NEITI ���� OIL � GAS AUDIT REPORT

NEITI ���� OIL � GAS AUDIT REPORT

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COVERED ENTITIES

�� COMPANIES were covered in the 2018 oil and gas audit process.

NEITI ���� OIL � GAS AUDIT REPORT

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CRUDE OIL PRODUCTION

A total of

���.��m barrels of crude oil were produced in 2018

Joint Ventures ���.��m

Production Sharing Contracts

Service Contracts

�.��m

Sole Risk��.��m(13.15%)

Marginal Fields��.��mbarrels

(3.15%)

barrels

barrels

���.��m

(0.19%)

((38.59%)

(44.91%)

Barrels

barrels

BREAKDOWN

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2014 2015 2016 2017

798.54mbarrels

776.66m

659.13m

690.46m

barrels

barrels

barrels

2018

701.10mbarrels

FIVE-YEAR ANALYSIS OF CRUDE OIL PRODUCTION

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CRUDE OIL LIFTING

255.54m barrels

445.54m barrels

NNPC COMPANIES

(63.55%)(36.45%)

BREAKDOWN

A total of

���.��m barrels of crude oil was lifted.

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2014 2015 2016 2017

796.55mbarrels

780.42m

668.14m

688.29m

barrels

barrels

barrels

2018

701.09mbarrels

FIVE-YEAR ANALYSIS OF CRUDE OIL LIFTING

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CRUDE LOSSES FROM PRODUCTION

Crude oil loss due to theft and sabotage amounted to

��.��m��.��bnThis is an increase of 46.15% compared to the volume that was lost in 2017 which is 36.45 million barrels.

barrels valued at

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GAS PRODUCTION

BREAKDOWN

mmscf 2,167,238.84

599,471.67

78,008.79

62,961.93

1,462.33

mmscf

mmscf

mmscf

mmscf

74.50%

20.61%

2.68%

2.16%

0.05%

2,909,143.55

Joint Ventures

Production Sharing Contracts

Sole Risk

Marginal Fields

Service Contracts

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AGGREGATED FINANCIAL FLOWS

FIVE-YEAR AGGREGATE FINANCIAL FLOWS

$54.55bn

$24.79bn

$17.05bn

$20.98bn

2014

2015

2016

2017

���.��bnin 2018.

The aggregate financial flows from all the sources in the oil and gas sector amounted to

This is an increase of 55.45% of the revenue made in 2017.

$32.62bn 2018

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CRUDE ALLOCATION FOR DOMESTIC USE

A total of

���.��mBarrels of crude was allocated for domestic use in 2018.

BREAKDOWN

DSDP(87.00%) 94.05m Barrels

Refinery Supply(13.00%) 13.58m Barrels

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KEY FINDINGS AND RECOMMENDATIONS

1. Delay in remittance of net domestic crude sales proceeds to the federation account:

NNPC consistently delayed the remittance of sales proceeds from crude which resulted in the delay of N17.5 billion.

Recommendation: NNPC should ensure that payments are made as and when due.

2. Computation of Under Recovery by the NNPC:

NNPC deducted the sum of N722.25 billion as under-recovery in 2018.

Recommendation: It is recommended that the Petroleum Products Pricing Regulatory Agency (PPPRA) should participate in the under/over recovery computations.

NEITI ���� OIL � GAS AUDIT REPORT

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3. Outstanding Liabilities:

The nonpayment of funds by some companies as and when due resulted in a revenue loss to the Federation.

Recommendation: Respective government agencies should intensify efforts to recover the debt.

4. Under-utilization of the National Refineries:

The refineries operated at only 8% of installed capacity.

Recommendation: The federal government should evolve innovative ways of optimizing the utilization of existing refineries

DEBT

with �nancial suppot from