Oil revenue hits N85tr in five years

Nigeria earned $236.2 billion (about N85 trillion) from oil between 2014 and 2018, the Organisation of Petroleum Exporting Countries (OPEC) said in its 54th edition of Annual Statistical Bulletin.

The revenue is 10 times the N8.91 trillion Budget signed last month by President Muhammadu Buhari as Appropriation Act for this fiscal year.

The figure has placed Nigeria in sixth place and the highest oil revenue earner in Africa among the 14 OPEC member countries surveyed in the report.

Nigeria currently produces an average of 2.1 million barrel per day (bpd) as against the 2.3 million bpd production peg in the budget. It was 1.6 million bpd in May this year, according to the bulletin. The dip may translate to revenue loss but oil prices surged yesterday, rebounding from their lowest settlement in about five months after attacks on two tankers in the Gulf of Oman.

Fears of military conflict between Washington and Tehran sent oil price up over 4.5 per cent, with Brent crude hitting $62.64 per barrel and US crude touching $53.45. This is dragging oil away from the five-month lows struck last night.

West Texas Intermediate crude for July delivery had jumped $1.52 or three per cent, to $52.66 a barrel after tapping an intra-day high of $53.45. Gains were in contrast to a four per cent drop that took the U.S. benchmark down to $51.14 Wednesday, the lowest front-month contract finish since January 14, according to Dow Jones Market Data.

August Brent crude had also climbed $1.86, or 3.1 per cent, to $61.83, following a session high so far of $62.64 a barrel, reached earlier when reports of the tanker attacks surfaced. The prior session saw Brent tumble 3.7 per cent to $59.97 a barrel, the lowest front-month finish since Jan. 28.

The 2019 Appropriation Act has $60 per barrel benchmark.

According to OPEC, the highest revenue in the review period was $75.2 million (N27.1 billion) recorded in 2014, followed by 2018, when N19.6 billion ($54.5 million) was earned.

In 2015, 2016 and 2017, the report said ($41.2 million, N9.8 billion ($27.3 million) and $38 million (N13.7 billion) were earned respectively.

Saudi Arabia topped the earners table with $194.4 billion followed by United Arab Emirates’ (UAE) $74.9 billion, Iraq’s $68.2 billion, Iran’s $60.2 billion and Kuwait’s $58.4 billion.

On volume of crude oil exported, the report said members of the oil cartel sold an average of 24.67 million barrels per day (b/d) in 2018, a slight increase of about 14,000 b/d, or 0.1 per cent compared to 2017.

The bulk of sales were made to countries in Asia and the Pacific, followed by Europe and the least exports to North America.

According to the OPEC bulletin, Nigeria’s daily crude oil production in 2018 was 1.601 million b/d, a 4.3 per cent increase from the 1.535 million b/d recorded in 2017.

The largest oil producer in Africa had agreed to cap its output at 1.685 million b/d after reaching agreements with OPEC in January to regulate oil supply in order to drive up prices.

Some other reports have, however, claimed that Nigeria has been producing above the OPEC quota, although the output still falls short of the 2.3 million b/d target the 2019 budget is benchmarked against.

According to S&P Global Platts survey, Nigeria’s production in May was 1.86 million b/d, a drop from the 1.95 million b/d recorded in April.

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