A Review of the Nigerian Energy Industry

‎Oil revenues hit hard by price drop, report shows

Oscarline Onwuemenyi 15 October 2015, Sweetcrude, Abuja – The monthly report on the activities of the Nigerian National Petroleum Corporation (NNPC) has revealed the adverse effects of the fall in global oil prices and its impact on revenues over the last year.
crude-oil-pipe-702x336-436x336Specifically, the report showed how proceeds from the country’s oil receipts fell by two-thirds between September 2014 and July this year.

“The dwindling oil price has negatively affected the dollar contribution to the federation account.
“The receipts witnessed a sharp decline of more than 67 percent from September 2014, when the receipt was at its peak, to July 2015 with dire consequences to the federation,” the report said.
The report showed that total receipts for crude oil and gas exports between January and August 2015 were $3.4 billion.
The NNPC has begun the monthly publication of provisional financial and operational reports after new Group Managing Director, Emmanuel Kachikwu pledged to introduce the approach as part of a drive to crackdown on corruption in the oil sector.
“Illustrated with tables, graphs and charts, the report vividly throws light into aspects of NNPC’s operations that were once described as ‘opaque’,” said NNPC spokesman Ohi Alegbe in a statement to Sweetcrude Reports.
Of the total receipts, $608 million was remitted to the federation account as dollar proceeds while the balance of $2.8 billion was used to fund joint venture cash calls for that period.
The monthly report further revealed that from January to July 2015, a period of seven months, Nigeria produced 445 million barrels (mb) of crude oil and condensates.
The report also showed that within the same period, a total of 1,677 billion cubic feet (bcf) of gas was produced by the country and sold in the domestic and export markets.
According to the Corporation, the report provides the Nigerian public with reliable information that gives an overview of NNPC’s operations across the oil and gas value chain – upstream, midstream and downstream, as well as its responsibilities on behalf of federal government.
It therefore explained that a total of 67.49 million barrels of crude oil and condensate was produced in July 2015, translating to an average daily production of 2.177 million barrels per day (mbpd).
An aggregate 445 million barrels of oil was produced from January to July 2015, representing an average daily production of 2.099 million barrels for the same period.
NNPC noted that leading the production ratio are productions from Joint Ventures (JVs) and Production Sharing Contracts (PSC), which contributed up to 31.5 per cent and 42 per cent respectively to the total production.
A breakdown of the production figures showed that in January 68,066,511 million barrels and 2,195,694 million barrels per day (bpd) were produced; February had 61,860,923 million barrels and 2,209,319 mbpd, March- 64,156,149mb and 2,069,553 mbpd, while April had 60,841,276mb and 2,028,043mbpd.
For the month of May, production figures of 63,489,099mb and 2,048,035mbpd were reported.
Hydrocarbon production however dipped slightly to 59,086,856mb and 1,969,562mbpd in June, and picked up to 67,499,556mb and 2,177,405mbpd in July.
The production contributory figures of the JVs, PSCs, Alternative financing/Modified Carry Agreement (Af/MCA), Nigeria Petroleum Development Company (NPDC) and Independents/Marginal Fields were 140,055,983mb, 186,758,427mb, 71,991,769mb, 23,017,244mb and 23,176,947mb, respectively.
For gas, NNPC said that a total amount of 225 bcf of natural gas was produced for the month of July 2015 translating to an average daily production of 8,233 mmscf/d.
From January to July 2015, a total of 1,677bcf of gas was produced representing an average daily production of 7,908mmscfd for the same period was produced.
As usual, productions from JVs and PSC contributed the most at 69.6 per cent and 22 per cent respectively to the total national gas production.
On crude oil lifting, it explained that a total volume of 439mb of crude oil and condensate was lifted by all parties from January to July 2015, all of which yielded $25,105,265,317 billion.
It noted that for the month of July, a total volume of 63.7 million barrels of crude oil and condensate was lifted in the month of July 2015 by all parties.
“Out of this volume, 25.2 million barrels was lifted for and on behalf of the federal government of Nigeria, comprising of 17.4 million barrels lifted on the account of NNPC and 7.8 million barrels lifted on the account of FIRS. The 17.4 million barrels lifted on the account of NNPC in July comprises of 15.4 and 1.9 million barrels for the domestic and export markets respectively.”
“At an average oil price of $51.97/bbl and exchange rate of N195.95/$, the domestic crude oil lifted by NNPC is valued at $805,220,701 or a naira equivalent of N157, 782,872,917 for the period.
“The remaining crude oil lifted for export was valued at $108,916,802.23 at an average price of $56.76/barrel. The total value of crude oil lifted on the account of NNPC in July was thus $914, 136, 873,” the report further showed.


In this article

Join the Conversation