Economy

Nigeria Earned $21bn from Oil/Gas Sector in 2017 – NEITI

Published

5 years ago

29/11/2019

By Adedapo Adesanya

The Nigeria Extractive Industries Transparency Initiatives (NEITI) has disclosed that Nigeria earned the sum of $21 billion from the oil and gas sector in 2017. This disclosure came from NEITI at the 2017 Oil and Gas Industry Report released in the nation’s capital, Abuja on Wednesday.

It said the figure showed a 23 percent increase from the 2016 figures of 17.05 percent and 15 percent lower than $24.79 billion inflow recorded in 2015.

A breakdown of the financial flows by revenue streams showed that crude oil and gas sales topped the table with about $10.19 billion, while other financial flows accounted for about $10.13 billion.

It added that flows to other entities like the Niger Delta Development Commission and Nigeria Content Development Monitoring Board among others were $669.05 million.

The report said: “In a five-year comparison of revenue flows from the oil and gas sector, the report revealed that there was a steady decline in year-on-year revenues from 2013 to 2016, with the sharpest drop of 55 per cent in 2015 compared to the preceding year.

“The year under review experienced a 23 per cent increase in revenues, 23 percent from 17.06 billion dollars in 2016 to 20.99 billion dollars in 2017.”

According to the report, 2017 witnessed a halt in the steady revenue decline the sector has been experiencing since 2013.

The report also showed that inflows from the Nigeria Liquefied Natural Gas (LPG) as dividend, interest and loan repayment were $834 million.

This indicated was a significant increase of 114 percent from the 2016 figures pegged $390 million.

On oil production during the period under review, a marginal increase of 4.75 per cent (690,465 barrels) as against the 659,137 barrels produced in 2016 was recorded.

It noted that the significant increase in revenues when compared to the increase in production volumes was as a result of the increase in oil prices.

The report further pointed out that average crude oil price was higher in 2017 and was sold for an average of $54.44 as against the S43.73 in 2016, and this signified an increase of 24.5 per cent.

“Out of the 690,465 mbbls of crude oil produced in 2017, a total of 688,291 mmbls was lifted, representing an increase from the 668,147 mmbls lifted in 2016,” it added

The NEITI report also showed that the Nigerian National Petroleum Corporation (NNPC) lifted a total of 241 million barrels (mbbls) of crude oil on behalf of the federation.

A breakdown of the liftings show that federation exports accounted for 135 million barrels, while the domestic crude liftings accounted for 106 million barrels.

It further disclosed that the federation exports volume went down by 36 per cent from 211 mbbls in 2016 to 135 mbbls in 2017.

It noted that while liftings by the companies amounted to 447 mbbls, joint venture operations, production sharing contracts and sole risk operators accounted for 130 mbbls, 223 mbbls and 79 million barrels respectively.

It said that the marginal field and service contract operators lifted 15mbbls and 1mbbls during the year under review

On crude allocation for domestic use, the report indicated that in 2017, the NNPC allocated 105.925 mbbls for domestic, while 25 per cent of this quantity was supplied to the refineries, 69 per cent was on the other hand utilised for the Direct Sales and Direct Purchase arrangement.

On production arrangements in terms of volumes, joint ventures and production sharing contracts produced 305 mbbls and 303 mbbls.

It added that others such as service contracts, marginal fields and sole risks accounted for the balance.

The report said: “Sole Risk operations produced the highest percentage increase of 114 per cent, and Marginal Field operations witnessed an increase of 32 per cent in the year under review.

“Overall production from the JV companies increased by 16.199 mbbls, indicating a six per cent increase from 2016 volumes.

“On the contrary, PSC and SC operations suffered volume reductions of six per cent and 31 per cent respectively.”

On Gas production, it said the total gas production was 3,494,774 mmscf from all arrangements, slightly higher than 2016 production of 3,051,249 mmscf by 15 per cent.

It noted that the total volume of gas flared in 2017 increased by 23 per cent, while gas utilisation saw a significant jump of 32 per cent when compared to 2016 volumes.

The report also said $8.474 billion was budgeted for Cash Call obligations, but only 49 per cent or $4.13 billion was paid as at January 2018.

It said out of the $5.125 billion negotiated as outstanding cash call liabilities for 2016, $2.177 billion was paid, therefore, leaving a balance of $2.948 billion.

It further observed that 2017 witnessed a huge drop in crude oil theft, sabotage and deferred production.

It said: “Nigeria lost about 36.5 mbbls of crude oil to theft and sabotage and there was 69mbbls lost due to decrease in production volumes resulting from routine maintenance or unplanned repairs of the production facilities.

“This is regarded as a remarkable improvement particularly, when compared to the 2016 figures of 101 mbbls and 144 mbbls lost to theft and deferred production respectively.”

NEITI also noted that there was reduction in pipeline breaks in 2017 (924 breaks) when compared to the figures of the previous years (2013-3,571; 2014-3,732; 2015-2,832 and 2016-2,589 breaks).

This decline, it said, suggested a positive return on the actions taken to mitigate vandalism.

The report further added that the oil and gas sector contributed 8.68 percent to Nigeria’s Gross Domestic Product (GDP)

The 2017 NEITI oil and gas report covered 63 entities and these include seven government agencies, 12 joint venture companies, 13 production sharing contract companies and 16 marginal field operators.

Economy

NGX All-Share Index Jumps 0.17%

Published

11 hours ago

18/01/2025

Dipo Olowookere

By Dipo Olowookere

A 0.17 per cent growth was recorded by the Nigerian Exchange (NGX) Limited on Friday, extending the stay of the local bourse in the positive territory.

This uptrend was maintained despite profit-taking in the banking sector, which left its index down by 0.23 per cent at the close of trading activities.

Business Post reports that the insurance industry expanded by 4.04 per cent during the session, the energy counter improved by 1.05 per cent, and the consumer goods space gained 0.58 per cent, while the industrial goods sector closed flat.

Consequently, the All-Share Index (ASI) went up by 170.62 points to 102,353.68 points from 102,183.06 points and the market capitalisation grew by N541 billion to N62.851 trillion from N62.310 trillion.

There were 34 price gainers and 22 price losers yesterday, indicating a positive market breadth index and strong investor sentiment.

The trio of Caverton, Livestock Feeds and Sovereign Trust Insurance appreciated by 10.00 per cent each during the session to quote at N2.20, N5.94, and N1.10, respectively, as Neimeth jumped by 994 per cent to N3.43, and Royal Exchange increased by 9.88 per cent to 89 Kobo.

On its part, Academy Press lost 9.74 per cent to close at N3.15, PZ Cussons declined by 9.09 per cent to N25.00, DAAR Communications weakened by 8.64 per cent to 74 Kobo, Transcorp Power shed 5.91 per cent to settle at N46.95, and Dangote Sugar fell by 4.94 per cent to N38.50.

A total of 327.8 million shares valued at N11.8 billion were traded in 11,905 deals on Friday versus the 472.2 million shares worth N16.7 billion transacted in 12,336 deals on Thursday, representing a decline in the trading volume, value, and number of deals by 30.58 per cent, 29.34 per cent and 3.49 per cent apiece.

Access Holdings recorded the highest sales with 49.1 million stocks sold for N1.2 billion, Fidelity Bank exchanged 20.4 million shares valued at N359.0 million, UBA traded 20.1 million equities worth N681.0 million, Oando transacted 14.8 million shares for N998.1 million, and Universal Insurance traded 13.8 million stocks worth N8.7 million.

Economy

NASD OTC Exchange Gains 0.26%

Published

11 hours ago

18/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its upward movement with a 0.26 per cent gain on Friday, January 17 amid renewed interest in unlisted stocks.

This raised the market capitalisation of the trading platform by N2.79 billion at the close of business to N1.075 trillion from the N1.072 trillion it closed in the preceding session.

In the same vein, the NASD Unlisted Security Index (NSI) went up by 8.08 points at the close of transactions to 3,111.91 points from the 3,103.83 points recorded at the previous session.

Yesterday, the volume of securities traded by investors went down by 606 per cent to 486,215 units from 1.2 million units, the value of shares shrank by 84.7 per cent to N2.8 million from N18.0 million, and the number of deals decreased by 65 per cent to 14 deals from the 33 deals carried out a day earlier.

In the final trading day of the week, there were three price gainers and one price loser, Geo-Fluids Plc, which lost 9 Kobo to finish at N4.70 per unit versus the preceding session’s price of N4.79 per unit.

On the flip side, Okitipupa Plc gained N3.60 to settle at N39.59 per share compared with the previous day’s N35.99 per share, Industrial and General Insurance (IGI) Plc added 3 Kobo to wrap at 36 Kobo per unit compared with the preceding session’s 33 Kobo per share, as FrieslandCampina Wamco Nigeria Plc improved its value by 49 Kobo to N39.65 per unit from N39.16 per unit.

At the close of business, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and Afriland Properties Plc with 690,825 sold for N11.1 million.

The most active stock by volume (year-to-date) remained IGI Plc with 23.5 million units worth N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units sold for N134.9 million.

Economy

Naira Rallies by 0.06% to N,1547/$1 at NAFEM

Published

11 hours ago

18/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira extended its appreciation against the US Dollar by 0.06 per cent or N89 Kobo on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 17, trading at N1,547.58/$1 compared with the previous day’s value of N1,548.47/$1.

Market analysts expect that the Naira will appreciate in the first quarter of the year, backed by continued policy support by the Central Bank of Nigeria (CBN).

Vestance Nigeria, an agribusiness advisory firm, projects that the exchange rate will trade between N1,650/$1 and N1,750/$1 this year in its Resilience and Recovery for Agribusiness in 2025 outlook report.

“The Central Bank of Nigeria (CBN) will continue implementing reforms to enhance exchange rate market transparency while maintaining higher interest rates to curb inflationary pressures and attract foreign portfolio management,” it said.

Also, the Nigerian currency improved its value against the Pound Sterling by N20.84 to wrap the session at N1,883.59/£1 versus the preceding day’s N1,904.43/£1 and against the Euro, the Nigerian currency gained N10.45 to settle at N1,590.34/€1, in contrast to Thursday’s closing price of N1,600.79/€1.

In the parallel market, the domestic currency appreciated against the greenback by N5 yesterday to sell for N1,675/$1 compared with the N1,675/$1 it was traded a day earlier.

As for the cryptocurrency market, there was profit-taking amid excitement for a new era of crypto-friendly US government mounts ahead of Donald Trump’s inauguration next week.

Crypto investors expect a change from Mr Trump who promised on the campaign trail to position the US as a leader in the crypto space including creating a national stockpile of Bitcoin, in stark contrast to past years’ regulatory crackdowns and enforcements.

Litecoin (LTC) fell by 9.9 per cent to trade at $124.56, Ripple (XRP) slumped by 6.2 per cent to $3.10, Cardano (ADA) dipped by 4.9 per cent to $1.06, Ethereum (ETH) dropped 3.1 per cent to finish at $3,270.61, Binance Coin (BNB) went down by 2.3 per cent to $698.57 and Dogecoin (DOGE) depreciated by 2.2 per cent to $0.3927.

However, Solana (SOL) rose by 8.8 per cent to end at $235.12, Bitcoin (BTC) expanded by 0.8 per cent to $102,494.03, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.