News

NIGERIA EARNS N1.213TR FROM CRUDE OIL EXPORT IN ONE YEAR

Total's $16b Egina FPSO berths in Lagos
• NNPC raises the alarm over cross-border smuggling

Nigeria's oil and gas export receipt for the period of November 2016 to November 2017 stood at $3.73 billion (N1.213 trillion), out of which the $2.60 billion was transferred to Joint Venture (JV) Cash Call as first line charge and the balance of $0.85 billion was paid into the Federation Account.

The Nigerian National Petroleum Corporation (NNPC), which made this disclosure in its monthly financial report said the sector recorded a total crude oil and gas export sale of $239.10 million in the month of November 2017.

The breakdown also showed that crude oil export sales contributed $113.97 million of the transactions compared with $227.83 million contribution in the previous month.

Also the export gas sales amounted to $125.13 million during the period.

A broader analysis of crude oil and gas transactions from November 2016 to November 2017, however indicated that crude oil and gas worth $3.73 billion was exported.

Under US dollar payments to Joint Venture Cost Recovery and Federation Account, a total export receipt of $201.11 million was recorded in November 2017 as receipt against $277.50 million receipt in October 2017.

Contribution from crude oil amounted to $147.39 million while gas and miscellaneous receipt stood at $50.17 million and $3.55 million respectively.

Of the export receipts, $121.75 million was remitted to Federation Account while $56.56 million was remitted to fund the JV cost recovery for the month of November 2017 to guarantee current and future production.

On naira payments to Federation Account, the report indicated that domestic crude oil and gas receipt during the month amounted to N135.14 billion, consisting of N127.93 billion from domestic crude oil, the sum of N7.21 billion from domestic gas. Out of the naira receipt, the sum of N54.16 billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account.

Meanwhile, the much awaited $16 billion Total Egina Floating Production Storage Offshore (FPSO) yesterday arrived Nigeria for its final integration.

Acclaimed as the biggest in Africa, the Egina FPSO berthed at the newly built 500-metre FPSO integration quayside at the Samsung Heavy Industries (SHI) Yard, LADOL Island, Lagos, where the integration of six locally fabricated modules will take place over the next few months.

The FPSO, which was built by Samsung Heavy Industries (SHI), has a storage capacity of 2.2 million barrels of crude oil and is 35 meters high, 330 meters long with a capacity to accommodate over 200 people at a time.

In another development, the Nigerian National Petroleum Corporation (NNPC) has raised the alarm over increasing cross-border smuggling of petroleum products by syndicates, stressing that the development may continue to thwart attempt to ensure proper supply of products in the country.

Group Managing Director of the Corporation, Maikanti Baru, told the Joint National Assembly Committee on Petroleum Downstream yesterday in Abuja that unless activities of the fuel truck diverters and smugglers were left checked ensuring round-the-clock availability of petrol throughout the country may remain elusive.

This is coming as men of the Niger State Command of the Nigeria Security and Civil Defence Corps (NSCDC) yesterday arrested eight trucks heading to Benin Republic with 469,000 litres of Premium Motor Spirit (petrol).

The arrest was made in Mokwa, Niger State, on their way to Babana, a border town between Nigeria and Republic of Benin.

Baru said the sudden and unnatural shock in fuel consumption to record levels has over-stretched the Direct-Sale-Direct-Supply (DSDP) crude for product supply arrangement, which was originally based on 35 million per day petrol consumption pattern.

He lamented that with the current unprecedented average daily fuel evacuation of 55 million litres since December 1, 2017 to date, it was imperative for the security agencies to close-in on the smuggling syndicates who were cashing in on the obvious petrol price differentials between Nigeria and neighboring countries to make illicit profit.

The Guardian

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