692 Million Barrels Of Crude Oil Produced By Nigeria In 2017 – NEITI Report



The Nigeria Extractive Industries Transparency Initiative (NEITI) says
that 692 million barrels of crude oil were produced in the country in

NEITI disclosed this in its report, ‘Pilot study on commodity trading
for 2017′ and released in Abuja.

“The total crude oil production for 2017 was 692 million barrels. Out
of this volume, the share that went to the federation was 240.9
million barrels representing 35 percent of the total crude oil
production for the year 2017.

“A trend analysis for the year under review shows that the 2017
federation share was four percent higher than the 231.6 million
barrels in the same category for 2016 but was 19 percent lower than
the 297.8 million barrels for 2015.’’

According to the report, it shows a slight improvement on the figure
for 2016, a year characterized by vandalism and sabotage of oil

It noted that crude production for 2017 was about a fifth less than
the 2015 level.

The report further showed that out of 240.9 million barrels federation
share for 2017, Domestic Crude Allocation (DCA) had 105. 9 million
barrels or 44 percent while FIRS Liftings got 57.3 million barrels or
24 percent of the share.

Also, Federation Export got 50. 2 million barrels or 21 percent of
federation share.

Third-Party financing, 17.6 million or 7 percent of federation share
and DPR liftings was 9.9 million barrels or four percent of federation

On the 105.9 million barrels DCA crude assigned for local supply of
refined products, Direct Sale Direct Purchase (DSDP) got 72. 8 million
barrels or 69 percent.

Refineries got 26. 5 million barrels or 25 percent, Product Exchange
received 4.7 million barrels or four percent while Export (an
unutilized portion of DCA) got 1.9 million barrels or two percent, the
report said.

“The total revenue from the sale of the federation share of oil and
gas for 2017 was 14.5 billion dollars—13.18 billion dollars or 90.8
percent from crude oil and 1.32 billion dollars or 9.1 percent from

“NNPC deducted N297 billion from earnings from the Domestic Crude
Allocation as costs and losses,’’ it added.

A breakdown of the deduction indicated that N141.6 billion was for
under-recovery on petroleum products, N25 billion for crude and
product losses and N130.4 billion for pipeline repairs and

“The Sum of N77.92 billion was under-remitted by NNPC to the
Federation Account from Domestic Crude Allocation in 2017.

“NNPC acknowledges the under-remittance and states that there is an
on-going reconciliation to net off the N77.92 billion from the
established Federation indebtedness to the Corporation of N797bn
arising  from KPMG Forensic audit of the Corporation at the instance
of the Federation,” it noted

On crude destination in 2017, the reports showed that the federation
crude went to 29 destinations.

It noted that the top-five destinations were India with 41.3 million
barrels (17.12 per cent}, the U.S.,  30.6 million (12.72 percent),
local refineries, 26.5 million barrels (10.98 percent),  Netherlands,
22.9 million barrels (9.5 percent)  and Spain, 21 million barrels
(8.83 percent).

It added that 60 individuals and consortiums were buyers of
federation’s crude in 2017 with the top five buyers as Duke Oil
Company, the trading arm of NNPC, which lifted 29.3 million barrels
(12.16 per cent}.

TOTSA/Total oil Trading, lifted 18.4m barrels (7.67 percent), Port
Harcourt Refinery lifted 18 million barrels  (7.49 percent),
SIR/Sahara Energy Resources lifted 15.2 million barrels  (6.32
percent) while  LITASCO SA/MRS Oil and Gas lifted 10.5 million barrels
(4.38 percent).

NEITI said the report did not cover other revenue streams from the
sector, such as Petroleum Profit Tax (PPT), royalties, signature
bonuses, dividends, penalties and fees, statutory payments, among

Commenting on the report, NEITI Executive Secretary Waziri Ado, said
other details on production and processes would be in the 2017 NEITI
oil and gas industry report to be released soon.

He said that the pilot study which was conducted by BDO, an
international auditing and advisory firm, covered four government
agencies and 73 companies, the News Agency of Nigeria reports.

“The 73 companies were six bilateral companies, 13 international
trading companies, four trading arms of international oil companies,
25 Nigerian trading companies, two NNPC trading companies, nine
refineries, and 14 DSDP contractors,’’ Adio added.



Source link


Please enter your comment!
Please enter your name here