By Omoh Gabriel
Nigeria earned a total of N 1.66137 trillion from the export of 142.35 million barrels of crude oil in the first quarter of 2010 just as Shell has put on hold $40 billion worth of potential investment in deepwater oil projects in Nigeria amid uncertainty over planned reforms to the energy sector. Mutiu Sunmonu, country chairman for Shell Nigeria, said it was difficult to make commitments without clarity over the terms of the Petroleum Industry Bill (PIB), legislation which will change the fiscal and regulatory framework in the oil industry in Nigeria. It however said that it has restored output at its Forcados crude export terminal, which was shut because of disruptions by armed groups in the southern Niger River delta.
On Shell investment on hold Sunmonu said “Just looking at deepwater alone, we have a portfolio of about $40 billion worth of projects but we will not be able to make a move on these until we have a landing on the PIB, That is potential investment that we are not able to sign off on at this time,” .
The federal Government had said that the PIB will make NNPC more competitive and transparent, encourage investment, promote local oil company involvement in the industry and increase gas supplies to the dilapidated domestic power sector.
Earnings from oil export in the first quarter of 2010 is almost the amount the country earned from the export of crude in the first half of 2009 which was N 1.784 trillion from the export of 230.8 million barrel of crude last year. Nigeria produced a total volume of 185 million valued at market price for $14.223 billion or N 2.1335 trillion in the first three months of 2010.
Available data at the Central Bank of Nigeria CBN, the Department of Petroleum Resources DPR, and the Nigerian National Petroleum Corporation showed that Nigeria oil export has started to show sign of improvement as it produced 2.01 million barrel per day in January, 1.98 million barrel in February and 2.10 million barrel per day in March. The figure is expected to improve further going by orders from oil importing countries that buys crude from Nigeria and the new found peace in the Niger-Delta region.
This is an improvement over the 1.75 million barrel per day lifting in the same period of last year. Vanguard investigation showed that domestic production during the period peaked at 185.64 million barrel that was sold at the prevailing prices. In January the average price sweet crude was sold was $77.62 per barrel. Crude production in January has an averaged production figure of 2.01 million barrel. While a total of 65.1 million barrels were produced, the market value was $4.836 billion for the month. On the other hand export of crude for January has a record figure of 1.56 million barrel per day amounting to $3.753 billion for the month.
According to figures obtained from CBN in January Nigeria earned a total of $3.753 billion from the export of 48.36 million as against a total of $1.663 billion earned from the export of 40.3 million barrels of crude in the same period last year. A break down of the data showed that Nigeria produced a total of 2.01 million barrel per day giving a total of 65.1 million as against the 1.75 million barrel per day and a total production of 54.25 million in 2009. While export stood at an average of 1.56 at a price of $77.62 in the first quarter of 2010 export on the average was 1.30 million barrel of crude per day at an average price of $44.95 per barrel in 2009.
In the month of February records show that Nigeria produced on the average 1.98 million barrel per day totalling 55.4 million barrels but it was 1.8 million barrels per day in 2009 with a total of 50.4 million barrels for the month. Export of crude for the month of February 2010 record showed stood at 42.84 as against a total of 37.8 million barrels for the month at the rate of 1.35 million barrels per day in the same period of 2009. In 2010 the export earnings from crude for the month of February was $3,2155704 billion against a total income of $1.758 billion in 2009. In the month of March while domestic production was at the rate of 2.10 million barrels per day, the total production was 65.1 million barrels. Export of crude for the month stood at an average of 1.65 million barrel per day amounting to 51.15 million barrels which fetched a total sum of $4.1058105 billion into the federation account at an average price of $80.27 per barrel.
Domestic production value
January $77.62, 2.01m bpd = $156.0162 per day, $ 4836.5022 million
February $75.06 1.98m bpd = $148.6188 per day $ 4161.3264 million
March $80.27, 2.10m bpd = $168.567 per day, $ 5225. 577
Total domestic production value $14,223.4056 million, N 2.1335 trn in 3 months
Volume 65.1, 55.44, 65.1 = 185.64 million barrels
Export:
January 77.62 by 1.56mpd = $ 121.0872 by 31 = $3753.7032
February 75.06 by 1.53mbpdd = $ 114.8418 by 28 = $3215.5704
March 80.27 by 1.65mbpd = $ 132.4455 by 31 = $4105.8105
Total value of crude export $ 11,075.841, N 1.66137 trn
Total volume exported 48.36mbpd, 42.84m, 51.15m 142.35 million barrels
