International Oil Companies (IOCs) receive a share of 43 percent of Nigeria’s crude oil production per day, Finance Minister Ngozi Okonjo-Iweala told the House of Representatives Committee probing the fuel subsidy regime yesterday. Speaking when she appeared before the Rep. Farouk Lawan-led panel, the minister said it was wrong to equate government revenue by total crude production as it gets only about 57 percent while the oil majors take the balance.
According to her, “it is wrong to just do arithmetic by the crude oil production per day by the price and then say this is the revenue that government receives. We have joint venture agreements. Our percentage of the production has come down from 60 percent now to 57 percent and people should know this.” She said the oil companies in joint venture agreement with the country deduct their share from source, saying “they even deduct their share before they get to us. We have to meet the joint venture agreement.”
With an oil production of 2.5 million barrels per day at $113 per barrel, the oil majors will receive over N18 billion from sale of crude per day while Nigeria receives about N25 billion per day.