…posts ₦12.13bn trading surplus

Chibisi Ohakah, Abuja

The Nigerian National Petroleum Corporation, NNPC has confirmed that it recorded 34% increase in pipeline breaches nationwide as at last December.

Within the period, 257 pipeline points were vandalized, out of which one pipeline point failed to be welded and six pipeline points were ruptured. The December number of breaches is up from the 197 breaches recorded in the preceding month.

However, the NNPC said that despite the disturbing reports of breaches on its assets, the corporation on the whole posted a positive outlook in December, 2019.

The Corporation said it posted trading surplus of ₦12.13 billion during the period in review, recording a leap from recent past performances.

The nation’s oil company attributed the positive swing in surplus to higher revenue numbers posted by the Corporation’s upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

The upward swing in pipeline breaches, captured in the corporation’s Monthly Financial and Operations Report for December, 2018, showed that Ibadan-Ilorin, Mosimi-Ibadan, and Atlas Cove-Mosimi network accounted for 90, 69 and 57 compromised points respectively or approximately 34%, 26% and 22% of the vandalized points respectively.

The report said that the Aba-Enugu pipeline link accounted for seven percent, with other locations accounting for the remaining 11% of the pipeline breaks.

Despite, the activities of the pipeline marauders, the NNPC report said the corporation continued to diligently monitor the daily stock of Premium Motor Spirit (PMS), otherwise called petrol, to achieve smooth distribution of petroleum products and zero fuel queue nationwide.

The report said that 1.80 billion litres of PMS, translating to 58.17 million liters/day were supplied for the month. Overall, during the month under review, 1.96 billion litres of white products were distributed and sold by NNPC downstream subsidiary, Petroleum Products Marketing Company (PPMC), compared with 1.09 billion litres in the market in the November 2018.

This comprised 1.94billion litres of PMS, 0.0070billion litres of kerosene and 0.014billion litres of diesel. Total sale of white products for the period, December 2017 to December 2018, stood at 21.84billion litres and PMS accounted for 20.17billion litres or 92.36% In terms of value, ₦241.46 billion was made on the sale of white products by PPMC in December 2018, compared to ₦146.56 billion sales in the November 2018.

Total revenues generated from the sales of white products for the period December 2017 to December 2018 stood at ₦2,778.32 billion, with PMS contributing about 89.63% of the total sales with a value of ₦2,490 billion. The NNPC monthly report cited NPDC’s continuous revenue drive arising from recent average weekly production of 332,000bpd as the main driver of the positive outlook. The NPDC targets 500,000bpd production in 2020.

In the gas sector, natural gas production increased by 12.22% at 240.64 billion cubic feet  compared to output in November 2018; translating to an average daily production of 8,021.21mmscfd. The daily average natural gas supply to gas power plants hiked by 5.36% to 774mmscfd, equivalent to power generation of 3,131MW.

Out of the 240.59bcf of gas supplied in December 2018, a total of 151.13bcf of gas was commercialized, consisting of 38.61bcf and 112.52bcf for the domestic and export market respectively. This translates to a total supply of 1,245.48 mmscfd of gas to the domestic market and 3,748.47 mmscfd of gas supplied to the export market for the month, implying that 62.61% of the average daily gas produced was commercialized while the balance of 37.39% was re-injected, used as upstream fuel gas or flared.

Further in the report, gas flare rate was 9.15% for the month under review i.e. 729.55mmscfd compared with average gas flare rate of 9.92% i.e. 777.37mmscfd for the period December 2017 to December 2018.

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