FGN; $40bn Earned from Oil Exports in Six Months

The Organisation of Petroleum Exporting Countries (OPEC) disclosed that Nigeria has been estimated to have released about $40bn from crude oil exports in the first half of 2014.
OPEC stated in its revenue fact sheet that the nation had net earnings of about $84bn in 2013.

Nigeria, according to the revenue is now placed as the fourth highest earner among OPEC members, after Saudi Arabia ($274bn), Kuwait ($45bn), and Iraq ($45bn), in the period under review. Libya earned the least revenue with $4bn after Equador ($5bn).

The United States Energy Information Administration (EIA) also estimated that excluding Iran, members of the OPEC earned about $826bn in net oil export revenues in 2013, a seven percent decrease from2012 earnings, but second largest earnings total during the 1975 to 2013 period.

A drop in OPEC oil Production (due mainly to supply disruption in Libya), and a three percent in average crude oil prices (as measured by the Brent crude oil price marker), were the major sources of the decline in OPEC earnings.

EIA has estimated that OPEC (excluding Iran ) could earn about $774bn in net oil export revenues in 2014 and $723bn in 2015 (unadjusted for inflation) and this is based on EIA’s July 2014 Short-Term Energy Outlook (STEO).

These declines from the 2013 level were the result of projected shortfalls in the call on OPEC crude oil production, because of the large increases in non-OPEC production for 2014-15, as well as expected crude oil price declines that were also the result of declines in the call on OPEC crude oil production.

However, the Ministry of Finance had estimated that Nigeria’s oil revenue in July fell by seven percent month-on-month to N483.5bn ($3.02bn), due to disruption to crude production and exports at facilities operated by Shell and Total in the Niger Delta.

“The decline in revenue is attributed to the force majeure declared by Shell and a series of shutdowns of trunk lines and pipelines at various oil-loading terminals including the Akpo oil field,’’ it stated.