NNPC grows trading surplus by 33.7% to N5.28bn

The Nigerian National Petroleum Corporation, NNPC, Sunday, said its trading surplus appreciated by 33.7 per cent to N5.28 billion in its December 2019 operations compared to the N3.95 billion surplus posted in November last year.

In a statement in Abuja by its Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, the NNPC explained that details of the surplus were captured in the December 2019 edition of NNPC’s Monthly Financial and Operations Report, MFOR, which, among others, showed that the 34 per cent increase for the period resulted from improved performances by some of its entities both in the upstream and downstream sectors.

He listed the 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.

He explained that 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.

In the gas sector, Obateru noted that out of the 239.29 billion Cubic Feet (BCF) of gas supplied in December 2019, a total of 148.32 BCF of gas was commercialized, consisting of 34.78 BCF and 113.54 BCF for the domestic and export market respectively.

According to him, this translated to a supply of 1.121 billion Standard Cubic Feet per day (BSCFD) of gas to the domestic market and 3.662.7 bscfd of gas supplied to the export market for the month.

He averred that 62.22 per cent of the average daily gas produced was commercialized, while the balance of 37.78 per cent was re-injected, used as upstream fuel gas or flared, adding that gas flare rate was 7.78 per cent for the month under review, that is 598.03 million standard cubic feet per day (mmscfd) compared with the average gas flare rate of 8.56 per cent, that is, 678.02 mmscfd for the period December 2018 to December 2019.

The report stated that gas supply for the period December 2018 to December 2019 stood at 3.105 trillion SCF out of which 466.00 BCF and 1.369 trillion SCF were commercialized for the domestic and export market respectively, explaining that gas re–injected, fuel gas and gas flared, stood at 1.269 trillion SCF.

He said, “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 2.775billion litres of white products in December 2019 compared with 0.841billion litres in November same year.

“This comprised 2.762 billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013 billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000 billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003 billion litres of Low Pure Fuel Oil (LPFO) in the month under review.

“The MFOR indicated that sale of white products for the period December 2018 to December 2019 stood at 21.861billion litres, with PMS accounting for 21.514 billion 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 ₦105.62 billion sales in November, 2019.

“The report said revenues generated from the sales of white products for the period December 2018 to December 2019 stood at N2.706 trillion, with PMS contributing about 97.56 per cent of the sales with a value of N2.639 trillion.”

Obateru noted that 40 vandalized pipeline points were recorded in the month under review, representing about 41 per cent decrease from the 68 points vandalized in November 2019.

According to him, out of the vandalized points, 10 failed to be welded, while none was ruptured.

“Atlas Cove-Mosimi and Mosimi-Ibadan axis accounted for 35 per cent and 30 per cent of the breaks respectively, while other routes accounted for the remaining 35 per cent.

“NNPC had stepped up collaboration with the local communities and other stakeholders to stem pipeline vandalism menace,” he noted.