The Nigeria National Petroleum Corporation (NNPC) has disclosed that the corporation generated total revenue of N209.54 billion from oil and gas exports and domestic sales in January 2021.
The data also stated that about 40% of the proceeds from oil and gas exports and domestic sales in January were spent on joint venture assets and priority projects.
Highlights of the report
- NNPC spent N83.29 billion on JV assets being developed through joint ventures with private firms as well as priority projects in January.
- A total revenue of N209.54 billion was generated from oil and gas exports and domestic sales in January.
- The NNPC, which represents the Federal Government in the JVs, has an obligation to make cash call payments for the development of the assets.
- The NNPC transferred $80.32 million (N30.44 billion) to the JV cash call account as first line charge in January, while N52.85 billion went to JV cost recovery and government priority projects.
- Total export receipt of $108.75 million was recorded in January 2021 as against $125.25 million in December 2020.
- Proceeds from crude oil amounted to $24.32 million while gas and miscellaneous receipts stood at $66.28 million and $18.15 million respectively.
- Of the export receipts, $28.43 million was remitted to the Federation Account while $80.32 million was remitted to fund the JV cost recovery for the month of January 2021 to guarantee current and future production.
What NNPC is saying
The nation’s oil and gas production structure is majorly split between the JV (onshore and in shallow waters) and the Production Sharing Contracts in deepwater offshore.
Under the JV arrangement, both the NNPC and the private firms contribute to the funding of operations in the proportion of their equity holdings and generally receive the produced crude oil in the same ratio.
Total export crude oil and gas receipt for the period January 2020 to January 2021 stood at $2.73 billion; out of which the sum of $1.58 billion was transferred to JV Cash Call as first line charge and the balance of $1.15 billion was paid into Federation Account.
Proceeds from the sale of domestic crude oil and gas rose to N168.32 billion in January from N136.25 billion in December, out of which N52.86 billion was transferred to the JVCR.
In January 2021, NNPC remitted the sum of N163.63 billion to the Federation Account Allocation Committee. From January 2020 to January 2021, total NNPC remittances to FAAC is N2.10 trillion; out of which Federation and JV with government priority projects received the sum of N850.63 billion and N1.04 trillion respectively.