The Nigerian National Petroleum Company (NNPC) Limited has reported a sharp decline in oil revenues in June, falling to the lowest point in three months as global crude prices remain unstable.

According to the latest monthly report summary released by the national oil company on Monday, revenue declined to N4.57 trillion in June, indicating a 23.9 percent drop from the N6 trillion recorded in the preceding month.

This development comes amid heightened volatility in international oil markets, driven by geopolitical tensions, fluctuating demand from Asia, and uncertainty around production cuts by the Organization of Petroleum Exporting Countries (OPEC) and allies’ members.

Analysis of the report also revealed that the profit after tax dropped by 14 percent to N905 trillion in June, down from N1.05 trillion in May.

Crude oil and condensate production rose to 1.68 million barrels per day (bpd) in June from 1.63 million (bpd) in May.

The production peak for the month reached 1.73 million barrels per day (mbpd).

A breakdown shows that crude oil output recovered slightly at 1.42 million bpd, while condensate volumes declined to 0.26 million bpd in June from 0.28 million bpd in May.

Gas production rose slightly to 7.581 billion standard cubic feet per day, up from 7.352 billion mmscfd in the previous month. Gas sales rose from 4.698billion mmscfd in May to 4.742 billion mmscfd in June.

In addition, crude oil and condensate sales decreased to 21.68 million barrels in June from 24.77 million barrels in May.

Downstream performance improved. According to the internal report, fuel availability at NNPC Retail Limited stations stood at 71 percent in June, up from 62 percent in May.

“Ongoing industry-wide collaborations are increasingly improving synergies to achieve production improvement and cost optimisation,” the NNPC stated.

According to the state-owned oil company, it has completed the AKK River Niger Crossing, which significantly derisked the completion of the mainline. “Additional intervention is being put in place to ensure the earliest completion.”

“Commenced technical review of OB3 River Niger crossing to replicate learnings from AKK River Niger crossing success. PHRC, WRPC and KRPC review progressing,” it said. (BusinessDay)

Update news