NNPC earns $16.79bn from joint venture operations

The Nigerian National Petroleum Corporation has said that it has so far made $16.79bn from oil joint venture investments this year.The Group Managing Director, NNPC, Mr. Austin Oniwon, who briefed the Senate Committee on Petroleum (Upstream) on Tuesday on the performance of its joint ventures, said the corporation had exceeded its fiscal target for the year.According to him, the target for the year is $13.9bn, showing that the NNPC surpassed the target by 21 per cent.Asked how the corporation recorded such a feat, Oniwon noted that it was as a result of stability in the prices of crude in the international market, saying, The crude prices have been very firm and volume has been good, with production of oil stabilising at 2.4 million barrels per day at that time.He noted that although oil theft was real and was threatening production, it had not made sufficient impact to the extent of hindering the corporation from meeting its target.On investments, Oniwon said NNPC had only met the budgetary targets, but was lagging behind in meeting its aspirations on expansion and investments.He said in 2010, the corporation required $9bn for its capital investments, but only got $5.4bn and was unable to shore up the balance on its own.Oniwon said the corporation had only succeeded in sustaining production but could not add to the national reserves.According to him, NNPC will need to invest a minimum of $13.9bn annually in the next five years to be able to meet its production target of three million barrels of crude oil per day over the next 10 years.Oniwon also said that the corporation had a revenue projection of $43bn for the 2015-2016 period based on a price of $70 per barrel of crude oil.Meanwhile, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has asked the Senate to grant her audience in a closed- door session to enable her give details on the status of the proposed Petroleum Industry Bill.Lately, there had been heightened fears over the fate of the bill, which is expected to set out the legal framework for the administration of the oil sector in the country.Responding to questions on the bill by the committee, Alison-Madueke said there were very sensitive issues requiring discussions in camera.It is very topical and sensitive at this point in time. I would like to talk in a closed- session with the committee. I crave your indulgence to sit down with you separately in a closed session, she said.
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