‘NNPC Remitted N1.118trn To Federation Account In 1yr’

The Nigerian National Petroleum Corporation (NNPC) has paid N1.118 trillion into the Federation Account as proceeds from the sale of domestic crude oil in the past one year.
 
In its March 2016 monthly financial and operations report released at the weekend, the corporation said it also remitted N69.544 billion into the Federation Account in March despite posting an operational deficit of
N18.89 billion. It explained that the remittances were the Naira proceeds from the sale of domestic crude oil and gas.
 
The report stated that oil production for March was 59.27 million barrels, about 2.04 million barrels per day which was lower than January’s 66.49mbpd production. The NNPC said that the drop was occasioned by a declaration of force majeure by Shell Production Development Company (SPDC) the attack on 48-inch Forcados export line which resulted in the production shut-in of about 300,000bpd.That production drop, NNPC added, resulted to a loss of about N20 billion oil revenue that would have been earned by its Exploration and Production (E&P) subsidiary, the Nigerian Petroleum Development Company (NPDC).
 
It said the decline represented a decrease of 10.85 percent when compared to its January 2016 performance, adding that Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 34.57 and 42.69 percent respectively of the production volume for the month while Alternative Funding (AF), NPDC independently accounted for 14.89, 3.13 and 4.71 respectively.

This is as the report disclosed that a total volume of 774.79 million barrels of crude oil and condensate has so far been lifted by all production parties in the country from March 2015 to February 2016.
 
NNPC said its operating revenue for the months of February and March 2016 were N107.83 billion and N104.80 billion, respectively. The corporation said that its operating expenditure for the same periods were N129.03 billion and N126.72 billion respectively, indicating operating deficits of N24.23 billion and N18.89 respectively for the months of February and March 2016.On Joint Venture (JV) cash call, the report disclosed that a total export proceeds of $141.87 million were re-corded in March, 2016 and that this was swept into the JV cash call account because the 2015 approved budget re-quires monthly JV funding of about $615.8 million.
 
According to the report, a total of 220.67 billion Standard Cubic Feet (SCF) of natural gas was produced in the month, translating to an average daily production of 7.12 billion Standard Cubic Feet Per Day (SCFD), and from which 896.93mmscfd was supplied to the domestic market and about 533.22mmscfd used by gas power plants in the country to generate an average of 2,558 megawatts (MW) of electricity.
 
The report further said a total volume of 774.79 million barrels of crude oil and condensate has so far been lifted by all production parties in the country from March 2015 to February 2016. Apart from its retail outlets, NNPC explained that its other subsidiaries, including the National Engineering and Technology Company Ltd. (NETCO), the Integrated Data Services Limited (IDSL), Warri Refining and Petrochemical Company (WRPC), Port Harcourt Refining Company (PHRC), Kaduna Refining and Petro-chemical Company (KRPC), NPDC, Pipeline and Products Marketing Company (PPMC) as well as its corporate headquarters were still operating at loss levels.

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