Nigeria loses N88bn to oil terminal shutdowns — CBN

Nigeria’s earnings from the sale of crude oil decreased by N88.22bn in November 2019 following shut-ins and shutdowns of oil installations, a latest report on the country’s oil receipts obtained from the Central Bank of Nigeria has shown.

After garnering N577.3bn as oil receipts in the preceding month, the country’s crude earnings plummeted by 15.3 per cent to N489.08bn in November 2019.

It was gathered that the shut-ins and shutdowns were recorded at some terminals of the Nigerian National Petroleum Corporation due to pipelines leakages and maintenance activities during the review period.

The CBN further stated that at N489.08bn, gross oil receipts were below the monthly budget by 38.8 per cent and constituted 56.9 per cent of the total revenue.

The apex bank said, “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 bank further stated that Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at 1.91 million barrels per day or 57.3 million barrels in the review month.

This represented a marginal decline of 0.02mbd or 1.04 per cent, below the 1.93mbd produced in the preceding month.

Crude oil export was estimated at 1.46mbd or 43.8mb, same as the preceding month, while the allocation of crude oil for domestic consumption remained at 0.45mbd or 13.5mb in the review month.

The CBN stated that the average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) at end-November 2019, was $66.11/b, compared with $61.10/b recorded in October 2019.

This represented an increase of 8.2 per cent, relative to the level in the preceding month.

“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.

It stated that the United Kingdom Brent, at $63.93/b, the Forcados, at $65.85/b, and the WTI, at $58.13/b, exhibited similar trend, as the Bonny Light in November 2019.
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