Report: NNPC Paid N1.118tn to Federation Account in One Year

• NPDC lost N20bn oil revenue in March

By Chineme Okafor in Abuja

The March 2016 edition of the monthly financial and operation report of the Nigerian National Petroleum Corporation (NNPC) has shown that the corporation has in the last one year paid N1.118 trillion into the federation account as proceeds from sale of domestic crude oil  from March 2015 to March 2016.

The report was released at the weekend in Abuja by the corporation.

It stated among other developments that N69.544 billion was remitted into the federation account in the month under consideration.

The remittances it explained were naira proceeds from the sale of domestic crude oil and gas.

It also explained that Nigeria’s oil production for the month was 59.27 million barrels, about 2.04 million barrels per day (mbpd) which is lower than January, 2016 production of 66.49mb.

The drop it stated was occasioned by a declaration of force majeure by Shell Production Development Company (SPDC) because of the vandalised 48 inch Forcados export line which resulted in production shut-in of about 300,000bpd.

That production drop the NNPC explained also resulted to a loss of about N20 billion  oil revenue that would have been earned by its Exploration and Production (E&P) subsidiary, the Nigerian Petroleum Development Company (NPDC).

The NNPC said the production drop represents a decrease of 10.85 per cent when compared to its January 2016 performance. It added that Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 34.57 and 42.69 per cents respectively of the production volume for the month while Alternative Funding (AF), NPDC and independent accounted for 14.89, 3.13 and 4.71 respectively.

It said a total of 220.67 billion standard cubic feet (BCF) of natural gas was produced in the month, translating to an average daily production of 7.12 billion standard cubic feet per day (bscfd), and from which 896.93mmscfd was supplied to the domestic market and about 533.22mmscfd used by gas-powered plants in the country to generate an average of 2,558 megawatts (MW) of electricity.

The report further said a total volume of 774.79 million barrels of crude oil and condensate has so far been lifted by all production parties in the country from March 2015 to February 2016.

On its group operating performance, NNPC said its operating revenue for the months of February and March 2016 were 107.83 billion and 104.80 billion respectively.

It added that its operating expenditure for the same periods were N129.03 billion and N126.72 billion respectively, indicating operating deficits of N24.23 billion and N18.89 billion respectively for the months of February and March 2016.

On JV cash call, NNPC stated that total export proceeds of $141.87 million were recorded in March, 2016 and that this was swept into the JV cash call account because the 2015 approved budget requires monthly JV funding of about $615.8 million.

Apart from its retail outlets, NNPC explained that its other subsidiaries such as the National Engineering and Technology Company Limited (NETCO), Integrated Data Services Limited (IDSL), Warri Refining and Petrochemical Company (WRPC), Port Harcourt Refining Company (PHRC), Kaduna Refining and Petrochemical Company (KRPC), NPDC, Pipeline and Products Marketing Company (PPMC) as well as its corporate headquarters were still operating at loss levels.