House of Representatives has unveiled its readiness to investigate the reported loss of about $27 billion oil revenue since 1999 to date.
This followed the disclosure that the Nigeria National Petroleum Corporation (NNPC), has lost the huge sum due to the existing crude oil production sharing contracts with its international oil company partners, during debate on a Bill seeking to increase Nigeria’s share, which scaled second reading on Wednesday.
The committee mandated to carry out the investigation has been directed by Speaker Yakubu Dogara to turn in its report within one week.
Deputy Majority Leader of the House, Hon. Idris Wase, who led the debate, said the bill seeks to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act, Cap. D3 Laws of the Federation of Nigeria, 2004 to review the share of the Government of the Federation in the Additional Revenue under the Production sharing contracts.
Section 16 (3) as proposed provided that: “In accordance with the provisions of subsection (1) of this section: (a) a royalty rate by price of 50% shall apply for the additional revenue in the contract area of the production sharing contracts under this Act; and
(b) the additional revenue shall be determined by the product of the volume of crude oil or condensate sold and the difference between the actual nominal sales price of the oil or condensate and the nominal value of $20 per barrel, (1993 real terms), at the time of sales, provided that the value of $20 per barrel, (1993 real terms) shall be determined based on relevant US All items Consumer Price Index (CPI) as published by the US Bureau of Labour Statistics.”
Dogara referred the bill to the Committee on Petroleum Resources (Upstream) for further legislative action, after members voted in approval of its second reading.
