Oil corporation pays N56.96bn into Federation Account in June

The Nigerian National Petroleum Corporation (NNPC) said it paid the N55.96 billion into the Federation Account in the month of June.

This is contained in the corporation’s monthly financial report for the month of June released in Abuja on Sunday.

The report said in parts: ``NNPC transferred the sum of N55.96 billion into the Federation Account during the month under review from the net domestic crude oil receipt of N102.68 billion.

``Also, the 23rd instalment of the refund to the Federal Government of N6.33 billion was remitted into the Federation Account.’’

It added that NNPC recorded a deficit of N26.51 billion in its operations in June.

It explained that the deficit was mainly due to a decrease in its revenue generation as a result of 13.30 per cent (or N14.9 billion) decline in petroleum products sale by the Products and Pipeline Marketing Company (PPMC) and an increase in the cost of products distribution.

``Also, June 2016 operations witnessed the major impact of incessant vandalism and during the month, more than 261 vandalised points were recorded.

``In Nigerian Petroleum Development Company (NPDC), a substantial portion of crude oil sales for the month estimated to be in excess of the deficit could not be realised due to Force Majeure declared by Shell Petroleum Development Company (SPDC) as a result of the vandalised 48-inch Forcados export line,’’ the report explained.

NNPC attributed pension intervention by Corporate Headquarters to bridge the funding gap as well as the one-off gratuity payment as another reason for the deficit.

The report further said the corporation recorded group operating revenue of N118.39 billion.

It said that group operating revenue dropped by 16.94 per cent from N142.53 billion recorded in May, while its operating expenditure rose to N144.90 billion, compared to N142.26 billion in May.

It added that the surplus made in May was as a result of increase in cash flow due to the increase in the pump price of petrol.

It further said that in June, the sum of 288.17 million dollars was the corporation total export revenue, representing 85 per cent increase relative to preceding month's performance.

It added that crude oil export sales contributed 198.53 million dollars (or 68.89 per cent) of the dollar transactions compared with 89.13 million dollars contribution in the previous month.

The report said that gas export yielded 66.56 million dollars in the month of May.

According to the report, NNPC recorded total export proceeds of 219.26 million dollars in June as against 149.88 million dollars of the month before.

It further said that contribution from crude oil stood at 163.59 million dollars, while gas proceeds stood at 49.12 million dollars and miscellaneous receipt amounted to 6.55 million dollars .

``Poor performance is attributable to upsurge in attack and sabotage of oil facilities in the Niger Delta.

``At Forcados Terminal alone, about 380,000 barrels of oil per day were shut in since February, following the force majeure declared by SPDC.

``A number of crude oil liftings have been deferred until the repair is completed,’’ it said.

Other major terminals affected by the renewed spate of vandalism, as contained in the report include Bonny, Usan, and Que Iboe terminals.

NNPC said Domestic Crude Oil and Gas receipt for June - consisting of N3.06 billion from domestic gas and N102.68 billion from domestic crude oil - amounted to N105.74 billion.

The corporation added that out of the N102.68 billion receipt from domestic crude oil, N49.78 billion (or 252.71 million dollars) was transferred to its Joint Venture (JV) Cash Call, being a first line charge and to guarantee continuous revenue stream into the Federation Account.