Home Uncategorized Economy NNPC remits US$502m to government
Economy - News - Thematterspress - May 6, 2019

NNPC remits US$502m to government

NNPC

Baru, NNPC boss

The Nigerian National Petroleum Corporation (NNPC) transferred US$502 million (N153.01 billion) into the federation account in January, the corporation said in its Financial and Operations Report for the month.

“Cumulatively, from January 2018 to January 2019, Federation and JV received US$2.9 billion (N905.45 billion) and US$2.2 billion (N658.66 billion) respectively, under the column of Naira Payments to the Federation Accounts,’’ NNPC said in the report.

The corporation also said that it made a trade surplus of US$49.2 million (N15.04 billion) for January 2019, an increase of 24 per cent over the US$39 million (N12.13) billion surplus posted by the corporation in December 2019.

It attributed the positive financial position to the improved performance of NNPC’s upstream subsidiary, Nigerian Petroleum Development Company (NPDC) which recorded surplus numbers in spite reduced operational activities in the month.

The report submitted that NPDC’s sustained revenue drive, evident from recent average weekly production of 332,000 barrels of Crude oil per day.

The report noted that this has made achieving 500,000bpd production by 2020 plausible.

According to the report, the NPDC’s position contrasts with the high expenditure levels posted by two other entities of NNPC, the Petroleum Products Marketing Company (PPMC) and Duke Oil, although both ended the month with profit.

In terms of sales and remittance of crude oil and gas proceeds, the corporation recorded a total export receipts of 381.70 million dollars in the month under review as against 345.68 million dollars posted in December 2018.

A breakdown of the numbers indicated that contributions from crude oil amounted to 269.43 million dollars, while gas and miscellaneous receipts stood at 111.75 and 0.52 million dollars.

On petrol supply, 1,998.61 million litres of petrol was supplied into the country through the Direct-Sale-Direct-Purchase (DSDP) crude-for-product arrangement in the month under review..

The number was slightly higher than the 1,789.20million litres of petrol supplied in the month of December 2018.

On pipeline vandalism, the corporation recorded 230 hacked pipeline points, leaving only two ruptured.

This marks 11 per cent improvement from the 264 vandalised points posted in December 2018.

A breakdown indicated that Mosimi-Ibadan, Ibadan-Ilorin and Aba-Enugu pipelines accounted for 67, 62 and 30 points which translated to 29 per cent, 27 per cent and 13 per cent of the vandalised points.

“The Warri-River Niger axis accounted for 10 per cent and other locations accounted for the remaining 21 per cent of the pipeline breaks,’’ the report stated.

On the gas sector, natural gas production increased by 2.22 per cent at 245.83billion cubic feet compared to output in December 2018, translating to an average production of 8,194.34 million standard cubic feet of gas per day (mmscfd).

According to the report, out of the volume supplied in January 2019, a total of 151.50bcf of gas was commercialised, consisting of 38.03BCF and 113.47 BCF for the domestic and export market.

The figure translates to a total supply of 1,226.83 mmscfd of gas to the domestic market and 3,780.24 mmscfd of gas supplied to the export market for the month.

This implies that 61.73 per cent of the average daily gas produced was commercialised, while the balance of 38.27 per cent was re-injected, used as upstream fuel gas or flared.

The report disclosed that gas flare rate was 7.52 per cent for the month under review; translating to 610.07mmscfd compared with average gas flare rate of 9.76 per cent, that is 770.31 mmscfd for the period January 2018 to January 2019.

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