NNPC oil earning, fuel allocation secrets

NNPC oil earning, fuel allocation secrets

• Document reveals N13tr revenue in 2011
• South East gets least fuel allocation among 6 zones
From IKENNA EMEW, Abuja
Amid fuel scarcity in some parts of the country, an official document of the Nigerian National Petroleum Corporation (NNPC) has revealed that the South West, South South and North Central received large allocations of refined petroleum products in the country.
Also, the document revealed that the corporation made a total earning of N13, 879, 607, 856, 000 last year, based on the market price of US$100 per barrel of oil and at an exchange rate of US$1 to N160. This gross earning accrued to the corporation from a total of 867, 475, 616 it sold. The 73-page document, which emanated from the Corporate Planning and Strategy Division of the NNPC, indicate that 127, 426, 508 barrels of oil accrued to the Federal Government last year, as quota for the federation account.
Of the total income NNP made, the Federal Government, got N2, 038, 824, 128, 000. The document showed that Shell Petroleum Development Company (SPDC) had a lion’s share in crude production, among the seven operating companies of the NNPC/JVC deal. Next to Shell, in gross crude production in the year, was Mobil Producing Unlimited, with a total of 107, 577, 069 barrels, while Shell had 175, 995, 442 barrels.
Distribution of fuel nationwide
Analysis of the document showed that the South East region suffered, in the area of distribution of petroleum products by the NNPC. A table of the quota of product allocation to the geopolitical zones and Abuja indicates that the five states of the South East put together received the least allocation of Liquefied Petroleum Gas (LPG), Premium Motor Spirit (petrol), House Hold Kerosene (HHK), Aviation Turbine Kerosene (ATK), Auto Gas Oil (AGO) (diesel), Low Fuel Poor Oil (LFPO), lubrication oil, greases and brake fluids.
The Federal Capital Territory (FCT), Abuja got more allocation than the zone. The document showed that the South South zone, made up of Rivers, Bayelsa, Delta, Edo, Cross River and Akwa Ibom states, received 28 percent of petrol distributed locally in April, 26.43 percent in May and 33.14 percent in June this year. This is against the South East, comprising of Imo, Anambra, Enugu, Ebonyi and Abia states, which received only two percent of petrol supplies in April, 3.21 percent in May and 2.74 percent in June. During the same period, the North East zone of Adamawa, Bauchi, Borno, Gombe, Taraba and Yobe states got four percent, in April, 5.69 percent, in May and 4.23 percent, in June.
The South West zone, with Ekiti, Lagos, Ogun, Ondo, Osun and Oyo states, received 34 percent of total supplies in April, which jumped up to 35.53 percent in May. The supply however, dropped to 30.68 percent in June. The North West region of Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto and Zamfara, received only four percent of total supplies in April, 6.31 percent in May and 5.87 percent in June. North Central, which comprises of Benue, Kogi, Kwara, Nasarawa, Niger and Plateau states, received 24 percent of total local supplies from NNPC in April, 17.49 percent in May and 20.22 percent in June. Meanwhile, Abuja, the hub of government activities, with a lower population than any of the geopolitical zones, received four percent of petroleum products distributed in April.
This rose to 5.33 percent in May but dropped to 3.13 percent in June. The document also showed that 12.97 million litres of petrol was sold daily in the country in April. This figure dropped to 10.76 million litres in May and 9.99 million litres in June. This represents a total distribution, by both NNPC and Independent marketers, of 389.06 million litres of petrol for the month of April, 333.53 million litres in May and 299.83 million litres in June this year.
Sales data
Similarly, the document showed that 2.55 million litres of diesel was sold everyday in April, averaging a total of 76.68 million litres, while 1.12 million litres of same product was sold daily in May. This grossed 34.78 million litres of diesel for the month. It also stated that 66.56 million litres of diesel was sold in June, representing 2.23 million litres average daily sales for the month. Despite high-level scarcity of kerosene, the NNPC document revealed that 57.33 million litres was sold in April, at an average of 1.91 million litres daily.
This figure however, dropped in May, as only 26.59 million liters got dispensed in the course of the month at 0.86 million litres daily. No reason was given for the shortfall in kerosene distribution. The documents indicate that a total of 867, 475, 616 barrels, representing 2.38 million barrels per day of crude oil and condensate was lifted for domestic and export purposes in 2011. According to the NNPC, the figure showed a decrease of four percent against total amount lifted in 2010. “Of the total quantity, NNPC lifted 386, 504, 028 barrels, or 45 percent of the total, averaging 1.05 million barrels per day for domestic utilization and export,” the document said. A breakdown of the sales indicate that only 127, 426, 508 barrels was paid into the federation account, while the balance were paid to other sources.
Despite stating that a total of 867, 475, 616 barrels of crude oil and condensate was lifted for domestic and export purposes, the NNPC document stated: “Total crude oil and condensate production for the year was 866, 245, 232 barrels, giving a daily average of 2.37mmb/pd.” The shortfall of 1, 230, 384 mmb/pd is unaccounted for, as the document did not state how the disparity came.