A Review of the Nigerian Energy Industry

NNPC records $470 million from crude oil & gas export in August

*Crude oil supply tanker.

Ike Amos

08 November 2018, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation (NNPC) Wednesday, declared that it recorded crude oil and gas export sale of $470 million in August 2018, indicating an upsurge of about $78 million in relation to July oil and gas export figures of $391.91million.

In a statement on its Monthly Financial and Operations report for August 201
8 released in Abuja, Group General Manager, Group Public Affairs of the NNPC, Mr. Ndu Ughamadu, indicated that crude oil export sales contributed $337.62 million which represents 71.83 percent of the dollar transactions compared with $283.43 million contributions in the previous month.

Ughamadu noted that export gas sales during the period amounted to $132.38 million, adding that the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth $5.26billion.

He further explained that based on the above sales figures, a total export receipt of $450.24 million was recorded in August 2018 as receipt against $382.65million in July 2018.

Contribution from crude oil during the period, he stated, amounted to $336.43 million, while gas and miscellaneous receipt stood at $101.33 million and $12.48 million respectively.

He said, “A further breakdown of the figures showed that out of the export receipts, $142.31 million was remitted to the Federation Account, while $307.93 million was remitted to fund the JV cost recovery for the month of August 2018 to guarantee current and future production.

“Total export crude oil and gas receipt for the period August 2017 to August 2018 stood at $5.23 billion out of which $3.74 billion was transferred to JV Cash Call as first line charge and the balance of $1.49 billion paid into the Federation Account.

“On naira payments to the Federation Account, the report informed that NNPC transferred N128.40 billion into Account for the month under review.

“It was also explained that from August 2017 to August 2018, the Federation and JV received N879.02billion and N651.4billion respectively.”

Providing insight into the corporation’s remittances to the national treasury, Ughamadu explained that the Federation Crude Oil and Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into Equity Export and Domestic crude which are lifted and marketed by the corporation and the proceeds remitted into the Federation Account.

He informed that Equity Export receipts, after adjusting for Joint Venture, JV, Cash Calls, are paid directly into the Federation Account domiciled in Central Bank of Nigeria, CBN.

Ughamadu explained that domestic crude oil of 445,000 barrels of oil per day (bopd) was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC after adjusting crude & product losses and pipeline repairs and management costs incurred during the period.

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