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Nigerian National Petroleum Corporation records $42m trade surplus in January

May 06, 2019

Nigerian National Petroleum Corporation (NNPC) on Sunday announced a trade surplus of N15.04 billion ($42m) for January 2019.

In a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the NNPC disclosed that it recorded a 24 per cent increase over the N12.13 billion surplus posted by the corporation in December 2019.

Ughamadu attributed the positive financial position to the improved performance of NNPC’s upstream subsidiary, Nigerian Petroleum Development Company, NPDC, which recorded surplus numbers despite reduced operational activities in the month.

The NNPC’s January 2019 edition of its Monthly Financial and Operations Report revealed that the NPDC recorded a sustained revenue drive, evident from recent average weekly production of 332,000 barrels of crude oil per day, BPD, had made achieving 500,000bpd production by 2020 plausible.

The NPDC’s position, the NNPC noted, contrasted with the high expenditure levels posted by its two other entities, the Petroleum Products Marketing Company PPMC and Duke Oil, although both ended the month with profit.

In terms of sales and remittance of crude oil and gas proceeds, the NNPC announced total export receipts of $381.70 million in the month under review as against $345.68 million posted in December 2018.

Giving a breakdown of the numbers, the NNPC indicated that contributions from crude oil amounted to $269.43 million, while gas and miscellaneous receipts stood at $111.75 million and $0.52 million respectively.

It said, “Within the period under focus, NNPC transferred N153.01 billion into the Federation Account, while cumulatively, from January 2018 to January 2019, Federation and JV received N905.45 billion and N658.66 billion respectively, under the column of Naira Payments to the Federation Accounts.

“In the downstream operations, 1,998.61 million litres of petrol was supplied into the country through the Direct-Sale-Direct-Purchase (DSDP) crude-for-product arrangement in January 2019. The number is slightly higher than the 1,789.20million litres of petrol supplied in the month of December 2018.”

The NNPC stated that 230 hacked pipeline points were recorded, leaving only two ruptured, marking an 11 per cent improvement from the 264 vandalized points posted in December 2018.

“A breakdown indicated that Mosimi-Ibadan, Ibadan-Ilorin and Aba-Enugu pipelines accounted for 67, 62 and 30 points respectively, which translated to 29 per cent, 27 per cent and 13 per cent of the vandalized points, respectively.

“The Warri-River Niger axis accounted for 10 per cent and other locations accounted for the remaining 21 per cent of the pipeline breaks,” it added. In the gas sector, the NNPC declared that natural gas production increased by 2.22 per cent at 245.83 billion cubic feet compared to output in December 2018, translating to an average production of 8,194.34 million standard cubic feet of gas per day (mmscfd).

Out of the volume supplied in January 2019, it added that a total of 151.50 billion SCF of gas was commercialized, consisting of 38.03 billion SCF and 113.47 billion SCF for the domestic and export market respectively.

The figure, the NNPC said translated to a total supply of 1.226.83 billion SCF per day of gas to the domestic market and 3,780.24 mmscfd of gas supplied to the export market for the month.

“This implies that that 61.73 per cent of the average daily gas produced was commercialized, while the balance of 38.27 per cent was re-injected, used as upstream fuel gas or flared.

“Gas flare rate was 7.52 per cent for the month under review, translating to 610.07 mmscfd compared with average gas flare rate of 9.76 per cent, that is 770.31 mmscfd for the period January 2018 to January 2019,” the corporation disclosed.