NNPC earns $20.9 billion from exports in the first 8 months of 2013

ABUJA – According to NNPC CEO Andrew Yakubu in a statement issued by the company yesterday in Abuja,┬áNigerian National Petroleum Corp has produced an average of 2.19 million b/d of crude oil over January-July, and earned $20.9 billion from crude exports over the same period.

According to Mr Yakubu, Output and revenue could have been higher if not for large-scale oil theft, pipeline vandalism and illegal bunkering in the Niger Delta region, which severely disrupted production and exports.

“The projected budget revenues have not been realized due to significant production shortfall. The 2013 planned production was 2.45 million b/d [but] year-to-date July 2013 production has averaged 2.19 million b/d,” Yakubu said.

crude oil piplines“Although oil prices have averaged $108/barrel, which is about $38/b above the budget benchmark, this has not led to improvement in government revenues due to production shortfall occasioned by crude theft and pipeline vandalism,” he added.

Yakubu went on to say that oil theft and illegal bunkering were rampant in onshore operations especially in the swamps and shallow waters of the Niger Delta.

“For instance we recorded over 170 vandalized points in the Escravos- Warri crude oil pipeline… a distance of 60 km,” he added.

Lawmakers from Nigeria’s lower legislative chamber House of Representatives had met with NNPC on Thursday over the continued decline in Nigerian government revenue so far this year.

Oil is Nigeria’s economic mainstay, accounting for 80% of government revenue.

NNPC manages the government’s average 57% equity interest in upstream joint ventures with foreign firms including Shell, ExxonMobil, Chevron and Total, which together accounts for 90% of Nigeria’s more than 2 million b/d of oil output.

Government data released last week showed Nigeria’s gross revenue tumbled 42% month on month to $3.1 billion in July due to disruptions to production and exports.

Shell, Nigeria’s biggest oil producer on Monday declared force majeure on exports of Nigeria’s major export crude grade, Bonny Light, as well as on gas supply to Nigeria’s 22 million mt/year Bonny LNG plant, after shutting its 150,000 b/d Trans Niger Pipeline for repairs to damage from the latest oil theft.

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