The Nigerian National Petroleum Company Limited (NNPCL) reported a profit after tax of ₦185 billion in July 2025, despite mounting financial obligations. In its latest monthly performance report, the state-owned oil giant revealed that it also remitted ₦7.9 trillion to the Federation Account Allocation Committee (FAAC) within the first half of the year. This financial update comes as crude oil production inched higher, signaling gradual recovery in output levels.
According to the report, Nigeria’s oil production averaged 1.70 million barrels per day (mbpd) in July, slightly above June’s 1.68mbpd. Condensate contributed 0.29mbpd, while crude oil stood at 1.40mbpd. Natural gas production also surged, hitting 7.72 billion standard cubic feet per day (mmscfd), up from 7.58bscfd in June. Gas sales rose to a record 4.98bscfd, driven by increasing domestic demand and export opportunities.
The company further highlighted progress on critical infrastructure projects, particularly the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, which is now 83% complete. Additional subcontractors have been mobilized to fast-track completion. Similarly, the OB3 pipeline recorded a major milestone, with 113 kilometers commissioned and injecting 300mmscfd of gas into the system from key producers such as AHL, Platform, Chorus, and Xenergi.
These developments are expected to ease gas shortages, stabilize industrial power supply, and strengthen Nigeria’s energy transition goals. NNPCL reiterated its commitment to sustaining output growth through improved facility uptime, enhanced stakeholder collaboration, and operational efficiency. The company also assured that ongoing investments in pipelines and infrastructure will be accelerated to meet national energy targets.
In a related development, the Federal Government plans to clear ₦2.7 trillion legacy debts owed to gas firms by leveraging royalty payments. This was disclosed by the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, during a virtual meeting marking the second year in office of the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. Industry stakeholders, including Renaissance Africa Energy Chairman Layi Fatona, praised the move but urged regulators to expedite the debt resolution process.
Source: The Guardian