NNPC earns $239.10 m from Nov crude sales

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By Sopuruchi Onwuka

Nigerian National Petroleum Corporation (NNPC) declared receipt of $239.10 million in the month of November, 2017 from crude oil and gas export.

Spokesman, Ndu Ughamadu, said the figure is 25.68 percent lower than the previous month performance.

The breakdown also showed that Crude oil export sales contributed $113.97 million or 47.7% to the earnings compared with $227.83 million contribution in the previous month.

Also the gas export amounted to $125.13 million during the period. A broader analysis of sales from November 2016 to November 2017, however indicated that crude oil and gas worth $3.73 billion was exported.

Under dollar payments to Joint Venture Cost Recovery and Federation Account, a total export receipt of $201.11 million was recorded in November 2017 against $277.50 million in October, 2017.the corporation stated.

NNPC said contribution from crude oil amounted to $147.39 million while gas and miscellaneous receipt stood at $ 50.17 million and $3.55 million respectively. Of the export receipts, $121.75 million was remitted to Federation Account while $56.56 million was remitted to fund the JV cost recovery for the month of November, 2017 to guarantee current and future production.

A broader breakdown revealed that total crude oil and gas export receipt for the period of November, 2016 to November, 2017 stood at $3.73 billion. Out of which the sum of $2.60 billion was transferred to JV Cash Call as first line charge and the balance of $0.85 billion was paid into Federation Account.

On Naira Payments to Federation Account, the report indicated that domestic crude oil and gas receipt during the month amounted to N135.14 billion, consisting of N127.93 billion from domestic crude oil, the sum of N7.21billion from domestic gas. Out of the Naira receipt, the sum of N54.16 billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge,

On the receipt from net domestic crude oil and gas, NNPC transferred the sum of N54.16 billion into Federation Account and N80.98 Billion to JV cash Call for the month under review. From November 2016 to November 2017, Federation, JV, and FG for debt repayment received the sum N865.59Billion, N726.11Billion and N31.65 Billion respectively.

The Oracle Today reports that federation crude oil and gas liftings are broadly classified into equity export and domestic. Both categories are lifted and marketed by NNPC and the proceeds remitted into the Federation Account.

Equity ereceipts, after adjusting for JV cash calls, are paid directly into federation account domiciled in Central Bank of Nigeria (CBN). Domestic refinery crude oil allocation of 445,000 barrels per day bpd is meet domestic products supply. NNPC pays for domestic crude after adjusting crude and product losses, pipeline repairs and management cost incurred during the period.

NNPC also lifts crude oil and gas, other than equity and domestic crude oil, on behalf of Department of Petroleum Resources (DPR) and Federal Inland Revenue Service (FIRS). The proceeds of the liftings are remitted into Federation Account.

The Third Party finance lifting are crude oil and gas lifting from fields that are financed using alternative finance and loan facility which require the servicing of debt obligations before remitting the balance into the Federation Account as Price Balance.

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