News Roundup
Government approves sharing of excess oil earnings
Jan 27, 2005, 09:10
| | President Olusegun Obasanjo on 17 January approved the sharing of 50 percent of the 2004 excess crude oil earnings to all the three tiers of government.
Minister of State for Finance, Mrs Esther Nenadi-Usman disclosed the approval at the meeting of the Federation Account Allocation Committee in Abuja on 18 January.
The details of what will be allocated to all the tiers of government would be worked out and allocated to them before the end of January 2005.
The National Council of State (NCS) and the National Economic Council (NEC) had in September 2004 agreed that 50 percent of excess crude revenue savings be spent in 2005 to cushion fluctuating oil prices while the balance is saved.
Minister of Finance, Dr Okonjo-Iweala had in December 2004 disclosed that excess crude oil earnings were N691 billion as at the end of November 2004.
Meanwhile, the country’s crude oil reserves increased from 33 billion barrels in 2003 to 35.5 billion barrels as at the end of 2004.
This was disclosed by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Funsho Kupolokun on 18 January 2005 at the signing of a Memorandum of Understanding (MOU) between the NNPC and Mobil Producing Nigeria (MPN) Unlimited for the setting up of a Liquefied Natural Gas (LNG) /Independent Power Project (IPP) plant in Bonny Island, Rivers State.
The MOU will establish the framework and principles under which NNPC and MPN would determine LNG/IPP development concepts and the general commercial basis for a 4.8 metric tonne per annum LNG train to be located at Bonny Island.
Kupolokun also explained that the project, along with other mega projects that would come on stream before 2010 are designed to achieve Government’s aspiration of:
• A 45 percent Nigerian content target
• Reduction of flaring
• Provision of employment and enhancement of local technical know-how among others.
Related Articles:
Obasanjo receives old and new NLNG CEOs
Gas reserves hit 187 trillion cubic feet
NNPC adopts crude oil swap option
Nigeria’s oil and gas reserves rise
Crude oil reserves now 34 billion barrels
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