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N1bn in 2021 budget for EEG not enough for export claims — Dafinone

•Contribution to oil production slides to 2.97%

• PSC, JV outputs also declined

• As Mobil JV leads

By Michael Eboh

Marginal oil fields in Nigeria produced 1.52 million barrels of crude oil and condensates in August 2020, accounting for 2.97 per cent of Nigeria’s total oil and condensates production of 51.147 million barrels in August 2020.

Marginal oil fields were created exclusively to drive indigenous participation in the nation’s upstream oil industry.

In its crude oil production report for August 2020, released recently, the Nigerian National Petroleum Corporation, NNPC, stated that the 1.52 million barrels of crude oil produced in August was 14.61 per cent lower than the 1.78 million barrels produced in the previous month, July 2020. The August percentage contribution was also a decline from 3.47 percent in July, while the total output in August represented a marginal drop of 0.21 percent below the July output.

The development in marginal field output came in spite of efforts by the Federal Government to increase the contribution of indigenous oil firms to Nigeria’s crude oil and gas production.

The Federal Government, realising the importance of the marginal fields programme, especially in the area of shoring up Nigeria’s crude oil output and boosting the country’s revenue, had offered 57 marginal oil fields for concession.

The objective of the 2020 marginal field bid round was to deepen the participation of indigenous companies in the upstream segment of the industry and provide opportunities for technical and financial partnerships for investors.

PSC, JV outputs also declined

Continuing the NNPC report stated that assets under Production Sharing Contracts, PSC, produced 19.112 million barrels of crude oil in August, representing 37.37 per cent of total crude oil output. The PSC percentage contribution declined from 38.82 per cent recorded in July.

This also indicates a 3.95 per cent drop from 19.899 million barrels of crude oil under the PSC in July 2020.

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Crude oil production from Joint Venture, JV, companies, the report noted, dipped by 0.81 per cent to 15.89 million barrels, representing 31.07 per cent of total crude oil output in August; compared to 16.02 million barrels of crude oil, representing 31.25 per cent of total crude oil output in July 2020.

In addition, the NNPC report stated that oil assets under the Modified Carrying Arrangement, MCA, produced 2.67 million barrels of crude oil in August; Resolution Agreement produced 3.06 million barrels of crude oil; Independents 8.007 million barrels and Service Contracts 95,201 barrels.

Giving a breakdown of companies and their crude oil production, the NNPC report stated that the Mobil Joint Venture, JV, accounted for 12.71 per cent of total crude oil output in the month under review, with 6.499 million barrels of crude oil, followed by Shell Petroleum Development Company, SPDC, JV, accounting for 12.43 per cent of total crude oil output with 6.359 million barrels of crude oil.

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Star Deep Water Petroleum Limited, produced 4.473 million barrels of crude oil, representing 8.75 per cent of total crude oil output in the month under review, while Chevron JV produced 4.419 million barrels of crude oil, accounting for 8.64 per cent of total crude oil output.

Total Upstream Nigeria Limited produced 4.208 million barrels of crude oil from its Egina field, Shell Nigeria Exploration and Production Company, 3.179 million barrels of crude oil; Total Upstream Nigeria Limited, 3.081 million barrels; Total Exploration and Production Nigeria, TEPNG JV, 2.687 million barrels; and Nigerian Petroleum Development Company/Nigeria Agip Oil Company, 2.155 million barrels.

Others are Esso Exploration and Production Nigeria Limited, 1.99 million barrels; NPDC/Seplat 1.492 million barrels;

NPDC/Shoreline 1.016 million barrels; Total Upstream Nigeria Limited, 953,911 barrels; NPDC/Neconde 855,534 barrels; Sterling Oil Exploration and Energy, 845,495 barrels and Addax Petroleum Development Nigeria Limited, 493,955 barrels.

Amni Petroleum, Eroton JV, Aiteo JV, and Nigerian Agip Exploration Company, NAEC, recorded 518,048 barrels of crude oil; 498,527 barrels, 399,807 barrels, 470,493 barrels respectively, while Midwestern Oil and gas Company Plc recorded 300,541 barrels; and Oriental Energy recorded 347,230 barrels.

Vanguard News Nigeria

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