Nigeria: NNPC Records N5.28bn Trading Surplus for December 2019

Nigeria: NNPC Records N5.28bn Trading Surplus for December 2019

The Nigerian National Petroleum Corporation (NNPC) Sunday announced an increase in trading surplus to the tune of N5.28 billion in its December 2019 operations compared to the N3.95 billion surplus posted in November last year, an increase of about 34 per cent.

The corporation noted that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), also posted N337.63 billion products sales during the period under review.

A statement by the corporation’s Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, explained that details of the surplus were captured in the December 2019 edition of NNPC’s Monthly Financial and Operations Report (MFOR).

But the incessant breaches of the corporation’s pipelines, which indicated that the Mosimi-Ibadan axis accounted for 31 per cent of the breaks while Atlas Cove-Mosimi network witnessed 19 per cent in November, seemed to have increased in the latest report with the breakages spiking to 35 per cent and 30 per cent respectively, leaving the rest of the country with 35 per cent of pipelines vandalism.

Before now, most of the damages to pipelines were reportedly carried out in the Niger Delta where the country’s oil and gas resources are found.

The corporation explained that the 34 per cent increase for the period resulted from improved performances by some of its entities both in the upstream and downstream sectors.

It listed NNPC’s subsidiaries with notable improved positions to include: Integrated Data Services Limited (IDSL), Nigeria Gas Marketing Company (NGMC), Nigerian Pipeline and Storage Company (NPSC) and Duke Oil Incorporated.

“In general terms, the performance was impacted positively by the reduced deficit posted by NNPC corporate headquarters during the period under review; adjustments to previously understated revenues by IDSL and Duke Oil; and reduction in the costs of pipeline repairs/Right of Way maintenance and gas purchases by NPSC and NGMC respectively,” the NNPC said.

According to the corporation, in the gas sector, out of the 239.29 billion cubic feet (BCF) of gas supplied in December 2019, a total of 148.32 BCF was commercialised, consisting of 34.78 BCF and 113.54 BCF for the domestic and export market respectively.

It said that this translated to a supply of 1,121.77 million standard cubic feet per day (mmscfd) of gas to the domestic market and 3,662.70 mmscfd of gas supplied to the export market for the month.

The corporation noted that 62.22 per cent of the average daily gas produced was commercialised, while the balance of 37.78 per cent was re-injected and used as upstream fuel gas or flared.

It added that gas flare rate was 7.78 per cent for the month under review, that is 598.03mmscfd, compared with the average gas flare rate of 8.56 per cent which is 678.02mmscfd for the period December 2018 to December 2019.

The report stated that gas supply for the period December 2018 to December 2019 stood at 3,105.48BCF out of which 466.00BCF and 1,369.90BCF was commercialised for the domestic and export market respectively, explaining that gas re-injected, fuel gas and gas flared, stood at 1,269.59BCF.

“In the Downstream Sector, Petroleum Products Marketing Company (PPMC), NNPC’s downstream entity in charge of bulk supply and distribution of petroleum products, distributed and sold 2.775 billion litres of white products in December 2019 compared with 0.841 billion litres in November same year.

“This comprised 2.762 billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013 billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000 billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003 billion litres of Low Pure Fuel Oil (LPFO) in the month under review,” it said.

The NNPC added that sale of white (refined) products for the period December 2018 to December 2019 stood at 21.861 billion litres, with PMS accounting for 21.514 billion litres or 98.41 per cent.

“In terms of value, N337.63 billion was made on the sale of white products by PPMC in December 2019, compared to N105.62 billion sales in November, 2019.

“Revenues generated from the sales of white products for the period December 2018 to December 2019 stood at N2,705.76 billion, with PMS contributing about 97.56 per cent of the sales with a value of N2,639.68 billion” the corporation said.

It reported 40 vandalised pipeline points, representing about 41 per cent decrease from the 68 points vandalised in November 2019, adding that out of the vandalised points, 10 failed to be welded, while none was ruptured.

“Atlas Cove-Mosimi and Mosimi-Ibadan axis accounted for 35 per cent and 30 per cent of the breaks respectively, while other routes accounted for the remaining 35 per cent,” the corporation added.

The NNPC explained in the release that it had stepped up collaboration with the local communities and other stakeholders to stem the menace of pipeline vandalism in the country.

Source: This Day

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