By Michael Eboh

THE Ministry of Petroleum Resources has earmarked N610 million for the implementation of the ‘Seven Big Wins’, a programme designed by the Ministry to reform the petroleum industry.

THE average price
of Organisation of Petroleum Exporting countries, OPEC’s basket of fourteen crudes in the past one week averaged $60.29 compared with $61.66 recorded the previous week. According to OPEC’s calculation, the highest price of crude was recorded on November 13, 2017, which averaged $61.27 per barrel, while the lowest price for the period under review averaged $59.79
The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).



The Seven Big Wins document, according to the ministry, is aimed at developing a stable and enabling oil and gas landscape with improved transparency, efficiency, stable investment climate, and a well-protected environment.

In the 2018 Appropriation Bill presented by President Muhammadu Buhari to the National Assembly, the Ministry also allocated N120 million for the Petroleum Industry Bill, PIB, irrespective of the fact that N100 million was earmarked for the same purpose in 2017; while N90 million was budgeted for project monitoring and evaluation, compared to N262..55 million earmarked for the same purpose in 2017.

The Ministry is also planning to spend N100 million for the development of critical managerial competencies including International Public Sector Accounting Standard (IPSAS), for the oil and gas sector within the relevant MDAs, legislature and the Federation Account Allocation Committee, FAAC.

Other allocations in on-going capital project include legal services and litigation N300 million, implementation of new gas policy N120 million, with N100 million earmarked for the same item in 2017; Oil and Gas sector reforms N230 million; N200 million for the automation of ministry of petroleum resources operations e-library, annual subscription; and N284 million for statutory contributions to international energy organizations.

In general, the Federal Government proposed a total allocation of N3.433 billion for the Ministry of Petroleum Resources in the 2018 budget, rising by 36 per cent from a total allocation of N2.524 billion in 2017.

Of the total amount, N1.079 billion was allocated for recurrent expenditure, while N2.354 billion was allocated for capital expenditure. This was in comparison to recurrent and capital expenditures of N1.006 billion and N1.518 billion respectively.

According to the Bill personnel expenses stood at N767.374 million, rising by 5.12 per cent compared to N730.019 million recorded in 2017.

In the document published by the Budget Office, Overhead gulped N311.255 million, representing an improvement of 12.7 per cent when compared to N276.255 million appropriated in the 2017 budget.

In general, the Federal Government allocated N74.09 billion for all the parastatals in the petroleum industry, including the Ministry of Petroleum Resources.

In the breakdown of the allocation, the Department of Petroleum Resources, DPR, received the highest allocation of N34.87 billion, with N33.54 billion and N1.33 billion earmarked for recurrent and capital expenditure respectively.

Petroleum Training Institute, PTI, followed with a proposed spending of N14.5 billion, with N13.15 billion allocated for recurrent expenditure and N1.36 billion for capital expenditure.

The Federal Government is also proposing to allocate N9.16 billion to the Petroleum Products Pricing Regulatory Agency, PPPRA, with N7.82 billion to be spent on recurrent expenditure, while capital allocation would gulp N1.34 billion.

The Federal Government also budgeted N7.37 billion for the Nigeria Nuclear Regulatory Authority, NNRA, while the Nigerian Content Development and Monitoring Board received an allocation of N4.75 billion.

Subscribe to our youtube channel


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.