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DPR generates $1.03bn in revenue from oil royalties, others

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Oil and gas royalties and legacy debts have been identified as the major contributors to the revenue generated by the Department of Petroleum Resources (DPR), amounting $1.03 billion.

DPR said that the revenue remitted to the Federation Account was achieved through robust regulatory reforms put in place to ensure timely and efficient revenue collection drive.

In the statement, the Director, DPR, Mr Sarki Auwalu said, the DPR collects oil and gas royalties, that shows the proportional value of oil and gas production, flare gas penalties, concession rentals paid for the grant of oil and gas acreages and miscellaneous oil revenues comprising statutory application fees, licences, and permit fees.

Meanwhile, the DPR had said it generated a total sum of N742.5 billion for the federal government between January and August 2020.

He expressed optimism that the regulatory agency would surpass its revenue target for the year despite the ‘triple force’ of COVID-19 pandemic, oil price crash and OPEC plus production cuts.

“DPR is a revenue collection agency for revenues accruable to government from oil and gas industry operations, he stated.

“DPR operates a cashless revenue system which enables all revenue remittances to be paid directly to the federation account in total compliance with the Treasury Single Account (TSA) policy of the government.

He said “The agency conducts comprehensive quarterly and annual reconciliations of revenue payments to ensure accurate and timely remittances to the federation account. It also collects oil and gas royalties which represent the proportional value of oil and gas production and sales from oilfields, gas flare penalties imposed for gas flaring,”.

Source Vanguard
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