CONFIDEN TIAL DRAFT Petroleum Industry Sub sector
Midstream/ Downstream Revenues
Revenue Streams
Responsible Agency
Signature Bonuses
DPR
Petroleum Profit Taxes
FIRS
Gas Flaring Penalties
DPR
Company Income Tax
FIRS
Miscellaneous Income Licensing , Fines etc.
DPR
Miscellaneous Income Licensing fees etc.
DPR
Company Income Tax
FIRS
Sale of Refined Petroleum Products
PPMC
Table 3: Overview of the Agencies and Revenue Streams examined
The following sections document the Task Force s detailed findings arising from the revenue review and verification exercise, according to each revenue stream.
9. Production 1. Overview Over the past 10 years, NNPC s record shows that the country produced an average of 842m bbls per year. An official of Shell in Nigeria told the task force that with adequate investment and good security enforcement by the Nigeria s production could be increased to 1.3b bbls annually. Production quantities are used in the determination of Royalties, Taxes, FGN s entitlement etc. There are various agencies of Government that are charged with the responsibility of monitoring the nation s upstream activities. These include: the DPR, NNPC, NAPIMS, Nigeria Customs Service, Pre-shipment Inspection Agents, Nigerian Ports Authority, Navy, and the Nigerian Police. For the purpose of determining Nigeria s entitlement, the Task Force was told by NNPC s Crude Oil Marketing Division that standardised contracts ( templates ) are used for each operator depending on the agreement type (JOA, AF, CA, MCA, and 57