The Nigerian National Petroleum Corporation (NNPC) made N2.012 billion revenues on its ailing refineries and expended N19.433 billion on the same assets in one month.
The Monthly Financial and Operational Report (MFOR) for the month of June released by the Corporation yesterday, which showed this, noted that NNPC recorded whooping N17.420 billion deficits on the three inefficient refineries located in Port Harcourt, Warri and Kaduna.
Although NNPC had for a long time been suffering deficit on the refineries, the deficit recorded in June was about N5 billion worse than the one suffered in May.
The May data showed that while NNPC made N5.684 billion on the plants, it expended N18.870 billion on monthly operations of the refineries during the month.
The Kaduna Refining and Petrochemical Company (KRPC) topped the list of losers with N9.556 billion deficit. While the company, a subsidiary of NNPC, raked in N1.849 billion in June, it expended a whooping N11.404 billion on operations, including staff salaries and other running costs.
The Warri Refining and Petrochemical Company (WRPC) is second on the chart of losers with N4.071 billion deficit suffered in June. The WRPC, the MFOR data showed, recorded N4.222 billion expenditure while it made a paltry N151 million in the same month.
The Port Harcourt Refining and Petrochemical Company (PHRC) closely followed the Warri refinery on the losers’ chart with N3.794 billion deficit. The company made an embarrassing N12 million revenues, but expended N3.806 billion on operations, including the staff salaries and other running costs.
Other subsidiaries of NNPC on the losers’ list, according to the report, are NNPC Ventures and the Corporate Headquarters (CHQ). While the Corporation made N448 million on the CHQ, it expended N12.234 billion on the asset in June. This is N11.786 billion deficit in one month.
The NNPC Ventures, in the same vein, suffered N794 million deficits in June. The NNPC subsidiary spent N922 million in June, whereas it made only N128 million revenue in the same month.
NNPC also suffered a geometric surge of 77 per cent in pipeline vandalism with 106 pipeline rupture and puncture points recorded in just one month.
Despite this loss, NNPC added that it supplied about 1.7 billion litres of premium motor spirit (PMS) also known as petrol to filling stations nationwide. This, checks by this newspaper showed, translated to about N233 billion expenditure on importation of the product – using the N133.28 per litre ex-depot price.
The Corporation, the report stated, recorded 77 per cent rise in cases of oil pipeline vandalism in its network of pipeline infrastructure across the country in the month under review.
According to the report, 106 pipeline points were breached, representing a geometric surge from the 60 points vandalized in May 2019.
It further explained that the Aba-Enugu axis in the system 2E pipeline corridor accounted for 25 per cent of the total pulverized points, while the Lagos Atlas Cove-Mosimi axis of the system 2B had 23 per cent of the compromised pipeline points.
It noted that the Ibadan-Ilorin leg of the System 2B pipeline accounted for 18 per cent of affected lines, followed by the PHC-Aba section of the system 2E, which was responsible for 13 per cent of the affected pipeline.
“Other areas accounted for the remaining 21 per cent of cumulative line breaks,” it said.
NNPC added that despite the wanton breaches of it critical pipeline network during the period, it had ensured continuous fuel supply and effective distribution across the country during the month under review.
According to the Corporation, 58.65 million litres of petrol were supplied and effectively distributed per day.
It noted that to sustain the adequate products sup ply and distribution in the downstream sector, NNPC had continued to monitor the daily stock of PMS across the nation.
In the gas sub-sector, the report disclosed that 223.98 billion Cubic Feet (BCF) of natural gas was produced in the month under review.
This, it said, translated to an average daily production of 7,466.09 million standard cubic feet per day (mmscfd).
“The figure posted a slight increase of 0.11 per cent compared with the previous month’s gas production.
“For the period June 2018 to June 2019, a total of 3,063.89BCF of gas was produced, representing an average daily production of 7,873.58mmscfd during the period.
“Period-to-date production from joint ventures (JVs), production sharing contracts (PSCs) and NPDC contributed about 68.93 per cent, 21.34 per cent and 9.74 per cent respectively, to the total national gas production,” it said.
The June 2019 MFOR was the 47th in the series.
The monthly report is part of the Corporation’s strategies to open its operations, activities and finances to the public. – New Telegraph.
