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Nigeria produces average 1.42 mbpd crude oil in Q1, spent N60 bln on subsidy

By on May 4, 2021 0 98 Views

Nigeria’s crude oil production stood at 1.42 million barrels per day in the first three months of 2021, according to a document by the Nigerian National Petroleum Corporation (NNPC), showing the country stayed with the OPEC+ quota for the period.

The world’s eighth largest crude producer also earned N267.59 billion in February from crude oil sales, better than N134.35 billion earned from crude sales in January.

“Nigeria maintained 1.426 million bpd OPEC production cut in 1Q21. The overall NNPC crude oil sale valued at N267.59 billion (export & domestic crude) in February 2021 is 97.71 per cent higher than N134.35 billion recorded in January 2021,” NNPC stated in a presentation to the Federation Account Allocation Committee (FAAC) at its April 20-21 meeting.

It said crude oil export revenue received in March amounted to $93.37 million, equivalent to N35.72 billion, representing a 204 per cent increase compared to February’s receipts.

Domestic gas receipts in the month were N5.75 billion, while feedstock valued at $66.43 million was sold to the Nigeria Liquefied Natural Gas Limited (NLNG) during the period, out of which $63.79 million was received during the month.

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In addition, $2.22 million was classified as receipts from miscellaneous sources, including gas and ullage (the amount of empty space in a cargo ship’s hull or in an oil terminal tank) fees as well as interest income received in March.

The corporation’s value loss due to payment of subsidy at N60.4 billion, in contrast, with N112 billion reflected in a letter to the accountant general of the federation earlier.

“The shortfall of N60.4 billion arising from the difference between the landing cost of petrol and the ex-coastal price in the month of February 2021 affected the revenue accruable to the federation.

“The corporation, being the sole importer of petrol, awaits the outcome of the engagement between government and relevant stakeholders to establish an appropriate petroleum products pricing methodology in a deregulated environment,” the NNPC added.

NNPC said the landing cost for the 36 vessels that brought in the product into Nigeria ranged from N155 to N170, while the ex-depot price remained at N128 and the loss per vessel ranged from N347 million to N3.4 billion, based on the 1.74 billion litres imported during the month.

For the NNPC’s funding schedule, out of the N6.7 billion budgeted for national domestic gas development, N6.1 billion was released, while for gas infrastructure development, out of the N5 billion earmarked, N2.4 billion was released.

Crude oil pre-export inspection agency services gulped N462 million.

Frontier exploration consumed N2.2 billion, renewable energy development was N137 million, pre-export financing gulped N10 billion, N8.3 billion was spent on refinery rehabilitation while the Nigeria-Morocco pipeline project consumed N83.3 million.

The document also indicated that N1.8 billion was spent on security and pipelines maintenance in December last year, while strategic holding was N1.86 billion, totalling N3.6 billion.

February total crude oil exports payable in March was $93.3 million, while February domestic crude oil payable in May in line with the 90-day payment terms was N231.8 billion, the corporation said.

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