Nigeria’s Crude Oil Earnings Crash by 50%

The Nigeria National Petroleum Corporation (NNPC) has announced a shortfall in oil revenue from average 330 billion naira (US $2.2 billion) monthly recorded in 2008 to about 150 billion naira (US $1 billion) in January 2009, the Lagos-based Financial Standard newspaper reported on Friday.

Mohammed Bakindo, NNPC group managing director who disclosed this at a meeting between the Senate committee on petroleum ( upstream) and stakeholders in the oil and gas industry on Thursday said it represents a 50 percent fall in the oil revenue flow compared to that of 2008.


He said the drop is occasioned by the slide in the price of crude which dropped from as high as 22,500 naira (US $150) per barrel in 2008 to as low as 6,450 naira (US $43) per barrel this year.

Bakindo said the situation is being worsened by the decline in crude production from 2.8 million barrel per day in 2008 to below budgetary projected 2.3 million barrel per day.

Rigzone