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Nigeria’s Excess Crude Revenue Hits N11.1bn

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By Festus Okoromadu –
…As NNPC Mobilize For Oil Exploration Benue State
Following the rise in price crude which hit the roofs at $60.44 per barrel in the international market on Wednesday, Nigeria’s excess oil revenue has risen to N11.1 billion ($36.6 million) daily.
The rise in price is attributed to increased compliance to the Organisation of Petroleum Exporting Countries (OPEC), oil cut deal, thus enabling the nation to generate $36.6 million from the export of 2.3 million bpd to the global market. This amounts to N11.1 billion at the official exchange rate of N305 to the United States dollar.
It will be recalled that the country’s N7.4 trillion 2017 budget was based on $44.50 per barrel reference price and oil production of 2.3 million barrels per day.
But the price hit the roofs at $60.44 per barrel, on Wednesday. The price of WTI stood at $53.90 per barrel, while the price of OPEC basket of 14 crudes, including Nigeria’s Bonny Light, stood at $56.45 per barrel.
Dr. Mohammed Barkindo, OPEC Secretary General, express optimism in the rise of crude due to the landmark ‘Declaration of Corporation.’
“Through extensive and well-coordinated consultations, enormous commitment, great diligence, necessary flexibility and strategic compromises, 24 participating OPEC and non-OPEC producing nations agreed on the landmark ‘Declaration of Cooperation’ at the end of last year, whereby they decided to adjust production by approximately 1.8 mb/d, for a period of six months, beginning January 1. This has since been extended by a further period of nine months, to the end of March 2018,” he said.
From all indication the nation’s excess oil revenue would continue to rise in the coming weeks as OPEC and others remain committed to oil cut deal.
Meanwhile, the Nigerian National Petroleum Corporation (NNPC) has announced its preparedness to commence move to mobilize for oil exploration in the Benue State sector of the Benue Trough.

This is coming barely a week after it the flag-off of oil search on the Nasarawa State end of the Benue Trough.

The Group Managing Director of NNPC, Dr. Maikanti Kacalla Baru, revealed this while he led a high-powered delegation from the Corporation to the Governor of Benue State, Mr. Samuel Ortom.

According to a statement signed by the Corporation, Ndu Ughamadu, the GMD disclosed that all was set for seismic data acquisition work to commence in the state.

Apart from oil exploratory work, NNPC was also ready to kick-off its biofuel project located in the Agasha/Guma area of the state, the GMD stated.

He explained that the Corporation’s upstream company, Integrated Data Services Ltd (IDSL), would carry out  oil exploratory work in Makurdi, Guma, Gwer East, Gwer West and Logo Local Government Areas of the state, adding that work on the Nasarawa end which has commenced would cover the Ondori area (boundary between Benue and Nasarawa States).

“I am convinced that the success of the results from IDSL’s seismic data acquisition will lead to the drilling of exploration wells in these areas, which hopefully, would launch Benue state into the league of oil producing states in the country,” Dr. Baru stated.

He stated that the oil search was in fulfillment of the Presidential mandate of exploring for oil in the nation’s inland basins which was driven by the urgent need to increase Nigeria’s oil and gas reserves, thereby improving revenue streams and creating more business and employment opportunities for Nigerians.
The GMD informed that the NNPC team was in Benue to sensitise the government and people of the state on the mission.
On the biofuel project, Baru disclosed that when completed, Benue state stood to benefit a lot especially the area of employment generation as the project had the capacity to generate about one million direct and indirect jobs.

According to the GMD, other benefits of the biofuels project include the a sugar cane feedstock plantation of about 20,000 hectares; a cane mill and raw/refined sugar plant capable of producing 126,000 tonnes annually as well as a fuel-ethanol processing plant capable of producing 84 million litres annually.

“With the bio-fuels projects, we also hope to establish the Bagasse cogeneration power plant which will generate 64 MW; a carbon dioxide recovery and bottling plant that will produce 2, 000 tonnes annually as well as an animal feed plant that will produce 63, 000 tons annually,” Dr. Baru added.

The GMD also called on the governor to facilitate the release of the Certificate of Occupancy for the 50,000 hectares of land required for the expanded biofuels project in the state.

Responding, Governor Ortom expressed delight over NNPC’s oil exploration and bio-fuels projects in the state, adding that all the people of Benue were behind the two projects.

“I can assure you of our total support for these projects. We will work with our traditional institutions to sensitise our people on the need to massively support you,” Governor Ortom told the GMD.

To show Benue state’s support for the project, Governor Ortom instantly set up a committee headed by the Deputy Governor, Benson Abounu, to work with the NNPC team to ensure seamless execution of the two projects.

It would be recalled that only yesterday, the NNPC, in furtherance of the Federal Government’s biofuel policy, signed a Memorandum of Understanding (MoU) with the Ondo State Government to establish a 65,000 million litres per annum biofuel plant in Okeluse area of the state.

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