NNPC Can't Account For 65,000 Barrels Of Daily Allocation Of Crude Oil-Premium Times

Diezani Allison-Madueke
By Emmanuel Ogala

The NNPC is unable to account for some USD6.5 million worth of crude daily. In a continued display of fraud and secrecy, the Nigerian National Petroleum Corporation, on Monday failed to account for 65,000 barrels of the 445,000 barrels of crude oil allocated to it daily.

The Group Managing director of the NNPC, Austine Oniwon, told the senate committee investigating the management of Nigeria’s fuel subsidy that he was ignorant of the whereabouts of 65,000 barrels out of the 445,000 barrels of crude allocated to the corporation daily.

Mr. Oniwon explained that the NNPC entered into a swap deal – crude for refined PMS - with three refineries 210,000 barrels per day while 170,000 is refined by local refineries daily.

Duke Oil, a subsidiary of NNPC gets a swap deal worth 90,000 barrels per day, while Transfigura UK and SIR, an Ivorian refinery with a refining capacity of 80,000 bpd, gets 60,000 barrels per day each.

The NNPC GMD added that local refineries – Warri and Port Harcourt – get 80,000 barrels and 90,000 barrels per day respectively.

Mr. Oniwon could not however account for the utilization of the balance of 65,000 barrels per day - crude oil worth USD6.5 million (N1.033 billion) daily and USD195 million (N31.005 billion) monthly.

When probed by the lawmakers, the GMD who admitted that NNPC had gained up to N2.157 trillion from the subsidy scheme since 2006 also failed to give an account of the volume and value of PMS it receives in return for its various swap deals.

“Definitely, it (volume of PMS received in exchange for a barrel of crude) is available but I don’t have the figures to give you,” Mr. Oniwon told the lawmakers.

The GMD could not also give the name of an oil company he had earlier, the previous week, claimed was indicted for declaring products it did not import.

The senate investigative public hearing on the management of Nigeria’s fuel subsidy started three weeks ago and is becoming increasingly frustrated by the secrecy that characterises the operations of the NNPC and the management of Nigeria’s oil sector.

The probed was started after Bukola Saraki (PDP Kwara State) moved a motion challenging the astronomical expenditure on the scheme this year. Records show that N256 billion was budgeted for the subsidy scheme for 2011, but the reality is that N1.46 trillion has been spent on the scheme this year.

While defending the expenditure in an earlier hearing, the Petroleum minister, Diezani Alison-Madueke blamed the excessive rise in subsidy expenditure to the rise in international crude price, increase in Nigeria’s vehicular usage and increase in forex.

The finance minister, Ngozi Okonjo-Iweala, argued differently. She said the rise was astronomical because only a “notional figure” was put in the budget.

The junior finance minster, Yerima Lawn Ngama, yet argued differently. He said the high cost of 2011 subsidy was because the 2011 subsidy budget was predicated on an initial plan – that was not strategically expedient – remove subsidy in March, a month before the recent presidential elections in the country.

The hearing has also revealed entrenched fraud in the petroleum industry and a group of businesses the government has always called “The Cabal” and blamed for the failure of the scheme.

The senate panel, however, appears not satisfied with the information gotten so far, after three public hearing and is set to take a fourth before its final report is ready.

 

 

Comments
47 comment(s)
Post a comment

WE KNOW WHERE THE 65,000

WE KNOW WHERE THE 65,000 BARRELLS PER DAY GOES

READ BETWEEN THE LINES.

DO YOU THINK NIGERIANS ARE FOOLS?

THIS IS THE TYPE OF SERVICES

THIS IS THE TYPE OF SERVICES YOU GET WHEN YOU APPOINT KLEPTOMANIAC AND ASHEWOS TO RUN AFFAIRS OF GRAVE IMPORTANCE TO MILLIONS OF SOULS. WHAT DO YOU EXPECT OF THIEVES AND EASY VIRTUES?

THIS IS THE TYPE OF SERVICE

THIS IS THE TYPE OF SERVICE WHEN YOU PUT KLEPTOMANIACS AND ASHAWOS IN CHARGE OF AFFAIR THAT IS OF IMPORTANCE TO MILLIONS OF SOULS, WHAT DO YOU EXPECT OF THIEVES?

Revamp NNPC

This NNPC story tells us why our country has been on a stand still. Afew months ago General Azazi's son got married in a lavish ceremony in Lagos that was sponsored by the GGMD, Crude Oil Marketing dept of NNPC.Goes to show our top govt officials are benefitting directly from this massive fraudulent acts. My concern however is that these NNPC officials,instead of seizing theirwrongfully aquired properties and disgracing them publicly as a detterent to future thieves, we as Nigerian will soon forget this particular event and the culprits will go free. Let's be resolute in saying enough is enough by dealing with these crooks. NNPC's tpo heirachy is rotten with curruption and as such will have to be replaced immidiadely.

Revamp NNPC

This NNPC story tells us why our country has been on a stand still. Afew months ago General Azazi's son got married in a lavish ceremony in Lagos that was sponsored by the GGMD, Crude Oil Marketing dept of NNPC.Goes to show our top govt officials are benefitting directly from this massive fraudulent acts. My concern however is that these NNPC officials,instead of seizing theirwrongfully aquired properties and disgracing them publicly as a detterent to future thieves, we as Nigerian will soon forget this particular event and the culprits will go free. Let's be resolute in saying enough is enough by dealing with these crooks. NNPC's tpo heirachy is rotten with curruption and as such will have to be replaced immidiadely.

Goathead Jonathan

Goathead Jonathan is probably the worst president in Nigeria since 1960. The drunken Ijaw fisherman (apologies to Bola Tinubu) is obviously confused.

SAYS WHO?

This is just a a small part of the saga. Every person in the trade knows, what happened to the missing daily crude. Can they tell us why the excess crude account, is an off shore account and tell us those that control it. Can they tell us why Duke Oil was set up and what is its main function. Can they throw more light on distressed crude and why it is always greatly discounted at destination and who benefits from it. Nigerians you have not seen anything. IBB was the person who institutionalised these chinnanigan and copted all former Heads of state. This is how they continue to mentain their lavish life styles. Top management of the NNPC past and present are also involved.

my good friend are you in

my good friend are you in your right mind at all. we are discussing fuel subsidy, what has ojukwu got to do with it.

Do you know what?

If the oil companies actually buy and import these products from overseas and then collect the subsidies we will not mind but you know what they do, out of the 170,000 barrels given to our refineries daily for production, these rogue companies lift some of these products from Portharcourt and Warri refineries only to sail to the high seas and make a U-turn to Apapa port to discharge the products as imported products.

By this act, they cheat us in two ways: one, they create artificial products scarcity and two they collect our subsidies when in-fact they sold us our own products.

The 65,000 barrels are not lost, the proceed of sale is used for settlement. If Oniwon opens his mouth to tell you the truth, he is a gonna.

Do you know what?

If the oil companies actually buy and import these products from overseas and then collect the subsidies we will not mind but you know what they do, out of the 170,000 barrels given to our refineries daily for production, these rogue companies lift some of these products from Portharcourt and Warri refineries only to sail to the high seas and make a U-turn to Apapa port to discharge the products as imported products.

By this act, they cheat us in two ways: one, they create artificial products scarcity and two they collect our subsidies when in-fact they sold us our own products.

The 65,000 barrels are not lost, the proceed of sale is used for settlement. If Oniwon opens his mouth to tell you the truth, he is a gonna.

Rubbish! NNPC authority must account for it or else

Why? NNPC authority MUST be made to account for it and tell the public where the 65,000barrels went to. If this not done, it will be injustice and everybody that was involved in diverting it unjustly will have to vomit such. RUBBISH.

Why? NNPC authority should be

Why? NNPC authority should be made to account for it and tell the public where the 65,000 barrels of the allocation went to. If this is not done, it will be injustice on the said authority and the masses have been ripped of their rights to enjoying the allocated crude oil.

OIL SUBSIDY MONEY...OR GREED

the truth of the matter is that corruption is not the root cause of our current delapidated state of nation..the rot responsible for this is GREED.

since curruption is now legalise as our birth right, well go ahead and steal. the million dollar question is now, WHAT DO U DO WITH THE STOLEN MONEY ?

if this psycophant,imbesils, donkey headed people can even put the money into use and not pocket it in the babanriga that has pocket extension, we will atleast see how kobo wise pounds foolish they are.

P Emeagwali is a fraud, E

P Emeagwali is a fraud, E Ojukwu is a coward: Call Spade a Spade

a. This fraudster called Philip Emeagwali suppose to be arrested and prosecuted on 3 count charges: 1. He lied to Nigerian Gov't, 2. He appeared in Nigerian Postage Stamp, 3. He contributed in denting Nigerian image abroad.

b. Ojukwu is a coward. He should be arrested and prosecuted. Even if he is dead. His corpse should be allowed to face trial on 4 count charges: 1. He initiated civil war, 2. Many innocent Nigerians due to the war. 3. He ran away, and did not allow himself to be killed in the war, while others perished. 4. His stupidity and self-aggravated war constitute a moral panic, public disorder, and source of the prevailing unrest in the country, including the activities of Niger-Delta Militants and Boko Haram.

P Emeagwali is a fraud, E

P Emeagwali is a fraud, E Ojukwu is a coward: Call Spade a Spade

a. This fraudster called Philip Emeagwali suppose to be arrested and prosecuted on 3 count charges: 1. He lied to Nigerian Gov't, 2. He appeared in Nigerian Postage Stamp, 3. He contributed in denting Nigerian image abroad.

b. Ojukwu is a coward. He should be arrested and prosecuted. Even if he is dead. His corpse should be allowed to face trial on 4 count charges: 1. He initiated civil war, 2. Many innocent Nigerians due to the war. 3. He ran away, and did not allow himself to be killed in the war, while others perished. 4. His stupidity and self-aggravated war constitute a moral panic, public disorder, and source of the prevailing unrest in the country, including the activities of Niger-Delta Militants and Boko Haram.

You not intelligent

The people in the committee doing the investigation are not ACN but PDP. If they have anything to hide they will never venture into this kind of probe. And I believe if the center is controlled by ACN, this kind probe will never happen because ACN is secretive as we all know.

laughs.Good for u Nigerians!

A coward will never make progress.From local government to state to federal,corruption is everywhere.We have civil society groups,NLC,NANS,Trade unions and the public moaning this situation for decades and this politicians have repeatedly confirmed they are deaf and dumb. Russia is in pieces at the moment cuz of rigged elections. What pains most is that this fools who steal our money use it to create employment in other countries,deny Nigerians basic social services,render them unemployed and at the same time cruise around in mint cars oppressing the people they stole there money..#sorrycasefornigerians#

Unless we have a BLOODY REVOLUTION or SPLIT the regions,Nigeria is a goner.

Fuel sudsidy debate

Some times I wonder in what direction the nation drifting. Anything can be made a major topic just to distract the whole nation. Why should Nigerians devote so much time and energy debating on fuel subsidy rather than FUEL PRODUCTION. If we can produce enough fuel for domestic consumption, are we still going to line the pockets of a few individuals in the name of fuel subsidy? The main issue should be an ultimatum to the Govt by organised labour and civil right organisations on production of petroleum products by our refineries for domestic consumption. Is it not a shame for us to encourage the importation of petroleum products as an oil producing nation. Please NIGERIANS let us consider this issue in this light.
Mike Beke.

Remove fuel subsidy now.

It is now obvious that the NNPC all the while from the days of OBJ has been fraudulent, no wonder he (OBJ) threatened of a likely ARAB SPRING in Nigeria should fuel subsidy be removed. There is absolutely no need for the nation to continue to line the pockets of a few persons at the detriment of the nation in the name of fuel subsidy. The loop hole in NNPC musst first be blocked and all those involved in the scam brought to book.

GEJ my president, pls act

GEJ my president, pls act now. Get NNPC and the cabals to face the music and not the masses. I hope you listened to the message delivered by Bishop Matthew Hassan Kuka few days ago.

Until!

Until our law becomes functional, ugly stories like this one will continue to thrive. This tallies with Castro's truism that it is illegal to be law-abiding in a lawless society!

If Jona AGREES to sell NNPC refineries, I DEY KAMPE!

@The Avenger said - "NNPC is a den of thieves and crooks. The sooner the company is privatised the better for Nigerians."

If Jona AGREES to sell it to me as OBJ sold our Public enterprises on the same terms AND fetching prices as all the previously privatized enterprises, I will buy ALL NIGERIAN refineries for $700 million dollars. Shhh, why are you moaning when it is my turn? I will make sure that Andy Uba does not win the contract for its refurbishment though.

The only palaver be say, I don resign from PDP before KATAKATA happen for this our obodo country. In fact I am looking to buying ONE of the OLDER JETS SCRAPPED by Goodluck, packed and waiting with a 24 hour on-duty pilot on the runway in Minna. Anyway, the country turns out I am OK. I no go do like Gadaffi O!

The leaders are not the

The leaders are not the stupid once hear, it is we the odnary people who has stand aside to let dis old fools detest for us. all we do is talk and talk but we never act. Ogbe was brutality killed by delta state govt using d police force but wat did we do, absolutely nothing. untill we take our destiny from this people we shall continue to leave in pain hanger and shame in the eyes of others.

Disband The NNPC

That's why they removed Mrs. Farida Waziri. Because Senator Saraki initiated the probe, and the Sarakis were largely responsible for Waziri heading the EFCC, they will now come under new scrutiny since they've decided to reveal the source of campaign funds of the PDP and its attendant fraud. Dumbo is desperate to protect Madame Oyl and his own involvement, and that's why the Ota Gorilla wants a people's revolution (to dabaru everything) so that his tenure as President and Oil Minister will not come under forensic scrutiny. The Three Axis of Evil. Delaying the report another 10days will bring us closer to January, Subsidy Removal Month! When the report finally comes out, Nigerians will know whose Houses to Burn! Notice the amount "budgeted" and the amount "spent" for this year alone and yet, 65,000bpd went missing!

The NNPC should be absolved by the Ministry of Minning & Natural Resources, its corporations pirvatized.

What a shame

We all should be ashamed for allowing these irresponsible so called leaders fool us for so long. And we consider ourselves the most intelligent people on earth. Bla bla bla bla....As for the Deziani woman....madam running a ministry as sensitive as the petroleum ministry should not be about make up and beauty it is no fashion show. you disgust me with a passion. I pray the unthinkable happens one day in Nigeria and you all would have no where to run to. I just cant wait for Niaja spring. you are all dead men and woman. i swear.

all na because of plans to remove subsidies-resource control nko

Nigerians who have stolen and benefitted from the oil subsidy, causing pains and hardship to ordinary Nigerian citizens with Oando, owned by Wale Tinubu, younger brother of former Lagos Governor, Bola Ahmed Tinubu and Sayyud Dantata MRS oil topping the list.Mike Adenuga’s CONOIL and construction companies, one of them suspected to be Julius Berger were named as the culprits.
Among the names reeled out by the Senator Abe led Committee are; Oando Nigerian Plc. – N228.506 b, MRS – N224.818 billion, Enak Oil & Gas – N19.684 billion, CONOIl – N37.960 billion, Bovas & Co. Nig. Ltd. – N5.685 billion, Obat N85 billion and AP; N104.5billion.

She Fine Sha!

Just an observation...cos am tired of all the daily corruption stories.

MISSING CRUDE

Who says that NNPC do not know where the daily missing crude is. Ask NNPC why they are poating staff members, to Duke OIL, CARLSTON, VITOIL, ETC. Ask them why they are mentaining and running secret bank off shore accounts. Ask them why they are running off shore companies and who the finance officers, signatories are and who they are reporting to. All the former Heads and present Heads of state, all top management staff of the NNPC past and present, the same with the CBN, Ministry of Finance and the ministry of pertroleum should speak up. They and their cronnies are the beneficiaries of this missing crude. There is nothing secret under the Sun and all will soon be released.

Please sack all of them and

Please sack all of them and employ fresh hands with better training on accountability fullstop.

COWARDS NIGERIAN'S

I've notice something that is very bad with Nigerian's which is comdemning the government and the leaders but refuse to take their destiny into their hands. I say it now untill you coward's stop making noise in newspapers and learn to die for others to live, you will never have peace. If you like stay in the beer to talk and talk and talk till 20 years coming without standing for your right whatever you see today will never stop. it is time for everyone of us to die and make a sacrifice for the next generation. We must force the system to administer what is in our constitution and for those that has steal from our beloved country to face elimination just like The former Ghanian president has done before Ghana stoped corruptions.

Post a comment

The content of this field is kept private and will not be shown publicly.
Comments are limited to a maximum of 1000 characters.
  • Allowed HTML tags: <a> <em> <p> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
  • Web page addresses and e-mail addresses turn into links automatically.

More information about formatting options

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.