By Michael EBOH

The Nigerian National Petroleum Corporation, NNPC, spent N151.43 billion for the purchase of crude oil for the country’s refineries over a 12-month period, between July 2015 and June 2016.

According to data obtained from the NNPC, 17.46 million barrels of crude oil valued at $772.66 million, an equivalent of N151.43 billion was delivered to the refineries in the period under review.

The crude oil delivered to the refineries was for processing for local consumption, while the remaining quantities that could not be processed by the refineries were either processed offshore or were used for the recently introduced Direct Sales-Direct Purchase (DSDP) arrangement.

NNPC

Proceeds paid by the NNPC for crude oil deliveries to the refineries and other arrangements were transferred to the Federation Account, after other deductions would have been made by the NNPC.

Specifically, the report noted that in July 2015, 3.35 million barrels of crude oil was supplied to the refineries, for which the NNPC paid N34.19 billion ($174.48 million); In August 2015, the NNPC paid N21.11 billion ($107.73 million) for 2.4 million barrels of crude oil; while NNPC paid N18.83 billion ($96.09 million) for 2.05 million barrels of crude oil delivered to the refineries in September 2015.

For the months of October, November and December, there were no crude oil supplies to the refineries, while from January to March 2016, 0.502 million barrels, 1.88 million barrels and 1.89 million barrels of crude oil was supplied to the refineries, costing the NNPC N2.76 billion ($13.91 million), N12.3 billion ($62.75 million) and N14.54 billion ($74.19 million) respectively.

Furthermore, N21.95 billion ($111.97 million), N12.87 billion ($65.67 million) and N12.91 billion (65.86 million) was expended by the NNPC on 2.605 million barrels, 1.4 million barrels and 1.39 million barrels of crude oil in April, May and June 2016 respectively.

In addition to the amount expended on crude oil deliveries to the refineries, the NNPC report also stated that the corporation purchased 33.38 million barrels of crude oil which it exported in the 12-month period, and which was valued at $1.39 billion, an equivalent of N272.6 billion.

However, 51.5 million barrels of crude oil was purchased by the NNPC for offshore processing arrangements, valued at N424 billion ($2.16 billion), while Direct Sales-Direct Purchase arrangement cost the NNPC N358.32 billion ($1.83 billion) with 43.07 million barrels of crude oil involved.

Continuing, the NNPC said, “In July 2016, 798.33 million litres of white products was supplied into the country through the DSDP arrangements while 1.184 billion litres was supplied in the month of June 2016; only PMS supplied through DSDP in the months of June and July 2016.

“The petroleum products, Premium Motor Spirit, PMS, and Dual Purpose Kerosene, DPK, production by the domestic refineries in July 2016 amounted to 66.70 million litres compared to 331.15 million litres in June 2016.”

It further stated that, “total export revenue of $226.47 million was recorded in June, 2016 representing 21 per cent increase relative to preceding performance. Crude oil export sales contributed $153.011 million, or 67.56 per cent of the dollar transactions compared with $68.89 contribution in previous month.

“Also the export gas sales amounted to $73.46 million in the month of June, 2016. Twelve month Crude Oil and Gas transactions indicate that Crude Oil and Gas worth $3,253.96 million was exported.”