NNPC, IOCs forecast $3.6bn crude revenue in April

…mull 55.5m barrels crude exports in one month

The Nigerian National Petroleum Corporation (NNPC) and international oil companies (IOCs) operating in Nigeria have forecast $3.6075 billion revenues in April 2018.

The oil firms have scheduled 55.5 million barrels of crude for export in the month, which is also the highest monthly export plan for the year.

Loading plans showed that trading from the April programme was thus far limited, particularly due to the number of pending tenders. Nigeria’s April export plan stood at 1.85 million barrels per day in April – a month of 30 days.

With this daily export plan being the highest so far this year, the country is mulling a total exports of 55.5 million barrels in the month. Using $65 per barrel average price, the revenues on 55.5 million litres amount to $3.6075 billion.

Trading from the April programme, however, recorded a number of pending tenders, which made it thus far limited.

“Chevron won a tender from India’s BPCL to buy crude oil for April 6-15 loading with a cargo of Nigeria’s Agbami,” the tender showed.

A tender from Uruguay’s ANCAP was awarded later last Wednesday while Indonesia’s Pertamina was running a tender to buy crude for April and May delivery, which is due this week. Offer levels are notably high, with traders offering Forcados at premiums of as much as $2.50 per barrel above dated Brent.

The aspiration by Nigeria to raise its crude exploration and production had earlier been hampered by delay in passage of an all-round law for the sector. NNPC, however, said that the National Assembly has assured that the rest of the Petroleum Industry Bill (PIB) will be passed by June, this year.

Group Managing Director of NNPC, Dr Maikanti Baru, said this at the 2018 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers in Abuja, last Thursday.

PIB was split into four parts namely the Petroleum Industry Governance Bill, which had been passed and the Host Communities, Fiscal Reforms and Downstream Bills, which are awaiting passage.

Baru, represented by NNPC Chief Operating Officer, Upstream, Dr Rabiu Bello, said: “The promise we got last week from the National Assembly was that before the end of the second quarter of this year, which we see as June 30, they promised that the three other bills will also be concluded and passed. So, hopefully, 2018 will see the end of all the discussions around PIB, which started in year 2000.’’

Nigeria, it would be recalled, suffered a fresh $15 billion investments plunge to oil and gas sector’s regulatory uncertainty in one year.

A policy brief by the Nigeria Extractive Industries Transparency Initiative (NEITI), which released latest data on loss to the foot-dragging on 18 year-old PIB, showed that any further delay in signing the Petroleum Industry Governance Bill (PIGB), a fraction of the PIB, by President Muhammadu Buhari, would worsen the losses.


New Telegraph

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