NNPC records trading deficit of ₦5.74 bn in August
The Nigerian National Petroleum Corporation (NNPC) said it recorded a trading deficit of ₦5.74 billion, which is relatively lower than the previous month’s deficit of ₦11.87Billion.
The corporation made this known in its August 2017 Monthly Financial and Operations Report as published on its website, adding the this improved performance is mainly due to revamping of the Forcados export terminal which enhances the Niger Delta Petroleum Development Company’s performance, despite the low performance of the downstream value chain, due to high crude oil inventory and the shutdowns of the Kaduna Refinery and Petrochemical Company and the Port Harcourt Refinery Company during the period.
The corporation also indicated that other factors that dragged the August performance include shut down of Trans Niger Pipeline and production shut-in to Que Iboe terminal and Bonga Terminal.
Furthermore, the August 2017 financials indicated that NNPC’s receipts from domestic crude oil and gas in the month stood at N180.76Billion, consisting of N13.65Billion from Domestic Gas, the sum of N166.90Billion from Domestic Crude Oil and N0.21Billion from other receipt.
The NNPC noted that of its total export, crude oil and gas receipt for the period stood at $442.47 Million in August 2017 as receipt against $430.23Million in July 2017.
Of this, the sum of $154.87 was remitted to the Federation Account, while $287.61 was remitted to fund the JV Cash Call for the month of August, 2017 to guarantee current and future production.
According to the report, “contribution from crude oil amounted to $310.34Million, while gas and miscellaneous receipt stood at $116.56Million and $15.57Million.
The report further indicated total export crude Oil & Gas receipt for the period of August, 2016 to August, 2017 stood at $3.00Billion. Of this the sum of $2.43Billion was transferred to JV Cash Call, in line with the budget and the balance of $0.57Billion was paid to the Federation Account
Furthermore, the NNPC said it transferred the sum of N45.10 Billion into the Federation Account and N83.76 Billion to JV cash Call for the month under review. From August 2016 to August 2017, Federation, JV, and FG received the sum N804.67 Billion, N734.84 Billion and N50.64 Billion respectively
The report indicated that key inhibiting factors which dragged the industry performance included the Nembe Creek Trunk Line (NCTL) which was shut down between 8th – 24thJuly, 2017 due to leaks, resulting in the shut-in of about 120,000bopd.
The operator of the line AITEO and Bonny terminal declared force majeure. The Trans Niger Pipeline (TNP) was shut down from 21-31 July due to leaks causing shut-in of about 90,000bopd.