The Minister said in a statement at the weekend that the quantity of PMS consumed per day has also reduced by 34.17 percent to 39.66 million litres.
“As at December 2012, the Nation had spent N5.27 trillion on products subsidy since the commencement of the Scheme in 2006. But the comprehensive reform programme put in place under her leadership as the Honourable Minister of Petroleum Resources, yielded outstanding results as the amount of annual subsidy expended was reduced by 59.05 percent to N850 Billion, while the quantity of PMS consumed per day was reduced by 34.17 percent to 39.66 million litres.”
Speaking on her reform programs, she said the initiatives also resulted in investment in the downstream in excess of N50 billion, creating thousands of employments opportunities.
She added that the ministry introduced Double-Three-Two (3-3-2) inspection system to monitor products imports which allows PPPRA to confirm vessel arrival quantities; vessel discharged quantities, and the quantities physically trucked-out of the depots.
She however stressed that the significant achievements made in 2012 by the initiative and in order to ensure reasonable cost savings on operational activities, the inspection system was revised to Two- One-Two (2-1-2) in 2013.
In order to further eliminate the risk of round-tripping which was common before her coming on board as a minister, Madueke said a ban on cargo from storage tanks in West African Coasts, except refineries and blending plants, had been imposed.
The Minister said the first in history products stock-taking exercise carried out January 1 and 16, 2012 was to determine the 2011 end-of-year closing and 2012 opening stock, for the purpose of accurate calculation of national product consumption figures.
She said requirements for import documents such as Letters of Credit, Bill of Lading, Form-M, DPR License, Shore Tank Certificates, etc, have been tightened thereby eliminating risks of Bill of Lading manipulation, and ensuring integrity of products discharge data to justify subsidy payments.
The monthly import performance review meetings to resolve marketers’ complaints through mediation has helped greatly to restore marketers’ confidence in the light of the subsidy removal debate and budget approval uncertainties, thus ensuring seamless product supply to the nation, she said.
To meet government aspiration of achieving 40 billion barrels of oil reserves and 4 million barrels of oil per day production, the Minister said there have been increased exploration activities in the Offshore, Onshore and Inland Basins. A total of 19 exploration wells, 93 developmental wells and 33 walkover wells are being drilled to various degrees of successes under Joint Venture (JV) or Products Sharing Contracts (PSC) arrangements. Intense exploration activities in Anambra, the Chad Basins, Benue, Bida and Sokoto are on-going, she stated.
She also touched on the NPDC operated SPDC divestment and transfer of government equity to NPDC. This divestment in the upstream by SPDC/Total and Agip created an opportunity for participation by the Nigerian upstream players.
Information from Daily Independent was used in this report.