NNPC raises 2006 capex 36%

NNPC presented a capital expenditure budget amounting to nearly $5.57 billion, mainly to finance various joint venture (JV) projects being implemented in the Nigerian oil and gas sector.

Offshore staff

(West Africa) - The Nigerian National Petroleum Corp. (NNPC) presented a capital expenditure budget amounting to nearly $5.57 billion, mainly to finance various joint venture (JV) projects being implemented in the Nigerian oil and gas sector.

The plan also includes federal government priority projects in the gas sector to feed the independent power plants (IPPs) in the Niger Delta.

The 2006 plan represents an increase of about 36%above the 2005 budget of $4.06 billion, as approved by the National Assembly.

Dr. Funso Kupolokun, Group Managing Director of the NNPC, who defended the budget before the House of Representatives Committee on Petroleum Resources, says the country would earn an estimated $14.57 billion from the sector, with $13.79 billion coming from oil and $680 million from gas.

Totals:
Revenue from oil, $13.786 billion;
Revenue from gas, $680 million;
2006 NNPC expenditure, $5.571 billion

Breakdown:
Exploration capex -- $317. 5 million;
Oil development -- $2. 613 billion;
Gas -- $2. 993 billion;
Total opex -- $3.367 billion;
Total (oil & gas) JV -- $ 9.292 billion;
Sub-total government share -- $5.296 billion;
National Petroleum Investment Management Services operations -- $141 million;
NPDC JV (SPDC & CNL)-- $54. 1 million;
Total government share -- $5.571 billion

The previous year expenditure shows that $3.102 billion (76.49%) was approved by the federal government, raising the total cash call budget to $4.056 billion against a recommended JV budget of $8.282 billion.

The federal government's expenditure profile on priority projects for gas supply to IPPs includes JV power projects & gas supply to JV IPPs --$ 685.1 million; gas supply lines to IPP plants -- $ 355.4 million; topping plant (floating mega station) -- $6 million; Niger Delta IPP gas supply -- $541 million; total -- $1.606 billion.

01/04/06

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