Connect with us

Business

How Nigeria lost 7.5mbls in three months, by NNPC

Published

on

Nigeria National Petroleum Company (NNPC) Limited has reported to the Federation Account Allocation Committee (FAAC) how Nigeria lost 7.5 million barrels of crude oil between last October and December.

The NNPC, in its report to the FAAC for January 2022 disbursements apart from funding petrol subsidy, also stated that Nigeria lost 7,503,633 bls of crude.

At Forcados, NNPC reported that “on 21st December 2021 Force Majeure was declared FOT due to a serious incident involving a jack up barge in the vicinity of SPM2 on 20th December 2021, while SPDC lifted Force majeure on 31st December 2021”.

For this incidence, Nigeria lost 4,640,000 barrels of crude oil and the money it could have made from selling the crude.

At Escravos, NNPC reported that “South swamp community crisis resulted in the loss of production of about 8,800bls per day, and shut-in of Okan wells due to leaks resulting to loss of 11,500bls per day”.

There was a decrease in production due to maintenance work at Odudu and Ima, and shut-in at Okwori producing well leading to a loss of 1,250,183 bls

In Brass, platforms were shut-in due to flow line leakage, pressure build-up, high sand production, leak repairs and community issues leading to a loss of 225,750 bls; at Yoho, production was “curtailed” due to maintenance resulting in the loss of 420,000.

The plant at Urha had operations shut down for Turn Around Maintenance (TAM) resulting on a 276,000bls of crude oil loss; production was “curtailed” at Ajapa which led to 12,000bls loss and a shut down of operations at Aje leading to 91,000bls of crude and money loss.

After the 2022 Appropriation was passed, the NNPC said it made provisions for some contribution into the Federation Account but all were diverted to settle subsidy.

These proposed contributions were Royalty N41,205,557,334.29; Tax N50,466,459,521.06; Profit N14,596,457,152.99 and Joint Venture (JV) total contribution to federation by segment N106,268,474,008.34.

Under Crude Oil and Gas Sale, the NNPC said it recorded an overall NNPC Crude Oil lifting of 8.13mbls (Export and Domestic Crude) last December, which was a 2.21per cent decrease relative to the 8.31 mbls lifted last November.

For sales receipt, the NNPC told members of the FAAC that “Crude Oil export revenue received in January 2022 amounted to $2.23 million; NLNG Feedstock Gas receipt was $68.53 million for the month”.

The column for other receipts stated: “The sum of $254.73million being miscellaneous receipts, gas and ullage fees and interest income was received in January, this year.

From domestic crude and gas sales, the NNPC said: “The sum of N253,359,365,045.89 was the gross domestic crude oil and gas revenue for January, 2022

According to the NNPC, “the recoveries were: Strategic Holding Cost and Pipeline repairs amounting to N1,385,243,563.12, product loss reversal worth N328,877,094.81. The reversal was due to wrong charges to Federation in January 2021 FAAC”.

It added: “The December 2021 Value Shortfall recovery on the importation of PMS amounted to N210,381,727,073.04.

“The recovery consists of December 2021 Value Short Fall of N176,478,739,224.65 plus the outstanding Value Short Fall recovery of N33,902,987,848.39 accrued over 2021 Year. The November 21 Spot arrears of N98,807,771,101.01 is also outstanding.”

The NNPC told the FAAC members ahead of time that “the estimated value shortfall of N242,526,774,861.41 (consisting of N143,719,003,760.40 for January 2022 recovery plus November Spot Arrears of N98,807,771,101.01) is to be recovered from the February, 2022 proceed due for sharing at the March, 2022 FAAC meeting.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported to FAAC that 69 oil company customers owed NNPC is $471,249,164.52 (N183,315,924,998.28). Using the exchange rate as advised by CBN at 389/$.

The NUPRC disclosed that “the amount transferred to the Federation Account for the month was N109,540,314,013.84. This represents actual transfer to federation account by the CBN”.

Furthermore, the NUPRC confirmed “receipt of a sum of US$28,931,250.00 from the US$503,301,898.32 expected from PSC, RA and MCA liftings for the month under review; leaving US$471,249,164.52 as outstanding.

In addition, the sum of US$26,836,056.00 was paid for Good and Valuable Consideration in January 2022; Gas Royalty Transferred by CBN for the month- foreign was N3,153,956,672.53; Oil and Gas Royalty transferred for the month was N100,698,414,520.98.

Advertisement
Comments
Advertisement
Advertisement
Advertisement Web Hosting in Nigeria
Advertisement
Advertisement

Trending