COVID-19: NNPC recorded N9.53bn trading deficit in March

COVID-19: NNPC recorded N9.53bn trading deficit in March

By Michael Eboh

The Nigerian National Petroleum Corporation (NNPC), on Wednesday, introduced a buying and selling deficit of N9.53 billion in its operations for March 2020, representing a pointy decline in comparison with the N3.95 billion surplus recorded in February 2020.

In an announcement in Abuja, Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, disclosed that the buying and selling deficit, which was because of an over 300 per cent decline in March 2020 earnings was due primarily to the large lower of 181 per cent within the NNPC’s upstream subsidiary, Nigerian Petroleum Development Company’s  (NPDC earnings.

He defined that the not-too-impressive monetary efficiency was primarily because of the deficits posted by the refineries, together with the decline in crude oil costs precipitated by the Coronavirus-induced international slowdown, which led to diminished exports and dwindling world oil consumption,  amongst others.

READ ALSO: 2018/19 Financial Statements: NNPC leads oil business repositioning

Obateru acknowledged that the NNPC recorded whole crude oil and gasoline export gross sales of $256.19 million in March 2020, representing a decline of 30.89 per cent when in comparison with final month’s export.

Of the overall gross sales, Obateru disclosed that crude oil export gross sales contributed $184.59 million, 72.05 per cent of the greenback transactions in contrast with $281.14 million contributions within the earlier month; whereas export gasoline gross sales amounted to $71.60 million within the month underneath assessment.

He added that the nation recorded $4.95 billion value of crude oil and gasoline exports from March 2019 to March 2020.

In addition, he famous that 218.37 Billion Cubic Feet (BCF) of pure gasoline was produced in March 2020, translating to a median every day manufacturing of 7493.65 million Standard Cubic Feet per Day (mmscfd).

He stated, “3.119 trillion cubic toes of gasoline was produced for the interval March 2019 to March 2020, representing a median every day manufacturing of seven.912 BCF per day through the interval.

“Period-to-date manufacturing from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and eight.95 per cent, respectively, to the overall nationwide gasoline manufacturing.

“Out of the 218.37 BCF of gasoline provided in March 2020, based on the report, 120.73 BCF of gasoline was commercialized, consisting of 33.45 BCF and 87.28 BCF for the home and export market respectively, translating to 1.236 BCF per day of gasoline to the home market and three.817 BCF per day if gasoline provided to the export marketplace for the month.

“55.63 per cent of the average daily gas produced was commercialized, while the balance of 44.37% was re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.08 per cent for the month under review, which is 679.54 million standard cubic feet per day (mmscfd), compared with average gas flare rate of 8.43 per cent, that is 666.90 mmscfd for March 2019 to March 2020.”

In the downstream sector, to make sure steady availability of Premium Motor Spirit (PMS) in any other case referred to as petrol, and efficient distribution of the product throughout the nation, Obateru acknowledged that 1.73 billion litres of PMS, translating to 59.72 million liters per day have been provided for the month.

He disclosed that the NNPC had continued to diligently monitor the every day inventory of PMS to attain the sleek distribution of petroleum merchandise and 0 gasoline queue throughout the nation.

He additional famous that inside the interval underneath assessment, 19 pipeline factors have been vandalized representing about 47 per cent lower from the 32 factors recorded in February 2020.

According to him, Atlas Cove-Mosimi accounted for 53 per cent of whole pipeline vandalisation, whereas Mosimi-Ibadan recorded 21 per cent and Suleja-Minna accounted for the remaining 26 per cent.

READ ALSO: Audited Reports: NNPC now extra clear, accountable –  Senate

He assured that the NNPC, in collaboration with the native communities and different stakeholders, would constantly attempt to cut back the menace to the barest degree.

He added that the company carried its adherence to transparency and accountability a notch larger final week, 19th March 2020 when it printed its 2018 Audited Financial Report, a transfer that has acquired accolades from transparency watchdogs regionally and internationally, along with endorsement by many Nigerians who inspired different authorities companies to observe swimsuit.


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