N644bn Spent On JV Financing, As Federation Gets N857bn From 2017 Crude Sale – Report

A report released by the Nigerian National Petroleum Corporation (NNPC) has showed that from January to December, 2017, the Corporation remitted a total of N857.36bn into the Federation Account, while N644.05bn was spent for Joint Venture (JV) financing, with another N19bn going for the federal government debt repayment.
Contained in the monthly NNPC Financial and Operations Report for December, 2017, details show that the NNPC recorded total export receipts of $476.25m in December, 2017, from sale of crude oil and gas as against $201.11m in November, 2017.
According to the report, while receipts from crude oil amounted to $342.16m, gas and miscellaneous receipts accounted for $ 94.85m and $39.24m respectively.
On Naira receipts, the report showed that domestic crude oil and gas sales in the month amounted to N96.68bn, consisting of N89.11bn from domestic crude oil and N7.57bn from domestic gas.
Of the Naira receipts, the sum of N77.57bn was transferred to the Federation Account in the month under review, while N19.11bn was paid for Joint Venture Cash Call (JVCC) being a first line charge to guarantee continuous flow of revenue stream to Federation Account.
Further analysis show that in terms of natural gas off-take, commercialization and utilization, the report indicated that out of the 234.08 Billion Cubic Feet (BCF) of gas supplied in December, 2017, a total of 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 3,209.70MSCF of gas supplied to the export market.
The report also showed that 60.89percent of the average daily gas produced was commercialized, while the balance of 39.11percent 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 Mega Watts (MW), a modest 11.4percent increase on the November, 2017, gas-to-power delivery of 743MSCF to generate 3,115MW.

About Federation crude liftings

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 are paid directly into Federation Account domiciled in Central Bank of Nigeria (CBN) after adjusting for Joint Venture (JV) Cash Calls.
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.