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NNPC to receive N422bn from six IOCs for domestic crude oil sales

NNPC to receive N422bn from six IOCs for domestic crude oil sales
August 23
15:40 2022

The Nigerian National Petroleum Company (NNPC) Limited says six international oil companies (IOCs) will remit N442.37 billion in August as proceeds from the sale of domestic crude oil in May 2022. 

NNPC said this in its latest monthly presentation to the federation account allocation committee (FAAC) meeting in July.

The oil company said the amount was the cost of 8.887 million barrels of oil.

According to the report, the six joint venture (JV) partners include Chevron Nigeria Limited (CNL), Mobil Producing Nigeria and Nigerian Petroleum Development Company (NPDC), the flagship upstream subsidiary of NNPC.

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Others include Total Exploration and Production Nigeria, First Exploration and Production (First E&P), and Addax Petroleum.

“May 2022 domestic crude oil payable in August 2022 by NNPC in line with the 90 days payment terms,” the report said. 

Given the breakdown, the report added that Chevron would pay N162.24 billion for 3.49 million barrels of oil while Mobil would remit N90.06 billion for 1.9 million barrels of crude.

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NPDC and Total would remit N41.13 billion and N47.26 billion for 948,296 and 948,776 barrels of crude oil, respectively.

In July, the NNPC transitioned into a limited liability company, becoming profit-oriented and commercialised.

Regulated by the Companies and Allied Matters Act (CAMA), the company is expected to make full financial disclosures.

According to the report, pipeline repairs and maintenance gulped N8.35 billion in June.

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It said the figure includes the cost of securing the pipelines used to transport oil products as well as strategic holding.

Giving a further breakdown, NNPC said security and maintenance costs culminated in N7.36 billion while strategic holding gulped N989.74 million.

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