The National Petroleum Investment Management Services (NAPIMS), now renamed the NNPC Upstream Investment Management Services Limited (NUIMS) , has disclosed that N40,095,000,000, about $99 million was spent on the Ogoni clean-up as of the end 2021.
Also, it disclosed that $15 million or N6.075 billion had been spent on the Ogoni Restoration Project (ORP), and N12.150 billion ($30 million) expenditure on the Global Memorandum of Understanding Fund for Host Communities (GMOU).
The NNPC subsidiary was reacting to reports that it spent N90 billion on ‘public relations’ as allegedly recorded in its Audited Financial Statement (AFS) for 2021.
In addition, NAPIMS noted that N25.515 billion or $63 million was paid to offset the Agbara judgement fine delivered by the court. The judgement was in respect of the pollution of land occupied by the Joint Venture (JV) following the rupture of a pipeline maintained by Shell between 1969 to 1970.
According to NAPIMS, the N90 billion or specifically N89.92 billion or $222.05 million in the 2021 AFS represented the equity share in the 13 joint venture arrangements in the upstream sector of Nigeria’s oil and gas industry, rather than public relations as alleged.
“Therefore, the amount of N89,928,429,000 (equivalent to $222.05 million at an exchange rate of N405) reported as public relations represents NNPC/NAPIMS equity share of expenditure on community development and public relations by all joint venture operators in the upstream oil and gas sector.
“The bulk of the expense relates to NNPCL/SPDC JV made up of NNPCL (55 per cent), Shell (30 per cent), Total Energies (10 per cent) and the Nigeria Agip Oil Company NAOC (5 per cent). A significant component of the NNPCL/SPDC JV expenditure is the N83,835,000,000 ($207 million) on spillage clean-up activities, rehabilitation of polluted areas, and pollution compensation.
“The breakdown of this figure is made up of the N40,095,000,000 ($99 million) expenditure on the Ogoni clean-up under the auspices of Hydrocarbons Pollution Remediation Project (HYPREP), the N25,515,000,000 ($63M) Agbara Judgement fine, the N6,075,000,000 (F$15M) Ogoni Restoration Project (ORP), and 12,150,000,000 ($30 million) expenditure under Global Memorandum of Understanding Fund for Host Communities (GMOU).
“The balance of N6,095,250,000 ($15.05M) of the total reported amount of N89,928,429,000 ($222.05 million) were expenditures incurred by the other 12 Joint Venture Companies. NAPIMS’s expenditure only accounts for N88 million ($217,284); this represents only 0.098 per cent of the reported N89,928,429,000 ($222.05 million), ’’ the statement said.
NAPIMS also reacted to the report the department spent N11.76 billion on consultancy, N2.22 billion on transportation and travelling cost, N65 million and N1.1 billion on advertisements and entertainment, respectively in the year under review.
“Again, it is important to stress that this expenditure line on consultancy, transportation and travelling is the consolidation of costs from all joint venture arrangements, and they collectively represent the NNPCL/NAPIMS equity share of such expenditures incurred by the various JV operators as recorded in the 2021 AFS.
“The expenditures incurred by NNPCL/NAPIMS JV operators on behalf of each JV are based on approved annual work programmes, budgets, and monthly reported expenses.
“Such expenditures are also validated through the monthly, quarterly, half-yearly and full year performance review sessions to determine NNPC/NAPIMS equity. In addition, all expenses from the NNPC/NAPIMS JV operators are audited annually before they are included in the audited financial statement,’’ NAPIMS said.
Meanwhile, NAPIMS has said it is collaborating with Chevron to improve gas and diesel supply in the Nigerian market, in its first major deal since its rechristening.
The Group General Manager of NAPIMS, Bala Wunti in a Twitter statement, said the deal was sealed during an official visit to the integrated NNPC Ltd – Chevron Escravos facilities, including the Escravos Gas Plant (EGP) and Escravos Gas-to-Liquid (EGTL), and export terminal.
“The visit is in continuation of our series of visits to engage with Chevron people, fact-Finding on burning issues, and to co-create and align on actionable focus areas that will enable us to deliver on our energy security mandate and generate value for Nigeria and partners.
“Without any doubt, the Chevron facility is world-class, and the operation is excellent. The people are professional and are symbol of true Chevron culture of excellence,” he said.
Wunti added: “NUIMS and Chevron have agreed to ensure and prioritise safety, integrity, and reliability in all operations. We also agreed to maintain focus on improving gas supply into the domestic market and domestication of Excravos LPG and EGTL diesel.
“Being our first work visit since the transformation of former NAPIMS to NUIMS, I used the opportunity to reinforce NNPC Ltd’s commitment to collaboration and speedy decision-making in line with NUIMS’ operating philosophy of safety, speed, compliance, and excellence
“I also used the opportunity and invited Chevron to adopt the SSCE concept in its operations.”
