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NNPC records N123.251bln deficit on refineries between Jan and Oct 2019

…Gnerates N51m, spends N11.768bn on maintenance

Corporation declares N13.23bn trading surplus

The Nigerian National Petroleum Corporation (NNPC) recorded a whopping N123.251 billion deficit on refineries between January and October 2019.

The corporation, which revealed this in its October Monthly Financial and Operational Report released yesterday, noted that it made N68.818 billion on the three refineries located in Warri, Port Harcourt and Kaduna, but spent N192.070 billion on the same installations in 10 months.

The loss recorded on the assets in October was, according to the document, higher than that spent in September 2019.

The three refineries made N1.034 billion and spent N8.108 billion with N7.074 billion deficit in September. This deficit surged to N11.717 billion in October as the refineries only made N51 million and spent N11.768 billion during

the month.

The corporation, which also recorded N558 million loss from its trading in downstream sub-sector, however, announced a trading surplus of N13.23 billion in October 2019, buoyed by its upstream subsidiary, Nigerian Petroleum Development Company (NPDC).

The trading surplus represents an increase of 54 per cent vis-à-vis the N8.59 billion surplus posted in September last year.

The NNPC, in a release signed by its Acting Group General Manager, Group Public Affairs Division, Mr. Samson Makoji, explained that the figures reflected the sustained streak of positive results in the operations of the national oil company.

To underline the increasing fortunes of the corporation in recent times, the September 2019 trading surplus of N8.59 billion in turn indicated a significant increase of 65 per cent compared to the N5.20 billion surplus posted in August 2019, even as that beat the N4.26 billion surplus posted in July 2019, reflecting an increase of 22 per cent.

The NNPC said the increase of 54 per cent trading surplus in October 2019 accounts of the corporation was mainly attributable to improved trading surplus posted by its flagship upstream subsidiary, NPDC.

The 51st edition of the MFOR stated that a total crude oil and gas export sales of $483.25 million in October 2019, which is an increase of 35.77 percentage point, compared to the previous month, implying that in the month under review, crude oil export sales contributed $396.94 million (82.14 per cent) of the dollar transactions, compared with $267.97 million contribution in September, 2019, even as gas sales for the month amounted to $86.32 million.

Overall, the October 2018 to October 2019 crude oil and gas transactions indicated that crude oil and gas worth $5.49 billion was exported.

In the downstream sector, to ensure sustained PMS supply and effective distribution across the country, 1.16 billion litres of PMS, translating to 37.30mn litres/day, were supplied for the month.

NNPC stated in the monthly report that it had continued to diligently monitor the daily stock of Premium Motor Spirit (PMS), otherwise called petrol, in order to achieve smooth distribution of petroleum products and zero fuel queue nationwide.

The report said that in October 2019, 35 vandalised-pipeline points, representing a decrease of 81 per cent from the 186 vandalized-points in September 2019, were recorded.

Out of the vandalised points, eight failed to be welded, while only one pipeline was ruptured, with Ibadan-Ilorin axis accounting for 34 per cent of the breaks, while ATC-Mosimi and other routes accounted for 23 per cent and 43 per cent, respectively.

In the gas sector, out of the 235.82 billion cubic feet (bcf) of gas supplied in October 2019, a total of 134.97 bcf of gas was commercialised, consisting of 31.37 bcf and 103.60 BCF for the domestic and the export market, respectively.

This translates to a total supply of 1,011.85 million standard cubic feet (mmscfd) of gas to the domestic market and 3,341.84mmscfd of gas supplied to the export market for the month, implying that during the month, 57.23 per cent of the average daily gas produced was commercialised, while the balance of 42.77 per cent was re-injected, used as upstream fuel gas or flared.

SOURCE: operanews