2012 Budget: Nigeria’s DPR justifies N35 bn budget

…says it generates N1.087 trillion in 2011

Following the report that the Department of Petroleum Resources (DPR) is poised to spend N27 million on each of its 1,100 staff in 2012, the Department’s branch Chairman of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has rose in defense of the Government Agency as it reveals that the DPR generated N1.089 trillion in 2011.

In a move aimed at justifying the over N35 billion 2012 budget of the Agency, branch Chairman of PENGASSAN Comrade Isah Ibrahim told newsmen in Lagos yesterday that  the Agency generates revenue on behalf of the Federal Government of Nigeria through signature bonuses (payments), conversion of OPL to OML fees, Assignment Interest, Rentals of OPL to OML, relinquishment fees, regulatory size of OPL and OML, royalties, Petroleum Profit Tax, penalties, licenses and permits.

“We were given a target of N641,173,233,000 in 2011 but our actual collection amounted to N1,087,399,146,497 and we had surplus of N446,225,913,497”.

“In 2010 we had the target of N494,553,940,000, our actual collection amounted to N698,420,674,729 then we had a surplus of N203,866,734”.

However, Isah noted that In order for DPR to effectively carry out its regulatory duties in the oil and gas sector, more funds should be allocated to them from the Federal government.

“One of our major challenges that we are currently facing is inadequate funding and as a regulator we don’t need to depend on anybody to carry our regulatory duties in the oil and gas sector in Nigeria”.

“The Department of Petroleum Resources (DPR) started as a Hydrocarbon Section of the Ministry of Lagos Affairs in the early fifties. It is the first statutory agency set up to supervise and regulate the petroleum industry in the country. Later, the section was upgraded to a Petroleum Division within the then Ministry of Mines and Power, the Division, in 1970, became the Department of Petroleum Resources (DPR)” he said.

He stressed that the Department of Petroleum Resources is vested with the necessary powers by various legal provisions to discharge its functions and responsibilities.

Some of its duties according to Isah Ibrahim is supervising all petroleum industry operations being carried out under licenses and leases in the country in order to ensure compliance with the applicable laws and regulations in line with good oil producing practices adding that the department is also saddled with enforcing safety and environmental regulations and ensuring that those operations conform to national and international industry practices and standards, keeping and updating records on petroleum industry operations, particularly on matters relating to petroleum reserves, production and exports of crude oil, gas and condensate, licenses and leases as well as rendering regular reports on them to Government.

” we also advice government and relevant Agencies on technical matters and policies which may have impact on the administration and control of petroleum. In addition to that we also Process all applications for licenses so as to ensure compliance with laid-down guidelines before making recommendations to the Honorable Minister of Petroleum Resources and ensuring timely and adequate payments of all rents and royalties as at when due”.

He noted that these functions cover all activities in petroleum operations which include upstream and downstream, as well as petrochemicals adding that DPR also covers the Nation’s 27 Crude Oil Export Terminals, Over 201 Flow stations & Production platforms, 45 Jetties, 4 Refineries, 3 Petro-chemical Plants, over 17,000 Petrol Filling Stations, 37 lube Blending Plants and thousands of Domestic & International Gas Operations and Projects.


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