Nigerian refineries lose N5.7b in January

A Monthly Operations and Financial Report released by the National Nigerian Petroleum Corporation, NNPC, on Sunday, estimated a total loss of N5.7 billion in January from all four refineries in the country.  “The Kaduna, Port Harcourt and Warri Refineries posted losses of N2.87 billion, N1.95 billion and N900 million respectively,” the report stated.

According to the Report, the Corporation paid N85.96 billion into the Federation Account for January 2016. The payment was made in spite of a loss of N3.55 billion in the same month. It also said it paid N1.05 trillion into the Federation Account within a 12-month period, from February 2015 to January 2016. N85.077 billion was from the sale of crude oil while N880.3 million was receipts from gas sales.

It noted that the corporation posted a loss of N3.55billion, compared to a loss of N11.86 billion recorded in Dec. 2015. According to the report, NNPC’s loss-making performance was triggered by a drop in its revenue from N184.4 billion recorded in Dec. 2015 to N130.86 billion in Jan. 2016. The corporation said it recorded expenditure of N134.41 billion in the month under review compared to N196.26 billion in Dec. 2015.

The report also revealed that the Nigerian Petroleum Development Company, NPDC, recorded a profit of N3.958 billion. The Nigerian Gas Company, NNPC Retail and the Pipeline Products Marketing Company, PPMC, recorded profits of N3.94 billion, N477 million and N2.25 billion respectively.

It listed Integrated Data Services Limited, IDSL, National Engineering Technical Company, NETCO in loss category with losses of N557 million and N215 million respectively.

“The NNPC Group’s Corporate Headquarter and Corporate Services Unit recorded a deficit of N6.37 billion and N1.32 billion respectively’’, the Report said.

Explaining further it said, 65.49 million barrels of crude oil was lifted in November, 2015 by all parties: NNPC, Joint Venture partners and Independent Operators.

It also revealed that a total of 734 mmscfd was delivered to the gas fired power plants in the month of January 2016 to generate an average power of about 3,237 MW compared with February 2015 to January 2016 average gas supply 699 mmscfd and power generation of 2,990 MW.

On export, it said a proceed of $282.83million was recorded in January, 2016 with proceeds from Crude oil export sales amounting to $202.09million or 71.45% of the dollar transactions compared with 59.99% contribution in previous month of December, 2015. Also the export Gas sales amounted to $80.74 million for the month of January, 2016, out of which a total of $531.18million was paid so far to FAAC between February 2015 and January 2016 from sales of export Oil and Gas.

In December 2015, NNPC lifted 13,037,358.00 barrels of Crude Oil for domestic utilization translating to an average volume of 420,559.94 barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of December, 2015, about 7,507,767 barrels of crude oil was processed through Offshore Processing Agreements (OPA), and the balance of 5,529,591 barrels was sold in the export market. No crude was processed in the domestic refineries.