Nigeria lost $16bn to production sharing contracts —NEITI.

The Nigeria Extractive Industries Transparency Initiative said that Nigeria lost at least $16 billion in ten years due to non-review of the 1993 Production Sharing Contracts with oil companies.

This was one of the highlights of the latest report by NEITI released in Abuja Sunday. It was tagged “The Steep Cost of Inaction”

It said that the losses were recorded between 2008 and 2017.



The study done in conjunction with Open Oil, a Berlin-based extractive sector transparency group, found that the losses could be up to $28 billion if, after the review, the federation were allowed to share profit from two additional licenses.

NEITI, therefore, called for an urgent review of the PSCs to stem the huge revenue losses to the federation.

IMG-20180912-WA0030

It added that the review was particularly important for Nigeria because oil production from PSCs had surpassed production from Joint Ventures with PSCs now contributing the largest share to federation revenue.

“Between 1998 and 2005, total production by PSC companies was below 100 million barrels per year while JV companies produced over 650 million barrels per year.

FOLLOW US ON:
 INSTAGRAMLINKEDINYOUTUBETWITTER & FACEBOOK

“By 2017, total production by PSC companies was 305.800 million barrels, which was 44.32 per cent of total production.

“Total production by JV companies was 212.850 million barrels, representing 30.84 per cent of total production.” It said.

TO DOWNLOAD OUR MOBILE NEWS APP CLICK HERE

PROMOTE YOUR BUSINESS FOR JUST $1 CLICK HERE