Nigeria’s State-owned Oil Company Remits $4.7bn to Federation in One Year, Spends $20m on Moribund Refineries in August

The Nigerian National Petroleum Corporation (NNPC) has said it remitted N47.42 billion (about $122m) to the Federation Account Allocation Committee (FAAC).

“From August 2019 to August 2020, total NNPC remittances to FAAC is N1,805.99 trillion (about $4.749 bn); out of which the federation and JV with government priority projects received the sum of N794.76 billion (about $2.1bn) and N1,011.23 billion (about $2.6bn) respectively.”

The NNPC also said its operating expenditure increased by N86.4 billion (about $227.3m), representing a 26% hike in August.

The national oil company in its Monthly Financial Report however defended the increase, saying that compared to a higher jump in operating revenue for the month, it had a healthy outing for August.

Also, the report indicated that about N7.7 billion (about $20.26m) was spent in the month under review on the refineries that have not worked for over a year.

 But the report said some of the plants are being rehabilitated.

“In August 2020, group operating revenue as compared to July 2020, increased by 27%, or N95.69 billion (about $251.8m), to stand at N445.04 billion (about $1.17bn), the expenditure for the month increased by 26% or N86.45 billion (about 227m), to N415.44 billion (about $1.1bn).

“This month, expenditure as a proportion of revenue is 0.93 as against 0.94 last month; signifying an improved healthy performance,” the corporation stated.

The NNPC added:

“No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to N7.78 billion ($20.4m). This resulted to an operating deficit of N7.09 billion ($18.7m) by the refineries,” it stated.

On crude oil production, the corporation said the Nigerian Petroleum Development Company (NPDC) from July 2019 to July 2020, had a cumulative production from all fields totalling 68,867,580 barrels of crude oil, translating to an average daily production of 173,470 barrels per day.

“NPDC is projected to ramp up production level to 250,000bp/d in the near future. PTD from NPDC wholly operated assets amounted to 25,772,785 barrels (or 37.42% of the total NPDC production) with Okono Okpoho (OML 119) alone producing 22.71% of the NPDC wholly-owned operated assets and 8.5% of the total NPDC production.

“Also, on the NPDC operated JV assets, in which NPDC owns 55% controlling interest, crude oil production amounted to 31,869,743 barrels (or 46.28% of the NPDC total production). On the non-operated assets, production level stood at 11,225,053 barrels or 16.30% of the company’s production,” it stated.

In the month under review, the NNPC said a total of 37 pipeline points belonging to the corporation were vandalised, representing about three per cent  increase from the 36 points recorded in July 2020.

“ATC-Mosimi and Mosimi-Ibadan accounted for 38% and 24% respectively while PHC-Aba and the other locations in turn, recorded 22% and the remaining 16% of the total breaks.

“NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace,” the report said.

Lillian Jijingi, Emmanuel Addeh

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