NNPC chief operating officer (CEO), Mallam Bello Rabiu said this in a presentation to the Joint House of Representatives Committee on Amendments to the PSC and the Law on the Establishment of the National Centre of oil and gas museum and research in Oloibiri.
Rabiu said that it is imperative to carry out an increase in copyright in all categories to increase government takeover and optimize the collection of copyright and other income in the activities of oil deep water.
"It is our opinion that the proposal to increase the rate of royalty for off-1,000 meters, from zero percent to three percent, is commendable, but it is necessary and make appropriate adjustments in other categories, '' he said.
According to the proposed PSC Royalty regime, the calculation of which is due to the government based on the production cost and to guarantee a fair balance between the PSC and the contractor and the government.
For royalty based on production within the tranche of 50,000 barrels of crude oil per day, the NNPC proposes tranche royalty rate of 8 percent.
Under the production tranche of 50,000 to 100,000bpd rate tranche royalty would increase by 15.5 percent and that will escalate to 28 percent when production surpasses the mark of 100,000 barrels per day.
To calculate the royalty based on price, NNPC proposed to under $ 50 per barrel price regime tranche incremental royalty rate should be zero percent, but the rate would increase to 0.30 percent if the price hovering between $ 50,100 $ sign .
In the same vain, the price regime of $ 100- $ 130 will attract a royalty of 0.20 percent, while the increase in prices between $ 130 and $ 170 to translate royalty rate of 0.10 percent.
Price regime $ 170 and above will attract zero percent royalty payment.
The NNPC claims that in the alternative, royalty graduated scale as provided for in the Act should be removed while the oil minister of resources should be empowered to periodically set the copyright pays for acreages located in the deep offshore and inland basin production sharing contract through regulations on the basis of established economic parameters.
On the provision of investment tax credits, investment tax benefits and related costs and the rise in depreciation PSC contractor, the NNPC proposed complete abolition of subsidies.
"It is our opinion that these incentives have outlived their usefulness and are now obstacles to revenue collection efforts of the Federal Government. The use of such incentives could stop an amendment of point 4 of the Act," said the corporation.
Corporations urged the National Assembly to request relevant information from the Federal Inland Revenue Service (FIRS), to address the different opinions regarding the methodology for calculation of the tax, which would have resulted from the proposed royalty regime.
In the Law on Establishment of the National Oil and Gas Museum and Research Center in Oloibiri, the corporation recommended the establishment of the museum itself with a clear budgetary allocation of the federal government under the control and management of the National Commission for Museum and Monuments.
"It is better to improve and enhance the capacities of the Institute for the training of oil (PTI) in Lagos and the National College of Petroleum Studies, Kaduna, to avoid duplication of functions and, more importantly, to ensure optimal use of resources," said the NNPC.
... As NPDC clarifies the alleged non Remittances oil revenues
Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), gave an explanation on reported not transfer some crude oil revenue in the Federation Account.
Clarification as Nigeria Extractive Industries Transparency Initiative (Neith), in its audit report in 2014, said a total of $ 4.7 billion and N318.2 billion that should go to the Federation Account is not returned by NPDC and its parent company, NNPC.
In a presentation to the Senate Ad Hoc Committee on Un-back recovery of revenues, Yusuf Matash, Managing Director of NPDC, blamed some figures as income derived by the company from crude sales.
Providing an explanation of the alleged non remittance of raw income from certain deprived of oil wells (OMLs 61, 62 and 63), Matash explained that the value of oil lifted to NPDC in the period from May 2013 to August 2016, $ 3.294 billion, as against $ 3,487 taken by the board.
He drew the attention of the Committee to the fact that on the basis of ministerial funds for NPDC, funding cash call of assets the government has stopped and NPDC the financing of production costs and raise crude oil itself.
"According to our data, total crude oil lifted from OMLs 60-63 of NPDC in the period from May 2013 to August 2016 in the amount of $ 3.294 billion against the figure of $ 3.487 billion," he said after Ndu Ughamadu, spokesman for NNPC to said.
On the claim that NPDC lifting crude oil from the oil and deprived (OMLs 65, 111 and 119) in the amount of $ 1.847 billion of which was paid $ 100 million just NPDC MD explained that the OMLs 65, 111 and 119 of the Senate Committee not were part deprived of his property.
He claimed that the figures given related to the substantial Good (G & VC) payment obligations in connection with the Shell Petroleum Development Company (SPDC) deprived of his property (OMLs 4, 38 and 41 and OMLs 26, 30, 34, 40 and 42nd
"The $ 1847000000 to by the Committee is the total G & VC determines the DPR for deprived of his property. $ 100 million paid text is part of the G & VC, who paid NPDC" he said.
While recognizing the balance of $ 1747000000 for G & VC, the NPDC noted that the obligation to pay in the future did not give up and that the state paid in the Federation is recognized in NPDC books.
In the report that the total worth of crude oil was $ 344.34 million UN back in the period from January to August 2016, including the non-payment due to copyright and taxes in the period NPDC blamed claim.
"The Commission is invited to bear in mind that the actual value of crude oil liftings of all the funds belonged to NPDC the total $ 584.1 million for the period from January to August 2016 NPDC has paid a total of $ 608.4 million as royalty and petroleum profit tax (PPT ), "he said.
Matash noted that a total of $ 608 million was made by NPDC as royalty and petroleum profit tax in 2016.
It also provides an answer to questions by the Senate Committee on Legal and operational status NPDC, Matash explained that like all other indigenous oil and gas companies operating in Nigeria, NPDC is self-funded, which means that the gross revenues are returned to the Federation Account.
He said that the company was, however, required to pay royalties for the Department of Petroleum Resources (DPR) and the PPT in the Federal Inland Revenue Service (FIRS).
Matash, however, states that the NPDC is ready to engage all interested parties to resolve all remaining payments, noting that the company is already in talks with regulatory agencies to come to the agreed payment historical obligation.
While recognizing the balance of $ 1747000000 for G & VC, the NPDC noted that the obligation to pay in the future did not give up and that the state paid in the Federation is recognized in NPDC books.
In the report that the total worth of crude oil was $ 344.34 million UN back in the period from January to August 2016, including the non-payment due to copyright and taxes in the period NPDC blamed claim.
"The Commission is invited to bear in mind that the actual value of crude oil liftings of all the funds belonged to NPDC the total $ 584.1 million for the period from January to August 2016 NPDC has paid a total of $ 608.4 million as royalty and petroleum profit tax (PPT ), "he said.
Matash noted that a total of $ 608 million was made by NPDC as royalty and petroleum profit tax in 2016.
It also provides an answer to questions by the Senate Committee on Legal and operational status NPDC, Matash explained that like all other indigenous oil and gas companies operating in Nigeria, NPDC is self-funded, which means that the gross revenues are returned to the Federation Account.
He said that the company was, however, required to pay royalties for the Department of Petroleum Resources (DPR) and the PPT in the Federal Inland Revenue Service (FIRS).
Matash, however, states that the NPDC is ready to engage all interested parties to resolve all remaining payments, noting that the company is already in talks with regulatory agencies to come to the agreed payment historical obligation.
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