Crude Oil Sales: NNPC To Receive N422 Billion From Six IOCs

Six international oil companies (IOCs) will transfer N442.37 billion in August as sales profits from the sale of domestic crude oil in May 2022, according to the Nigerian National Petroleum Company (NNPC) Limited.

This was stated by NNPC in its most recent monthly presentation to the Federal Account Allocation Committee (FAAC) meeting in July.

Six IOCs would give NNPC N422 billion for domestic crude oil sales.

Six international oil companies (IOCs), according to the Nigerian National Petroleum Company (NNPC) Limited, would send N442.37 billion in August as payment for the sale of domestic crude oil in May 2022.

This was stated by NNPC in its most recent monthly presentation to the federal account allocation committee (FAAC) meeting in July.

According to the oil business, the expenditure was equivalent to 8.887 million barrels of oil.

The six joint venture (JV) partners are said to be Chevron Nigeria Limited (CNL), Mobil Producing Nigeria, and Nigerian Petroleum Development Company (NPDC), the principal upstream arm of NNPC.

The top upstream subsidiary of the NNPC, Nigerian Petroleum Development Company (NPDC), as well as Chevron Nigeria Limited (CNL), Mobil Producing Nigeria, and Nigerian Petroleum Development Company are listed as some of the six joint venture (JV) partners in the report (NPDC).

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

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

According to the breakdown, the report stated that Mobil would pay N90.06 billion for 1.9 million barrels of petroleum while Chevron would pay N162.24 billion for 3.49 million barrels.

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

The NNPC changed its legal status to a limited liability business in July, becoming commercialised and profit-driven.

The corporation must provide complete financial disclosures as required by the Companies and Allied Matters Act (CAMA), which regulates it.

The study states that pipeline maintenance and repairs cost N8.35 billion in June.

It claimed that the sum covers the price of strategically holding as well as the expense of securing the pipelines used to transfer oil goods.

Giving a detailed breakdown, NNPC said that while strategic holding used N989.74 million, security and maintenance expenses totaled N7.36 billion.