NNPC transfers $1.27b to JV cash call

The Nigerian National Petroleum Corporation (NNPC) has transferred $1.27billion to Joint Venture Cash as first line charge.

This was contained in its March 2021 Financial and Operations Report, which The Nation obtained yesterday.

The document said a balance of $0.86billion was paid into the Federation Account.

It explained that transactions summed up to the total of $2.13billion oil and gas receipt from March, last year to last March.

The report noted that total export receipt of $194.55 million was recorded in March 2021 as against $115.34 million in February 2021.

According to NNPC, proceeds from crude oil amounted to $98.37 million while gas and miscellaneous receipts stood at $90.38 million and $5.80 million.

The document said, of the export receipts, $85.79 million was remitted to the Federation Account while $108.76million was remitted to fund the Joint Venture (JV) cost recovery for March, this year to guarantee current and future production.

NNPC said: “Total export crude oil &gas receipt for the period March 2020 to March 2021 stood at $2.13 billion; out of which $1.27billion was transferred to JV Cash Call as first line charge and the balance of $0.86billion was paid into Federation Account.”

In its February report, the corporation said it moved $1.28 billion to JV Cash call last February. The document entitled: “February 2021, Financial and Operations Report,” added that the $1.28 billion was paid as first line charge.

It noted that in the period under review, the corporation also transferred $0.94billion into the Federation Account.

The report explained that the total crude oil and gas receipt for the month was $2.22billion from which the transfers were made to JV cash call and Federation Account.

According to the report, the total export receipt of $115.34million was recorded in February, this year as against $108.75 million the previous month. The proceeds from crude oil, said NNPC, amounted to $30.99 million while gas and miscellaneous receipts stood at $81.18million and $3.17 million.

NNPC said: “Dollar Payments to JV Cost Recovery & Federation Account: Total export receipt of $115.34 million was recorded in February 2021 as against $108.75 million in January 2021.

“Proceeds from crude oil amounted to $30.99 million while Gas and miscellaneous receipts stood at $81.18 million and $3.17 million.

“Of the export receipts, $30.99 million was remitted to the Federation Account while $84.35 million was remitted to fund the JV cost recovery for February 2021 to guarantee current and future production.’’

“Total export crude Oil & Gas receipt for the period February 2020 to February 2021 stood at $2.22 billion; out of which the sum of $1.28billion was transferred to JV Cash Call as first line charge and the balance of $0.94billion was paid into Federation Account.”

The NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, whom The Nation called on phone to state the balance of the JV Cash call exit, said he did not have the figure.

The Federal Government decided to pay up its obligation to the JVC that rose to a debt of $4.68billion in 2016.

In the March report, the report the corporation has been adopting a Merchant Plant Refineries Business Model since January2017.

It explained that the model takes cognizance of the Products Worth and Crude Costs.

According to NNPC, “the combined value of output by the three refineries (at Import Parity Price) for March 2021amounted to approximately 0.06billion.

“No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to 3.93billion.

“This resulted to an operating deficit of 3.87billion by the refineries.”