NNPC Records N5.28bn Trading Surplus


By Emmanuel Addeh and Peter Uzoho

The Nigerian National Petroleum Corporation (NNPC) yesterday announced an increase in trading surplus of N5.28 billion in its December 2019 operations compared to the N3.95 billion 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 sales during the period under review.

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

On pipeline vandalism, the Mosimi-Ibadan axis accounted for 31 per cent of the breaks-in, while Atlas Cove-Mosimi network witnessed 19 per cent in November.

But the figures 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 the cases of pipeline vandalism.

Before the latest development, most of the damage to pipelines was reportedly carried out in the Niger Delta.

The corporation explained that the 34 per cent increase in trading surplus 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 148.32BCF was commercialised, consisting of 34.78BCF and 113.54BCF for the domestic and export market, respectively.

It said this translated to a supply of 1,121.77million Standard Cubic Feet per day (mmscfd) of gas to the domestic market and 3,662.70mmscfd 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, used as upstream fuel gas or flared.

It added that the 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 from December 2018 to December 2019 stood at 3,105.48BCF out of which 466.00BCF and 1,369.90BCF were commercialised for the domestic and export market respectively. It explained 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 0.841billion litres in November same year.

“This comprised 2.762billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000billion litres of Dual Purpose Kerosene (DPK) as well as the sale of the special product of 0.003billion 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 21.861billion litres, with PMS accounting for 21.514billion 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 N105.62billion 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 N2,639.68billion” 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.

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