NNPC: Six IOCs to remit N380bn for domestic crude oil sales in October

The Nigerian National Petroleum Company (NNPC) Limited says six international oil companies (IOCs) will remit N380.04 billion next month as proceeds from the sale of domestic crude oil in July 2022.

The national oil company made this known in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Friday, September 23.

The FAAC document obtained by TheCable showed that the expected amount was for the sale of 8.44 billion barrels of oil. 

The report noted that July 2022 domestic crude oil payable in October 2022 by NNPC was in line with the 90 days payment terms, adding that the IOCs are joint venture (JV) partners.

The oil firms are Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN) and Shell Petroleum Development Company (SPDC). 

Others include Total Exploration and Production Nigeria, First Exploration and Production (First E&P), and Universal. 

The report said CNL would be paying N80.02 billion for 1.74 million barrels of crude, while MPN would pay N128.66 billion for 2.85 million barrels of oil. 

SPDC and Total would remit N28.03 billion and N112.63 billion for 643,904 and 2.54 million barrels of crude oil, respectively.

It added that First E&P and Universal would pay N30.24 billion and N30.24 million for 650,069 and 10,000 barrels of oil, respectively.

The report also showed that July’s crude oil exports of 50,000 barrels under the production sharing contract (PSC) were valued at $5.84 million payable in August 2022. 

Recently, the NNPC Limited renewed oil production sharing contracts (PSCs) with its partners — after nearly three decades.

NNPC also resolved lingering disputes with its production sharing contracts (PSCs) partners.

The development is expected to unlock over $500 billion in revenue for the country and provide more than $30 billion in foreign direct investment (FDI).