The Nigerian National Petroleum Corporation (NNPC) earned $239.10 million from the export of crude oil and gas in November, 2017. The sales record was released in the November 2017 edition of the Monthly NNPC Operations and Financial Report which also showed that its earnings for the month were 25.68 per cent lower than the previous month. The breakdown showed that Crude oil export sales contributed $113.97 million (or 47.7%) of the dollar transactions compared with $227.83 million contribution in the previous month.
The NNPC, in a statement on its Monthly Financial and Operations Report for November 2017, stated that the crude oil and gas export figure in November was 25.68 per cent lower than the previous month’s performance. Giving a breakdown of the figures, the NNPC declared that crude oil export sales contributed $113.97 million, or 47.7 per cent of the dollar transactions compared with $227.83 million contribution in the month of October 2017. It added that export gas sales amounted to $125.13 million during the period, while it added that crude oil and gas export from November 2016 to November 2017 stood at $3.73 billion.
It said, “Under US Dollar Payments to Joint Venture Cost Recovery & Federation Account, a total export receipt of $201.11 million was recorded in November 2017 as receipt against $277.50 million in October, 2017. “Contribution from crude oil amounted to $147.39 million while gas and miscellaneous receipt stood at $50.17 million and $3.55 million respectively. Of the export receipts, $121.75 million was remitted to Federation Account while $56.56 million was remitted to fund the JV cost recovery for the month of November, 2017 to guarantee current and future production.
“A broader breakdown revealed that total export crude oil and gas receipt for the period of November, 2016 to November, 2017 stood at $3.73 billion. Out of which the sum of $2.60 billion was transferred to Joint Venture, JV, Cash Call as first line charge and the balance of $0.85 billion was paid into the Federation Account.” The NNPC further stated that it earned N135.14 billion from domestic crude oil and gas sales in the month under review, consisting of N127.93 billion from domestic crude oil, the sum of N7.21billion from domestic gas.
According to the NNPC, out of the naira receipt, the sum of N54.16 billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account. “On the receipt from net domestic crude oil and gas, NNPC transferred the sum of N54.16 billion into Federation Account and N80.98 Billion to JV cash Call for the month under review. From November 2016 to November 2017, Federation, JV, and FG for debt repayment received the sum N865.59Billion, N726.11Billion and N31.65 Billion respectively,” it added.
The explained that Federation Crude Oil and Gas liftings are broadly classified into Equity Export and Domestic, adding that both categories are lifted and marketed by NNPC and the proceeds remitted into the Federation Account. It noted that Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into Federation Account domiciled in Central Bank of Nigeria (CBN).
It said, “Domestic Crude Oil of 445,000 barrels of oil per day (bopd) is allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management cost incurred during the period.
“NNPC also lifts Crude Oil and Gas, other than Equity and Domestic Crude Oil, on behalf of DPR and FIRS proceeds of which are remitted into Federation Account. The Third Party finance lifting are crude oil and gas lifting from fields that are financed using alternative finance/loan facility which require the servicing of debt obligations before remitting the balance into the Federation Account as Price Balance.”
