Business - Business & Economy - News - Oil & Gas - September 20, 2021

Nigerian govt. realized N2.4trn from petroleum products sales in 12 months

MEDIATRACNET

The Federal Government realized a total of ₦2.4trillion as revenue from the sale of petroleum products between May 2020 and May 2021, the Nigerian National Petroleum Corporation (NNPC) has disclosed.

Out of the figure, revenue realized from the sale of Premium Motor Spirit (PMS), popularly called petrol, stood at about ₦2.4trillion, or about  99.61 percent.

In terms of volume, the amount was realized from the sale of a total of 2.241billion litres of white products distributed by the Pipelines and Products Marketing Company (PPMC) in the month of May 2021, compared to 1.673billion litres sold in April 2021.

Total sales of petroleum products for the period between May 2020 and May 2021 stood at 18.651billion litres, with PMS accounting for 99.69 percent of the total volume.

On the performance of the NNPC, the report said the corporation recorded a total crude oil and gas export sales of $219.75m in May 2021, representing 180.29 percent increase on sales from the previous month.

The report said crude oil export sales contributed about $181.19million (about 82.45 percent) of the earnings, compared to about $4.22 million contribution in the previous month, while the export gas sales component stood at about $38.56million in May 2021.

Between May 2020 and May 2021, the report said the Corporation exported crude oil and gas worth $1.64billion.
In the gas sector, showing that natural gas production in the month under review increased by 6.19 percent at 222.23billion cubic feet (bcf).

Compared with output in the previous month, the figure was an average production of 7,177.53million standard cubic feet (mmscf) of gas per day.

For the period May 2020 to May 2021, a total of 2,898.34 bcf of gas was produced by the NNPC, representing an average daily production of 7,322.94 mmscf during the period.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC), the report said, contributed about 60.94 percent, 20.04 percent and 18.99 percent respectively.

Out of the 216.29bcf of gas produced in May 2021, available data showed a total of 133.56bcf was commercialized, consisting of 44.02bcf and 89.54bcf for the domestic and export markets respectively.

This translates to a total supply of 1,419.83mmscfd of gas to the domestic market and 2,893.66mmscfd to the export market for the month.

This implies that 61.75 percent of the average daily gas produced was commercialized, while the balance of 38.25 percent was either re-injected, used as upstream fuel or flared.

In the Downstream sector, the report indicated that the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the NNPC, posted a total of ₦295.72billion from the sales of petroleum products in the month of May 2021, compared to ₦220.13billion sales in April 2021.

The incidence of petroleum products pipeline vandalism appears to have worsened during the period under review, with 64 pipeline points vandalized, representing 39.13 percent increase from the 46 points recorded in April 2021.

Details of the incidences were contained in the May 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR) published on Monday in Abuja.

The report further indicated that the Petroleum Products Marketing Company (PPMC), the downstream subsidiary of the NNPC, said Port Harcourt area accounted for 65 percent of the incidents, while Mosimi and Kaduna areas accounted for 30 and 5 percent of the vandalized points respectively.

The report said NNPC, in collaboration with the local communities and other stakeholders have continued to strive towards reducing menace.

The 70th edition of the NNPC MFOR highlights the Corporation’s activities for the period of May 2020 to May 2021.

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