NNPC Faces Probe over NLNG Payments
State-owned Nigerian National Petroleum Corporation (NNPC) may be probed by an ad-hoc committee of Nigeria's federal House of Representatives over $15.9bn submitted by Nigeria LNG to NNPC which was not remitted to the federal government.
The funds were paid by Nigeria LNG (NLNG) between 2011 and 2014. The government, through NNPC, has 49% equity in NLNG.
This oversight was recently uncovered by the Nigerian Extractive Industries Transparency Initiative. NEITI executive secretary, Waziri Adio, said June 7 that NNPC should have remitted the funds to the federal government but that all evidence points to a failure in this regard, as the federation account is yet to be credited with the sum. He urged the ad-hoc committee to investigate, with a view to having the funds remitted to the government.
The same ad-hoc committee is also probing a missing $17bn in undeclared crude oil proceeds in connection with the petroleum industry. Efforts to contact NNPC for a statement were unsuccessful as emails and calls went unanswered.
NLNG has said in the past it remains committed to transparency. At an industry dinner in Lagos June 2, NLNG reiterated its commitment to improving Nigeria's economy despite challenges, such as the recent amendment of the NLNG Act by the National Assembly in an attempt to surcharge NLNG.
At the event, NLNG managing director Tony Attah said the company, which has six trains in full operation, has a total gas requirement for its Bonny Island liquefaction complex of about 3.5bn ft3/d. NLNG manages 16 long term LNG sale & purchase agreements executed with 10 buyers on a delivered ex ship (DES) basis: Enel, Gas Natural, Botas, Engie, Galp, Endesa, Eni, Iberdrola, Shell and Total.
Shell, Total and Eni hold the remaining 51% NLNG equity.
In separate news from Nigeria this week, Shell on June 6 lifted a 17-month force majeure over oil exports from the Forcados terminal.
Omono Okonkwo