NNPCL exports $1.7bn crude as production drops 12% – Report

The Nigerian National Petroleum Company Limited, acting on behalf of numerous stakeholders, facilitated the lifting of a total of 14.23 million barrels of crude oil in 2021, valued at $999.71 million.

The Times reported that this is supported by the newly released Nigerian Extractives Industries Transparency Initiative 2021 Oil and Gas Report.

According to the NEITI study, NNPCL hoisted and exported a sizable 24.84 million barrels of crude oil worth an estimated $1.70 billion on behalf of the Federation.

The actual sales revenue for the year, $1.58 billion was correctly allocated to the appropriate bank accounts.

Furthermore, $24.32 million was allotted to settling receivables from prior years while $1.55 billion represents sales receipts from 2021.

NNPCL authorized 98.92 million barrels of crude oil worth $7.11 billion (or around N2.73 trillion) for the domestic market. However, throughout the year, no crude was actually supplied to the nearby refineries.

Instead, a staggering 95.25 percent of this petroleum was used in crude-to-product exchanges on the global market using the Direct Sale Direct Purchase system. 4.75 percent of the total amount was directly sold on the global market.

This situation mostly developed because there weren’t any refineries running all year. Actual domestic crude sales revenue for the year was N2.23 trillion, or about $5.85 billion.

The sales receipts from 2021 made up N1.64 trillion, or roughly $4.30 billion, of this, while the remaining N588.68 billion, or roughly $1.55 billion, was placed aside for the settlement of previous debt. As of December 2021, a substantial sum of N751.11 billion (approximately $1.94 billion) remained unpaid.

On the other hand, as of December 31, 2021, a liability totaling N334.82 billion (or around $871.15 million) was reported.

It’s crucial to emphasise that in 2021, a total deduction of N1.20 trillion (about $3.15 billion) was taken from the earnings of domestic sales.

Subsidy payments (N1.16 trillion), crude and product loss (N16.20 billion), pipeline repairs and maintenance (N22.05 billion), and strategic stock holding (N6.75 billion) were all included in these deductions.

A total of 54 businesses contributed to the production of crude oil, which led to a measured output of 634.60 million barrels.

However, difficulties including adjusting production, measuring incorrectly, and sabotage/theft caused a loss of 68.47 million barrels.

As a result, the fiscalized production for the year, which included both crude oil and condensates, was 566.13 million barrels.

A 12% decrease from the volume of 646.79 million barrels produced in the prior year, fiscalized crude oil production for 2021 totaled 566.13 million barrels.

With 2020 registering 647 million barrels and 2019 hitting the greatest production figure of 735.24 million barrels, this year’s output figure was the lowest in the previous four years.

According to an analysis of various terminals, the Forcados port run by Shell Petroleum Development Company contributed the highest to overall crude output in 2021, accounting for 12.56% with a production volume of 71,083.79 barrels.

The Escravos terminal came in second place, providing 10.43% of the total production volume of 59,045.51 barrels.

With 57,591.79 barrels, Tupni’s Egina Terminal accounted for 10.17% of the total production. Individual contributions from other terminals, such as Atan, Ebok, Okoro, Okono, Otakikpo, Okwori, Aje, Ajapa, and Ubima, totaled less than 1% of the total production.