It is not all doom and gloom for Nigeria in 2017 as the country earned about $476.25 million from crude oil and gas exports in December 2017 and that it remitted a total of N857.36 billion into the Federation Account last year, with N644.05 billion used for Joint Venture financing according to the Nigerian National Petroleum Corporation.
The NNPC in its monthly Financial and Operations Report for December 2017 released on Tuesday also said it paid about N19 billion for the Federal Government debt repayment.
The report said while receipts from crude oil amounted to $342.16 million in December, gas and miscellaneous receipts accounted for $94.85 million and $39.24 million respectively. The Naira component of the revenue receipts showed that domestic crude oil and gas sales during the month totalled about N96.68 billion. This consisted N89.11 billion from domestic crude oil sales revenue and N7.57 billion from domestic gas sales.
Of the total Naira receipts, the report said about N77.57 billion was transferred to the Federation Account during the month. N19.11 billion was paid for Joint Venture Cash Call, a first line charge to guarantee continuous flow of revenue stream to Federation Account.
On the commercialization and utilization of gas, the report indicated that of the 234.08 Billion Cubic Feet of gas supplied in December 2017, about 138.99BCF was commercialized, comprising of 39.53BCF and 99.46BCF for the domestic and export markets respectively. This translates to a total daily supply of 1,275.09 million Standard Cubic Feet of Gas (MSCF) to the domestic market and 3,209.70 MSCF of gas supplied to the export market.
The report also showed that 60.89 per cent of the average daily gas produced was commercialized, while the balance of 39.11 per cent was re-injected, used as upstream fuel gas or flared. A total of 828MMSCF of gas per day was delivered to the gas-fired power plants in the month under review to generate an average of 3,342 megawatts (MW), a modest 11.4 per cent increase on the November 2017, gas-to-power delivery of 743 MSCF to generate 3,115MW.
Domestic Crude Oil of 445,000bopd is allocated for refining to meet domestic products supply. Payments are effected to the Federation Account by NNPC after adjusting for crude oil and product losses, pipeline repairs and management cost incurred during the period. NNPC also lifts crude oil and gas, other than the Equity and Domestic Crude Oil, on behalf of the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service(FIRS), proceeds of which are remitted into the Federation Account.
Third Party Finance liftings are crude oil and gas from fields that are financed using alternative finance/loan facility which require the servicing of debts before remitting the balance into the Federation Account as Price Balance.
