NNPC: Allison-Madueke Orders Probe Of Crude Oil Purchase, Remittances

Source: thewillnigeria.com

SAN FRANCISCO, May 09, (THEWILL) – The Minister of Petroleum Resources, Mrs. Deziani Allison-Madueke, has ordered a probe of the Nigeria National Petroleum Corporation (NNPC) to unravel the alleged mismanagement of the proceeds accruing from the purchase of 445,000bpd domestic crude oil and remittances made to the Federation Account thereof.

An impeccable source close to the Minister said the probe was informed by President Goodluck Jonathan’s expression of displeasure over alleged corrupt practices in the purchase of domestic crude by NNPC officials.

The exercise, according to the source who craved anonymity, is to ensure that due diligence is followed in the operations of the sector.

"The minister has directed the NNPC Group Executive Director Finance and Administration to engage immediately an independent consultant to conduct the investigation," the source said. " The Minister has directed that detailed investigations commence immediately into all aspects of transactions regarding the management of the 445,000 barrels of oil, day allocated, sales to NNPC by the Federation viz-a-viz the level of remittances made to the federation account.

"The investigation, would also cover but not limited the volumes and the value of crude purchased by the NNPC, the allocation of crude oil volumes into the following components-volumes and values utilised exported oil, volumes and values of crude oil dedicated for offshore processing, volumes and values of crude oiled dedicated to products swap as well as volumes and values of crude oil delivered to local refineries."

It was also gathered that the investigation will look at the values of proceeds from crude oil purchase, volumes exported, volumes and values of various states of products yield delivered for crude oil and for offshore processing, product swapping and the quantity and values delivered for local refineries.

The investigation panel is also to determine the amount realised by the Petroleum Price Monitoring Commission (PPMC) from the sale of petroleum, remittances made by Corporate Treasury from the sale of petroleum products, and remittances made by Corporate Treasury to the Federal Allocation Accounts Committee (FAAC) from proceeds of volumes of crude oil delivered to local refineries, offshore processing and crude exported.