How NNPC makes N1.7trn from crude sales in 12 months: Report

*The Nigerian National Petroleum Company (NNPC) Limited discloses the Company has made N1.7trillion from crude oil sales in the last one year

Isola Moses | ConsumerConnect

Earnings Nigerian National Petroleum Company (NNPC) Limited has made from crude oil sales in the last 12 months have been estimated at N1.7trillion.

ConsumerConnect learnt the Company’s recent monthly and financial report for August 2021, indicated that the revenue was earned from March 2020 to March 2021 after it lifted a total of 108 million barrels of crude oil within the year, at an average price of $43 per barrel.

Further analysis of the financial report also showed in March 2020, the oil and gas firm lifted approximately 9, 490mn/b; 11, 437mn/b in April; 5, 113m/b in May; 6,274mb in June; and 8,546m/b in July.

In August, NNPC stated it lifted 8, 546mn/b; 8, 490mn/b in September; 10, 333mn/b in October; 9, 532mn/d in November; and 7, 539mn/b in December 2020.

In January 2021, it lifted 5, 542mn/b; 9, 397mn/b in February, and 7, 553mn/b in March 2021, making it a total of 108 million barrels for the period under review.

The Company also noted that the crude was lifted from the daily allocation for domestic utilisation translating to an average volume of 243,650 barrels of oil per day in terms of performance.

Price fluctuations within the period ranged from $25/b in March 2020, to $17/b in April; $25/b in May; $40/b in June; $44/b in July; $55/b in August; $40/b in September; $40/b in October;  $43/b in November; and $51/b in December 2020.

In January 2021, crude lifted was sold at $57/b; $64/b in February, and $64/b in March 2021.

In meeting domestic product supply requirements, NNPC said all the barrels were processed under the Direct-Sales-Direct Purchase (DSDP) scheme while no deliveries were made to the domestic refineries for processing.

The country’s official exchange rate during the period was around N400 to the Dollar, said the report.

Going by an average of N400/$, the various average monthly costs of Brent and the monthly crude oil production figures as stated above, NNPC further disclosed that it earned approximately N71bn in March; N69bn in April; N46bn in May; N90bn in June; N136bn in July; N170bn in August; N130bn in September; N158bn in October; N156bn in November; and N145bn in December 2020.

The NNPC earned N124bn in January 2021, N230bn in February, and N184bn in March 2021.

The state oil firm as well put total revenue from sales at N1.7trillion within the period under review.

Nigeria earns about 90 percent of its revenue from mostly export of crude oil.

Tunji Oyebanji, Managing Director and Chief Executive Officer, 11 Plc and former Chairman, Major Oil Marketers Association of Nigeria, MOMAN, told The Punch in an interview that Nigeria’s dependence on oil revenue would not give room for adequate growth of other sectors of the economy.