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Tag: crude

  • NNPC loses 560,000 barrels of crude to vandals, says GMD

    NNPC loses 560,000 barrels of crude to vandals, says GMD

    The Nigerian National Petroleum Corporation (NNPC) lost 560,000 barrels of crude oil meant as feed stock to the refineries due to pipeline vandalism between January and May, Group Managing Director Dr Maikanti Baru?,said yesterday in Abuja.

    He spoke during a visit to the Commandant-General of the Nigerian Security and Civil Defence Corps (NSCDC), Abdullahi Muhammadu.

    Baru said the visit was to strengthen collaboration between the NNPC and the NSCDC to better protect its oil installations/pipelines in the country.

    “Under my watch? as GMD, NNPC is committed to collaborating with the NSCDC and other government security agencies to finding lasting solution to eliminate losses and energy security threats,” he said.

    He said the activities of vandals on NNPC’s pipelines in the Niger Delta region had become unbearable, and had led to substantial decline in the country’s crude oil production.

    “The 2016 budget plan was based on 2.2 million bpd of crude production.

    “The fiscal plan is now affected due to renewed militancy with about 700,000 bpd of oil production curtailed due to pipeline vandalism,” he said.

    Baru said that over 3,000 vandalism incidents were recorded every year from 2010 to 2015, while in 2015 alone, pipeline losses? of products were over 643 million litres amounting to N51.28 billion.

    He said the domestic natural gas supply to power had also been badly affected with an estimated drop of about 50 per cent from 1,400mmscfd to below 700mmscfd.

    The NNPC boss called on the NSCDC and other security agencies to step up security and surveillance in the affected areas in the interest of the nation.

    The NSCDC boss pledged the readiness of the Corps to step up security surveillance and protection of oil installations in the country.

    He said the NSCDC personnel had been undergoing re-training to? deal with the challenge.

  • NCDMB, others agree on crude lifting

    Contracts for lifting Nigerian crude oil will begin to yield benefits for the Nigerian economy going by the renewed commitment by the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Corporation (NNPC), the Nigerian Maritime Administration and Safety Agency (NIMASA) and other stakeholders in the oil and gas industry.

    The Board estimated in 2013 that the Nigerian economy lost over $100 billon in five decades by allowing its crude oil to be carried exclusively by foreign owned tankers. But rising from a meeting entitled: “Crude Oil Off-takers Nigerian Content Deliverables”,  convened by the Board in Lagos , the agencies and other stakeholders pledged to grow the quantum of Nigerian content in the lifting of Nigerian crude oil by working with Nigerian shipping stakeholders to develop in-country assets capacity that meets international standards.

    They also agreed to ensure that companies that have invested in ownership of crude oil lifting vessels are given first consideration in line with the provisions of the Nigerian Oil Industry Content Development (NOGICD) Act.

    NCDMB, NNPC and NIMASA also committed to explore the possibility of a joint fund as part of waiver mechanism, which can be used to purchase or finance the building of a Nigerian owned crude oil lifting tankers.

    Another decision taken at the workshop was to properly define what constitutes “spend” in crude oil lifting contracts for the purpose of complying with the target of 90 per cent industry spend within the Nigerian economy set for Very Large Crude Carriers (VLCCs) by the NOGICD Act.

    The Acting Executive Secretary of the NCDMB, Mr. Patrick Daziba Obah described crude oil lifting and marketing as a major activity in the oil and gas value chain, despite the fact that Very Large Crude Carriers were highly capital intensive to acquire. He however, stressed that Nigeria will remain a major oil producer and not a major oil business value adding nation if the citizens do not own VLCCs.

    While identifying opportunities for growing Nigerian Content in crude lifting, Obah noted that VLCCs require manning by certified crew while crude oil lifting attracts opportunities for financial, insurance, inspection and other services. Other spend points in the value chain include the use of lubes and maintenance of VLCCs.

    Obah, who was represented by the Director, Monitoring and Evaluation, Mr. Tunde Adelana explained that the Board introduced Nigerian Content requirements for crude oil lifting in 2013 so as to maximise the value retention opportunities.

    According to him, Nigerian Content requirements for crude lifting contracts required that tankers/vessels that are selected to lift Nigerian crude would grow Nigerian Equity Ownership, create sea time attachment for five Nigerian cadets and create employment and training opportunities and utilisation of Nigerian service providers such as financial, insurance, legal and inspection services.

    He underscored the collaboration of NNPC in introducing the Nigerian Content requirements for crude lifting, assuring that the Board would intensify its monitoring of companies that secured Crude Oil Term Lifting Contracts to ensure their compliance with the requirements.

    Speaking further, Adelana explained that the workshop was convened to harness the views of stakeholders and secure their collaboration towards deepening Nigerian content implementation in crude oil lifting.

    The General Manager, Crude Oil Marketing Division (COMD) of the NNPC, Mr. Adokiye Tombomieye pledged the determination of NNPC to enhance Nigerian participation and maximise Nigerian Content in the lifting of Nigerian crude oil and charged Nigerian firms desirous of participating in the business to comply with the requisite standards with regards to the vessels they put forward in the tenders.

    He confirmed that the utilisation of Nigerian service providers by firms selected to lift Nigerian crude had increased from 50 per cent in 2010 to 75 per cent in 2015 and has helped to reduce capital flight, increased in-country spend and created job opportunities for Nigerians.

    On the requirement to attach at least five Nigerian cadets per cargo for the purpose of obtaining requisite sea time experience and international certification, Tombomieye noted that Nigerian crude was sold Free on Board (FOB) hence,  marketers do not own the vessels and are often unable to secure slots for the cadets.

    An Assistant Director at NIMASA, Mr. Victor Egejuru also confirmed that the agency was collaborating with the Board and NNPC to grow local participation in the marine sector of the oil and gas industry.

    While noting that inadequate sea time experience and certification were hindering locally trained seafarers from getting hired by sea going vessels, Egejuru said NIMASA was now addressing the challenges by making it mandatory for vessels operating in Nigerian waters to give a specified number of Nigerians opportunity for sea time experience. He noted that this new requirement was now a condition for obtaining waiver renewals from NIMASA.

  • Oil nears $50 on U.S. crude cut, Nigeria, Libya attacks

    Oil prices were up more than one percent yesterday with market bulls targeting $50 a barrel and beyond on expectations the United States (U.S.) government will report a large crude stockpiles drawdown for last week.

    Besides, there has been a spate of violent attacks against the Libyan and Nigerian energy industries which have global crude flows.

    The shortfall has accelerated the recovery in oil prices, which are up nearly 90 per cent from winter lows of around $27 for Brent crude and about $26 for the U.S. West Texas Intermediate.

    Earlier in the week, he American Petroleum Institute (API), a trade group, said  U.S. crude inventories fell by 5.1 million barrels in the week to May 20, twice what analysts expected.

    The U.S. Energy Information Administration (EIA) said it would issue an official stockpiles data later yesterday.

    Wildfires in Canada’s oil sands region as well as a near economic meltdown in Organisation of Petroleum Exporting Countries (OPEC) member Venezuela cut nearly four million barrels per day in global crude flows.

    “We look for new highs … in carrying this advance higher to around the $52-52.50 area before this spring advance fully plays out,” said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Co.

  • Govt exports 328,897mbs of crude

    The Federal Government exported 328, 897 million barrels of crude oil in the last four years, the Nigerian Extractive Industrial Transparency Initiative (NEITI) has said.

    The agency,  in a paper  titled:  ‘’NNPC offshore processing and swap arrangements: Revenue loss to the nation’’ obtained at the weekend, showed that the Federal Government allocated 655,235million barrels of crude during the period under review, of which it exported 328, 897 million barrels to generate revenues for the country.

    The paper, which gives an account of the number of volumes of crude oil allocated per  year, volumes delivered to the refineries for processing into petrol, kerosene, diesel and other finished products, volumes supplied for offshore processing, and those exchanged between Nigeria and her partners abroad, said the government supplied 134, 387 million barrels of crude oil to the refineries during the period.

    In the paper presented by  former NEITI Acting Executive Secretary, Dr Orji Ogbonaya Orji, the government allocated more crude oil for exports since it derives more than 70 per cent of its earnings from oil exports.

    Giving a breakdown of crude oil dealings during the period under review, NEITI said the country allocated 161,914 million of crude oil in 2009; 166, 523millions in 2010; 164,455million in 2011; and 162,343millions in 2012.

    It said the government exported 142, 500 million barrels of crude oil in 2009; 97, 792 million barrels in 2010; 39, 341 million barrels in 2011 and 49, 215 million barrels in 2012.

    The paper said the government delivered 19, 363 million barrels to the refineries in 2009; 34, 703 million barrels in 2010; 48, 394 million barrels in 2011 and 34, 927 million barrels in 2012.

    Others include crude oil offshore processing-27,556 million barrels of crude oil in 2010; 26, 688 million barrels of crude oil 2011; and 22, 755 million barrels of crude oil in 2012.

    Also, the paper recalled that the idea of swapping crude oil for refined products began in the mid 80s, adding that the idea was introduced to enable NNPC access funds to meet its obligations in the Joint Venture Agreements (JVAs)

    The House of Representatives Ad Hoc Committee  conducted investigation into the Refined Product Exchange Agreement/Crude Oil Swap between the Nigerian National Petroleum Corporation (NNPC)/ Product Pipeline Marketing Company (PPMC).

    Also, the Committee had planned to invite the former Minister of Petroleum Resources, Mrs Deazani Alison-Madueke for explanation on the issue. The invitation was to enable the former Oil Minister provide   explanations into crude oil swap deals contract extensions granted Duke Oil Company  Incorporated and Trafigura B.V without valid contracts.

  • NEITI urges govt to end crude theft, others

    NEITI urges govt to end crude theft, others

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged the Federal Government to speed up measures  to end crude oil theft, considering the attendant financial losses and environmental degradation.

    The agency also advised the government to discontinue all forms of offshore processing arrangements of Nigerian crude, and oil swap. NEITI said the country loses so much money to crude oil theft, adding that in 2012 alone the country lost about 160 million barrels of crude valued at $13.7billion from three major oil companies, Shell, Chevron and the Nigerian Agip Oil Company, and which has continued to impact the oil and gas industry

    NEITI said: “It gives you an idea of the magnitude of the problem we are facing in this country. Imagine how far that money could have gone in alleviating the suffering of the people, and that’s just for crude oil theft and pipeline vandalism. The government needs to do something very seriously about it because it is bleeding in that area.”

    Under the crude oil swap arrangement, Nigeria’s crude oil was exchanged for refined products due to poor refining capacity of the refineries. There were concerns that the objective of this arrangement has been shortchanged and badly treated. In 2012 alone, the cost of crude oil swapped was about $6.4 billion while the value of refined products returned to the country was $6.3billion leaving the sum of $100 million as revenue loss to the country. NEITI also said between 2009 and 2011 over $866million was recorded as revenue loss under the swap arrangements.

    The Director of Communication, NEITI, Obiageli Onuorah, who spoke to The Nation in Lagos, said the country is also losing money as a result of under-assessment and under-payment including losses in meeting the cash call obligation, adding: “We have losses for not paying attention to the use of gas as a major revenue earner for the country.”

    She said: “The reform in the oil and gas industry should be a holistic thing. The amount of money we are losing from the various sectors on daily basis is very huge, so the government needs to do something very seriously about these losses and plug those leakages.”

    Onuorah commended President Muhammadu Buhari led government for its efforts in implementing part of the audit recommendations. She said since the inception of the present administration some of the positions of the NEITI reports have been implemented.

  • ‘Nigeria’s oil industry issues beyond low crude price’

    To players in the oil and gas industry, aside the slump in the global oil price, there are other issues. They include economic insecurity, funding challenges and renewed insecurity in the Niger Delta, as well as low reserve replacement ratio (RRR), high and uncompetitive production cost.

    The oil industry operators spoke at the January Technical and Business meeting of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

    NAPE’s President-elect Mr. Abiodun Adesanya, who presented a paper titled: Current realties in the upstream sector of the Nigerian oil and gas industry, said discoveries were low when measured against production, adding that gas development is also not at the level that it is supposed to be as production cost is put at $29 per barrel.

    He noted that due to oil price crash, there is a shortfall in foreign exchange (forex) because 95 per cent of Nigeria’s forex earnings come from crude oil. Gross Domestic Product (GDP) from the industry, according to him, dropped from 6.3 per cent in 2014 to 2.8 per cent in 2015, adding that about 120,000 direct and indirect jobs have been lost to the market situation while more layoffs are imminent.

    Adesanya, who is also the Managing Director of Degeconek, an oil service firm and sponsor of the meeting, said there was a 53 per cent drop in Nigerian National Petroleum Corporation (NNPC)’s cash call payment to the Joint Venture (JV) operations between 2005 and 2015.

    The drop in cash call obligations by the NNPC, according to him, led to a 62 per cent drop in JV production that is currently masked by Production Sharing Contracts (PSCs) production. It also played a part in decline of crude oil production from 2.3 million barrels per day to 2.1million barrels per day in over the same period.

    He said the renewed security situation in the Niger Delta should be a source of worry to stakeholders because immediately after the last election violence, insurgency, security threats, pipeline vandalism, illegal oil bunkering, kidnapping and hostage-taking including proliferation of illegal refineries reinforced.

    He urged the Federal Government to address low reserve replacement ratio issue and increase oil reserves to 40 billion barrels and achieve production of three million barrels per day. “Government needs to focus on stabilising production by identifying low hanging fruits that require low cost workover/remedial operations. Reduction in capital expenditure will come from reduced spending on exploration, facility construction.

    “Embrace gas development; identify distressed or underperforming assets by isolating assets, which may be falling short due to investment assumptions that no longer hold true. Focus on high performing assets to maximize production,” he added.

    The former Managing Director, Conoil Upstream Company, Mr. Ebo Omosola, said that the profit currently  is in the petrochemicals, noting that if Nigeria must stop export of its crude, make the refineries work; the country will make more profit from hydrocarbon exploitation than the trending export of crude oil.

    He urged the Federal Government to stop exporting its equity crude and refine it locally because it is more profitable to refine locally than export the crude and import only few products like premium motor spirit (PMS), Automotive Gas Oil (AGO) and Household Kerosene (HHK) and aviation fuel.

    He stated that with the re-entry of Iran into the crude oil market, oil export is becoming less attractive. He said: “If you produce the crude, where is the market to sell it. Iran is back, Saudi Arabia is not relenting, Russia and United States (U.S) are also pumping, so where is the market? The U.S has stopped crude export for over 40 years and they consume all they have been producing all these years and even imported some. Nigeria is not addressing the problem of drop in crude prices as it did in the past.

    “We need improved metering and monitoring of what goes into the pipelines. People announce figures of what was the cost to vandalism, but they have not been factual. The government must do more to meter oil flow from stations.

    “The reality is that crude oil price may not go beyond $45 per barrel. In the last 50 years, crude oil price was highest in the last five years. Now that the reality has set in, companies must reduce operating cost to stay afloat and re-negotiate with contractors. It is obvious that crude swap is the biggest damage to this country, and maybe it is time for the government to stop selling its equity crude but rather refine locally and value.”

    The General Manager, Joint Venture, Seplat Petroleum Development Company, Dr. Mason Oghenejobo, stated that because Nigeria sees crude oil as source of revenue and not energy, that is why the current reality is badly affecting it.

  • World Bank lowers crude price forecast

    World Bank lowers crude price forecast

    The World Bank has lowered this year’s forecast for crude oil prices to $37 per barrel in its latest Commodity Markets Outlook report from $51 per barrel in its October projections.

    The lower forecast reflects a number of supply and demand factors. These include sooner-than-anticipated resumption of exports by the Islamic Republic of Iran, greater resilience in U.S. production due to cost cuts and efficiency gains, a mild winter in the Northern Hemisphere, and weak growth prospects in major emerging market economies, according to the World Bank’s latest quarterly report.

    Oil prices fell by 47 per cent last year and are expected to decline, on an annual average, by another 27 per cent this year. However, from current lows, a gradual recovery in oil prices is expected over the course of the year, for several reasons. First, the sharp oil price drop early this year does not appear fully warranted by fundamental drivers of oil demand and supply, and is likely to partly reverse. Second, high-cost oil producers are expected to sustain persistent losses and increasingly make production cuts that are likely to outweigh any additional capacity coming to the market. Third, demand is expected to strengthen somewhat with a modest pickup in global growth.

    The anticipated oil price recovery is forecast to be smaller than the rebounds that followed sharp drops in 2008, 1998, and 1986. The price outlook remains subject to considerable downside risks.

    “Low prices for oil and commodities are likely to be with us for some time. While we see some prospect for commodity prices to rise slightly over the next two years, significant downside risks remain,” said John Baffes, Senior Economist and lead author of the Commodities Markets Outlook.

  • Rescind ban on crude palm oil, stakeholders urge Minister

    Rescind ban on crude palm oil, stakeholders urge Minister

    Stakeholders in the agric and manufacturing industry have called on the Minister of Agriculture, Chief Audu Ogbeh, to intervene by encouraging the Central Bank of Nigeria (CBN) to reverse its foreign exchange (forex) policy that included one of their most important raw materials, Crude Palm Oil (CPO) on the ‘not valid for forex’ list.

    Speaking in a forum with industrialists in Lagos, MAN President, Dr. Frank Udemba Jacobs, said forex should be made available for genuine manufacturers that use CPO as a major raw material for production of end products such as noodles, biscuits, cosmetics, etc.

    According to him, this singular decision by the apex bank threatened the existence of several manufacturing companies who rely heavily on crude palm oil as a major raw material for production. “These companies have invested heavily in plants and machinery worth several billions of dollars in the country and what the CBN is indirectly telling them is that it could not be bothered with the challenges this policy is posing to our members,” he said.

    The MAN boss noted that affected companies have leaned towards the agricultural sector as part of their backward integration programme, creating more jobs and strengthening the nation’s ability to be self-sufficient in food, beverage and cosmetic production.

    He hailed the administration of President Muhammadu Buhari on its move to revive local industries through this policy, but insisted that there are certain indices that must be taken into consideration before full implementation of the policy.

    Jacobs explained that while the policy is a welcome development, there should be no sudden obstruction to importation of the raw material that is needed for local production, especially when demand for such material cannot be met locally.

    According to IndexMundi, a data portal, the domestic palm oil produced in Nigeria totalled 930,000 metric tonnes (MT) in 2014. The consumption of palm oil in Nigeria amounts to 2.0 million MT per year. Official figures estimate the shortage in oil palm industry at 900,000 MT yearly. This poses a very precarious situation for the manufacturing sector that depends largely on CPO as a major source of raw material.

    Experts say if the gap is not filled with the massive importation of high quality food grade palm oil, the economy will lose further investment in the manufacturing sector as companies would be forced to shut down and relocate their business outside the country, like it happened in the past.

    Some analysts are already predicting the mass movement of manufacturing companies to friendly West African countries with robust manufacturing policies if the government insists on going ahead with policies that are inimical to manufacturing.

  • Nsukka residents seek exploration of gas, crude deposits

    Nsukka residents seek exploration of gas, crude deposits

    A natural gas and oil well discovered about 50 years ago at Ehalumona in Nsukka Local Government Area of Enugu State has remained untapped since its discovery.

    The residents have expressed the desire to see exploration activities at the site.

    The natural gas and oil deposit in the area is said to be in large commercial quantity and estimated to last for over 50 years.

    An indigenous oil and gas company, Seveen Energy was said to have acquired the site for exploration but abandoned it for what insiders called political interference.

    The vast gas site was first discovered by CGG Company prior to the Nigerian Civil War in 1966. It has been overgrown with weeds and left in a deplorable state.

    The untapped crude deposit found in abundance in the area has traces of the same deposits in other communities in Nsukka and also cut across local governments in the area.

    The areas that have traces of the crude deposits include Obollo Ekeh, Ezebinagu, Isi Uzo, amomg others.

    The major base of the oil is in Ehalumona and it has about 30% petrol and 70% natural gas deposits.

    The residents of the oil rich communities   have expressed worry over the inability of the indigenous company, Seveen Energy to carry on further explorative activities since the Federal Government awarded it since 2013.

    The residents dislosed that the Seveen Energy company had carried out a siesmic operation they termed environmental impact assessment in February 2014 at the abandoned oil zone.

    In  2008 the huge natural gas deposit attracted Geokinetic Gas and Oil Plc, for further exploration of the site but failed to continue.

    A community leader, Cletus Akor disclosed that prior to the Nigerian civil war in 1966, the oil and gas deposits had earlier attracted CGG company where they carried it’s first seismic exploration but couldn’t continue as a result of the severity of the civil war.

    The community youth leader, Oji Uzo expressed his dissatisfaction over the abandoned oil-rich zone, describing it as a waste of both human and capital resources.

    He said: “This type of thing should not be joked with. Look at an endowment being overlooked, something that would have been a source of employment opportunities for jobless Nigerian youths is overgrown by grasses. When this company first came here, our youth were employed as labourers and some worked in other lucrative positions, but look at how delapidated it is, a treasure of a nation.

    “They told us that they would test the natural gas which they did and carried a half tanker of the crude gas for test, but we have not heard from them again.”

    Also, Mr. Jonathan Ugwuanyi disclosed that apart from the Natural gas located in the area that there are untapped natural resources like Gold, Coal, among other resources located in the area.

    The traditional ruler of Ezebinagu /Ehandiagu communities,  Igwe Daniel Ugwuanyi expressed his belief that the company may begin exploration of the natural gas soon.

    He said: “If this gas deposit is explored, it will create job opportunities for the people as well as a source of revenue for the Federal and State government.”

    He said that the gas deposit would likely foster the construction of the much neglected Nsukka, Ehalumona, Ehandiagu, Mbu-Ikem road,” he said.

    He therefore apealed to the State and Federal government to react positively to the abandoned huge gas deposit located in Ezebinagu/ Ehandiagu communities.

     

  • NNPC opts for direct sale of crude

    NNPC opts for direct sale of crude

    In a major shift, the Nigerian National Petroleum Corporation (NNPC) yesterday opted to, henforth, buy crude oil and petroleum products directly from credible international companies.

    This approach, it said, would ensure more transparency and eliminate middlemen in the crude oil exchange for  product matrix.

    NNPC spokesman Mr. Ohi Alegbe said the time had come for the replacement of the 11 Offshore Processing Arrangement (OPA) options with the more efficient Direct-Sale-Direct Purchase (DSDP) alternative.

    Alegbe explained that the NNPC took its position after the evaluation of pre-qualified bidders showed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad, thereby bringing a toll on the value chain.

    The NNPC said if allowed to subsist, the development would constitute a significant value loss to the federation through accruals.

    “In this regard, only bona fide owners of refineries identified in the ongoing OPA Tender Evaluation process will be further engaged. The identified refineries will be subjected to due diligence and analysis by NNPC-appointed consultants to confirm suitability in line with international best practice,’’ the corporation said.

    NNPC said the call for commercial bids issued to the 44 shortlisted bidders made up of 34 international firms and 10 indigenous companies have been withdrawn.

    But the Nigerian Extractive Industries Transparency Initiative (NEITI) called for the reduction of crude oil allocation to NNPC.

    Speaking at a valedictory ceremony at the NEITI head office, Abuja, the outgoing Executive Secretary, Mrs. Zainab Ahmed explained that of all the crude allocated to domestic refineries, not more than 28 per cent is utilised; about 35 per cent is exported.

    The revenue from the exported crude, according to her, is spent on financing NNPC operations. But, she insisted that if the Federal Government prunes crude allocation to the corporation it would be compelled to seek other means of financing and become more efficient.

    Mrs. Ahmed said: “My advice and what NEITI has been recommending is that we should reduce the level of crude that we allocate to the NNPC. We have said over time that this will serve as an incentive for the refineries to improve their performance capacities.

    “ So if we reduce what we allocate to NNPC today, the refining capacity plus small margin, it will improve more capacity development for the refineries.

    In the past, the revenue from the sale of domestic crude oil had served as the major means of financing NNPC. If we reduce that, it means that NNPC has to look for some other ways to finance its operation and therefore it will be forced to become more efficient. “

    She advised the Federal Government to review its expenditure on Petroleum Support Fund (PSF) also known as fuel subsidy.

    Mrs. Ahmed advised the government to remove the subsidy in phases.

    Asked whether the government now has accurate record of oil produced in Nigeria, Mrs. Ahmed said it is difficult for NEITI  to ascertain what is produced until the metering issue is addressed.

    The minister-designate said what NEITI calculates in its audit is the royalty that is paid at the point of export instead of royalties at the well-head and flow stations forming its bases of analyses.

    She said: “That means that the country is losing significant revenue for that gap. And for that reason, we are unable to ascertain what is missing because if you don’t know what is produced at the point of production, and you are only measuring what is produced at the point of export, everything that is in within is based on different kinds of estimates  and calculations and so on.  So it is difficult for us in NEITI to say that we know exactly what is being produced unless this metering issue is addressed.”

    Listing NEITI’s achievement, she said following the regular reporting of NEITI, the government recovered over $2.4billion into Federation Account.

    The organisation, she said, had also through its audit reports made disclosures of over $billion as recoverable revenue to government.

    NEITI, according to her, has prepared the next audit, which only now awaits the approval of a yet to be constituted board to be released.

    She said the organisation has till next month to release the report or risk the sanction of the Extractive Industries Transparency Initiative (EITI).

    She handed over to the Director of Communications, Dr. Orji Ogbonnaya Orji, the establishment’s most senior director.