NNPC Records 67% Decline in Crude Oil Export in July

Emmanuel Addeh in Abuja

The export of crude oil by the Nigerian National Petroleum Corporation (NNPC) dropped by 66.95 per cent in July 2020, compared to June 2020, the corporation’s monthly financial and operation report has revealed.

However, the national oil company explained that despite the shortfall, the crude oil export sales contributed about 65 per cent of the dollar transactions in the month under review.

It stated that in July the corporation remitted N70 billion to the federation account, while total export receipt fell considerably to $122.44 million as against $378.42 million in June 2020.
According to the corporation: “A total export sale of $84.63 million was recorded in July 2020; decreasing by 66.95 per cent compared to last month (June).
“ Crude oil export sales contributed $55.29 million (65.34 per cent) of the dollar transactions compared with $219.58 million contribution in the previous month.

“While the export gas sales amounted to $29.33 million in the month, the July 2019 to July 2020 crude oil and gas transactions indicated that crude oil and gas worth $3.91 Billion was exported”.

The corporation added: “In July 2020, NNPC remitted the sum of N70.15 billion to the Federation Account Allocation Committee (FAAC).
“From July 2019 to July 2020, total NNPC remittances to FAAC is N1, 867.09 billion; out of which federation and JV with government priority projects received the sum of N821.37 billion and N1, 045.72 billion respectively.”

On dollar payments to JV cost recovery, it disclosed that total export receipt of $122.44 million was recorded in July 2020 as against $378.42 million in June 2020, noting that contribution from crude oil amounted to $54.98 million while gas and miscellaneous receipts stood at $27.72 million and $39.74 million respectively.

“Of the export receipts, $67.45 million was remitted to the federation account while $54.98 million was remitted to fund the JV cost recovery for the month of July 2020 to guarantee current and future production.
“Total export crude oil and gas receipt for the period, July 2019 to July 2020 stood at $4.41 billion, out of which the sum of $2.73 billion was transferred to JV Cash Call as first line charge and the balance of $1.68 billion was paid into federation account” it explained.

In the downstream petroleum product distributions sector, NNPC noted that a total of 1,036.16 million litres of white products were sold and distributed by PPMC, its subsidiary, in the month of July 2020 compared with 1,345.27 million litres in the month of June 2020.
“This comprised 1,021.53 million litres of petrol, 14.37 million litres of diesel and 0.26 million litres of kerosene. There was no sale of special product in the month.
“Total sale of white products for the period July 2019 to July 2020 stood at 18,362.84 million litres and PMS (petrol) accounted for 18,243.77 million litres or 99.35 per cent.”

In July 2020, the NNPC stated that 1.37 billion litres of petrol were supplied into the country through the Direct sales Direct Purchase (DSDP) arrangement as against the 767.42 million litres of petroleum supplied in the month of June 2020.

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