NNPC Pays N1.118trn into Federation Account in One Year – Report



* NPDC lost N20bn worth of oil revenue in March

By Chineme Okafor in Abuja

The March 2016 edition of the monthly financial and operation report of the Nigerian National Petroleum Corporation (NNPC) has disclosed that the corporation has paid N1.118 trillion into the federation accountin the last one year as proceeds from the sale of domestic crude oil.

However, previous payments are still being verified in an on-going audit.

The report was released at the weekend in Abuja by the corporation. It stated, among other developments, that N69.544 billion was remitted into the federation account in the month under consideration.

The remittances it explained were Naira proceeds from the sale of domestic crude oil and gas.

It also explained that Nigeria’s oil production for the month was 59.27 million barrels, about 2.04 million barrels per day (mbpd) which is lower than January, 2016 production of 66.49mb.

The drop it stated was occasioned by a declaration of force majeure by Shell Production Development Company (SPDC) because of the vandalised 48 inch Forcados export line which resulted in production shut-in of about 300,000bpd.

That production drop NNPC explained also resulted to a loss of about N20 billion of oil revenue that would have been earned by its Exploration and Production (E&P) subsidiary, the Nigerian Petroleum Development Company (NPDC).

NNPC said the production drop represents a decrease of 10.85 per cent when compared to its January 2016 performance. It added that Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 34.57 and 42.69 per cents respectively of the production volume for the month while Alternative Funding (AF), NPDC and independent sources accounted for 14.89, 3.13 and 4.71 per cent respectively.