NNPC earns N1.554 trillion from oil export

By Oke Peter

Nigeria’s oil and gas sector recorded total revenue of $4.29billion (N1.554trillion) from exports between January 2017 and January 2018.On a monthly basis, total export sale of $439.60million was recorded in January 2018, representing 1.79 per cent lower than the previous month.

The Nigerian National Petroleum Corporation (NNPC), which made this known in its January financial report released recently, said total export receipt of $434.12million was recorded in January 2018 against $476.25million in December 2017.

It disclosed that contribution from crude oil amounted to $305.76 million while gas and miscellaneous receipt stood at $113.14million and $15.22million respectively. Of the export receipts, $106.68million was remitted to the Federation Account, while $327.44million was remitted to fund the Joint Venture (JV) cost recovery for January, to guarantee current and future production.

NNPC stated that the domestic crude oil and gas receipt during the month amounted to N111.74billion, consisting of N108.98billion from domestic crude oil, and N2.75billion from domestic gas.

It also revealed that the Corporation had signed two sets of alternative financing agreements with NNPC/Chevron Nigeria Limited (CNL) JV, and NNPC/Shell Petroleum Development Company (SPDC) JV on Joint Venture (JV) projects expected to generate incremental revenues of about $16billion within the assets’ life cycle.

These will engender a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power, and rejuvenate Nigeria’s industrial capacity utilisation.

Meanwhile, the petrol distribution sector generated total revenues of N1.717trillion from the sale of Premium Motor Spirit (PMS), from January 2017 to January 2018.This is even as products theft and vandalism, continued to destroy value, and put NNPC at a disadvantaged competitive position, as a total of 1336 vandalised points were recorded year-on-year to January 2018.

“The Corporation has also stepped up the resuscitation of some of its critical pipelines and depots such as the Ejigbo depot, the Atlas Cove-Mosimi Depot Pipeline, Port Harcourt Refinery-Aba Depot Pipeline, Kaduna–Kano Pipeline, and the Kano Depot, which have enhanced efficiency in products distribution.

“The Corporation is inching closer to choosing financiers for the Port Harcourt Refining Company Limited, Warri Refining and Petrochemical Company Limited, and Kaduna Refining and Petrochemical Company Limited towards a 90 per cent capacity utilisation per stream day before the end of 2019,” it added.

The Group Managing Director, NNPC, Maikanti Baru, disclosed recently that the Corporation will soon diversify its revenue inflow, using Nigeria’s enormous gas resources to mitigate the impacts of future declining crude oil prices, industrialisation viz – Gas to Power, Gas to Urea, Methanol and Fertilizers among others uses.

Furthermore, NNPC said the recently approved contract for the construction of Ajaokuta-Abuja-Kaduna-Kano (AKK) Gas Pipeline project, has started yielding early benefits with the commitment by NNPC to build power generating plants with combined capacity of 3600MW in Abuja, Kaduna, and Kano states.