The Central Bank of
The oil blocks vacated by
The CBN governor accused the NNPC of engaging the two companies as Special Purpose Vehicles, SPV, to operate the oil blocks as technical partners, despite their inexperience, and sharing among themselves the proceeds, which should have been paid into the Federation Account.
But, in its response, the NNPC denied taking over any oil block. It said the assignment of interests in oil blocks to the NPDC adhered strictly to statutory procedures.
"NNPC is not in a position to take away any oil block or allocate same to itself as it does not have such powers," the Group Managing Director, NNPC,
Identifying the growth and development of NPDC's production capacity as a critical component of NNPC's transformation agenda,
Established in 1988 and assigned few assets as part of Government's aspiration to develop capacity in the upstream sector of the petroleum industry,
He said the opportunity to grow NPDC's crude oil and condensate production capacity to 250,000 barrels of oil equivalent by year 2015 came with the divestment by IOC partners of some of their assets in the western
In compliance with the provisions of the Petroleum Act, which confers the powers to grant licenses or leases to explore, prospect, and produce petroleum on the Minister of Petroleum, the GMD said NNPC took advantage of the opportunity to seek and obtain the consent for the assignment of interest in the vacated asset to NPDC.
Apart from the growth of NPDC's asset, he said the assignment of the assets was to also reduce the burden of cash call payment of the government, pointing out that in spite of the assignment, government was still entitled to royalties of about 20 per cent and Petroleum Profit Tax, PPT from and other previous acreages owned by NPDC.
On the SAA, the GMD said following the take-over of five of the eight oil mining leases hitherto operated by the
The SAA, he said, was one of such third party funding arrangements that would enable the NPDC to obtain quick funds to bankroll work programmes to ramp-up production in its onshore/swamp assets to 250,000 barrels per day, BPD, and 670 million standard cubic feet of gas per day by 2015.
With the arrangement, he said the NPDC has been able to access financial resources that have enabled it grow its oil and gas production capacities from 60,000 BPD and no gas sales to 138,000 BPD and 450 million CFD of gas respectively.
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