Nigeria records oil, gas export sale of over $470m

The Nigerian National Petroleum Corporation NNPC says crude oil and gas export sale in August recorded over $470m, indicating an upsurge of over $78m in relation to July oil and gas export figures of $391.91m.

This report was retrieved from the NNPC Monthly Financial and Operations for August 2018 which was released in Abuja by the Corporation’s Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, indicating that crude oil export sales contributed $337.62m which represents 71.83 per cent of the dollar transactions compared with $283.43m contribution in the previous month.

The release showed that export gas sales during the period amounted to $132.38m, while the August 2017 to August 2018 crude oil and gas transactions involved crude oil and gas export worth $5.26bn.

It further explained that based on the sales figures, a total export receipt of $450.24m was recorded in August 2018 as receipt against $382.65m in July 2018.

A further breakdown of the figures showed that out of the export receipts, $142.31m was remitted to the Federation Account, while $307.93m was remitted to fund the JV cost recovery for the month of August, 2018 to guarantee current and future production.

The total export crude oil and gas receipt for the period August 2017 to August 2018 stood at $5.23bn out of which $3.74bn was transferred to JV Cash Call as first line charge and the balance of $1.49 billion paid into the Federation Account.

On naira payments to the Federation Account, the report showed that NNPC transferred a total of N128.40bn into Account for the month under review. It also explained that from August 2017 to August 2018, the Federation and JV received N879.02bn and N651.4bn respectively.

Providing insight into the corporation’s remittances to the national treasury, the NNPC explained that the Federation Crude Oil and Gas Revenue, Federation Crude Oil and Gas lifting, are broadly classified into Equity Export and Domestic crude which are lifted and marketed by corporation and the proceeds remitted into the Federation Account.

It informed that Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into the Federation Account domiciled in Central Bank of Nigeria (CBN).

The corporation explained that domestic crude oil of 445,000bpd was allocated for refining to meet domestic products supply, and payments were effected to the Federation Account by NNPC after adjusting crude and product losses and pipeline repairs and management costs incurred during the period.

Source: Voice of Nigeria