The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) can earn over $6.993 million (N2.906 billion) as a foreign exchange from processing 24 applications and licensing fees for petroleum drilling and production companies if the schemes are well harnessed.
Nigeria is currently facing issues with forex with the dollar exchanging for N415 at the official window and over N600 at the parallel market.
- Money Politics: Only two delegates voted for Shehu Sani in Kaduna PDP Primary
- Olaniyan steps down as MD of Omnicom Solutions
However, according to a licence and fee schedule, NUPRC which took over from the defunct Department of Petroleum Resources (DPR) six months ago can earn forex for the country.
About 14 of them are payable to the ‘Accountant General FGN’ with the Central Bank of Nigeria (CBN) through JP Morgan Chase Bank in New York, United States. Seven payments go to the ‘Miscellaneous Oil Revenue’ and three into the ‘Concession Rentals’ account.
Among those payable to the Accountant General FGN’s account is $2 million application fee for renewing Oil Mining Lease (OML). The next is $1.5m application fee for an existing OML, and the $1m application fee for converting Oil Prospecting Lease (OPL) to OML.
There is also $1m for renewing Marginal Field; while application for retaining 50% of area to be relinquished on conversion from an OPL to OML for Production Sharing Contract (PSC) companies attracts a $500,000 fee. To retain 50% of area to be relinquished 10 years into the life of an OML attracts another $500,000.
Application for extending tenure for Marginal Field (annually) is $200,000; applying for OPL attracts a $10,000 fee; OPL processing fee is $10,000; applying to assign or sublet on contract an OPL is $5,000 while that of OML is $10,000; and application to assign interest in a Marginal Field costs $2,500.
The Miscellaneous Oil Revenue account fees include, applying for $10,000 license to operate a drilling rig, hoist or vessel; geophysical/geotechnical vessel $10,000 licence while NUPRC charges $10,000 for renewing Extended Well Test (EWT). Another batch of geophysical licence and EWT cost $5,000 each.
Revalidating Permit is 50% of the original permit fee while annual licence renewal for production platforms (with over 5,000 barrels) is $100,000; annual renewal for oil platforms below 5,000 barrels attract $2,000 per 1,000 barrels; refineries, etc with over 30,000 capacities pay $2,000 per 1,000 barrels daily; refineries and other plants with below 30,000 pay $1,000 per 1,000 barrels daily while oil handling facilities pay $10,000 for every facility annually.
For the fees payable to the Concession Rentals account, the annual rent for each square kilometre of an OML for the first 10 years attracts $200/sqkm while annual rent for an OPL is $100/sqkm. However, annual rent for each square kilometre until expiration of the lease and on renewal costs $150/sqkm.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
