NNPC Confirms IOCs Exit
NNPC Confirms IOCs Exit

The Nigerian National Petroleum Company Limited has announced that a total of N249.3 billion will be paid in January 2022 for domestic crude oil sales made in October 2021 by six-global oil firms operating in the upstream sector.

In its most recent report on Nigeria’s crude oil exports and domestic crude oil sales for the month of October 2021, the NNPC said as much. On Thursday in Abuja, the report was acquired.

This occurred as the oil company said that during the Federal Accounts Allocation Committee meeting in January next year, it will remove N270.83 billion from the amount to be split among the three levels of government.

It said that the N270.83 billion was the value gap in November 2021. The NNPC has value deficits as a result of the monthly subsidy of Premium Motor Spirit, often known as gasoline.

While the October 2021 crude oil exports of 50,000 barrels under the Production Sharing Contract, valued at $4.18 million, were payable in November 2021, the October 2021 domestic crude oil payment scheduled in January 2022 from the six enterprises was N249.3 billion, according to the report.

The NNPC’s domestic crude oil payable in January 2022 was in compliance with the 90-day payment conditions, according to the corporation, which added that the six enterprises were its Joint Venture partners.

Chevron Nigeria Limited, Mobil Producing Nigeria, Shell Petroleum Development Company, MidWestern, Pillar, and First Exploration and Production were listed as the companies from which the money were anticipated.

CNL will pay N73.85 billion for 2.268 million barrels of domestic petroleum, while MPN would pay N123.22 billion for 3.8 million barrels of domestic crude.

The SPDC and MidWestern would pay N26.966 billion and N3.25 billion for 828,556 and 100,000 barrels of domestic crude oil, respectively.

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Pillar and First E&P will pay N650.91 million and N21.36 billion for 20,000 and 649,677 barrels of domestic crude oil, respectively.

According to the study, the total amount of domestic crude oil payable by the enterprises in January 2022 is 7.666 million barrels, with a value of N249.3 billion.

The NNPC indicated that the N270.83bn cut from what would be shared by FAAC in January 2022 was an estimate of its value deficiency in November this year.

“The anticipated value gap of N270,831,143,856.56 will be recovered from the December 2021 proceeds due for sharing at the FAAC meeting in January 2022,” it stated.

“This value shortfall consists of N220,110,853,427.56 for November and N50,720,290,429.00 deferred for recovery in December 2021 FAAC Report.”

The NNPC has been reporting monthly value gaps as a result of its petrol subsidy spending, a trend that had lowered its payments to FAAC.

Governors have spoken out against the NNPC’s prolonged fuel subsidy, but experts and labor organizations have warned the government to tread carefully as it contemplates ending the PMS subsidy program.

For the last four years, the NNPC has been the single importer of petrol into Nigeria, shouldering the burden of the PMS subsidy as the provider of last resort.

Other marketers have ceased importing petrol because of the country’s foreign currency rate volatility and their inability to acquire the US dollar efficiently for PMS imports.

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