- NNPC Pays $1.5bn Cash Call Debt to IOCs
The Nigerian National Petroleum Corporation says it has reduced cash call arrears owed to international oil companies, its Joint Venture partners, by $1.5bn. The corporation has cash call arrears of $5.1bn.
Group Managing Director of NNPC, Dr Maikanti Baru, said this at the 12th National Conference of the Nigerian Association for Energy Economics/International Association for Energy Economics,in Abuja on Monday.
He also disclosed that 783 million Standard Cubic Feet of gas per day was flared in 2018.
Baru said that 2018 marked the second year without the corporation incurring any cash call arrears.
Baru said, “So far, we have repaid over $1.5bn out of the $5.1bn cash call arrears to date, a development that has not only restored the confidence of international oil companies, IOC, JV partners, but has also led to improved reserves growth and crude oil production.
“It was quite fulfilling that in 2018, that is for the second year in a row, we concluded the fiscal year without any cash call arrears.”
He said that the average of 783 million SCF of gas per day was flared in 2018 was 2.9 per cent higher than 761 mmscfd supplied to the power sector within the same period.
According to him, in 2018 the national average daily gas production stood at 7.90bn Standard Cubic Feet, representing an increase of three per cent above 2017 average daily gas production of 7.67bn SCF.
He said, “Of the 7.9bn SCF per day produced in 2018, an average of 3.32bn SCF per day (42 per cent) was supplied to the export market, 2.5bn SCF per day (32 per cent) for re-injection/fuel gas, 1.3bn SCF per day (16 per cent) was supplied to the domestic market and about 783 million SCF per day (10 per cent) was flared.
“Domestic gas supply capacity was marginally stable at about 1700 million SCF per day, with an average of 1.3bn SCF per day actually supplied to the domestic market. This is due to power evacuation challenges resulting from frequency management caused by rejection of allocated load by distribution companies as well as transmission line constraints.
“However, of the 1.3bn SCF per day supplied to the domestic market, an average of 761m SCF per day was supplied to the power sector while 470 million SCF per day was supplied to the industries and the balance of 69m SCF per day was delivered to the West African Market through the West African Gas Pipeline.”
He added that the automation of its crude oil marketing operations had helped remove the opacity in the management and sale of Nigeria’s crude oil grades.
Fall in Economic Activities in Nigeria Created N485.51 Billion Fiscal Deficit in January -CBN
The drop in economic activities in Africa’s largest economy Nigeria led to a N485.51 billion fiscal deficit in January, according to the latest data from the Central Bank of Nigeria (CBN).
In the monthly economic report released on Friday by the apex bank, the weak revenue performance in January 2021 was due to the decline in non-oil receipts following the lingering negative effects of COVID-19 pandemic on business activities and the resultant shortfall in tax revenues.
In part, the report read, “Federally collected revenue in January 2021 was N807.54bn.
“This was 4.6 per cent below the provisional budget benchmark and 12.8 per cent lower than the collection in the corresponding period of 2020.
“Oil and non-oil revenue constituted 45.4 per cent and 54.6 per cent of the total collection respectively. The modest rebound in crude oil prices in the preceding three months enhanced the contribution of oil revenue to total revenue, relative to the budget benchmark.
“Non-oil revenue sources underperformed, owing to the shortfalls in collections from VAT, corporate tax, and FGN independent revenue sources.
“Retained revenue of the Federal Government of Nigeria was lower-than-trend due to the lingering effects of the COVID-19 pandemic.”
“At N285.26bn, FGN’s retained revenue fell short of its programmed benchmark and collections in January 2020, by 41.3 per cent and 7.5 per cent respectively.
“In contrast, the provisional aggregate expenditure of the FGN rose from N717.6bn in December 2020 to N770.77bn in the reporting period, but remained 14.4 per cent below the monthly target of N900.88bn.
“Fiscal operations of the FGN in January 2021 resulted in a tentative overall deficit of N485.51bn.”
The report noted that Nigeria’s total public debt stood at N28.03 trillion as of the end-September 2020, with domestic and external debts accounting for 56.5 percent and 43.5 percent, respectively.
NNPC Supplies 1.44 Billion Litres of Petrol in January 2021
The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.
The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.
NNPC said the 1.44 billion litres translate to 46.30 million litres per day.
Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).
The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.
Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.
For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.
Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.
NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021
The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.
This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.
It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.
NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.
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