NNPC Declares $470 Million Rise In Crude Oil & Gas Sale

Group Managing Director of the NNPC, Dr. Maikanti Baru

The Nigerian National Petroleum Corporation on Wednesday announced that its crude oil and gas export sale in August 2018 was $470m, indicating an upsurge of about $78m in comparison to July oil and gas export figures of $391.91m.

The NNPC monthly financial and operations report for August 2018, which was released in Abuja on Wednesday by the corporation’s Group General Manager, Public Affairs Division, Ndu Ughamadu, indicated that crude oil export sales contributed $337.62m, representing 71.83 per cent of the dollar transactions when compared with the $283.43m contribution in the previous month.

The report stated that export gas sales during the period amounted to $132.38m, adding that the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth $5.26bn.

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

It said the contribution from crude oil during the period amounted to $336.43m, while gas and miscellaneous receipt stood at $101.33m and $12.48m, respectively.

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

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

On naira payments to the Federation Account, the report stated that the NNPC transferred N128.4bn into the account for the month under review.

It also explained that from August 2017 to August 2018, the federation and JV received N879.02bn and N651.4bn, respectively.

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

It stated that Equity Export receipts, after adjusting for Joint Venture Cash Calls, were paid directly into the Federation Account domiciled in Central Bank of Nigeria.

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

The August 2018 NNPC financial and operations report was the 37th in the series.

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