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Nigeria’s crude oil revenue rose in January amidst 50% surge in pipeline vandalism –NNPC report

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Despite an increase in pipeline vandalisation cases by 50%, Nigeria posted crude oil and gas export sales revenue of $434.85 million in January, the latest Monthly Financial and Operational Report of the Nigerian National Petroleum Corporation (NNPC) has revealed.

According to the state-owned corporation, the January figure represented an increase of 94.30% compared to what was recorded in December 2019.

The report noted that January’s crude oil export sales accounted for $336.65 million or 77.42% of the dollar transactions for that month relative to the $136.36 million posted the month before.

Kennie Obateru, NNPC Group General Manager, Group Public Affairs Unit, said in a statement Wednesday that export gas sales for January 2020 came to $98.20 million.

He stated that Nigeria exported around $5.18 billion worth of oil and gas in the period between January 2019 and January 2020.

The NNPC report, which is the 54th edition of the series, observed that 60 pipeline points were vandalised in January relative to the 40 cases reported in December 2019.

“Atlas Cove-Mosimi and Mosimi-Ibadan axis pipelines accounted for 50 per cent and 17 per cent of the breaks respectively, while all other routes accounted for the remaining 33 per cent,” it read in part.

It added that the NNPC was working in synergy with host communities to curb pipeline vandalism in the country.

The NNPC said 1.20 litres or 38.68 million litres/day of Premium Motor Spirit (PMS) were supplied in January.

Of the 253.09 billion cubic feet (bcf) of gas supplied in January 2020, 151.16 bcf were commercialised, comprising 36.20 bcf and 114.96 bcf for domestic and export markets respectively.

The figures represented 1,167.80 million standard cubic Feet (mmscfd) of gas supply to the domestic market and 3,708.23 mmscfd to the export market during the period.

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While 59.89 per cent of the average daily gas produced was commercialised, the remaining 40.11 per cent was re-injected, used as upstream fuel gas or flared.

“Gas flare rate was 7.90 per cent for the month under review i.e. 643.59 mmscfd, compared with average gas-flare rate of 8.46 per cent i.e. 671.40 mmscfd, covering January 2019 to January 2020.

“Out of the 1,167.80 mmscfd of gas supplied to the domestic market in January 2020, about 639.70 mmscfd of gas, representing 54.78 per cent, was supplied to gas-fired power plants, while the balance of 528.10 mmscfd or 45.22 per cent was supplied to other industries,” the NNPC said.

640 mmscfd of gas supplied to gas fired-power plants in January 2020 produced an average power of about 2,683 MW relative to December 2019 when an average of 596 mmscfd was delivered to generate 2,498 MW.

Between January 2019 and January 2020, an average of 1,203.93 mmscfd of gas was supplied to the domestic market.

Out of this, an average of 693.73mmscfd or 57.62% was supplied to power plants while 510.20mmscfd or 42.38% was supplied to industries.

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