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Oil companies to lose operating licence over petroleum tax
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As part of the Petroleum Act, each company operating in the oil and gas sector is compelled to pay the Petroleum Property Tax (PPT) to the government of its host communities.
The law makes for the companies to operate joint venture (JV) projects with the Nigerian National Petroleum Company (NNPC).
BusinessDay checks indicated that, Rivers State received N5billion as PPT in last year’s revenue receipts, as shown in the government’s 2007 budget. The amount was the petroleum property tax for 2004/2005 paid in 2007. Also, the state government received the 2006 PPT to the tune of N3.785-billion, which was also shown in the 2007 receipts.
Governor Amaechi warned the oil companies not to use the problems in the Niger Delta as excuse to evade PPT payments to the state, under the guise that they had relocated outside the state.
He warned the companies operating in the state against using insecurity in the Niger Delta as a reason for not investing in the region.
“Rivers State would be forced to ask oil companies operating in the state to surrender their licenses to the Federal Government and re-negotiate with such companies on their suitability to do business in the state, before being offered such licenses,” Governor threatened.
Governor Amaechi was receiving at Government House, Port Harcourt, the management team of Elf Petroleum Company, French oil major, which is operating joint venture Oil Mining Leases (OML) and Oil Prospecting Licenses (OPL) projects in Nigeria for several years.
The law makes for the companies to operate joint venture (JV) projects with the Nigerian National Petroleum Company (NNPC).
BusinessDay checks indicated that, Rivers State received N5billion as PPT in last year’s revenue receipts, as shown in the government’s 2007 budget. The amount was the petroleum property tax for 2004/2005 paid in 2007. Also, the state government received the 2006 PPT to the tune of N3.785-billion, which was also shown in the 2007 receipts.
Governor Amaechi warned the oil companies not to use the problems in the Niger Delta as excuse to evade PPT payments to the state, under the guise that they had relocated outside the state.
He warned the companies operating in the state against using insecurity in the Niger Delta as a reason for not investing in the region.
“Rivers State would be forced to ask oil companies operating in the state to surrender their licenses to the Federal Government and re-negotiate with such companies on their suitability to do business in the state, before being offered such licenses,” Governor threatened.
Governor Amaechi was receiving at Government House, Port Harcourt, the management team of Elf Petroleum Company, French oil major, which is operating joint venture Oil Mining Leases (OML) and Oil Prospecting Licenses (OPL) projects in Nigeria for several years.
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