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Nigeria earned $34.2bn from Oil and Gas sector in 2019-Report

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The Federal Government earned $34.22billion from the oil and gas sector in 2019.

This is contained in the 2019 oil and gas industry audit report conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI) in Abuja.

The figure represented an increase of 4.88percent over the $32.63billion revenue gained from the sector in 2018.

A breakdown of the earnings showed that payments by companies accounted for $18.90billion, while flows from Federation sales of crude oil and gas accounted for $15.32billion.

The report showed that ten years (2010-2019) aggregate financial flows from the oil and gas sector to government amounted to $418.544billion, with the highest revenue flow of $68.442 recorded in 2011, while the lowest revenue flow of $17.055 was recorded in 2016.

According to NEITI, the total crude oil production in 2019 was 735.244mmbbls, representing an increase of 4.87percent over the 701.101mmbbls recorded in 2018.

Production sharing contracts (PSCs) contributed the highest volumes of 312.042mmbbls followed by Joint Venture (JV) and Sole Risk (SR) which recorded 310,284mmbbls and 89.824mmbbls respectively. Others are Marginal Fields (MFs) and Service Contracts (SCs) which accounted for 21,762mmbbls and 1,330mmbbls respectively.

The report also showed that total crude oil lifted in 2019 was 735.661mmbbls, indicating a 4.93percent increase to the 701.090 mmbbls recorded in 2018, with companies lifting 469.010mmbbls, while 266.650mmbbls was lifted by the Nigeria National Petroleum Corporation (NNPC) on behalf of the Federation.

Analysis of crude oil lifted by NNPC showed that 159.411mmbbls was for export, while 107.239mmbbls was for domestic refining. 97percent of the volumes for domestic refining (104.475mmbbls) was utilised for the Direct Sale Direct Purchase (DSDP) programme while the remaining 3percent (2.764mmbbls) was delivered to the refineries.

NEITI reported that the value of the 2019 domestic crude oil earnings was N2.722 trillion. Of this figure, N518.074billion was deducted for Petroleum Motor Spirit (PMS) under-recovery by the NNPC. This figure was N213.074billon above the approved sum of N305billion for under recovery in 2019.

N126.664billion was incurred by the Corporation as costs for pipeline repairs and maintenances which showed a difference of N96.378billion from the approved sum of N30.287billion for that purpose. The report also pointed out that N31.844billion was also deducted for crude and product losses due to theft and sabotage in 2019.

NEITI further reported: “Total Premium Motor Spirit (PMS) imported in 2019 was 20.603billion litres. 330,362,020 litres of the PMS valued at N44.03 Billion ($143.694million using N306.42/USD) was lost to vandalism and leaks of the product pipelines across the country”.

On gas production, the NEITI report showed that 3,047,507.32mmscf was produced in 2019. This represents an increase of 4.8percent when compared to the 2,909,143.56mmscf reported in 2018. In addition, $247.794million was realized from gas sales for the year under review.

The 2019 oil and gas report also explained that the total cash call for 2019 was $5.512billion (US$2.898 billion and N797.324billion). There was an outstanding Cash-call legacy liability of $1.900billion as at 31st December 2019.

 

 

 

Nation/Hauwa Abu

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