#PIB
Let me shock the "activists" comparing headline 3% host community fund vs 30% frontier exploration fund.
3% HCF > 30% FEF
The base for latter is prior year operating cost of ALL oil and gas companies (HOR version: 5% for upstream, 2% for midstream and downstream).
Let me shock the "activists" comparing headline 3% host community fund vs 30% frontier exploration fund.
3% HCF > 30% FEF
The base for latter is prior year operating cost of ALL oil and gas companies (HOR version: 5% for upstream, 2% for midstream and downstream).
There are over 100 oil companies in Nigeria, including IOCs( Shell, Chevron, Exxon etc). NNPC is also included.
The FEF fund is only to be remitted by one company - NNPC Limited.
So you can see that 3% of 100 companies' OPEX can be > 30% of one company's profit oil.
The FEF fund is only to be remitted by one company - NNPC Limited.
So you can see that 3% of 100 companies' OPEX can be > 30% of one company's profit oil.
I still hold that 30% is a big cut for any single activity, so not in support of the rate for FEF, but please that thing I have been seeing that "3% for the South, 30% for the North, is simplistic!
It doesn't work that way.
It doesn't work that way.
The base of the former*
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