To fulfill its promise of running a transparent organisation, the Nigerian National Petroleum Corporation (NNPC), under the leadership of Emmanuel Ibe Kachikwu has commenced monthly publications of its provisional financial and operational reports.

The publication which is available on the corporation’s official website provides an overview of NNPC’s operations across the oil and gas value chain (Upstream, Midstream & Downstream) as well as NNPC’s agency function on behalf of the Government of the Federation from the period January to August 2015.

Specifically, the report provides a detailed and unprecedented statistical insight into crucial aspects of the corporation’s activities ranging from National Crude Oil & Natural Gas Production, Lifting and Utilization; Refineries Plants Operations; and Petroleum Product Supply & Distribution to NNPC Budget Performance Report and Federation Crude Oil & Gas Revenue.

The report indicates that a total of $607.8 million has been paid so far to the Federation Accounts Allocation Committee, FAAC in the year 2015 from sales of export oil and gas as dollar proceeds.

A further breakdown indicates that the total export crude oil & gas receipt for the period of January – August 2015 is $3.420 billion. Of the total receipts, the sum of $0.61billion was remitted to Federation Account as dollar proceeds while the balance of $2.815 billion was used to fund the JV Cash Call for the period.

The report notes that the receipts witnessed a sharp decline of more than 67 per cent from September, 2014, when the receipt was at its peak, to July, 2015 with dire consequences to the federation.

The NNPC informed that the continued decline in oil price led to insufficient cash available to meet monthly JV Cash Calls obligations of about $615.8m as appropriated by the National Assembly. To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV Cash Call funding implying a zero dollar proceed remittance to the Federation Account since the month of April 2015.

The sum of N723.82 billion for Domestic Crude Oil and Gas Sales proceeds has been paid to the Federation Account from January to August 2015 as naira proceeds.

NNPC also revealed that it would explore new financing mechanisms to offset outstanding debts on subsidy claims which the federal government owes petroleum marketers in the country.

The corporation also addressed the issue of outstanding subsidy claims payment by agreeing to reach out to relevant creditors such as banks to ease off extant repayment pressure on marketers and extend the credit lines offered by them.

The meeting between Kachikwu and members of the Major Oil Marketers Association of Nigeria (MOMAN) as well as the Depot and Petroleum Products Association(DAPPMA); was at the instance of the corporation.

It stated that at the end of the meeting, the NNPC and the key downstream operators were able to reach a consensus to work together to eliminate all obstacles that could hamper the free flow of petroleum products across the country.

He added that the government was willing to do everything possible to ensure that members of the public do not go through any form of hardship in accessing petroleum products particularly.

On the protracted subsidy debts to oil marketers, Kachikwu reportedly promised to work with other relevant government agencies to fast track the payment of the outstanding debts.

Femi Olawore, Secretary General, MOMAN, commended Kachikwu for his support and thus pledged the readiness of the marketers to work assiduously with the government against fuel scarcity across the country in the forthcoming yuletide and even beyond.

Dapo Abiodun, Chairman, DAPPMA, praised NNPC for what he termed improved services at various product loading facilities of the Pipeline and Products Marketing Company.

NNPC used the opportunity to debunk reports of a purported reduction in current pump price of petrol from N87 per litre to N57, describing it as false.

It therefore advised members of the public to ignore such tales, noting that the price of petrol remains at N87 per litre.

Johnson Alabi
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