Revenue from oil and gas in June dropped to US$226.38 million between May and June 2019, the Nigerian National Petroleum Corporation (NNPC) reported in its June 2019 monthly financial and operations report.
The report stated that in May, the sales value of oil and gas production in Nigeria was US$547.61 million and it dropped to US$321.23 million in June.
It said within the month under review, its under-recovery – a term it uses in place of subsidy payments for petrol consumption in the country, reduced from US$335 million in May to US$100.5 million in June.
Additionally, it lost millions of Naira to oil theft in May and June, but could not cut down its expenditure on repairs of pipeline.
According to the report, “Crude oil export sales contributed US$248.22 million (77.27 per cent) of the dollar transactions compared with US$458.59 million contribution in the previous month.
“Also, the export gas sales amounted to US$73.01 million in the month. The June 2018 to June 2019 crude oil and gas transactions indicated that crude oil and gas worth $5.98 billion was exported.”
It said there was a decline in oil price in the international market even when Nigeria’s oil production rose slightly by about 0.04 per cent.
“This month, average crude oil price dropped for the second consecutive month by $7.32 or 10.72 per cent m-o-m (month-on-month) to average $61.02/b.
“ICE Brent in June 2019 dropped by $7.27, or 10.3 per cent m-o-m at $63.04/b while NYMEX WTI decreased by $6.16 or 10.1 per cent m-o-m to average $54.71/b.
“In May 2019, a total of 60.00 million barrels of crude oil and condensate were produced representing an average daily production of 1.94 million barrels. This translates to an inconsequential increase of 0.04 per cent in the average daily production compared to April 2019 average daily performance,” it added.
Also, NNPC stated that of the May 2019 oil production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 28.99 per cent and 45.40 per cent respectively, while Alternative Finance (AF), Nigerian Petroleum Development Company (NPDC) and Independents accounted for 10.77 per cent, 8.12 per cent and 6.71 per cent respectively to the pool.
The NNPC as well indicated that out of the total volume of oil produced within the period, it lifted about 15,661,358 barrels for the federation, while the International Oil Companies (IOCs) and independents, including the NPDC, lifted 40,858,616 barrels. Liftings by AF were placed at 2,031,249 barrels by the corporation’s report.