FG Realises N2 Trillion On Royalty Recovery-Kachikwu ..Says Automation Tracking Oil Production

Honourable Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and Mr. Mordecai Danteni Ladan, Director of Petroleum Resources DPR at the Ministerial briefing on achievements of DPR and key policies of government in Lagos.
Honourable Minister of State, Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and Mr. Mordecai Danteni Ladan, Director of Petroleum Resources DPR at the Ministerial briefing on achievements of DPR and key policies of government in Lagos.
Yemisi Izuora
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said that various automation initiatives embarked upon by government has helped in blocking leakages arising from unaccountable volume of oil production.
Kachikwu said one of the problems the country had contended with was tracking what quantity of crude being produced and the leakages from that.
Speaking during a ministerial briefing on the achievements of the Department of Petroleum Resources, DPR, in Lagos Monday minister said with automation of the industry, Nigeria is now able to track production, track the movement of that production.
” Following these initiatives, we have launched series of IT based platforms and interventions which today will make us say we have taken ourselves into the next foray of how oil companies and oil operations in this country should run.
The few interventions that we have had include, National Production
Monitoring System (NPMS) which focus includes using online to gather data. We have been able to track online/real time data of what our productions are and so we are now in the position to say what is the production done by this country”, he said.
There are also the Automatic Downstream System (ADS), Accelerated Lease Renewal Program (ALRP) and others.
Speaking further, Kachikwu said, ” All our fields are largely tracked online now and what it means is that we can actually feed the nation on what was our actual production and from which fields and what is the volume and also identify if there are leakages.
“We have also had the Crude Oil and LNG Tracking (COLT), COLT which is basically tracking of crude oil and Liquefied Natural Gas,  LNG. It is just not enough to produce, but to know where it is going to. As you know, some of our problems is both accounting for production and what happened to crude oil produced.
What COLT does for us is that we can track any of these vessels be it LNG or crude and track where it is going. We can also track those vessels to the point of discharge”.
Another initiative according to him is the Accelerated Lease Renewal Program (ALRP) which was put in place in 2015 for the purpose of creating revenue for the government.
“In 2015/2016, remember our revenue was very down and the whole idea was find money and reduce loans. We reviewed the fees
payable for renewals by 50-100 per cent, and we are able to renew quite a number of fields. It’s a voluntary scheme; it does not compel
you before it is due for you to apply. It is simply saying it is nice for you to apply and most people have responded. By the time we
finish, we would have generated income of about $1.5billion”, he said.
This is perhaps the highest we have generated in terms of renewals.
The other initiative is the royalty indebtedness recovery which is largely pushed by the Presidency, under which the ministry is expected to recover a lot of royalty that was outstanding by most of the players in the field.
He said the process of determining royalty in the past was largely driven by initiatives of oil companies that determine what they produce and is calculated based on their own figure.
“Today,  we have been able to use
the system we have now to see what the actual productions are.
Under the rule, you don’t get your renewals unless the outstanding royalties are paid. For those that have shown the seriousness and mapped out how they intend to settle their indebtedness, we will review, but we won’t
give out the final certificate until you have settled and this has generated about N2trillion so far as a result of this royalty recovery scheme.
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