Chevron, Shell, and Others Will Send NNPCL $341 Billion in Joint Venture Revenue in September

This September, THISDAY has learned, four oil companies—Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN), Shell Petroleum Development Company (SPDC), and First E&P—are anticipated to transfer N341.091 billion to the Nigerian National Petroleum Company Limited (NNPCL).

This September, THISDAY has learned, four oil companies—Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN), Shell Petroleum Development Company (SPDC), and First E&P—are anticipated to transfer N341.091 billion to the Nigerian National Petroleum Company Limited (NNPCL).
According to the 90-day payment conditions agreed upon by the parties, the revenues from the sale of domestic crude oil in June of this year are only due to be offset this month.
The amount collected as payables for crude oil from the oil companies in August, according to a study of the NNPCL’s data, was less.
The Joint Venture (JV) partners of the NNPCL last month paid N422.37 billion for 8.887 million barrels of domestic crude due in May 2022. Chevron, Mobil, the Nigerian Petroleum Development Company (NPDC), Total, First E&P, and Addax Petroleum were among the businesses that made payments in August.
However, this month, only four businesses agreed to pay the national oil corporation.
According to the recently revealed data, Mobil and Chevron produced the most domestic crude, each with 2.849 million barrels produced.
Additionally, First E&P owed the NNPCL domestic crude worth 650,011 barrels while SPDC owed the NNPCL cash in the amount of 948,598 barrels.
In terms of money, CNL will hand over N131.317 billion, which is equal to $332.61 million, while MPN will hand over N134.81 billion, which is equal to $341.4 million, or one US dollar.
According to the facts in the presentation to the Federation Account Allocation Committee, SPDC is also anticipated to pay N45.23 billion, or $114.58 million, while First E&P would pay N29.71 billion, or roughly $72.27 million (FAAC).
The combined unpaid balance between the four firms is 7.265 million barrels totaling $863.961 million, or N341.091 billion.
The three tiers of government divide remittances from crude oil sales to the Federation Account each month, but the NNPCL hasn’t been able to do that for the past seven months.
The NNPCL attributes its prolonged inability to meet the Organization of Petroleum Exporting Countries (OPEC) quota to substantial oil theft, deterioration in upstream infrastructure, and outright asset sabotage.
The National Petroleum Investment Services (NAPIMS) oversees the method of funding the operations through the cash-call process, typically on a 60-40% or 55-45% basis, as well as the equity holdings of the federal government’s JV operations with numerous contractors.
The meager money from oil sales is used to pay for fuel subsidies, which are estimated to total more over N4 trillion this year alone.
The NNPCL’s outstanding debt on what it considers under-recovery reached N1.044 trillion in July, meaning that the entire spending on the contentious and opaque regime of gasoline subsidies now exceeds receipts.
According to a report published on Friday by THISDAY, the company withdrew N448.7 billion as subsidies, a record amount since under-recovery payments started to appear again in early 2017. The gross domestic crude oil and receipts for the entire month of July were just under N400 billion, indicating that the amount spent on gasoline subsidies for the month was roughly N48 billion higher than the total amount of oil sold for the month. There were no export crude oil receipts at all during the month. In addition, a THISDAY study of the data revealed that, for the entire month, only the subsidized project listed by the national oil corporation received funding.
The development of renewable energy sources, services for frontier exploration, and national domestic gas development are some of the regular monthly payments by the NNPCL. In a similar move, the international oil major Shell will replace Ben van Beurden as its CEO in 2019, according to Reuters, which cited two business sources over the weekend.
The oil and gas supermajor has reportedly begun the hiring process for a replacement as the CEO of Shell prepares to retire next year.
Van Beurden, a 64-year-old Dutchman who joined Shell as CEO in 2014, has led the supermajor through two significant drops in oil prices and downturns in the industry, as well as the recent transfer of the company’s headquarters and tax residency from the Netherlands to the UK.
Shell recently eliminated the “Royal Dutch” from its name in order to simplify its share structure for investors and shift its tax residency from the Netherlands to the UK. The supermajor has also sped up investments in hydrogen and other clean energy sources, as well as renewable energy. Van Beurden joined Shell in 1983 and served as head of downstream before being named CEO in 2014.
Shell has narrowed down its list of applicants to four, according to Reuters sources. Among them are Sinead Gorman, Shell’s Chief Financial Officer, Wael Sawan, the company’s current Director of Integrated Gas, Renewables, and Energy Solutions, Huibert Vigeveno, and Zoe Yujnovich, the Upstream Director of Shell.
Although Shell’s board succession committee, which should choose the new CEO, hasn’t made a decision yet, one of the people told Reuters that Sawan is the front-runner to succeed van Beurden. The firm will need to be managed through the energy transition, and the new CEO will likely face greater pressure than van Beurden did to accelerate Shell’s emission reductions and targets while maintaining shareholder satisfaction with dividend increases.

GOGAN Media.