NNPC remits N857bn to federation account in 2017

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The Nigerian National Petroleum Corporation, NNPC, yesterday, said it remitted N857.36 billion to the federation account in 2017. Group Managing Director of the NNPC, Dr Maikanti Baru

The NNPC, in a statement on its Monthly Financial and Operations Report for December 2017, also disclosed that it remitted N19 billion to the Federal Government for debt repayment, while N644.05 billion was used to finance its Joint Venture operations. The NNPC stated that it recorded total export receipts of $476.25 million in December 2017, from sale of crude oil and gas as against $201.11 million in November 2017.

According to the report, while receipts from crude oil amounted to $342.16 million, gas and miscellaneous receipts accounted for $94.85 million and $39.24 million respectively.

On naira receipts, the report showed that domestic crude oil and gas sales in the month amounted to N96.68 billion, consisting of N89.11 billion from domestic crude oil and N7.57 billion from domestic gas.

Of the naira receipts, the NNPC explained that the sum of N77.57 billion was transferred to the Federation Account in the month under review, while N19.11 billion was paid for Joint Venture Cash Call, JVCC, being a first line charge to guarantee continuous flow of revenue stream to Federation Account.

In terms of natural gas off-take, commercialization and utilization, the report indicated that out of the 234.08 billion cubic feet (BCF) of gas supplied in December 2017, a total of 138.99 BCF was commercialized, comprising 39.53 BCF and 99.46 BCF for the domestic and export markets respectively.

It said, “This translates to a total daily supply of 1,275.09 million Standard Cubic Feet of Gas (MSCF) to the domestic market and 3,209.70 MSCF of gas supplied to the export market.

“The report also showed that 60.89 per cent of the average daily gas produced was commercialized, while the balance of 39.11 per cent was re-injected, used as upstream fuel gas or flared.

“A total of 828MMSCF of gas per day was delivered to the gas-fired power plants in the month under review to generate an average of 3,342 megawatts (MW), a modest 11.4 per cent increase on the November 2017, gas-to-power delivery of 743 MSCF to generate 3,115MW.”

The NNPC explained that Federation Crude Oil and Gas liftings are broadly classified into Equity Export and Domestic, adding that both categories are lifted and marketed by NNPC and the proceeds remitted into the Federation Account.

It noted that equity export receipts are paid directly into Federation Account domiciled in Central Bank of Nigeria (CBN) after adjusting for Joint Venture (JV) Cash Calls.

It said, “Domestic Crude Oil of 445,000bopd is allocated for refining to meet domestic products supply. Payments are effected to the Federation Account by NNPC after adjusting for crude oil and product losses, pipeline repairs and management cost incurred during the period.

“NNPC also lifts crude oil and gas, other than the Equity and Domestic Crude Oil, on behalf of the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service(FIRS), proceeds of which are remitted into the Federation Account.

“Third Party Finance liftings are crude oil and gas from fields that are financed using alternative finance/loan facility which require the servicing of debts before remitting the balance into the Federation Account as Price Balance.”

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Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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