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Nigeria’s Oil, Gas Earnings Hit $34.22Bn In 2019 – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has reported that Nigeria’s earnings from oil and gas sector rose to $34.22 billion in 2019, representing 4.88 per cent higher than the $32.63 billion earned in the preceding year.

The industry monitoring agency gave this hint in its 2019 report indicated that the report covered 98 entities, comprising 88 oil and gas companies, nine government agencies and the Nigerian Liquefied Natural Gas (NLNG).

According to the report, the revenue accruals showed that payments by the operating companies accounted for $18.90 billion of the revenue, while earnings from government’s sales of crude oil and gas accounted for $15.32 billion.

A further analysis of the revenue accruals indicated that aggregate revenues from the oil and gas sector to the government from 2010-2019 totalled $418.544 billion, with the highest earnings of $68.442 recorded in 2011. The lowest revenue to the government from the hydrocarbon resources industry of $17.055 was recorded in 2016.

The NEITI reported that the total crude oil production in 2019 stood at 735.244 mmbbls (million barrels of oil or natural gas liquids), representing an increase of 4.87 per cent over the 701.101mmbbls recorded in the preceding year.

According to the report, output from the Production Sharing Contracts (PSCs) deals accounted for the highest volumes of 312.042 mmbbls during the year, followed by Joint Venture (JV) and Sole Risk (SR) which recorded 310,284mmbbls and 89.824mmbbls respectively.

The extractive industry operations monitoring agency further hinted that Marginal Fields (MFs) and Service Contracts (SCs) contributed 21,762mmbbls and 1,330mmbbls respectively to the oil production volume during the year in review.

The NEITI also reported that the Nigerian National Petroleum Corporation (NNPC) incurred the sum of N126.664 billion on pipeline repairs and maintenance, representing a difference of N96.378billion from the approved sum of N30.287billion for repairs and maintenance during the fiscal year.

This is even as it noted that N31.844 billion was deducted for crude and product losses due to theft and sabotage by the corporation during the year.

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