NNPC Earned $108.84m from Oil, Gas Exports in November

The Nigerian National Petroleum Corporation (NNPC) on Sunday put its total earnings from export sales of crude oil and gas in November 2020 at $108.84 million.

In a release on the latest figures from the November 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR), signed by NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, the corporation stated that export sales of crude oil and gas for the month increased by 70.33 per cent compared to those of October 2020.

It stated that crude oil export sales contributed $73.09m (67.15 per cent) of the dollar transactions compared with $12.38 million in the previous month.

The export gas sales amounted to $35.75 million in the month, while the total crude oil and gas export from November 2019 to November 2020 stood at $2.89 billion.

Total volume sale of white products from November 2019 to November 2020, the national oil company said, also stood at 17.031 billion litres, with petrol accounting for 16.911 billion litres or 99.29 per cent.

In monetary terms, it stated that N226.08 billion was made on the sale of the white products by the Petroleum Products Marketing Company Limited (PPMC) in November 2020 compared with N158.04 billion sales in October 2020.

Total revenues generated from the sales of white products between November 2019 and November 2020 were N2.034 trillion. Petrol sales contributed about 99.09 per cent of the transactions with a value of over N2.015 trillion.

But on a month-on-month basis, THISDAY checks showed that a total sum of N143.4 billion was made from the sale of white products by PPMC in October 2019, compared with N125.17 billion sales in September 2019.

Total revenues generated from sales of white products between October 2018 and October 2019 stood at N2.64 trillion with petrol contributing about 96.2 per cent of the total sales with a value of about N2.5 trillion.

The report said PPMC recorded a total of N158.04 billion from the sales of white products in October 2020, representing a 92 per cent increase over the N80.15 billion sales in September 2020.

However, the latest figures showed that it posted a “trading surplus” of N13.43 billion for November 2020, up by 54 per cent when compared with the N8.71 billion surplus recorded in October 2020.

It explained that trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.

The report indicated that in November 2020, NNPC Group’s operating revenue, as compared to that of October 2020, decreased slightly by 0.02 per cent or N0.09 billion to stand at N423.08 billion.

Similarly, expenditure for the month decreased by 1.16 per cent or N4.81 billion to stand at N409.65billion leading to the N13.43billion trading surplus.

“The 54 per cent increase in trading surplus in the November 2020 MFOR is primarily ascribed to the substantial decrease in expenditure from the Nigeria Gas Company (NGC) due to cost reduction in overheads, coupled with 38 per cent reduction in NNPC Corporate Headquarters deficit.

“In addition, the NNPC group’s surplus was bolstered by the noticeable improved profits for additional engineering services rendered by the Nigerian Engineering and Technical Company (NETCO) and increased revenue from import activities posted by Duke Oil Incorporated.

“These healthy performances dominated the positions of all other NNPC subsidiaries to record the group surplus,” it noted.

According to the NNPC, in the gas sector, a total of 222.34 Billion Cubic Feet (BCF) of natural gas was produced in the month under review, translating to an average daily production of 7,411.52 Million Standard Cubic Feet per Day (mmscfd).

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

Out of this volume, production from Joint Ventures (JVs) accounted for 67.29 per cent, Production Sharing Contracts (PSCs) accounted for 19.97 per cent, while the Nigerian Petroleum Development Company (NPDC) accounted for 12.74 per cent.

A further breakdown showed that a total of 137.41 BCF of gas was commercialised, consisting of 39.99BCF and 97.42BCF for the domestic and export market respectively.

The corporation said this translated 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. Gas flare rate was 7.89 per cent for the month under review translating to 577.39 mmscfd.

“A total of 789mmscfd was delivered to gas-fired power plants in the month of November 2020 to generate an average power of about 3,358MW compared with October 2020 when an average of 750mmscfd was supplied,” it explained.

In the downstream sector, the corporation said 1.725 billion litres of white products were sold and distributed by the PPMC in November 2020, compared with over 1.224 billion litres in October 2020.

“This comprised 1.723 billion litres of petrol, 2.13 million litres of diesel and 0.33 million litres of kerosene. The November 2020 MFOR is the 64th in the series which began in August 2015,” the corporation said.

Emmanuel Addeh, Peter Uzoho

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