Nigeria/EITI

NEITI Audits: First Hydrocarbon, AMNI, Lekoil Among Least Compliant Coys

A report released on Wednesday by the Nigerian Extractive Industries Transparency Initiative (NEITI) has ranked First Hydrocarbon Nigeria Ltd, Lekoil Ltd and AMNI International Petroleum Ltd among companies that complied the least, with NEITI’s 2019 oil and gas sector audit process.

The assessment examined the level of compliance by entities to the data gathering component of the audit process with focus on two indicators namely; template timeliness and template completeness.

While timeliness looked at submission of templates within the agreed deadline, completeness focused on submission of all templates applicable to each entity.

The exercise evaluated participating companies and government agencies on a scale of 0% to 100% using the two indicators mentioned above. While 0% shows total non-compliance with the data collection process for the audit, 100% indicates total compliance with the data collection process.

Analysis of the compliance report showed that 49 entities, representing 68% of the 72 entities covered, attained the maximum score of 100%. Entities in this ranking include Sterling Oil, Agip, Nigeria LNG, Shell, Newcross E&P, Dubril, Eroton E&P, Frontier Oil, Niger Delta Petroleum among others.

 

You may also be interested: Report: How Companies Complied With NEITI 2019 Oil, Gas Sector Audit

 

A further analysis of the report by extractive360 showed that the Federal Inland Revenue Service (FIRS) scored 95%, the Nigerian National Petroleum Corporation (NNPC) scored 93% while the Federal Ministry of Finance scored 50%.

In the bottom five are First Hydrocarbon Nigeria Ltd (20%), AMNI International Petroleum Ltd (18%), while Lekoil Ltd, Express Petroleum & Gas Company Ltd, and Engaged Resources were in bottom three scoring 0% respectively.

Meanwhile, NEITI has commended companies and government agencies covered by the audit exercise for improved compliance in their submission of the audit templates used for data gathering.

Executive Secretary of NEITI, Waziri Adio, gave the commendation while releasing the report of the compliance assessment in Abuja.

“The data submission compliance rate for the 2019 oil and gas audit is very impressive,” said Mr. Adio. “It is remarkable not just because of the massive improvement across the board but also because this improved compliance happened with all the restrictions imposed by COVID19. This underscores the strong commitment of the affected companies and the government agencies. We commend them and urge them to keep it up,” Adio said.

NEITI’s first compliance exercise focusing on the 2015 oil and gas industry audit cycle was published in August 2017. A comparative analysis of the assessment scores for the 2015 and 2019 oil and gas data submission exercise showed improved compliance among covered entities.

In 2019, 49 entities (out of 72) scored 100% in the compliance score, while 14 entities (out of 65) scored 100% in 2015. Thus, 68% of the covered entities fully complied in 2019, while 21.54% fully complied in 2015.

“With 68% of entities fully compliant in 2019, as opposed to 21.54% of entities in 2015, full compliance improved by over 200% between 2015 and 2019,” NEITI said in the report.

Further breakdown shows that nine entities retained their 2015 compliance scores of 100% in 2019, while three entities moved from 0% in 2015 to 100% in 2019. The report also revealed that 14 entities recorded a drop in their compliance scores. The biggest drop was from 88% in 2015 to 0% in 2019.

NEITI has reiterated that its plan to release the 2019 report this year is on course, as the data gathering, data validation and reconciliation stages of the exercise have been concluded.

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