$1.17bn worth of crude oil sent to moribund refineries
At an estimated average of $83.73 per barrel, the price of Nigeria's reference crude, the Bonny Light (37º API) increased by 4.9 percent over the level in the preceding month.
Generally, Nigeria's crude oil production, including condensates and natural gas liquids, was estimated at 2.1 million barrels per day (mbd) or 65.72 million barrels for the month, representing an increase of 1.0 per cent over the level in the preceding month. Crude oil export was estimated at 1.67 mbd or 51.77 million barrels in the month, compared with 1.65 mbd or 49.70 million barrels in the preceding month.
The rise in price in crude oil prices was attributable to the fear of supply disruption arising from militant attacks on some of Nigeria's oil rigs, the new sanctions imposed on Iran by the U.S as well as the disruption caused by fire at British Petroleum Plc oil field in Alaska, U.S.
Meanwhile, experts want the National Assembly to investigate what happens to crude oil sent by the Nigerian National Petroleum Corporation (NNPC) to moribund refineries. Between January and June, 81.45 million barrels of crude oil was delivered to NNPC for refining, out of which, only 1.75 million barrels were said to be processed.
Between July and September, 41.40 million barrels were again delivered to the corporation. The snag, according to experts, is that refineries in the country, have for long ceased working and there must be explanations as to what these millions of barrels of crude oil go at the end of the day.
Ayo Teriba, an economic analyst says what is done to the crude oil allocated to the NNPC and not refined should be a case for the National Assembly to probe. says, though, the amount seems high, and as such, he wants government, particularly the CBN to make available, further information on expenditure and what is kept in the coffers as monies from excess crude oil. But what economic watchers believe is a snag in the crude oil business is the continued delivery of crude oil to the Nigerian National Petroleum Corporation (NNPC) for refining.
Meanwhile, the country earned a total of N4.09 trillion from sales of crude oil between January and September 2007, statistics made available by the Central Bank of Nigeria (CBN) has said.
The amount is reasonably ahead of what was budgeted by the Federal Government in its 2007 fiscal budget. A total of about N2.1 trillion was budget for both capital and recurrent expenditure this year.
According to the CBN half year report, though total crude oil production was 387.34 million barrels for the period between January and June, about 305.89 million barrels was export.
It also states that the price of Nigeria's reference crude, the Bonny Light stood at an average of $65.56 per barrel. This amounts to $20.05 billion or N2.50 trillion sold in the first half.
Between July and September, about 159.16 million barrels out of the 200.56 million barrels that was produced was exported at $79.64 per barrel. This brings Nigeria's income during the period to $12.68 billion or N1.59 trillion. This by implication therefore means that the country realized $32.73 billion or N4.09 trillion.
At an estimated average of $79.64 per barrel, the price of Nigeria's reference crude, the Bonny Light (37º API), rose by 11.9 percent over the level in the preceding quarter. The average prices of other competing crudes namely, the West Texas Intermediate, the U.K Brent, the Arab Light, and the Forcados also rose by 23.3, 13.0, 17.1 and 11.6 per cent to $79.66, $77.77, $73.94 and $79.26 per barrel, respectively.
The average price of OPEC's basket of eleven crude streams rose by US$13.6 per barrel to US$73.10 over the level in the preceding quarter. The increase in price was attributable to the output disruption in Nigeria and Iran which had tightened supply. and the harvest of agricultural products such as maize, yam, vegetables and fruits.
In the month of August, Nigeria's crude oil production, including condensates and natural gas liquids, was estimated at 2.2 million barrels per day (mbd) or 68.2 million barrels for the month, representing an increase of 2.3 per cent over the level in the preceding month. Crude oil export was estimated at 1.75 mbd or 54.25 million barrels in the month, compared with 1.70 mbd or 52.7 million barrels in the preceding month. Deliveries to the refineries for domestic consumption remained at 0.45 mbd or 13.95 million barrels for the month.
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