NNPC Declares N18.12bn Trading Surplus in May

By Chineme Okafor in Abuja


The Nigerian National Petroleum Corporation (NNPC) has declared another trading surplus worth N18.12 billion for the month of May 2018, a performance it reported to be relatively higher than the N17.16 billion it recorded in April 2018.

A statement from the corporation’s Group General Manager, Public Affairs, Mr. Ndu Ughamadu, on Monday in Abuja explained that the May operational surplus was supported by robust oil revenue, reduced operational costs especially of its exploration and production subsidiary, the Nigerian Petroleum Development Company (NPDC), and increased oil production to 1.97 million barrels a day (mbd).

In May, Brent crude oil reportedly traded for an average of $76 per barrel, while Nigeria, according to the NNPC, produced an average of 1.97mbd of oil.

Ughamadu however stated that details of the transactions were contained in the May 2018 edition of NNPC’s monthly financial and operations report yet to be released to the public as at the time of filing this report.

According to him, the N0.96 billion difference in the April and May trading surpluses was mainly due to increased performance of some of the corporation’s subsidiaries which included the NPDC, Petroleum Products Marketing Company (PPMC), Nigerian Pipelines and Storage Company (NPSC) and marine Logistics.

He said within the period, the corporation’s performance was mostly impacted by that of the NPDC, which recorded a favourable adjustment of N18.22 billion due to increase in revenue with parallel decrease in its expenses.

This, he added, resulted in about N20.93 billion net increase in the upstream gas and power surplus.

“Overall, the report indicated that the increase in performance was bolstered by the relatively high production volumes of 1.97 million barrels per day in April 2018 which was sold in May 2018 thereby reducing cost per unit. 

“Under the national crude oil and natural gas production, lifting and utilisation segment, the report noted that 58.96 million barrels of crude oil and condensate were produced in the month of April 2018 representing an average daily production of 1.97 million barrels. This represents 1.02 per cent increase compared to the preceding month,” said Ughamadu in the statement.

Further, he noted that a breakdown of the production figure indicated that Joint Ventures (JV) and Production Sharing Contracts (PSC) contributed about 32.82 per cent and 41.77 per cent respectively, while Alternative Financing (AF), NPDC and Independents accounted for 14.68 per cent, 7.65 per cent and 3.08 per cent respectively.

He stated that NPDC’s cumulative production from all fields within the period amounted to 47,759,229 barrels of crude oil which translated to an average daily production of 120,909 barrels per day.

In terms of national gas production, Ughamadu explained that 231.59 billion cubic feet (bcf) of natural gas was produced in May, translating to an average daily production of 7,785.01 million standard cubic feet per day (mmscuf/d).

In the downstream sub-sector, he said the NNPC has continued to ensure increased petrol supply and effective distribution across the country, and supplied 1.19 billion litres of petrol within the month.

This, thus translated to an average daily supply of 40.59 million litres of petrol to petrol stations in the country.

“In the month under review, the corporation continued to monitor petrol evacuation figures from depots across the nation, and engaged, where necessary, the Nigerian Customs Service (NCS) and other stakeholders through existing joint monitoring team,” he added.