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FG receives N29.3bn from Chinese oil firm

By Michael Eboh

abuja—The Federal Government received a total payment of 539.578 million Yuan, about $81.329 million, from a Chinese oil firm, the China National Offshore Oil Corporation, CNOOC, in 2016, for two petroleum assets, Oil Mining Leases, OML, 130 and 138.

The payments which translated to about N29.278 billion, were for taxes, royalties and fees for the oil assets operated by the company.

The report used an exchange rate of 6.6344 Renminbi Yuan to one United States dollar. It also included payments from its subsidiary, Nexen Energy.

The payment details obtained yesterday were released by the Canadian authorities under the Extractive  Sector Transparency Measures Act, ESTMA.

The ESTMA requires  extractive entities active in Canada to publicly disclose, on an annual basis, specific payments made to all governments in Canada and abroad.

The Act, according to the Natural Resources Canada, delivers on the country’s international commitments to contribute to global efforts to increase transparency and deter corruption in the extractive sector.

The report of the payments was presented to the Canadian authorities on May 5, 2017, by Chief Financial Officer of CNOOC Limited, Hua Zhong.

Giving a breakdown of the payments, the reports stated that 331.808 million yuan was paid by CNOOC for OML 130, comprising 34.861 million yuan for taxes; 1,953million yuan for royalties and 296.944 million yuan for fees.

For OML 138, CNOOC paid 14.507 million yuan; 157.115 million yuan and 36.148 million for taxes, royalties and fees respectively, bringing total payments for the asset to 207.770 million yuan.

Specifically, the payments were made to the Federal Inland Revenue Service, FIRS; Niger Delta Development Commission, NDDC; Nigerian Export Supervision Scheme, NESS; Nigerian Petroleum Exchange, NIPEX; and the Nigerian National Petroleum Corporation, NNPC.


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