A report from the National Bureau of Statistics (NBS) has shown that Nigeria recorded crude oil export worth N11.5 trillion in nine months, from January to September 2018.
The figure is a 48.01 per cent rise from N7.77 trillion recorded in similar period in 2017.
The figure is also over N2 trillion more than the N9.12 trillion budgeted for 2018 and about N3 trillion more than the 2019 budget proposal.
Data from the NBS Foreign Trade Statistics for the Third Quarter of 2018, showed that crude oil export in the nine-month period accounted for 81.8 per cent of total exports recorded in the Nigerian economy in 2018.
According to the report, crude oil export in the first quarter of 2018, appreciated by 51.05 per cent compared to N2.37 trillion recorded in the first quarter of 2017; while in the second quarter of 2018, crude oil export stood at N3.77 trillion, appreciating by 55.14 per cent from N2.43 trillion recorded in the same period of 2017.
The report also showed that third quarter 2018 crude oil export appreciated by 39.17 per cent from N2.97 trillion recorded in third quarter 2017 to N4.15 trillion.
“Crude oil exports in third quarter 2018 was 10.03 per cent more than the value recorded in second quarter 2018 and 39.5 per cent higher than the value recorded in third quarter 2017. Other oil products export in third quarter 2018 was 5.3 per cent more in value than second quarter 2018 and 12.68 per cent higher than third quarter 2017,” the NBS report noted.
Breaking down exports in the third quarter of 2018, the report stated that crude oil and Liquefied Natural Gas [LNG], export stood at N4.147 trillion, N469.87 billion respectively, other petroleum gases export stood at N27.85 billion.
Others are liquefied butane and liquefied propane export which stood at N17.66 billion and N13.73 billion respectively; kerosene type jet fuel export stood at N7.4 billion, while the lubricating oil export stood at N6.84 billion.
The report also named India as the highest importer of Nigeria’s crude oil, purchasing N764.88 billion worth of the commodity; followed by Nigeria’s crude oil export of N522.12 billion and N500.31 billion to Spain and France respectively.
Furthermore, the NBS disclosed that crude oil from Nigeria was exported to South Africa, Netherlands, Indonesia, Brazil and United Kingdom, valued at N335.28 billion, N276.37 billion, N256.3 billion, N226.2 billion and 206.3 billion respectively.
United States and Canada bought Nigeria’s crude oil worth N201.65 billion and N199.01 billion respectively in the third quarter of 2018.
The report noted: “Nigeria’s external trade totalled N9.026 trillion during the third quarter of 2018. Compared to the value of N6.903 trillion recorded against the second quarter, a rise of N2.122 trillion or 30.7 per cent was indicated.
“The total export component of this trade was N4.854 trillion, representing an increase of 7.8 per cent over second quarter 2018 and 35.7 per cent over third quarter 2017.”
The Nigerian National Petroleum Corporation (NNPC), says it is working to crash the price of cooking gas in the country.
It said this would be done through the implementation of effective commercial framework that would halt the export of propane and butane from the country.
The Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, Mallam Mele Kyari, disclosed this in a statement issued by the corporation, in Abuja, on Thursday.
He said that Propane and butane were major components in the production of Liquefied Petroleum Gas (LPG), also known as cooking gas.
He said that the move to stop the export of propane and butane which was anchored by the Crude Oil Marketing Division of the Corporation would enable the Corporation boost supply of LPG to the domestic market.
This, he said would lead to a natural downward slide in the price of the product in the country.
“Currently some of our butane and propane entitlements are exported largely due to lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework.
“What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption,” he said.
Fears that Nigeria’s 2019 budget may suffer huge revenue short fall may be abetted as the prices of crude oil in the international market rebounded on Wednesday, selling at the $60 per barrel benchmark set for the budget by the Federal Government.
Prices of Brent, West Texas Intermediate, WTI, and OPEC Basket of 14 crudes stood at $60.00, $59.91 and $56.11 per barrel respectively.
The rise in the prices is seen as a result of the ability of OPEC to mobilise its members and others not to pump excess oil into the volatile market.
However, a source in OPEC said the market was still covered with an air of uncertainty, meaning that many factors can still compel price to leap further or drop, even beyond expectation.
It would be recalled that the Secretary General of OPEC, Dr. Muhammad Barkindo, while speaking in Angola a few days ago, said: “OPEC knew it had to act in the face of this potential calamity. Throughout 2016, extensive consultations were undertaken with our non-OPEC partners, aimed at building consensus about the strategic urgency of rebalancing the global oil market in a collective manner.
“Twenty-four (now twenty–five) oil producing nations agreed at the first OPEC and non-OPEC Ministerial Meeting held on the 10th of December 2016 in Vienna, on a concerted effort to accelerate the stabilization of the global oil market through voluntary adjustments in total production of around 1.8 million barrels per day.
“What would become clearer in time is that one of the greatest inherent strengths of the ‘Declaration of Cooperation’ (DoC) was its flexibility, grounded on the core principles of equity, fairness and transparency. Over the last two years, the partners have been able to modify course depending on conditions in the market. When the market appeared skewed to oversupply, we have reacted accordingly, and equally, when consumers expressed concerns regarding demand outpacing supply, the partners in the DoC have taken appropriate action.”
A report by the Secretary General of the United Nations on the activities of the United Nations Office for West Africa and the Sahel, UNIWAS, has said that Nigeria lost an estimated $2.8 billion in revenue due to oil related crimes in 2018.
The report, which was released in New York on Monday, covered from July 1, 2018 to Dec. 31, 2018.
The report said: “Maritime crime and piracy off the coast of West Africa continued to pose a threat to peace, security and development in the region.
“Oil-related crimes resulted in the loss of nearly 2.8 billion dollars in revenues last year in Nigeria, according to government figures.
“Between January 1 and November 23, there were 82 reported incidents of maritime crime and piracy in the Gulf of Guinea.’’
It also noted, that compared to what obtained in the previous report, there was an increase in drug trafficking throughout West Africa and the Sahel.
“In Benin, the Gambia and Nigeria, more than 50 kilogrammes of cocaine were seized between July and October by joint airport interdiction task forces.
“During the same period, joint airport interdiction task forces seized more than six kilogrammes of methamphetamines, eight kilogramme of heroin (double the amount in the first half of 2018) and 2.6 tonnes of cannabis.
“Drug production across the region was also reportedly on the rise, with more than 100 kilogrammes of ephedrine and phenacetin seized by competent authorities,’’ the report said.
The UN report further revealed that the during it covered, conflicts between farmers and herders resulted in loss of lives, destruction of livelihoods and property, population displacements and human rights violations and abuses.
It also added that outbreaks of violence were recorded in many states across Nigeria, although with more frequency in the Middle Belt region, as well as Adamawa and Taraba, adding that the rise in conflict between farmers and herders was closely linked with demographic pressures, desertification and the attendant loss of grazing reserves and transhumance routes, which had been exacerbated by climate change.
The report further identified others to include challenges in the implementation of effective land management and climate change adaptation policies, and limited enforcement of existing pastoral laws.
Political and economic interests, the erosion of traditional conflict resolution mechanisms, and weapons proliferation, were also listed as some of the other factors attributed to the increased cases of herders-farmers conflict.
The annual report of Moody’s Investors Service has predicted that prices of Oil and natural gas will be volatile in 2019.
The report, which outlined key credit themes in oil and gas for 2019, noted that while the recent announcement that OPEC and Russia would cut production helps alleviate concerns about oversupply, the pivotal questions in the coming year is whether OPEC and Russia would maintain their production discipline and what might happen in June, when the current agreement expires.
According to the report, Moody’s expects the medium-term price band for West Texas Intermediate (WTI) crude, the main North American benchmark, to be $50-$70 per barrel (bbl), and North American natural gas at Henry Hub to average $2.50-$3.50/MMBtu.
The report reads in part: “Market expectations for continued strong oil demand growth remain in place, despite concerns about slowing demand growth as a result of weaker economic growth, the impact of tariffs and a strong US dollar,” Moody’s Managing Director for Oil & Gas, Steve Wood said.
“Very high Saudi and Russian production, in particular, has heightened supply volatility, so whether OPEC and Russia maintain production discipline and renew agreements to limit output are key concerns going into the new year.”
Moody’s also stated in the report that Investors in exploration and production companies would continue to wait for better returns in 2019.
It also added that although capital efficiency has improved and commodity prices are higher than in 2015-16, infrastructure constraints have lifted transportation costs.
“And though the oilfield services sector would see earnings increase by 10-15 per cent, they currently remain at low levels, and most of the recovery would occur only later in the year.
“Conversely, refiners’ distillate margins would begin to expand from already strong levels in the second half of next year.
“In North America, wide differentials for regional oil and natural gas would narrow as infrastructure coming into service in late 2019 and 2020 eases bottlenecks in the Permian Basin, western Canada and other regions, relieving stress on commodity prices.
“Meanwhile, the Mexican energy sector faces risks from factors including a new government policy that shifts PEMEX toward refining and away from oil production, and Asian national oil companies contend with risks from volatile commodity prices, rising shareholder returns and evolving fuel-price regulations.
“While we will see only a gradual increase in rig activity in 2019, oilfield services (OFS) costs will likely rise over the medium term. Higher oil prices will encourage more production activity, which will stimulate already rising OFS prices, raising the breakeven cost of the marginal barrel and potentially raising medium-term oil prices.
“In North America, strong demand from shale producers is driving up pricing for high-calibre “super spec” drilling rigs, and for various production services. In Texas, strong economic growth and low unemployment have led to widespread labour shortages, escalating labour cost inflation. International activity is picking up in certain markets.
“But it will take higher oil prices to develop the more expensive conventional barrels that are ultimately needed to meet increasing global demand and offset natural production declines.
“Prices toward the upper end of the oil price-band will encourage increased supply as US production grows and OPEC countries reduce their compliance with their production quotas.
“Shale oil production in particular features relatively low extraction costs and short time lags from drilling to production, and shale’s drilling efficiencies have increased substantially over the past few years. US shale producers are paying increasing attention to capital discipline and return-focused performance, but even at current lower prices, we believe US shale production will continue to grow, increasing global production and keeping a lid on prices.
“We believe prices will remain largely within our expected range —although they will be volatile—amid increases in US shale production, reduced but still significant global supplies, and potential declining compliance with agreed production cuts, especially if growth in demand is more tepid,” the report added.
Nigeria literally threw N197 billion into the flames in the first nine months of 2018, representing the value of gas flared during the period.
According to data from the Nigeria National Petroleum Corporation (NNPC) oil and gas companies operating in the country flared a total of 215.9 billion standard cubic feet of natural gas in the first nine months of 2018.
According to the data, 31.68 billion scf of gas was flared in January, 27.25 billion scf in February, 26.88 billion scf in March and 23.06 billion scf in April.
The oil and gas companies, which included international and indigenous operators, also wasted 21.20 billion scf of gas in May, 21.66 billion scf in June, 21.21 billion scf in July, 22.42 billion scf in August, and 20.54 billion scf in September.
With the price of natural gas put at $2.97 per 1,000scf as of Friday, the 215.9 billion scf flared translates to an estimated loss of $641.22m or N196.82bn at the official exchange rate of N306.95/dollar.
The NNPC data further revealed that out of the 238.91 billion scf of gas supplied in September 2018, a total of 142.09 billion scf of gas was commercialised, comprising 30.36 billion scf and 111.73 billion scf for the domestic and export market respectively.
It said: “This translates to a total supply of 1,011.96 mmscfd of gas to the domestic market and 3,724.26 mmscfd of gas supplied to the export market for the month.
“This implies that 59.47 per cent of the average daily gas produced was commercialised while the balance of 40.53 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 8.60 per cent for the month under review i.e. 684.69mmscfd compared with average gas flare rate of 10.17 per cent i.e. 800.59mmscfd for the period September 2017 to September 2018.”
The NNPC further said that the total gas supply from September 2017 to September 2018 stood at 3.094 trillion scf, out of which 464.48 billion scf and 1.331 trillion scf were commercialised for the domestic and export market respectively.
“Out of the 1.011 billion scfd of gas supplied to the domestic market in September 2018, about 614.55mmscfd of gas, representing 60.73 per cent was supplied to gas-fired power plants while the balance of 397.41mmscfd or 39.27 per cent was supplied to other industries.
“Similarly, for the period of September 2017 to September 2018, an average of 1.185 billion scfd of gas was supplied to the domestic market, comprising of an average of 743.85mmscfd or (62.75 per cent) as gas supply to the power plants and 441.58mmscfd or (37.25 per cent) as gas supply to industries.”
It said about 3.370 billion scfd or 90.50 per cent of the export gas was sent to Nigerian LNG Limited in September, compared with an average of 3.043 billion scfd or 89.58 per cent for the period September 2017 to September 2018.
Daily production of crude oil by Nigeria increased by 9 percent in 2018 to 2.09 million barrels compared to the 1.86 million barrels daily production in 2017.
This was disclosed by the Group Managing Director, Nigerian National Petroleum Corporation (NNPC) Maikanti Baru, adding that Nigeria maintained a line of consistent year-on-year improvement in its daily crude oil production.
Baru, according to a statement by the NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu on Tuesday, stated this in an end-of-year message to members of staff of the corporation, adding that the Nigerian Petroleum Development Company, Nigerian Gas Company, Petroleum Products Marketing Company, Duke Oil, NIDAS and Integrated Data Services Limited, were among the companies that boosted the corporation’s performance in 2018.
Baru however singled out NPDC, the corporation’s upstream company, as the major contributor to the industry’s success story in 2018.
Baru said he was enthusiastic on the 52 per cent daily crude oil production growth by the company when compared with its 2017 performance, explaining that the average crude production from NPDC’s operated assets alone grew from an average of 108,000 barrels of oil per day in 2017 to 165,000bod in 2018.
According to him, NPDC’s equity production share of 172,000bpd, representing about eight per cent of national daily production, was no less impressive, while the 200,000bpd addition which the Egina Floating Production Storage and Offloading vessel completed and sailed away to a location in August last year added to the nation’s daily production.
Baru revealed that the project achieved first oil at 11.20pm on December 29, 2018.
The NNPC GMD also informed staff members the corporation firm made a save of $1.7bn with the corporation’s Joint Venture partners over a five-year tenor repayment plan, adding that already the corporation had defrayed $1.5bn of thearrearss, promising that the NNPC would stick to the repayment agreement with the JV partners while transiting to self-funding IJV modes with the corporation’s partners.
The National Bureau of Statistics, NBS, has said that the nation’s Gross Domestic Product, GDP, grew to 1.81 percent (year-on-year) in real terms in the third quarter of 2018 compared to the 1.50 in the second quarter of the same year.
This, the NBS said in a report released on Monday, was aided by the non-oil sector of the economy.
According to the report, in nominal terms, aggregate GDP stood at N33.36 trillion while real GDP was estimated at N18.08 trillion.
Growth in Q3 was largely helped by the non-oil sector, which contributed 90.62 per cent to total GDP while the oil sector contributed 9.38 per cent to growth in the review period.
However, Oil GDP contracted by -2.91 per cent compared to -3.95 per cent in Q2 and 23.93 per cent in Q3 2017.
The report also showed that average daily oil production fell to 1.94 million barrels per day (mbpd), higher than that of the 1.84mbpd recorded in Q2 by 0.10 mbpd- but lower than the 2.02 mbpd recorded in the same quarter of 2017 by -0.08mbpd.
The report further showed that real growth of the oil sector was –2.91 per cent (year-on-year) in Q3, indicating a decrease of –25.94 percentage points relative to rate recorded in the corresponding quarter of 2017.
The non-oil sector however grew by 2.32 per cent in real terms in Q3, representing 0.28 percentage points higher than the 2.05 per cent in preceding quarter and by 3.08 percentage points higher compared to the -0.76 per cent recorded same quarter of 2017.
The NBS report said the non-oil sector was mainly driven by Information and communication sector while other drivers include agriculture, manufacturing, trade, transportation and storage and professional, scientific and technical services.
For the sectoral contribution of GDP growth in the period under review, The NBS report showed that information and communication sector contributed 10.55 per cent to real GDP while agriculture 29.25 per cent to real GDP.
Manufacturing contributed 8.84 per cent to growth while services accounted for 48.79 per cent as well as industries which contributed 21.97 percent to real growth.
Also, trade contributed 15.80 per cent to real GDP while finance and insurance 2.52 per cent to growth as well as construction which recorded 3.01 per cent to GDP.
Mr Okoi Obono-Obla, Chairman, Special Presidential Investigation Panel for the Recovery of Public Property says oil companies contribute to the economic adversity of the country.
He said this at a press briefing in Abuja, on Monday.
According to him, the companies are denying the country oil taxes and royalties that will help government develop infrastructure.
“We are investigating some of these companies for tax evasion, failure to pay royalties. Five oil companies have not remitted over 1 billion dollars to government.
“We will get to the root of the matter,” he said.
While reeling out other achievements of the panel in 2018, Obono-Obla said that with the Executive Order 6, which had to do with travel ban, the panel had compiled the names of about 39 public officers who were under investigation.
“We have compiled their names and submitted to the Comptroller-General of Nigeria Immigration Service so that they would be placed on travel ban,” he said.
On the Panama Papers, he said the Panel was in partnership with the Nigerian Intelligence Agency (NIA) investigating Nigerians allegedly implicated in the Paradise Panama Papers.
“Findings will be made available to Nigerians in due course.
“The Panel is investigating the Tumsah brothers – Tijani Tumsah (Vice Chairman, Presidential Initiative on North East) and Ibrahim Tumsah (Director, Finance and Accounts, Federal Ministry of Power, Works and Housing) for alleged abuse of office and corruption.
“The Panel has recovered an assortment of 86 brand new luxury and sophisticated cars from the duo; 23 of these vehicles are bullet-proof without the requisite permits.
“We have since obtained an interim order of forfeiture from FCT High Court in Abuja in respect of these properties,” he said
The chairman expressed gratitude to President Muhammadu Buhari, for courageously leading the fight against corruption.
“We are also grateful to the President for his complete support and demonstrable resolve not to interfere with our operations in anyway,” he said.
Mr Henry Ikem-Obih, Chief Operating Officer, Downstream, Nigerian National Petroleum Corporation (NNPC) says the Federal Government has paid the agreed N236 billion as first tranche of the outstanding subsidy claims to oil marketers.
Ikem-Obi, who disclosed this in an Interview with the News Agency of Nigeria (NAN) on Monday in Abuja, said that government, through the Central Bank, had directed banks to freeze interest on loans related to the scheme.
“Yes, I can confirm that the promissory note has been issued; in fact, they were ready on Wednesday. The marketers got emails inviting them to come and receive them on Monday.
“By the end of Tuesday, they were actually ready from the Debt Management Office (DMO). We had a meeting with the CBN Governor on Thursday and they were informed officially, the Director General of DMO was there that they should pick up the promissory note.
“Most of them were waiting for that meeting with the CBN governor, it went very well. one of the things that CBN governor has taken the initiative to do is to ask the banks to freeze the interest on any loan that are related to that scheme, the outstanding payment, from end of June 2017 to date.
“Those are some of the additional concessions that government has done,’’ he said.
According to him, all the promissory notes for this first tranche will mature by 2019.
“The CBN governor will give the Liquid assets status; so, it is as good as cash,’’ he added
Commenting on petrol scarcity, he said that at the moment, the country had in stock 2.7 billion litres of Premium Motor Spirit (PMS) that would last for 54 days and still importing.
He noted that in terms of supply, the NNPC was very robust and had never been this good in the least 10 years, at this time of the year.
“We are very good with distribution in terms of how much products is on land because 2.8 billion litres is what is between Lagos waters and land.
“Most Farm tanks cannot receive PMS at the moment; our vessels have to queue for days to be able to discharge to the storage.’’ He added
Also, petroleum products marketers had also confirmed receiving payment of N236 billion from the Federal Government for the first tranche of the outstanding fuel subsidy claims.
The Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Mr Olufemi Adewole, said, however, that the oil marketers still needed clarifications as regards the payments made by the Federal Government.
“Yes, we collected promissory notes, but we need clarification. DAPPMAN chief executive officers are reviewing the total scenarios and would meet with the Senate Committee, which has been of so much help to iron out things.”
He further confirmed that the payment was made via promissory notes, adding that DAPPMAN was already reviewing the situation.
He confirmed that the petroleum marketers would be meeting with the Senate Committee on Downstream to address other pending issues.