Govt failed to retrieve $2.77m as surface rentals from 12 oil companies – Report

The
Auditor-General’s
report
on
the
general
management
of
petroleum
funds
for
the
period
of
January
1
to
December
31,
2022,
has
revealed
that
the
government
failed
to
retrieve
a
total
of
US$2,774,067
being
funds
for
surface
rentals
by
12
oil
companies.

The
AG’s
report
disclosed
that
the
total
estimated
proceeds
for
surface
rentals
for
the
period
amounted
to
US$3,461,825.95
out
of
which
only
US$687,759
was
received
from
the
defaulting
oil
companies.

“Total
Surface
Rentals
outstanding
as
of
31st
December
2022
remains
at
US$2.77
million
(2021:
2.60
million)
due
from
12
out
of
the
18
operating
Companies.
Out
of
the
12
debtors,
eight
(8)
Companies
have
Existing
Petroleum
Agreements
while
the
remaining
four
(4)
had
their
Petroleum
Agreements
terminated.

“Our
review
of
correspondence
received
from
the
Petroleum
Commission
disclosed
that
the
total
estimated
proceeds
for
surface
rentals
at
the
end
of
the
reporting
period
was
US$3,461,825.95.
The
amount
is
made
up
of
US$882,655
and
US$2,579,171
for
the
2022
financial
year
and
the
prior
period’s
outstanding
amount
respectively.

“A
total
amount
of
US$687,759
was
received
from
oil
companies
for
surface
rental
operations
in
the
2022
financial
year
however,
US$71,935
of
the
amount
received
related
to
the
terminated
contract.”

The
report
added
that
“As
of
31
December
2022,
the
total
amount
due
from
surface
rentals
was
US$2,774,067
representing
80%
of
estimated
receipts
from
surface
rentals
in
the
2022
financial
year.
US$1,803,124
of
the
outstanding
amount
related
to
four
contractors
whose
Petroleum
Agreements
were
terminated
by
the
Minister
of
Energy.”




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