NNPC makes $45.27m, may deduct N1.02tr in six months
By Jeph Ajobaju, Chief Copy Editor
Average oil output was 1.27 million barrels per day (mbd) in November 2021, oil sale in December 2021 fetched $5.13 million and gas $40.14 million; a total $45.27 million, according to the Nigerian National Petroleum Company (NNPC).
However, the NNPC says it plans to raise a $5 billion loan from the AfreximBank to support upstream businesses and facilitate energy supply.
Crude oil lifting of 8.31 million barrels (export and domestic crude) in November 2021 rose 7.78 per cent against 7.71 million barrels in October.
Gross domestic crude oil and gas revenue was N352,518,463,538.25 in December 2021, the NNPC said in its presentation to the Federation Accounts Allocation Committee (FAAC).
It also notified the FACC that N127 billion will be deducted from its remittance in February to account for fuel subsidy.
The sum is part of the total N1.02 trillion the NNPC plans to deduct from its remittance to FAAC in the first six months of the year to pay for subsidy, an amount which may increase if the international price of oil keeps on rising.
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November value shortfall recovery
The NNPC had earlier stated in its presentation to the FAAC meeting in January that it would deduct N127 billion from what the three tiers of government would share February to pay for subsidy on refined fuel imports, per reporting by The PUNCH.
“The November 2021 value shortfall recovery on the importation of PMS amounted to N270,831,143,856.56.
“The recovery consists of November 2021 value shortfall of N220,110,853,427.56 plus the outstanding value shortfall recovery of N50,720,290,429.00 for the month of October 2021,” it said.
“The estimated value shortfall of N127,035,585,356.25 is to be recovered from January 2022 proceed due for sharing at the February 2022 FAAC meeting.”
NNPC seeks $5b loan from AfireximBank
NNPC Group Managing Director Mele Kyari has also announced that the NNPC is working with AfrieximBank to raise a $5 billion loan.
“Afreximbank working with NNPC Ltd to raise $5 billion financing to support our upstream businesses and facilitate energy supply and transition. Opening gate for many more opportunities of collaboration with Afreximbank,” he tweeted.
Nairametrics adds that the NNPC and Afreximbank agreed to intensify efforts at deepening investment in Nigeria’s oil sector and strengthen business collaboration between the two institutions.
The fund would also be used to finance part of NNPC’s investment including the acquisition of interest in upstream oil and gas producing assets.
Following the commencement of the Petroleum Industry Act (PIA), the agreement marks a milestone in the quest by the NNPC to scale up investment in the oil and gas industry, for which it plans to raise between $3.5 billion and $5 billion.
Loan repayment plan
The loan will be repaid through a Forward Sale Arrangement whereby funds provided will constitute the payment purchase of 90-120kpd of crude to be delivered to the lender over a period.
This is projected to be made between four and eight years to ensure major fiscal obligations and operating expenses are discharged appropriately.
Kyari explained in January that the PIA has provided the NNPC with the opportunity to shed toxic liabilities and has raised shareholders’ expectations as well as given the NNPC a wide room to make progress.
