Dwindling Fortune Hits NNPC, Announces N5.53bn Loss In September Products

Dwindling Fortune Hits NNPC, Announces N5.53bn Loss In September Products Sale
By Juliet Alohan
— Nov 2, 2015 3:09 am | Leave a comment
Dwindling fortunes loom before the Nigeria National Petroleum Corporation (NNPC) as it announced a loss of N5.53 billion from the sale of downstream petroleum products for the month of September, 2015, after realising a total of N38.67 billion compared to the N44.2 billion recorded in August 2015.
The report obtained by reporters yesterday in Abuja, is in line with the promise by the group managing director of the Corporation, Dr. Ibe Kachikwu, to publish the NNPC’s monthly operations and financial records, which began for the first time, last month.
According to the report, the amount is in respect of revenue from white products, which includes Automotive Gas Oil (AGO), Household Kerosene (HHK), and Premium Motor Spirit (PMS), sold by the Pipelines and Product Marketing Company (PPMC) for the month.
The total revenue for white products sold from January to September 2015 stood at N461.1 billion, according to the report, out of which PMS contributed about 86 per cent with a value of N395.68 billion.
The report also indicated that the combined value of output by Nigeria’s three refineries stood at N9.9 billion for crude processed in September, adding that the associated crude plus freight cost was N6.3 billion, representing a loss of N8.8 billion after an overhead cost of N12.4 billion.
It noted that the total crude processed by the three refineries in September was 261,371.14 bbls (35,648 MT) translating to 75.78 million litres, compared to 200.2 million litres in August.
According to the report, only Port Harcourt refinery produced 31,008 million MT of petroleum products, out of 35,648 million MT of crude processed at an average capacity utilisation of 5.77 per cent, while disclosing that petroleum product supplied and distributed into the country from Off-Shore Processing Agreements (OPA), stood at 763.90 million litres of white products against 701.29 million litres supplied in August.
The report also said Dual Purpose Kerosene (DPK), receipt in September was 196.30 million litres compared with zero litres imported in the previous month.
On gas production, it stated that 246 billion standard cubic feet (BCF) of natural gas was produced in September, with an average daily production of 8,187 million standard cubic feet per day (mmscfd) recorded during the period.
The report further informed that the production from Joint Ventures (JVs), Production Sharing Contracts (PSC) and the Nigerian Petroleum Development Company (NPDC) contributed about 69.8, 22.0 and 8.2 per cents respectively to the total national gas production.
The report further stated that an average of 773 mmscfd of domestic gas supply to the power sector was delivered to the gas fired power plants in September 2015, which is expected to translate to the generation of an average of 3,141MW of electricity.