Nigeria recorded a drop in revenue from oil and gas in June of $226.38 million between May and June 2019, according to the June 2019 monthly financial and operations report of the Nigerian National Petroleum Corporation (NNPC).
The report stated that in May, the sales value of oil and gas production in Nigeria was $547.61 million and it dropped to $321.23 million in June.
It said that within the month under review, its under-recovery – a term it uses in place of subsidy payments for petrol consumption in the country, reduced from $335 million in May to US$100.5 million in June.
Additionally, it lost millions of naira to oil theft in May and June, but could not cut down its expenditure on repairs of pipeline.
“Crude oil export sales contributed $248.22 million (77.27 percent) of the dollar transactions compared with $458.59 million contribution in the previous month.
“Also, the export gas sales amounted to US$73.01 million in the month. The June 2018 to June 2019 crude oil and gas transactions indicated that crude oil and gas worth $5.98 billion was exported,” the report said.
It added that there was a decline in oil price in the international market even when Nigeria’s oil production rose slightly by about 0.04 percent.
“This month, average crude oil price dropped for the second consecutive month by $7.32 or 10.72 percent m-o-m (month-on-month) to average $61.02/b.
“ICE Brent in June 2019 dropped by $7.27, or 10.3 percent m-o-m at $63.04/b while NYMEX WTI decreased by $6.16 or 10.1 percent m-o-m to average $54.71/b.
“In May 2019, a total of 60.00 million barrels of crude oil and condensate were produced representing an average daily production of 1.94 million barrels. This translates to an inconsequential increase of 0.04 percent in the average daily production compared to April 2019 average daily performance,” it added.
MM/GIK/APA