Bloomberg News

Nigeria Underpaid by $37 Billion for Oil Assets, Report Shows

November 01, 2012

Nigeria, Africa’s biggest oil producer, lost at least $37 billion in revenue over the last decade because of underpayments for crude sales, royalties and signature bonuses for oil-exploration concessions, a report prepared for President Goodluck Jonathan showed.

The report, obtained by Bloomberg, was prepared by a team set up by the Petroleum Minister Diezani Alison-Madueke in February and is due to be released publicly tomorrow. Collusion between government officials, Nigeria National Petroleum Corp. and people working for its partners, who include Royal Dutch Shell Plc (RDSA) and Exxon Mobil Corp., resulted in the losses, according to the report.

Fidelis Pepple, a spokesman for NNPC, declined to comment. Kingsley Agha, director of information at the Petroleum Ministry, said the report will be submitted to the president tomorrow and declined to comment on its contents. Tony Okonedo, a spokesman for Shell, and Nigel Cookey Gam, a spokesman for Exxon, said their companies will comment after the report’s release.

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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