Report: NNPC Transferred $2.51b to JV Account in One Year


Chineme Okafor in Abuja
Within the last one year – between September 2016 and 2017, the Nigerian National Petroleum Corporation (NNPC) said it transferred a total of $2.51 billion from the $3.18 billion Nigeria got from its sales of about 715.69 million barrels of crude oil and condensate directly to the Joint Venture (JV) Cash Call account it maintains to fund oil production with International Oil Companies (IOCs) in the country.
NNPC disclosed in a monthly operations and financial report it released for September 2017, that the transfers for the one year period were done as a first-line charge to guarantee current and future oil production.

It noted that the balance of $0.68 billion was paid into the Federation Account. The report was obtained on Tuesday in Abuja by THISDAY.
But for the period of September 2017, NNPC explained that it specifically got a total oil export receipt of $367.07 million, some $75.4 million less of the its August 2017 receipt which it said was $442.47 million.
It explained that in September, the contributions of crude oil sales to its receipt amounted to $239.48 million while gas and miscellaneous receipt stood at $100.28 million and $27.32 million respectively.

“Of the export receipts, $128.47 million was remitted to Federation Account while $238.60 million was remitted to fund the JV cash call for the month of September, 2017 to guarantee current and future production.
“Total export crude oil and gas receipt for the period of September 2016 to September 2017 stood at $3.18 billion. Out of which the sum of $2.51 billion was transferred to JV cash call as first line charge and the balance of $0.68 billion was paid into Federation Account. From August 2016 to August 2017, a total volume of 715.69 million barrels of crude oil and condensate was lifted by all parties,” said the corporation in the report.
On domestic crude oil receipt, NNPC stated that it got N126.79 billion, consisting of N121.26 billion from domestic crude oil, N5.53 billion from domestic gas, and the balance from other receipt.

According to it: “Out of the naira receipt, the sum of N49.43 billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account.
“On the receipt from net domestic crude oil and gas, NNPC transferred the sum of N42.16 billion into Federation Account and N49.73 billion to JV cash call for the month under review. From September 2016 to September 2017, Federation, JV, and federal government for debt repayment received the sum N846.83 billion, N784.57 billion and N50.64 billion respectively.”

However, the corporation reported a trading deficit worth N2.81 billion from its operations in the same September.
It stated: “Group operating revenue for the months of August 2017 and September 2017 were N265.10 billion and N307.59 billion respectively. These represent 71.87 per cent and 83.39 per cent respectively of monthly budget.
“Similarly, operating expenditure for the same periods were N270.84 billion and N310.40 billion respectively, which also represents 85.13 per cent and 97.56 per cent of budget for the months respectively.”

“The 26th publication recorded a trading deficit of N2.81 billion which is relatively lower than the previous month’s deficit of N5.74 billion. This represents 51.06 per cent or N2.93 billion improvement compared to the last month’s performance.
Meanwhile, the corporation in a statement from its Group General Manager, Public Affairs, Mr. Ndu Ughamadu, said on the status of petrol scarcity in the country, that it has petrol in stock that could serve the country for the next 21 days.

It explained that the 21-day sufficiency of petrol translated into 750 million litres, adding that it has also increased the amount of truck supplies of petro to cities across the country.
Abuja, it stated, receives additional 100 trucks of petrol from the 70 trucks it said were allocated to it daily, while Lagos now gets 300 trucks of petrol daily.

NNPC claimed that petrol stock was also boosted by supplies from its Port Harcourt Refinery and Kaduna Refining and Petrochemical Company, which it said are its autonomous business units.
“With the call-off of the warning strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) yesterday, NNPC wishes to assure motorists that normalcy would soon be restored in all parts of the country. NNPC enjoins motorists and other consumers of petroleum products to desist from panic buying, while also warning marketers not to engage in hoarding as defaulters would be prosecuted,” it said in the statement.