Nigeria earns N5trn from oil sales

Buhari

 

Nigeria earned $25.105 billion (about N5.021 trillion) from the sale of crude oil between January and July 2015, data obtained from the Nigerian National Petroleum Corporation (NNPC) has revealed.

This represents total earnings from crude oil sales by the Federal Government, the NNPC and oil companies and a host of others according to the NNPC Financial and Operations Report for August.

This was even as independents and marginal fields operators, despite efforts by the government to ensure an increase in their contribution to Nigeria’s crude oil production, contributed only 5.21 per cent to the country’s total oil production in the seven-month period.

Giving a breakdown of the figure, the report said the Federal Inland Revenue Service (FIRS) and the Department for Petroleum Resources (DPR) earned $1.966 billion (about N393.2 billion), and $229.668 million (N45.93 billion) respectively from Production Sharing Contract, PSC revenue.

The report further said the country earned $2.01 billion (N401.6 billion) and $5.148 billion (N1.029 trillion) from crude oil export and domestic sales of crude oil respectively.

In addition, the NNPC earned $7.156 billion (N1.43 trillion) in the period under review, while the amount accrued to the Federal Government was $9.351 billion (N1.87 trillion). Oil companies including the Nigerian Petroleum Development Company, NPDC, earned $15.077 billion or N3.02 trillion, while Alternative Finance received $676.287 million (N135.257 billion).

The report said: “A total volume of 63.7 million barrels of crude oil and condensate was lifted in the month of July 2015 by all parties. Out of this volume, 25.2 million barrels was lifted for and on behalf of the Federal government of Nigeria comprising of 17.4 million barrels lifted on the account of NNPC and 7.8 million barrels lifted on the account of FIRS.”

The 17.4 million barrels lifted on the account of NNPC in July comprises of 15.4 and 1.9 million barrels for the domestic and export markets respectively.

At an average oil price of $51.97/bbl and exchange rate of N195.95/$1, the domestic crude oil lifted by NNPC is valued at $805.221 million or N157.783 billion.

The remaining crude oil lifted for export was valued at $108.917 million at an average price of $56.76/barrel. The total value of crude oil lifted on the account of NNPC in July was $914.137 million. For the period from January to July 2015, a total volume of 439 million barrels of crude oil and condensate was lifted by all parties.

Furthermore, the report said the independents and marginal field operators produced a total of 23.177 million barrels of crude oil in the period under review, representing 5.21 per cent of total production of 445 million barrels recorded in the country during the period. Multinational companies continued to dominate crude output in the country, as PSC and Joint Ventures, JV, comprising mostly foreign companies, accounted for 41.97 per cent and 31.47 per cent respectively of the total oil production.

Particularly, PSC produced 186.768 million barrels of oil in the period under review, while JVs produced 140.06 million barrels. Alternative Finance/Modified Carry Agreement churned out 71.9 million barrels, representing 16.18 per cent of total national production.

 



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