NEITI ���� OIL � GAS AUDIT REPORT
NEITI ���� OIL � GAS AUDIT REPORT
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COVERED ENTITIES
�� COMPANIES were covered in the 2018 oil and gas audit process.
NEITI ���� OIL � GAS AUDIT REPORT
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CRUDE OIL PRODUCTION
A total of
���.��m barrels of crude oil were produced in 2018
Joint Ventures ���.��m
Production Sharing Contracts
Service Contracts
�.��m
Sole Risk��.��m(13.15%)
Marginal Fields��.��mbarrels
(3.15%)
barrels
barrels
���.��m
(0.19%)
((38.59%)
(44.91%)
Barrels
barrels
BREAKDOWN
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2014 2015 2016 2017
798.54mbarrels
776.66m
659.13m
690.46m
barrels
barrels
barrels
2018
701.10mbarrels
FIVE-YEAR ANALYSIS OF CRUDE OIL PRODUCTION
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CRUDE OIL LIFTING
255.54m barrels
445.54m barrels
NNPC COMPANIES
(63.55%)(36.45%)
BREAKDOWN
A total of
���.��m barrels of crude oil was lifted.
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2014 2015 2016 2017
796.55mbarrels
780.42m
668.14m
688.29m
barrels
barrels
barrels
2018
701.09mbarrels
FIVE-YEAR ANALYSIS OF CRUDE OIL LIFTING
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CRUDE LOSSES FROM PRODUCTION
Crude oil loss due to theft and sabotage amounted to
��.��m��.��bnThis is an increase of 46.15% compared to the volume that was lost in 2017 which is 36.45 million barrels.
barrels valued at
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GAS PRODUCTION
BREAKDOWN
mmscf 2,167,238.84
599,471.67
78,008.79
62,961.93
1,462.33
mmscf
mmscf
mmscf
mmscf
74.50%
20.61%
2.68%
2.16%
0.05%
2,909,143.55
Joint Ventures
Production Sharing Contracts
Sole Risk
Marginal Fields
Service Contracts
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AGGREGATED FINANCIAL FLOWS
FIVE-YEAR AGGREGATE FINANCIAL FLOWS
$54.55bn
$24.79bn
$17.05bn
$20.98bn
2014
2015
2016
2017
���.��bnin 2018.
The aggregate financial flows from all the sources in the oil and gas sector amounted to
This is an increase of 55.45% of the revenue made in 2017.
$32.62bn 2018
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CRUDE ALLOCATION FOR DOMESTIC USE
A total of
���.��mBarrels of crude was allocated for domestic use in 2018.
BREAKDOWN
DSDP(87.00%) 94.05m Barrels
Refinery Supply(13.00%) 13.58m Barrels
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KEY FINDINGS AND RECOMMENDATIONS
1. Delay in remittance of net domestic crude sales proceeds to the federation account:
NNPC consistently delayed the remittance of sales proceeds from crude which resulted in the delay of N17.5 billion.
Recommendation: NNPC should ensure that payments are made as and when due.
2. Computation of Under Recovery by the NNPC:
NNPC deducted the sum of N722.25 billion as under-recovery in 2018.
Recommendation: It is recommended that the Petroleum Products Pricing Regulatory Agency (PPPRA) should participate in the under/over recovery computations.
NEITI ���� OIL � GAS AUDIT REPORT
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3. Outstanding Liabilities:
The nonpayment of funds by some companies as and when due resulted in a revenue loss to the Federation.
Recommendation: Respective government agencies should intensify efforts to recover the debt.
4. Under-utilization of the National Refineries:
The refineries operated at only 8% of installed capacity.
Recommendation: The federal government should evolve innovative ways of optimizing the utilization of existing refineries
DEBT
with �nancial suppot from