NNPC Earns N1.7tn From Crude Oil Sales In 12 months

The Total revenue made by the Nigerian National Petroleum Corporation (NNPC) from crude oil sales in one year has been put at N1.7trn.

The corporation’s latest monthly and financial report for August said the sum was earned from March 2020 to March 2021 after lifting 108 million barrels of crude oil within the year, at an average price of $43 per barrel.

A report breakdown showed that in March 2020, the oil and gas firm lifted approximately 9, 490mn/b; 11, 437mn/b in April; 5, 113m/b in May; 6,274MB in June; and 8,546m/b in July.

In August, NNPC said it lifted 8, 546mn/b; 8, 490mn/b in September; 10, 333mn/b in October; 9, 532mn/d in November; and 7, 539mn/b in December 2020. In January 2021, it lifted 5, 542mn/b; 9, 397mn/b in February, and 7, 553mn/b in March 2021, making it a total of 108 million barrels for the period under review.

The crude, NNPC said, was lifted from the daily allocation for domestic utilisation, translating to an average volume of 243,650 barrels per day in terms of performance.

Price fluctuations within the period ranged from $25/b in March 2020, to $17/b in April; $25/b in May; $40/b in June; $44/b in July; $55/b in August; $40/b in September; $40/b in October; $43/b in November; and $51/b in December 2020. In January 2021, crude lifted was sold at $57/b; $64/b in February, and $64/b in March 2021.

To meet domestic product supply requirements, NNPC said all the barrels were processed under the Direct-Sales-Direct Purchase (DSDP) scheme while no deliveries were made to the domestic refineries for processing.

The country’s official exchange rate during the period was around N400 to the dollar. Going by an average of N400/$, the various average monthly costs of Brent and the monthly crude oil production figures as stated above, NNPC said it earned approximately N71bn in March; N69bn in April; N46bn in May; N90bn in June; N136bn in July; N170bn in August; N130bn in September; N158bn in October; N156bn in November; and N145bn in December 2020.

The NNPC earned N124bn in January 2021, N230bn in February, and N184bn in March 2021. The corporation put total revenue from sales at N1.7trn within the period under review. Nigeria earns about 90 per cent of its revenue from mostly the export of crude oil.

The Managing Director and Chief Executive Officer, 11 Plc and former Chairman, Major Oil Marketers Association of Nigeria, MOMAN, Tunji Oyebanji, stated in an interview that Nigeria’s dependence on oil revenue would not give room for adequate growth of other sectors of the economy.