Oil and gas exports yield $4.47bn – NNPC

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The Nigerian National Petroleum Corporation (NNPC) has released the full report of its activities for May 2020 stating that oil and gas exports between May 2019 and May 2020 yielded $4.47 billion.

The corporation also stated it remitted a total of N1.83tn to the federation account during the same period.

For the month of May 2020, NNPC said it remitted N161.8 billion to the federation account.

The corporation noted that the amount was less than the N219.16 billion remitted in April by N57.30 billion but higher than the N147.15 billion remitted in March by N14.25 billion and also higher than the N148.53 billion remitted in February by N13.27 billion.

However, for May alone, the corporation’s total export sale was $174.80 million, a decrease of 10.73 per cent compared to April.

The oil corporation also said crude oil export sales contributed $120.50 million (68.94 per cent) of its dollar transactions compared to $148.86 million contribution in the previous month.

“Export gas sales amounted to $54.29 million in the month. May 2019 to May 2020 crude oil and gas transactions indicated that crude oil and gas worth $4.47 billion was exported.

“As for dollar payments to JV cost recovery and FAAC, the total export receipts of $133.16 million were recorded in May 2020 as against $193.05 million in April 2020” the corporation noted.

It added that contribution from crude oil amounted to $105.08 million while gas and miscellaneous receipts stood at $8.71 million and $19.7 million respectively.

But the corporation stated that in dollar terms of the export receipts, $20.20 million was remitted to the Federation Account while $112.96 was remitted to fund the JV cost recovery for May 2020 to guarantee current and future productions.

“Total export crude oil receipts from the period May 2019 to May 2020 stood at $4.77 billion out of which the sum of $3.18 billion was transferred to JV cash call as first line charge and the balance $1.59 billion was paid into the Federation Account.

“In May 2020, NNPC remitted the sum of N161.89 billion to FAAC. From May 2019 to May 2020, total NNPC remittance to FAAC is N1,834.13, out of which federation and JV with government priority projects received the sum of N857.39 billion and N976.75 billion respectively” the corporation said.

Based on its direct sales direct purchase arrangement, in terms of petroleum product supply, the national oil company stressed that in May 2020, 495.10 million litres of petrol were supplied into the country through the arrangement as against the 1,812.81 million litres of petrol supplied in April.

In the downstream petroleum product distribution sector, the NNPC said a total of 950.67 million litres of white products were sold and distributed by the Petroleum Products Marketing Company Limited (PPMC) during the month compared to 990.17 million litres the previous month.

Federation crude oil and gas lifting are broadly classified into equity export and domestic, with both categories lifted and marketed by NNPC and the proceeds remitted into the federation account.

Equity export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into Federation Account domiciled in the Central Bank of Nigeria (CBN), while payments are effected to the account by the NNPC after adjusting crude and product losses and pipeline repairs as well as management cost incurred during the period.

According to the corporation, the average crude oil price in May increased by $10 or 61.3 per cent month-on-month $28.93 per barrel, which was the highest in three months as demand started a fragile recovery from the crisis brought about by the COVID-19 pandemic.

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