Crude oil: Six IoCs to remit N380bn for domestic sales in October

Sat, Sep 24, 2022
By editor

Oil & Gas

SIX International Oil Companies (IoCs) are set to pay N380.04 billion in October 2022 as proceeds from the sale of domestic crude oil, according to the Nigerian National Petroleum Company (NNPC) Limited.

The NNPC Limited, which made this known in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Friday, September 23, said the payment would be for July, this year.

A FAAC document obtained by Vanguard indicated that the expected amount was for the sales of 8.44 billion barrels of oil.

It noted that July 2022 domestic crude oil payable in October 2022 by NNPC Limited was in line with the 90 days payment terms, involving Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN) and Shell Petroleum Development Company (SPDC).

Others included Total Exploration and Production Nigeria, First Exploration and Production (First E&P), and Universal.

It stated that CNL would be paying N80.02 billion for 1.74 million barrels of crude, while MPN would pay N128.66 billion for 2.85 million barrels of oil while SPDC and Total would pay N28.03 billion and N112.63 billion for 643,904 and 2.54 million barrels of crude oil, respectively.

It also maintained that First E&P and Universal would pay N30.24 billion and N30.24 million for 650,069 and 10,000 barrels of oil, respectively.

The Group Chief Executive, NNPC Limited, Mele Kyari, could not be reached, the weekend, for comments, but he had recently noted that “The NNPC Limited is firmly focused on investing to grow production both oil and gas but more importantly gas and gas infrastructure development, creating linkages to the market and expanding midstream value-adding opportunities.”

The GCE, who identified some problems as constraining output and revenue had said: “We are not unmindful of the current challenges, particularly security in the operational areas, Cash call arrears settlement and other above-ground issues that confront the industry, the question therefore to ask is how do we provide a pathway for growth under these conditions?. Well, we must all admit that growth and reinvestment of capital is the only way forward, the consequences of an alternate future can be quite dire.

“Also, particularly heartwarming is the fact that our long history clearly demonstrates resilience, and this is another era in our history to demonstrate our resilience and the collective will to overcome the challenges. We have deployed creative solutions to tackle security challenges in the operational areas. Technological intervention for both monitoring and prompt intervention would also be set up. The tackling of the menace is a top priority for NNPC Limited.”