Oil & Gas

NNPC: Chevron, Shell, Mobil, others to pay Nigeria N253b in February

NNPC: Chevron, Shell, Mobil, others to pay Nigeria N253b in February

Chevron Nigeria Limited, Shell Petroleum Development Company, Mobil Producing Nigeria alongside three other companies will remit a total of N253 billion to Nigeria government in February 2022, the Nigerian National Petroleum Company Limited (NNPC) has said.

In its first 2022 Federation Accounts Allocation Committee (FAAC) report, NNPC explained that in November crude oil exports of 111,257 barrels under the Production Sharing Contract, valued at $8 million was payable in December 2021, while the November 2021 domestic crude oil payment of N253.4 billion is expected in January 2022.

“November 2021 Domestic Crude Oil Payable in February 2022 by NNPC in line with the 90 days payment terms,” NNPC said in its January 2022 report.

ALSO READ: NNPC: Refineries’ rehabilitation gulped N100b in 2021

Apart from Chevron and Shell, other partners expected to remit to the Nigerian government in February 2022 include Mobil Producing Nigeria, Total E&P Nigeria Limited (TEPNG), First Exploration and Production and Universal Energy.

According to NNPC, CNL would be paying for 851, 491 barrels of domestic crude valued at N26.84bn, while MPN would remit N230.1bn for 2.8 million barrels of domestic crude oil.

The SPDC and TEPNG would be paying for 1.89million and 1.8million barrels of domestic crude oil valued at N55.9bn and N60.7bn, respectively.

For First E&P and Universal Energy, the firms would pay for 650,499 and 10,000 barrels of domestic crude oil valued at N20.6bn and N287m, respectively.

The report put the total volume of domestic crude oil payable by the firms in February 2022 at 8.2 million barrels, while the value of the commodity was put at N253.4bn.

Also, NNPC’s records also showed its gross domestic crude oil and gas revenue for December 2021 stood at approximately N221bn.

It stated that feedstock gas receipt from NLNG was $113.39 million which included receipt of $51.85 million “which slipped to December that ought to have been received in November 2021. Total pipeline repairs and management cost amounted to N3.9 billion while product losses and value shortfall was put at N274.1 million.

The above development means the country is still losing petroleum products worth billions to incidents such as vandalism. For instance, between July and November 2021, the country lost over N9 billion to product losses.

In July, September and October, according to the FAAC Report, products worth N3.7billion, N1.7 billion and N1.3billion were lost respectively while about N2.06billion loss was recorded in November.

NNPC also revealed that it recorded a N270.83bn value shortfall in November 2021.

It said, “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.

NNPC noted that the value shortfalls was a result of what it spent on the monthly subsidy of Premium Motor Spirit, popularly called petrol.

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