NNPC Refutes Claims Over Forfeiture of Signature Bonuses by IOCs

The Nigerian National Petroleum Corporation (NNPC) has quickly absolved itself of claims relating to the forfeiture of signature bonuses that International Oil Companies (IOCs), should have paid the Federal Government (FG). Chief Operating Officer, Upstream, Mr Bello Rabiu, who represented the NNPC’s, Group Managing Director of NNPC, Dr Maikanti Baru said that the NNPC had no role in the collection of signature bonus as it was out of its scope and function to take receipts of signature bonuses and royalty. He further noted that such responsibilities lies with the Department of Petroleum Resources (DPR).

Shedding further light, Mr. Rabiu said the arrangement allowed NNPC to lift the royalty oil from Production Sharing Contracts (PSCs) and remit the proceeds to the DPR, adding that confirmation and reconciliation of royalty payments to the sister agency were carried out at the monthly meeting between the Office of the Accountant General of the Federation and revenue generating agencies.

As for the royalty remittances from the PSCs to the DPR, the NNPC said that it would forward all its information on it from 1992 till date to the Ad Hoc House Committee.

It would be remembered that the House setup the Ad Hoc Committee on Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) to investigate what it perceived to be shoddy handling of incomes, royalties and other funds expected from IOCs to the FG for crude oil operations. Still expected to appear before the Committee are the Governor of the Central Bank of Nigeria and the Auditor-General of the Federation.