â¢ Crude oil revenues increase 500% from the previous month
â¢ Company loses 1.88 million barrels due to closures
By Emmanuel Addeh
The Nigerian National Petroleum Corporation (NNPC) reported gross sales of 222.3 billion naira, excluding statutory and mandatory deductions in November 2020, the latest figures from the national oil company said.
Documents presented by the company, detailing its activities at the Federation Accounts Allocation Committee (FAAC) meeting on December 15-16, 2020, showed that after months of declining crude oil exports and prices brought on by the COVID-19 pandemic, November’s revenue saw about a 500 percent increase as prospects for an effective vaccine gained ground.
Despite the increase, however, many company-owned debit stations have experienced shutdowns, due to unforeseen circumstances and deliberate shutdowns for routine maintenance.
For example, the Batan debit station went down for six days from October 12, due to staff protests against non-payment of wages, resulting in the closure of 240,000 barrels for days the disruption took. persisted, while for Okono, routine production and maintenance operations led to the shutdown of a cumulative 82,281 barrels over the period.
On October 20, an unscheduled downtime occurred at the Yoho flow station due to a low pressure discharge on the pump, resulting in 210,000 total losses; that is, 30,000 barrels per day for the seven days it lasted.
Erha, Agbami and Pennington also closed for various reasons in October, resulting in losses of 180,000, 392,000 and 558,000 barrels respectively during plant shutdown periods.
The story was no different for Escravos, which lost 27,900 barrels of crude oil during the 31 days it was closed for maintenance, while the Clough Creek flow station in Brass was also closed due to leaks for 14 days.
In total, Nigeria lost around 1.882 million barrels of crude oil in October for various periods of plant outages, including Bonny, Ugo Ocha, Antan, Okwori and Ima.
For the summary of receipts and remittances due for November 2020, NNPC figures showed gross revenues of JV crude oil to be N 197.3 billion, JV gas was N 11.2 billion. of N, miscellaneous was N 13.7 billion, totaling N 222.3 billion gross income for the month.
In terms of the joint venture’s contribution to the federation’s account, royalties paid were N 27.8 billion, taxes N 38.2 billion and profits N 9 billion with a total contribution from the government. joint venture to 75.1 billion naira, plus PSC / miscellaneous of 13.7 billion naira, amounting to about 88.9 billion naira of total contribution to the Federation account for November.
In addition, during the month under review, pipeline and management costs exceeded 3.67 billion naira, with a breakdown showing 2.1 billion naira for repairs to pipelines and other facilities; 951.4 million naira for maritime distribution and 551.7 million naira for strategic holding.
Overall, the summary of activities for the period revealed that in terms of revenue Nigeria exported crude oil worth 27.7 billion naira (about 73 million dollars at the official exchange rate of 379 naira to the dollar).
The country got 11.2 billion naira from the NLNG base gas, equivalent to 29.6 million dollars, while total oil and gas export earnings were 39 billion naira, or about $ 102.9 million.
For deductions, cost recovery from the joint venture was N 103 billion; losses of crude oil and products were 1.28 billion naira, with the total deductions set at 108 billion naira and the total available for payment and remittance amounting to 114.3 billion naira or 52 , $ 4 million.
âNNPC’s overall crude oil extraction of 12.21 mbbls (export and domestic crude) in October 2020 recorded an increase of 38% from the 8.79 mbbls raised in September 2020.
âCrude oil export earnings received in November amounted to $ 73.27 million, or N27.78 billion. This represents a 500 percent increase from October 2020, while domestic gas revenue in the month was 3.2 billion naira.
âRaw materials valued at $ 33.75 million were sold to NLNG during the period, of which $ 29.7 million was received during the month. The difference being MCA (Modified Carrying Agreements) obligations, gas reconciliation and credit ratings, âthe document says.
The NNPC also reported $ 22.8 million, comprising miscellaneous revenue, gas and trough charges, and interest income received in November 2020.
In October, figures for the completed cycle, which is usually delayed by one month, put oil export earnings received at $ 12.38 million, equivalent to N 4.6 billion, one of the lowest revenues. lowest ever, representing an 85% drop in revenue. for September.