Oil & Gas

NNPC Records Crude Oil and Gas Export Sale of $470m in August

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The Nigerian National Petroleum Corporation (NNPC) has said that crude oil and gas export sale by the corporation in August 2018 was $470million, indicating an upsurge of about $78million in relation to July oil and gas export figures of $391.91million.

NNPC Monthly Financial and Operations report for August 2018 released today in Abuja by the corporation’s Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, indicated that crude oil export sales contributed $337.62 million which represents 71.83 per cent of the dollar transactions compared with $283.43million contribution in the previous month.

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

It 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, it stated, amounted to $336.43 million, while gas and miscellaneous receipt stood at $101.33million and $12.48million respectively.

A further breakdown of the figures showed that out of the export receipts, $142.31million 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 & gas receipt for the period August 2017 to August 2018 stood at $5.23billion 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 N128.40billion 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, the NNPC explained that the Federation Crude Oil & Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into Equity Export and Domestic crude which are lifted and marketed by corporation and the proceeds remitted into the Federation Account.

It 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).

The corporation explained that domestic crude oil of 445,000bopd 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 & management costs incurred during the period.

The August 2018 NNPC Financial and Operations Report is the 37th in the series.

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