NNPC ‘exceeds’ 2017 revenue benchmark — despite falling short of first half projections

The Nigerian National Petroleum Corporation (NNPC) says oil revenue has exceeded 2017 projections by 18 percent despite a shortfall of nine percent recorded between January and June.

According to a statement by the corporation, Bala Wunti, group general manager, corporate planning and strategy, made this known during a presentation to the house of representatives joint committee on 2018-2020 medium term expenditure framework (MTEF) and fiscal strategy paper (FSP).

The data available in the 2018-2020 MTEF released by the office of the accountant general of the federation show that N2,122.18 billion was projected as the total oil revenue for 2017.

N1,061.09 was apportioned to the first six months of the year and the actual revenue recorded during the period was N960.87 billion, resulting in a shortfall of nine percent.

Bintu said the oil production target of 2.3 million barrels per day (mbd) in the 2018 budget was realistic and achievable, adding that the price projection of $45 per barrel in the 2018 budget was conservative.

“Consequently, a conservative price projection of $45 per barrel was used as benchmark for crude oil price for the 2018 budget.

“The 2018 crude oil national production projection for the joint ventures, modified carrier arrangements or external financing, production sharing contracts, independents, marginal fields and service contracts is about 2,298,000 barrels per day.”

Wunti said the nation’s full production capacity has not been reached over the years because of security challenges in the Niger Delta, adding that the current production was more than 2.3 mbpd

The average, Wunti said, output stood at 1.885mbpd as against the projected 2.2mbpd and blamed the shortfall on vandalism of key export infrastructure, including the Trans-Forcados Pipeline (TFP), Forcados Oil Terminal (FOT) export line, Nembe Creek Trunk Line (NCTL) and Trans Niger Pipeline (TNP).

He said relations between stakeholders in the Niger Delta by the government and NNPC had led to improved production in recent months.

Acknowledging the issue of global oversupply of oil, he said the outlook for the oil market was reassuring considering the compliance to production cuts agreed on member countries of the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC members, which is aimed at balancing the market.