25 February 2014 – The attention of the Management of the Nigerian Petroleum Development Company Limited, NPDC, has been drawn to several publications alleging that NPDC denied receiving the sum of US$6 billion from its parent company, Nigerian National Petroleum Corporation being proceeds from NPDC’s oil and gas operations.
Mr. Victor Briggs, Managing Director of NPDC has disclosed that “the reports are misleading and do not reflect the contents of what was submitted to the Senate Committee on Finance”
“For the avoidance of doubt, NPDC in its submission stated that the funding relationship between NNPC and NPDC provides for proceeds from Hydrocarbon sales to be paid into an NNPC/NPDC account. NNPC, as the parent company of NPDC, reviews and approves NPDC’s annual budgets and performance and disburses funds on periodic basis as per the approved work programme that covers both NPDC’s capital and operating expenses. This approach also provides for NNPC to critically monitor and control costs as part of strict financial discipline and make direct payments on behalf of NPDC for Royalty and Taxes while deducting costs in accordance with the provisions of the Petroleum Profits Tax (PPT) as amended,” Mr. Briggs disclosed.
The NPDC boss reiterated that the sum of $6billion was remitted to the NNPC/NPDC account which warehouses all of NPDC’s revenue earnings from its operations. Releases from this account are in turn disbursed into NPDC-only accounts for the execution of its operations.
We therefore want to restate that NNPC funds NPDC adequately for the effective conduct of its operations and meets the NPDC’s statutory responsibilities for royalties, taxes and other exactions as necessary.