Nigeria receives N815.7 billion oil, gas proceeds in January



• Records 100% increase in one month
• Crude oil prices rise above 2016 budget benchmark

The Federal Government has recorded total export proceeds of $407.86 million (N815.7 billion) in January 2016, representing a 100 per cent increase from the $259.86 million recorded in December 2015.

The breakdown consists of crude oil receipt of $201.92 million, Liquefied Petroleum Gas (LPG) and Escravos Gas-To-Liquids (EGTL) proceeds of $135.89 million as well as miscellaneous receipt amounting to $70.05 million.

The Nigeria National Petroleum Corporation (NNPC), which made this disclosure in its monthly financial report released at the weekend, said that this was higher than the total export proceeds of $269.86 million recorded in December 2015.

The corporation said that the country’s current total export receipt increased by more than 100 per cent in January 2016, adding that the proceed would have been more, but for the further slide in crude oil prices and additional shut-in of about 35,000bopd in Usan and Yoho terminals.

It listed other factors to include none receipt of Nigeria LNG Limited (NLNG) feedstock of about $74.47million following payment slippage into New Year and 57.08 per cent drop in LPG/NGL lifting.

It stated: “Total export crude oil & gas receipt for the period of February 2015 to January 2016 is $4.77 billion. Of the total receipts, the sum of $0.53 billion was remitted to Federation Account while the balance of $4.24 billion was used to fund the JV Cash Call for the period. Thus, JV funding has gulped more than 88 per cent of the proceeds. JV cash call is a first line charge to Federation Account and 2015 approved budget requires monthly funding of about $615.8 million. NNPC is therefore mandated to sweep all the export receipts to JV cash call funding, implying a zero remittance to a Federation Account.”

Meanwhile, the global benchmark, Brent Crude Oil, has risen against the proposed benchmark oil price of $38 per barrel yesterday to $38.72, representing a $1.65 increase from the $37.07 it earlier recorded. The price of United States’ (U.S.) West Texas Intermediate (WTI) also rose by 3.91 per cent to $35.92 a barrel.

Light, sweet crude for April delivery increased by $1.35, or 3.9 per cent, yesterday at $35.92 a barrel on the New York Mercantile Exchange, the highest settlement since January.

The price of Organisation of Petroleum Exporting Countries (OPEC) basket of 12 crudes, which include Nigeria’s Bonny Light, stood at $31.61 a barrel per barrel, according to OPEC price report.

Oil prices have dropped by over 50 per cent from $105 per barrel it recorded two years ago to about $38 presently at the weekend.

The global oil market remains over-supplied. U.S. inventories of crude oil rose more than expected last month and stand at the highest level in more than 80 years, according to the Energy Information Administration.

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