2030, with a...

Oil prices surge by $1 amid Middle East tensions

Oil prices jumped by over a dollar in early trading on Wednesday,...