BESIDE recording operational loss of N120 billion in August and September, the Nigerian National Petroleum Corporation (NNPC) suffered a N336.83 billion deficit in September in its domestic operations.
The latest financial/operations report of the corporation obtained by The Guardian, showed that huge deficit was recorded in the operations of the Pipeline Product Marketing Company (PPMC) comprising mainly claimable subsidy of N249.15 billion, rising from N231 billion recorded in the previous report.
Indeed, the report identified other causes of the deficit to include repairs and management cost of N73.97 billion and crude/product losses of N48.82 billion due to pipeline vandalism.
Besides, the NNPC paid N790.75 billion for domestic crude oil and gas and other receipts to the federation account from January to September 2015.
About $225.7 million was paid to the federation account from the sales of export of crude oil, gas and Nigerian Liquefied Natural Gas (NLNG) Feedstock for the month of August 2015 alone.
NNPC, which made this disclosure in its monthly report released at the weekend, explained that crude oil export sales contributed $108.9 million about 48 per cent of the dollar payment compared with 76 per cent contribution in previous month of July 2015 while export gas sales and NLNG feedstock accounted for $99.65 million i.e 44 per cent contribution compared with 23.7 contribution in the prior month of July 2015.
According to NNPC, the remaining $16.8 million was attributable to other dollar denominated receipts by the corporation. A total of $607.8 million has been paid so far to FAAC in the year 2015 from sales of export oil and gas.
It stated that the total export crude oil and gas receipt for the period of January to September 2015 is $3.69 billion. “Of the total receipts, the sum of $0.61billion was remitted to Federation Account while the balance of $3.09 billion was used to fund the Joint Venture (JV) Cash Call for the period. The dwindling oil price has negatively affected the NNPC Dollar contribution to the Federation Account. The continued decline in oil price led to insufficient cash available to meet JV cash calls obligations of about $615.8 million monthly as appropriated by the National Assembly. To mitigate this effect, NNPC was
compelled to sweep all the export receipt to JV Cash Call funding implying a zero remittance to federation account since the month of April 2015”, it added.
It noted that the corporation federation crude oil and gas liftings are broadly classified into equity export crude and domestic crude.
NNPC explained that both categories are lifted and marketed by NNPC and the proceeds remitted to the federation account.
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