These are the 3 oil companies under investigation for cheating the government

To ascertain whether the Nigerian government is being cheated through contracts in which crude oil is given to traders in exchange for refined imports, the Economic Financil Crimes Commission and the Department of State Security, are investigating three major oil companies.

The Nigerian Extractive Industries Transparency Initiative had recently reported that there was a revenue loss of at least $600 million due to a discrepancy between the value of the crude and the products delivered.

The figure was reportedly obtained from its 2009-2011 and 2012 audits of the oil and gas industry.

The contracts, known as offshore processing agreements (OPAs) are between Pipelines and Product Marketing Co. (PPMC), a subsidiary of Nigerian National Petroleum Corp. (NNPC) and the three oil trading companies: Sahara Group, Aiteo and Duke Oil, the trading subsidiary of NNPC.

According to a report by CNBC, the investigations commenced about two weeks ago, when the head of PPMC and NNPC top officials were invited for questioning about the agreements.

The oil companies also involved in the contracts, worth billions of dollars, have also been invited for questioning.

The report quoted a security source who is privy to the development, as revealing that the DSS intends to find out how the value of the crude and products was computed.

The security source was quoted as saying: “It appears that the value of the crude was more than the value of the refined imported.”

Leave a reply

Your email address will not be published. Required fields are marked *

cool good eh love2 cute confused notgood numb disgusting fail