The NNPC in
its Financial and Operations Report for the month of August, stated that the
country also earned $3.423 billion, about N684.6 billion, from the export of
crude oil and gas.
The NNPC put
domestic crude sales proceed due the country at N1.164 trillion; N723.824
billion was received, while N774.47 billion was remitted to the Federation
Account Allocation Committee (FAAC), inclusive of a debt repayment of N50.64
billion.
The country
spent N231.04 billion on subsidy; N4.17 billion and N41.65 billion was incurred
as crude and petroleum product losses respectively, while repairs and
management cost gulped N69.41 billion.
In general,
the NNPC stated that the country earned $25.105 billion, about N5.021 trillion
from the sale of crude oil between January and July 2015.
A breakdown
of the figure, showed that the Federal Inland Revenue Service (FIRS) and the
Department for Petroleum Resources (DPR) earned $1.966 billion, about N393.2
billion and $229.668 million, about N45.93 billion respectively from Production
Sharing Contract revenue.
In addition,
the NNPC earned $7.156 billion, about N1.43 trillion in the period under
review, while the amount accrued to the Federal Government was $9.351 billion,
about N1.87 trillion. Oil companies, including the Nigerian Petroleum
Development Company, NPDC, earned $15.077 billion, about N3.02 trillion, while
Alternative Finance received $676.287 million, about N135.257 billion.
The report
said: “A total volume of 63.7 million barrels of crude
oil and condensate was lifted in the month of July 2015 by all parties. Out of
this volume, 25.2 million barrels was lifted for and on behalf of the Federal
government of Nigeria comprising of 17.4 million barrels lifted on the account
of NNPC and 7.8 million barrels lifted on the account of FIRS.
“The
17.4 million barrels lifted on the account of NNPC in July comprises 15.4 and
1.9 million barrels for the domestic and export markets respectively. At an
average oil price of $51.97 per barrel and exchange rate of N195.95 to a dollar,
the domestic crude oil lifted by NNPC is valued at $805.22 million or a naira
equivalent of N157.782 billion for the period.
“The
remaining crude oil lifted for export was valued at $108,916,802.23 at an
average price of $56.76 per barrel. The total value of crude oil lifted on the
account of NNPC in July was thus $914.136 million.
“For
the period from January to July 2015, a total volume of 439 million barrels of
crude oil and condensate was lifted by all parties.”
The NNPC
identified that incessant pipelines breakages, crude oil and product theft and
losses, poorly negotiated legacy contracts have contributed adversely to the
profitability of the corporation as major challenges that had impacted
negatively on its operations in the period under review.
It also
identified low capacity utilization of the country’s refineries, unrealized
subsidy claims of about N231 billion for 2015 and inefficient business models
as other challenges confronting it.
To this end,
the NNPC said: “Consequently, NNPC is embarking on a change
agenda termed the ‘20 Fixes’ which identifies 20 critical issues that need to
be addressed in order to re-position the Corporation on the path of
profitability.”
Some of the
fixes include: reducing and auditing its costs; restructuring its corporate
centre and staffing; renegotiating existing contracts including production
sharing contracts and streamlining subsidy management among others. (sweetcrude)
No comments:
Post a Comment