NNPC Rakes in $1.6 bn From Crude Oil Sales

By Tosin Olaokunbo

The Nigerian National Petroleum Corporation, NNPC says it generated over $1.6 billion dollars from crude oil sales. The figure represents sales between May 2020 and May 2021.

The government’s oil company disclosed this on the heels of President Muhammadu Buhari’s appointment of Senate Ifeanyi Ararume as Chairman of the Board of the company.

According to a statement signed by Garba Deen Muhammad, Group General Manager, Group Public Affairs Division recorded a total crude oil and gas export sales of $219.75 million in May 2021, representing 180.29 per cent increase on sales from the previous month of April 2021.

This is contained in the May 2021 edition of the NNPC Monthly Financial and Operations Report.

According to the report, crude oil export sales contributed $181.19 million (82.45 per cent) of the dollar transactions compared with $4.22 million contribution in the previous month, while the export gas sales component stood at $38.56million in May 2021.

The report also showed that between May 2020 and May 2021, the Corporation exported crude oil and gas worth $1.64billion.

In the gas sector, the report showed that natural gas production in the month under review increased by 6.19 per cent at 222.23billion cubic feet (bcf) compared with output in the previous month, translating to an average production of 7,177.53million standard cubic feet (mmscf) of gas per day.

For the period May 2020 to May 2021, a total of 2,898.34bcf of gas was produced representing an average daily production of 7,322.94mmscf during the period.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 60.94 per cent, 20.04 per cent and 18.99 per cent respectively.

Out of the 216.29bcf of gas produced in May 2021, a total of 133.56bcf was commercialized, consisting of 44.02bcf and 89.54bcf for the domestic and export markets respectively.

This translates to a total supply of 1,419.83mmscfd of gas to the domestic market and 2,893.66mmscfd to the export market for the month, the statement said.

According to the company ”61.75 per cent of the average daily gas produced was commercialized while the balance of 38.25 per cent was either re-injected, used as upstream fuel or flared.

“In the Downstream sector, the report indicates that the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, posted a total sum of ₦295.72billion from the sales of petroleum products in the month of May 2021 compared with ₦220.13billion sales in April 2021.

“Furthermore, total revenues generated from the sales of petroleum products for the period of May 2020 to May 2021 stood at ₦2.345trillion where Premium Motor Spirit, PMS contributed about 99.61 per cent of the total sales with a value of ₦2.336 trillion.

“In terms of volume, the figure translates to a total of 2.241billion litres of white products sold and distributed by PPMC in the month of May 2021 compared with 1.673billion litres in the month of April 2021.

“Total sales of petroleum products for the period May 2020 to May 2021 stood at 18.651billion litres and PMS accounted for 99.69 per cent of total volume.

“In May 2021, 64 pipeline points were vandalized representing 39.13% increase from the 46 points recorded in April 2021. The Port Harcourt area accounted for 65% and Mosimi and Kaduna Areas accounted for 30 per cent and 5 percent respectively of the vandalized points.

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