Lagos — The Nigerian National Petroleum Corporation’s (NNPC) said it sold crude oil and gas worth $854.81 million in January 2021, dropping by 12.25 per cent compared to $974.11 million recorded in December 2020.
In a report presented to the March 2021 meeting of the Federation Account Allocation Committee, FAAC, the NNPC disclosed that total crude oil sales accounted for 89.42 per cent of the total sales in January 2021, while gas sales accounted for 1058 of total sales.
The NNPC told the committee that total crude oil sales stood at $764.38 million in January 2021, appreciating by 11.38 per cent compared to $686.23 million recorded in December 2020; while total gas sales stood at $90.42 million.
Giving a breakdown of the various components in the January 2021 oil and gas sales, the NNPC stated that Federation crude oil export sale and Domestic crude oil sale stood at $30.99 million and $326.13 million respectively; Modified Carrying Agreement oil and projects/repayment agreements oil stood at $31.04 million and $122.01 million respectively; while trial marketing crude oil sales stood at $34.84 million.
Also, the NNPC stated that the Department of Petroleum Resources (DPR) royalty oil sales stood at $219.36 million.
On the part of gas, the NNPC stated that $2.69 million and $12.78 million worth of Liquefied Petroleum Gas/Natural Gas Liquid (LPG/NGL) and Escravos Gas To Liquid (EGTL) products were sold in January; while gas sales for Nigerian Liquefied Natural Gas feedstock gas (NLNG) and project falcon stood at $52.24 million and $22.72 million respectively.
In addition, in its Monthly Financial and Operations Report for January 2021, the NNPC stated that in the gas sector, a total of 223.55 billion cubic feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7.22 billion standard cubic feet of gas per day, a 4.79 per cent increase over the output recorded in December 2020.
According to the NNPC, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836 billion cubic feet per day, equivalent to power generation of 3,415 megawatts (MW), while it noted that for the period of January 2020 to January 2021, a total of 2.97 trillion cubic feet of gas was produced representing an average daily production of 7.586 billion cubic feet of gas per day during the period.
The NNPC said, “Period-to-date production from Joint Ventures (JV), Production Sharing Contracts (PSC), and Nigerian Petroleum Development Company, NPDC, contributed about 65.20 per cent, 19.97 per cent and 14.83 per cent respectively to the total national gas production.
“Out of the total gas output in January 2021, a total of 149.24 BCF of gas was commercialized consisting of 44.29 BCF and 104.95 BCF for the domestic and export markets respectively. This translates to a total supply of 1.429 billion cubic feet per day of gas to the domestic market and 3.386 billion cubic feet per day of gas to the export market in the month under review.
“This indicates that 67.15 percent of the daily gas output was commercialized while the balance of 32.85 percent was re-injected, used as upstream fuel, or flared.”
The NNPC added that gas flare rate was 7.73 per cent (554.01 million standard cubic feet per day of gas) for the month under review, compared with average gas flare rate of 7.19 percent (539.69 million standard cubic feet per day of gas) for the period of January 2020 to January 2021.