NNPC, IOCs undertake Audit of Nigeria’s Joint Venture Assets

NNPC Towers16 August 2016, Abuja – The Nigerian National Petroleum Corporation (NNPC) said that it has commenced the audit of Nigeria’s joint venture (JV) assets in collaboration with the international oil companies (IOCs), with a view to determining the current real value of the assets.

The corporation also stated that its ongoing review of the Production Sharing Contracts (PSCs) would soon be concluded to help the country negotiate favourable PSC terms afterwards.

According to the June 2016 monthly financial report of the corporation’s activities, Nigeria produced a total of 52.34 million barrels of oil and condensate, representing a daily production peg of 1.69 million barrels and 12.12 per cent drop in production for the penultimate month.

The report, which was released recently in Abuja, further stated that within the period, PSC share of the country’s production was the highest at 52.29 per cent, followed by joint venture – 27.63 per cent.

Crude oil production from Alternative Finance, Nigerian Petroleum Development Company (NPDC) and independents represented 12.82 per cent, 2.23 per cent, and 5.03 per cent respectively.
“The Corporation is collaborating with IOCs to carry out value-for-money audit on all the federation’s joint ventures with a view to business process improvement on projects execution.
“NNPC is also currently reviewing existing Production Sharing Contracts (PSC) to negotiate more favorable terms and improve the revenue base to the federation,” said a section of financial report.

The report further explained : “A total of 52.34 million barrels of crude oil and condensate was produced in the month of May 2016, representing an average daily production of 1.69 million barrels.”

“This represents a decrease of 12.12 per cent compared to April 2016 performance. Of the May 2016 production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 27.63 per cent and 52.29 per cent respectively. While AF, NPDC and Independent accounted for 12.82 per cent, 2.23 per cent and 5.03 per cent respectively,” it added.

It further stated that the NPDC cumulative production to date figure – from June 2015 to May 2016, from all fields amounted to 30,779,729 barrels which translated to an average daily production of 84,098 barrels.

“Comparing NPDC performance to national production, the company production share amounted to 2.23 per cent. NPDC production continued to be hampered by the incessant pipeline vandalism in the Niger-Delta.

“NPDC is projected to ramp-up production level to 250,000 barrels per day (bpd) after the completion of the on-going NPDC re-kitting project and repairs of vandalised facilities,” it stated.

“Production from assets operated by the NPDC amounted to 10,382,016 barrels or 33.73 per cent of the total production with Okono Okpoho (OML 119) alone producing 82.74 per cent of the NPDC’s operated output or 27.91 per cent of the total NPDC total production.

“Also on the NPDC operated JV assets, in which NPDC own 55 per cent controlling interest, crude oil production amounted to 11,570,117 barrel or 37.59 per cent of the NPDC total production. On the non-operated assets, production level stood at 8,827,596 barrels or 28.68 per cent of the company production,” the report explained.

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