Nigeria’s crude oil earnings drop by N88bn as oil terminals shut down

A Central Bank of Nigeria (CBN) report has revealed an N88.22 billion plunge in the nation’s earnings from crude oil sales for the month of November 2019.

The steep fall is attributable to series of shutdowns and shut-ins of Nigeria’s oil installations.

Nigeria earned N489.08 billion in oil receipts in the month under review, a 15.3% decrease from the October 2019 figure, standing at N577.3 billion.

According to the report, the development stemmed from the pipeline leakages and maintenance exercises that occurred at some terminals of the Nigerian National Petroleum Corporation (NNPC).

The N489.09 billion gross oil receipt fell short of the monthly budget by 38.8% while constituting 56.9% of the total revenue.

The report reads: “Oil receipts, at N489.08bn or 56.9 per cent of total revenue, were below both the monthly budget of N798.83bn and the preceding month’s receipts of N577.3bn by 38.8 per cent and 15.3 per cent respectively.

“The decrease in oil revenue, relative to the monthly budget estimate, was attributed to shut-ins and shutdowns at some NNPC terminals, due to pipeline leakages and maintenance activities.”

The CBN stated affirmed that the nation’s crude oil production, comprising condensates and natural gas liquids, translated to 1.91 million barrels per day or 57.3 million barrels in November 2019.

It indicates a marginal drop of 0.02mbd or 1.04% from the 1.93mbd produced in October 2019.

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Crude oil export figure was the same as that of the month before, which stood at 1.46mbd or 43.8mb. The crude oil allocated for domestic consumption in November 2019 was estimated at 0.45mbd or 13.5mb.

The report said the average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) was $66.11/b at the end of November 2019 relative to the $61.10/b posted in the preceding month. This indicates an 8.2% increase.

“The rise in crude oil price was due largely to the news of anticipated production cut by the OPEC+ and the adoption of a more stringent export control system for Nigeria and Iraq,” the bank stated,” the apex bank noted.

It confirmed that the United Kingdom Brent, at $63.93/b, the Forcados, $65.85/b, and the WTI, AT $58.13/b, showed similar pattern, as the Bonny Light in November 2019.

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