DEPARTMENT of Petroleum Resources (DPR) has said that it generated about N742, 471,639,376. 96 billion into federal government’s coffers.
The amount was generated over eight months, January to August, 2020.
Director of DPR, Sarki Auwalu, made the disclosure during a visit of House of Representatives Committee on Petroleum Resources (Upstream) to the DPR headquarters in Lagos, yesterday, on oversight function.
According to Auwalu, 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. 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 government. 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 represents proportional value of oil and gas production and sales from oilfields, gas flare penalties imposed for gas flaring,” he said.
Auwalu equally told the team that DPR collects concession rentals paid for grant of oil and gas acreages by exploration and production companies and miscellaneous oil revenue, adding that these consisted of statutory application fees, licence and permit fees and penalties. But the challenges posed by COVID-19 and oil price crash had made it compelling for a new thinking and approach for strategic repositioning and business optimisation in the industry.