Details of transactions contained in the recently released November 2017 edition of the Monthly Nigerian National Petroleum Corporation (NNPC) Operations and Financial Report shows that the corporation recorded a total crude oil and gas export sale of $239.10 million in the month of November, 2017, indicating a 25.68 percent decline compared to the previous month performance.
The breakdown also showed that Crude oil export sales contributed $113.97 million (or 47.7%) of the dollar transactions compared with $227.83 million contribution in the previous month, while gas sales amounted to $125.13 million during the period.
A broader analysis of crude oil and gas transactions from November 2016 to November 2017 showed that $3.73 billion worth of crude oil and gas was exported out of which the sum of $2.60 billion was transferred to JV Cash Call as first line charge and the balance of $0.85B billion was paid into Federation Account
Under US Dollar Payments to Joint Venture Cost Recovery and Federation Account, a total export receipt of $201.11 million was recorded in November 2017 as against $277.50 million recorded in October.
A further breakdown of the report showed that contribution from crude oil amounted to $147.39 million while gas and miscellaneous receipt stood at $ 50.17 million and $3.55 million respectively. Of the export receipts, $121.75 million was remitted to Federation Account while $56.56 million was remitted to fund the JV cost recovery for the month of November, 2017 to guarantee current and future production.
On Naira payments to Federation Account, the report indicated that domestic crude oil and gas receipt during the month amounted to N135.14 billion, consisting of N127.93 billion from domestic crude oil and N7.21 billion from domestic gas. Out of the Naira receipt, the sum of N54.16 billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account.
On the receipt from net domestic crude oil and gas, the report indicated that the NNPC transferred the sum of N54.16 billion into Federation Account and N80.98 billion to JV Cash Call for the month under review.
It also showed that from November 2016 to November 2017, Federation, JV, and FG for debt repayment received the sum N865.59 billion, N726.11 billion and N31.65 billion respectively.
About Crude oil & Gas Revenue and Remittances
Federation Crude Oil and Gas liftings are broadly classified into Equity Export and Domestic. Both categories are 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 Central Bank of Nigeria (CBN). Domestic crude oil of 445,000bopd is allocated for refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude and product losses and pipeline repairs and management cost incurred during the period.
NNPC also lifts crude oil and gas, other than equity and domestic crude oil, on behalf of DPR and FIRS proceeds of which are remitted into Federation Account.
The Third Party finance lifting are crude oil and gas lifting from fields that are financed using alternative finance/loan facility which require the servicing of debt obligations before remitting the balance into the Federation Account as Price Balance