The report attributed the loss to “the refineries’ downturn with high cost of operations and reduction in Nigerian Petroleum Development Company (NPDC’s) production, resulting to decline in their revenue".
The country’s refineries recorded an operating deficit of N11.89 billion, the Nigerian National Petroleum Corporation (NNPC) has said in its March 2018 report.
The report attributed the loss to “the refineries’ downturn with high cost of operations and reduction in Nigerian Petroleum Development Company (NPDC’s) production, resulting to decline in their revenue".
Henry Ikem-Obih, NNPC’s Chief Operating Officer (COO), Downstream, said NNPC sells the petrol it produces at N103, although he didn't indicate the cost at which crude oil is sold to the refinery. In its analysis of the report, ThisDay had noted that NNPC last made profit in May 2016 — when Ibe Kachikwu, the then Group Managing Director, introduced cost-cutting measures.
An evaluation of results from NNPC subsidiaries such as (NPDC), Integrated Data Services Limited (IDSL), NNPC Retails, the Nigerian Gas Processing and Transportation Company (NGPTC) and the Nigerian Gas Marketing Company (NGMC) gave the corporation a trade surplus of N11.72 billion. The corporation indicated that it had also made a trade surplus of N16.72 billion. It added that its March earnings were N4.99 billion short of February earnings.
NNPC revealed that it had ensured effective distribution of petroleum products with the supply of 2.49 billion litres of petrol, which equated to 80.26 million litres per day. It claimed that the production volume was the second highest production level Nigeria had recorded in the last 23 months.
“The steadiness in production is associated to the resumption of export activities at the Forcados Terminal after many months of non-operational activities as well as the engagement with the various stakeholders,” the report stated.
With regards to gas to power, NNPC said supply to power plants in the country at that time was 854.40mmscfd, translating to power generation of 3,492 megawatts (MW). Gas production in the period under view was 253.06 billion cubic feet (BCF). which it said was an average daily production of 8,163.58 million standard cubic feet per day (mmscfd).
NNPC further noted that pipeline vandalisation increased in the month of march from 125 to 199, while pipeline break stood at 224, 25 of which were down to the non-welding or clamping of pipeline points:
“Thus 199 pipeline points were vandalised as against 125 recorded last month. Port Harcourt–Aba and Aba–Enugu pipeline segment accounted for 177 points or 88.94 per cent of the affected pipeline points,” it noted.