NNPC, Major Partners Lose Over $1bn Revenue in One Month
…Loss induced by induced shutdowns
The Nigerian National Petroleum Company (NNPC) Limited has said that, along with its major partners, it lost over 9.4 million barrels of crude oil in the month of May, arising from production challenges.
By May estimates, the 9.4 million barrels of crude oil is worth about $1.068 billion, based on the month’s average Brent price of $113.34.
In the latest report the company presented to the Federation Accounts Allocation Committee (FAAC), the NNPC said it experienced a number of production shutdowns induced by force majeure, fire outbreak, industrial strike actions, and repairs at various crude oil terminals scattered across Nigeria.
For instance, the report noted that the Trans Ramos pipeline, which feeds into Nigeria’s Forcados oil export terminal, and the Trans-Niger Pipeline, capable of hauling 180,000 barrels a day across Nigeria, ceased transporting crude in the month of June.
“Crude oil production at Bonny Terminal has dropped significantly to an average of about 3MBD since the 21st of March 2022 till date. The terminal operator has declared force majeure on all outstanding Bonny programs,” NNPC said concerning Nigeria’s Bonny terminal.
On Jones Creek terminal, NNPC Limited said the Batan Station came down due to malfunctioning Tricon Ex failure and protesting OML 42 workforce.
“This has done extensive damage to the environment, and losing $1.9 billion every month is colossal, considering the nature of the global economy at the moment,” Kyari said.