The Nigerian National Petroleum Corporation (NNPC) said it recorded N24.23 billion loss in February, and that gas supply decline of 70million standard cubic feet per day (mmscf/d) to power plants in the same month occurred due to vandalism of the 48-inch Forcados export line.
The corporation stated this in its February oil and gas report.
The report showed that the Warri refinery was not in working order in January and February, while Kaduna refinery didn’t produce in February.
It also noted that gas supply to power stations dropped 70mmscf/d, stating that in January, average gas supply was 734mmscf/d, but dropped to 664mmscf/d. This led to power supply dipping to 3065 megawatts (Mw) in February from 3237Mw recorded in January.
The report noted that the Corporation’s revenue in February fell to N104.8 billion from N130.86 billion in January. With revenues of N104.8 billion and expenses of N129 billion, it recorded a loss of N24 billion in February.
“A combination of the pre-existing challenges, especially inadequate foreign exchange for importation of petroleum products, resulted in pulling out of most oil majors from importation business, worsening the lingering fuel crisis,” it said.
The Corporation said it was compelled to assume importation of over 90 per cent of the petroleum products without the necessary logistics put in place.
Also, the recent vandalism of the 48-inch Forcados export line resulted in production shut-in of about 130,000 bopd. This adversely impacted on NNPC’s February 2016 report, leading to a loss of about N20billion of NPDC oil revenue, the report said, adding that repair work is ongoing and is expected to last for about eight weeks.
“In the short-term, NNPC nationwide petroleum supply and distribution have been ramped up to all states to ensure product availability in the country, while mid and long-term measures, including rehabilitation of oil and gas infrastructure nationwide, as well as Pipelines, Depots, Pump Stations and Refineries, are ongoing.
The report said the new NNPC leadership is fully committed to ensuring a fit-for-purpose organisation structure which is in tune with NNPC vision and stakeholders expectations.
The leadership is embarking on restructuring the Corporation into autonomous entities, to ensure clarity of purpose and well-designed and defined roles and responsibilities to support the desired outcome, and establish the necessary enablers for high performance.”
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