Nigeria Lifted $33bn Crude, Condensates in One Year, NNPC Says

A cumulative volume of 734 million barrels of crude oil and condensates were lifted by all parties, including oil multinationals and the Nigerian Petroleum Development Company (NPDC) between October 2019 and October 2020, the Nigerian National Petroleum Corporation (NNPC) has said.

In terms of accrual values for the lifted barrels, the NNPC data showed that from all government sources, a gross revenue of $9.71 billion was raked in while the corporation’s  Joint Venture (JV) with International Oil Companies (IOCs) yielded $22.9 billion in the period under review.

Also, Production Sharing Contracts (PSC) taxes were $1.84 billion, royalties paid to the Department of Petroleum Resources (DPR) were $430.7 million, revenue from federation export was $2.0 billion, domestic sales were $5.4 billion, amounting to roughly $33.7 billion sales between October 2019 and December 2020.

Figures obtained from the national oil company on its operations for the period indicated that compared to the same period between 2018 and  2019, 789 million barrels of crude oil, valued at $51.6 billion, was lifted.  The average price of a barrel for the year was $65.14, a reduction of about $17.9 billion in revenue and a decrease of 55 million barrels of lifted crude.

The NNPC said it was ramping up the capacity of its Exploration and Production (E&P) subsidiary, the NPDC, to independently produce at least 250,000 barrels a day.

The data showed that April 2020 remained the worst year for  the global oil market, as reflected in the average oil price of $16.69 in that month, down from $61.98 in January, $53.50  in February, $24.55 in March of the same year and then rising to $55.14 around August 2020.

“From October 2019 to October 2020, a total volume of 734 million barrels of crude oil and condensate was lifted by all parties. In October 2020, NNPC lifted 10,333,451 barrels of crude oil from the daily allocation for domestic utilisation translating to an average volume of 333,337 barrels of oil per day in terms of performance,” the corporation stated.

In order to meet domestic product supply requirement for October 2020, the corporation stated that the entire 10,333,451 barrels were processed under the Direct Sales Direct Purchase (DSDP) scheme while there were no deliveries to the domestic refineries for processing.

According to the NNPC, the NPDC October 2019 to October 2020 cumulative production from all fields totalled 74,394,523 barrels of crude oil translating to an average daily production of 187,392 barrels per day.

“Comparing PTD NPDC performance to national production, the company’s production share is 10.11 per cent. NPDC is projected to ramp up production level to 250,000bp/d in the near future,” the report stated.

The NPDC wholly operated assets, NNPC stated, amounted to 27,619,416 barrels (or 37.13 per cent of the total NPDC production) with Okono Okpoho (OML 119) alone producing 20.44 per cent of the NPDC wholly owned operated assets and 7.59 per cent of the total NPDC production.

Also, on the NPDC operated JV assets, in which NPDC owns 55 per cent controlling interest, crude oil production amounted to 33,981,568 barrels (or 45.68 per cent of the NPDC total production) while on the non-operated assets, production level stood at 12,793,540 barrels or 17.20 per cent of the company’s production.

Also, from November 2019 to November 2020, a total of 3,004.06 BCF of gas was produced, representing an average daily production of 7,642.69 mmscfd during the period.

Period to date production from JVs, PSCs and NPDC contributed about 67.29 per cent, 19.97 per cent and 12.74 per cent respectively to the total national gas production.

The document indicated that of the 15.60 million barrels lifted on account of the NNPC in October 2020, 10.33 million barrels and 1.88 million barrels were for domestic and export markets respectively.

It stated that out of the 219.67 BCF of gas supplied in November 2020, a total of 137.41 BCF of gas was commercialised; consisting of 39.99 BCF and 97.42 BCF for the domestic and export market respectively. This translates to a total supply of 1,332.82 mmscfd of gas to the domestic market and 3,247.44 mmscfd of gas supplied to the export market for the month.

“This implies that 62.55 per cent of the average daily gas produced was commercialised while the balance of 37.45 per cent was re-injected, used as upstream fuel gas or flared.

 

Emmanuel Addeh in Abuja

 

Follow us on: