The Nigerian National Petroleum Corporation (NNPC) had lifted about 55,447,262 barrels under the crude oil for product SWAP agreement in 2012.

The crude oil swap agreement is a business model adopted by the NNPC which allows the lifting of certain amount of crude oil by its partner in exchange for refined products especially Premium Motor Spirit (petrol).

Data from the NNPC made available to Daily Trust shows that the amount represents about 154,000 barrels of crude oil daily under the agreement. The number is said to be out of the total 445,000 barrels of crude oil allocated for domestic refineries but due to the low capacity of the refineries, NNPC decided to adopt the swap model.

The data also indicated that both oil production and refining capacities dropped in 2012 compared to the preceding year, 2011, data from the Nigerian National Petroleum Corporation (NNPC) shows.

The oil data also indicated that total crude oil and condensate production for the year was 852,776,653 barrels, giving a daily average of 2.27 mmb/pd. “This is lower than the previous year by 2 percent”, the report showed.

On the refining segment, the report said the total production output by the refineries was 4,179,850 metric tons of various petroleum products. The combined average refining capacity utilization for year 2012 was 21 percent as against 24 percent in the previous year.

“A total of 866,651,059 barrels (2.37 million barrels per day) of crude oil and condensate was lifted for domestic and export purposes, showing a slight decrease of 0.095% against year 2011. The difference between the crude oil lifting and production was from stock.”

The reported added that of the total quantity, NNPC lifted 380,626,097 barrels (44%), averaging 1.04 million barrels per day for both domestic utilization and export.

On the upstream liquid gas production and export, the NNPC report said total Natural Gas Liquid (NGL) produced in 2012 was 995,564 metric tons. Mobil and NNPC had a share of 51 percent and 49 percent of the quantity respectively. A total of 989,022 metric tons was lifted. Liquefied Petroleum Gas (LPG) production was about 355,650 metric tons while lifting.

However, unlike in the oil sector, the report indicated an increase in the gas sector with a total of 2,580.17 Billion Standard Cubic Feet (BSCF) of Natural Gas production reported by 16 companies.

“This shows an increase of 6.96 percent when compared with 2011 production. Of the quantity produced, 1,991.50 BSCF (77%) was utilized, while 588.67 BSCF (23%) was flared.”


Information from Daily Trust was used in this report.