Issue Description

US$874.044 million was expended on non-JV cash-call activities. Out of which;

• US$365.148 million representing 41.78% accounted for NAPIMS Administrative overhead.
• US$508.897 million representing 58.22% accounted for Security, training, Withholding & Value Added Tax, Travelling & Accommodation, Survey & sand search, transfer (NESS fees), consultancy, community services and waste disposal. However, in the opinion of the audit, these expenses accounts could also relate to NAPIMS overhead.

Cash-Call Liabilities;

Total Cash-Call liability as at 31^st December 2016, was US$5.510billion; this is inclusive of outstanding balance for 2016 which is US$385.116million as well as the negotiated liability of the federation of US$5,125.423million. However, by October 2018, the liability has been reduced to US$3.501billion.

Neiti Recommendations

There should be full implementation of the new JV self –funding model that has been approved (Agreement between NNPC &IOCs

Status Implementation

As at May 2019, NPDC had made payment of US$50m for GVC in respect of OMLs 60-63 for NAOC assets and US$ 396.511m in respect of OMLs 26, 30, 34, 40, 42, 4, 38 and 41 in respect of GVC for SPDC assets.

NPDC has dedicated 30,000bopd to the repayment of these liabilities since December 2018. There is also a loan of US$1.7b awaiting drawdown to pay-off its indebtedness. This is in addition to a quarterly payment of US$50m to FIRS in respect of the legacy tax indebtedness