The Nigerian National Petroleum Company (NNPC) Limited’s oil revenue dipped in June, as the world battles dwindling crude oil prices.
Its latest monthly report summary, released on Monday, revealed that revenue declined to ₦4.57 trillion in June, a 23.9 per cent drop from the ₦6 trillion recorded in May.
Heightened volatility in global oil markets, marked by geopolitical tensions, fluctuating demand from Asia, and uncertainty around production cuts by the Organization of Petroleum Exporting Countries (OPEC) and its partners, has driven prices down.
Oil prices declined on Tuesday amid rising concerns that the escalating trade conflict between major crude consumers, the U.S. and the European Union, could hinder fuel demand growth by stifling economic activity, which has negatively impacted investor sentiment.
Brent crude futures saw a decrease of 52 cents, or 0.75 per cent, settling at $68.69 a barrel by 7:30 WAT (currently trading above $68.60). Meanwhile, U.S. West Texas Intermediate crude was priced at $66.69 a barrel, down 51 cents, or 0.76 per cent (currently trading above $65.35). Both benchmarks experienced a slight decline on Monday.
The August WTI contract is set to expire on Tuesday, with the more actively traded September contract dropping 54 cents, or 0.82 per cent, to $65.41 a barrel.
Analysis of the NNPCL report also revealed that the profit after tax dropped by 14 per cent to N905 trillion in June, down from ₦1.05 trillion in May.
Crude oil and condensate production rose to 1.68 million barrels per day (bpd) in June from 1.63 million (bpd) in May.
The production peak for the month reached 1.73 million barrels per day (mbpd).
A breakdown shows that crude oil output recovered slightly at 1.42 million bpd, while condensate volumes declined to 0.26 million bpd in June from 0.28 million bpd in May.
Gas production rose slightly to 7.581 billion standard cubic feet per day, up from 7.352 billion mmscfd in the previous month. Gas sales rose from 4.698billion mmscfd in May to 4.742 billion mmscfd in June.
In addition, crude oil and condensate sales decreased to 21.68 million barrels in June from 24.77 million barrels in May.
Downstream performance improved. According to the internal report, fuel availability at NNPC Retail Limited stations stood at 71 per cent in June, up from 62 per cent in May.
“Ongoing industry-wide collaborations are increasingly improving synergies to achieve production improvement and cost optimisation,” the NNPC stated.
According to the state-owned oil company, it has completed the AKK River Niger Crossing, which significantly derisked the completion of the mainline. “Additional intervention is being put in place to ensure the earliest completion.”
“Commenced technical review of OB3 River Niger crossing to replicate learnings from AKK River Niger crossing success. PHRC, WRPC and KRPC review progressing,” it said.
OPEC is pursuing a long-term strategy to increase its market share and is unwinding production cuts. Its approach is also aimed at restoring group cohesion among its members and capitalises on the resilience of oil demand, even as some forecasts suggest a peak in consumption.
Source: Channels TV
