About 40 per cent of the proceeds from oil and gas exports and domestic sales in January were spent on joint venture assets and priority projects, according to the Nigerian National Petroleum Corporation.
The NNPC spent N83.29bn on JV assets being developed through joint ventures with private firms as well as priority projects in January.
A total revenue of N209.54bn was generated from oil and gas exports and domestic sales in January, the NNPC data showed.
The NNPC, which represents the Federal Government in the JVs has an obligation to make cash call payment for the development of the assets.
The nation’s oil and gas production structure is majorly split between the JV (onshore and in shallow waters) and the Production Sharing Contracts in deepwater offshore.
Under the JV arrangement, both the NNPC and the private firms contribute to the funding of operations in the proportion of their equity holdings and generally receive the produced crude oil in the same ratio.
The NNPC transferred $80.32m (N30.44bn) to the JV cash call account as first line charge in January, while N52.85bn went to JV cost recovery and government priority projects, according to data obtained from the corporation.
The NNPC said total export receipt of $108.75m was recorded in January 2021 as against $125.25m in December 2020.
It said proceeds from crude oil amounted to $24.32m while gas and miscellaneous receipts stood at $66.28m and $18.15m respectively.
The corporation said, “Of the export receipts, $28.43m was remitted to the Federation Account while $80.32m was remitted to fund the JV cost recovery for the month of January 2021 to guarantee current and future production.
“Total export crude oil and gas receipt for the period January 2020 to January 2021 stood at $2.73bn; out of which the sum of $1.58bn was transferred to JV Cash Call as first line charge and the balance of $1.15bn was paid into Federation Account.”
Proceeds from the sale of domestic crude oil and gas rose to N168.32bn in January from N136.25bn in December, out of which N52.86bn was transferred to the JVCR.
“In January 2021, NNPC remitted the sum of N163.63bn to the Federation Account Allocation Committee. From January 2020 to January 2021, total NNPC remittances to FAAC is N2.10tn; out of which Federation and JV with government priority projects received the sum of N850.63bn and N1.04tn respectively,” it said.