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NNPC blocks downstream sector leakages worth N307bn yearly

The Nigerian National Petroleum Corporation says it has blocked leakages in the country’s oil and gas downstream sector valued at $1bn (N307bn at the official exchange rate of N307 to a dollar) per annum.

The corporation said the leakages were blocked in the business operations conducted in Nigeria’s downstream oil sector, adding that this had made it possible for the country to save about $1bn.

The downstream sector of the oil and gas industry deals with the refining of crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas.

In a document on key achievements of the current management of the oil firm, which was obtained by our correspondent from the corporation in Abuja on Wednesday, the NNPC said, “We blocked leakages in the downstream operations thus saving an opportunity cost of almost $1bn.”

The oil firm also stated that it had made significant efforts in debt recovery from traders indebted to the corporation through reconciliations, payments or set-offs where necessary and had reviewed credit policies to protect revenues.

It said in the document that the corporation had rehabilitated and restored some of its key assets like the tank expansion at Atlas Cove depot, re-opening of depot facilities at Mosimi, Ibadan, Enugu, Aba and Kano, Aba-Port Harcourt pipeline, and Jetty expansion projects, among others.

On supply dynamics, it said the corporation acquired vessels, expanded its retail outlets and recently inaugurated the Apapa Single Point Mooring.

The firm said transparency in the bidding process for crude oil lifting term and oil major contracts through public bid opening had been increased.

It further stated that transparency in shipping, crude term contract, and Direct Sales Direct Purchase had been increased as well.

The oil firm said plans to end petroleum products importation through increased local refining capacity was still being pursued, adding that the NNPC in the third quarter of 2018 inaugurated its strategy to develop condensate refineries of up to 200,000 barrels per day modelled after the Nigeria Liquefied Natural Gas company business model.

“The corporation is almost concluding the process of engaging a consultant to carry out a feasibility study to sanction the proposed strategy,” it said.