Lagos — Nigeria raked in an average $11 on each barrel of crude oil exported in May this year.
Statistics from the state oil firm, the Nigerian National Petroleum Corporation, NNPC’s financial report for June, showed that each barrel of crude oil exported was sold at an average price of $71.51 per barrel compared with the $60 per barrel budgeted in its 2019 N8.92 trillion national budget.
In May 2019, a total volume of 58.55 million barrels of crude oil and condensate was lifted by all parties (IOCs and NPDC).
Out of this volume, 15.66 million barrels were lifted by NNPC on behalf of the federation. This comprises 11.54 million barrels lifted on the account of NNPC (domestic and federation export) while 3.22 million barrels and 0.90 million barrels were superintended for the Federal Inland Revenue Service, FIRS and the Department of Petroleum Resources, DPR respectively.
Of the 11.54 million barrels lifted on the account of NNPC in May 2019, 8.07 million barrels and 3.47 million barrels were for domestic and export markets respectively.
At an average oil price of $68.97/barrel and an exchange rate of N305.95/$, the domestic crude oil lifted by NNPC was valued at $556,610,864 or a naira equivalent of N170,295,093,943.29 for the month of May 2019.
The remaining crude oil lifted for export was valued at $248,220,441 at an average price of $71.51/barrel.
The total value of crude oil lifted on the account of NNPC in May 2019 was a total of $804,831,305.
From May 2018 to May 2019, a total volume of 759 million barrels of crude oil and condensate was lifted by all parties.
In May 2019, NNPC lifted 8,069,842 barrels of crude oil for domestic utilization translating to an average volume of 260,317 barrels of oil per day in terms of performance.
In order to meet domestic product supply requirement for the month of May 2019 about 7,639,752 barrels were processed under the Direct-Sales-Direct Purchase, DSDP scheme while 430,090 barrels were delivered to the domestic refineries for processing.
Although the 2019 national budget was set at 2.3 million barrels per day production, however, Nigeria is still in a way, restricted by the current production of 1.7 million barrels per day ceiling OPEC cuts.
International benchmark price, Brent currently stands at $60.
Apart from less output due to OPEC cuts, theft also bars the country from earning more from its production, as the country lost a total of 22 million barrels of crude oil to theft in the first six months of this year, according to the Governor of Edo State, Mr. Godwin Obaseki, who also doubles as the Chairman of the Ad-hoc Committee of the National Economic Council on Crude Oil Theft, Prevention, and Control.
According to him, if nothing was done to curtail the ugly trend, the figure could double by the end of the year.
OPEC boosts production
A boost in production by the Organisation of the Petroleum Exporting Countries in August, shows members are looking to increase earnings.
OPEC members had increased output by 80,000 barrels per day in August.
A Reuters survey obtained by SweetcrudeReports showed that the increase came from Iraq and Nigeria.
The Group’s current production stands at 29.61 million barrels per day, 80, 000b/d over July’s.
Iraq and Nigeria lifted production by 80,000 barrels per day and 60,000 barrels per day respectively.
The 60, 000 barrels per day increase in output by Nigeria puts its production at over 2 million barrels last month, probably still edging towards the 2.3 million barrels 2019 target.
On a flip, OPEC’s monthly statistics update showed that Nigeria had increased production by 146, 000 barrels per day in July.
OPEC said the country boosted output from 1,649b/d in May, to 1,802b/d in June, and then 1,948b/d in July.