The Auditor-General’s report on the general management of petroleum funds for the period of January 1 to December 31, 2022, revealed that the government failed to retrieve a total of US$2,774,067 in surface rentals from 12 oil companies.
According to the report, the total estimated proceeds for surface rentals for the period amounted to US$3,461,825.95, but only US$687,759 was received from the defaulting oil companies.
“Total Surface Rentals outstanding as of December 31, 2022, remains at US$2.77 million (2021: US$2.60 million) due from 12 out of the 18 operating companies. Among the 12 debtors, eight companies have existing petroleum agreements, while the remaining four had their agreements terminated,” the report stated.
The Auditor-General’s review of correspondence from the Petroleum Commission indicated that the total estimated proceeds for surface rentals at the end of the reporting period were US$3,461,825.95. This amount comprises US$882,655 for the 2022 financial year and US$2,579,171 for prior outstanding amounts.
The report further detailed that a total of US$687,759 was received from oil companies for surface rental operations in 2022. However, US$71,935 of the received amount related to terminated contracts.
“As of December 31, 2022, the total amount due from surface rentals was US$2,774,067, representing 80% of the 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,” the report added.
