NNPC’s Proceeds from Sale of Petroleum Products Drop by N5.53bn in September

NNPC-tower-abuja-702x320The Nigerian National Petroleum Corporation (NNPC) at the weekend announced a drop in its proceeds from the sale of downstream petroleum products by N5.53 billion for the month of September, 2015.

The corporation in its September financial and operational report which was obtained from its website in Abuja, disclosed that it realised a total of N38.67 billion in that month as compared to the N44.2 billion it realised in the previous month of August.

The monthly report is in line with the promise made by the Group Managing Director of the Corporation, Dr. Ibe Kachikwu, to publish monthly reports of its operations and financial standings. It started the new process in August.

But details of the September report showed that the dip in proceeds is in respect of revenue from its sale of white products, which include Automotive Gas Oil (AGO), Household Kerosene (HHK), and Premium Motor Spirit (PMS), which its subsidiary, the Pipelines and Product Marketing Company (PPMC) sold during the period.

It also noted that the total revenue for white products sold from January to September 2015 stood at N461.1 billion, 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.

From the report, only the Port Harcourt refinery produced 31,008 million metric tons of petroleum products, out of 35,648 million metric tons of crude processed at an average capacity utilisation of 5.77 per cent.

It also disclosed 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 said that 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 showed 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.
Also 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.

On national crude oil production, it explained that a total of 63.34 million barrels of crude oil and condensate was produced for the month, representing an average daily production of 2.04 million barrels per day (mbpd), and a decline in production by 6.16 per cent compared to the production of the previous month which was 2.177mbpd and 67.49 million barrels in the month.

NNPC equally noted that it lifted a total of 21.5 million barrels of oil on behalf of the Federation in the month and that the naira value of the domestic crude it lifted stood at N95.9 billion while that lifted for export was valued at $160,582,393.41.

“The total value of crude oil lifted on the account of NNPC in August was thus $650,295,745,” the report added.

It however stated that the total dollar payment to the federation account from sales of export crude oil, gas, and the Nigerian Liquefied Natural Gas (NLNG) feedstock for the month was $225.7 million, with crude oil export sales contributing $108.9 million while gas and NLNG feedstock accounted for $99.65 million.

NNPC said that the remaining $16.8 million was attributable to other dollar denominated receipts by it.

Naira payment the corporation made to the federation account for domestic crude oil and gas and other receipts stood at N73.26 billion within the period. -Thisday

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