The Nigerian National Petroleum Corporation (NNPC), has reported that in August this year earnings from its Crude Oil & Gas export sales rose to $139.50 million, representing an increase of 64.84 per cent compared to the previous month’s earnings.
The state-owned petroleum company, stated in its August 2020 NNPC Monthly Financial and Operations Report (MFOR) that out of the gross earnings, Crude Oil export sales contributed $80.27 million or 57.54 per cent higher than the $55.29 million it contributed in July; while the export Gas sales amounted to $59.23 million in the month.
According to the report, the cumulative export incomes from the Crude Oil and Gas exports between August 2019 to August 2020 totalled $3.71 billion was exported.
At the domestic level, the MFOR indicated that the Corporation supplied 727 Million Standard Cubic Feet per day (mmscfd) of natural gas for power generation in the month of August, 2020, an equivalent of 2,538MW of power which also represented an increase of 2.80 per cent over the supply in the preceding month.
The NNPC’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that the recently released MFOR indicated that Natural Gas production in August 2020 increased by 0.13 per cent at 236.66 Billion Cubic Feet (BCF) compared to output in July 2020; translating to an average daily production of 7,639.99mmscfd.
For the period August 2019 to August 2020, a total of 3,062.95 BCF of gas was produced representing an average daily production of 7,771.13 mmscfd during the period. Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and the Nigerian Petroleum Development Company (NPDC) contributed about 69.96 per cent, 20.26 per cent and 9.78 per cent respectively to the total national gas production.
The latest edition of the MFOR indicated an increased trading surplus of N29.60Billion compared to the N20.36Billion surplus in July 2020 which was the third consecutive month of global recovery from the COVID-19 effect.
According to Obateru, the 45 per cent improvement in performance is mainly attributed to the 82 per cent growth in surplus posted by the NPDC due to sustained improvement in global market fundamentals.
The NNPC Group surplus was further enhanced by the 109 per cent increased profit by Duke Oil Incorporated as well as 75 per cent and 22 per cent reduction in deficits for the Nigerian Pipelines and Storage Company (NPSC) and Refineries which arose from declining costs of pipeline maintenance and corporate overheads respectively thus mitigating the effect of the increased deficits posted by some other SBUs.
The deficits are linked to low sales volume, reduced debt collection and high average product landing cost.
In the Downstream, to ensure continuous increased Premium Motor Spirit (PMS) supply and effective distribution across the country, a total of 0.95bn litres of PMS translating to 30.53mn liters/day was supplied for the month.