The Nigerian National Petroleum Corporation (NNPC) has generated the sum of N2.639 trillion from the sales of 21.514billion litres of petrol from December 2018 to December 2019.
This is contrary to reports that the corporation incurred huge deficit from the sales price of Premium Motor Spirit (PMS) otherwise known as petrol.
In the December 2019 edition of NNPC’s Monthly Financial and Operations Report (MFOR) released in Abuja, yesterday, the corporation said that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), said that the sales of white 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.
LEADERSHIP recalls that the NNPC has been the sole importer of petrol throughout last year due to the federal government’s non-deregulation of the market for products coupled with the rise in the global price of crude oil during the period under review.
In value terms, the report said that revenues generated from the sales of white products for the period under review stood at N2.705 trillion, with PMS contributing about 97.56 per cent of the sales with a value of N2.639 trillion.
But in terms of its activities for the month under review, the NNPC’s downstream entity in charge of bulk supply and distribution of petroleum products, said that it distributed and sold 2.775billion litres of white products in December 2019 compared to 0.841billion litres in November of the same year.
This comprised 2.762billion litres of PMS (petrol), 0.013billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003billion litres of Low Pure Fuel Oil (LPFO) in the month under review.
In terms of revenue, the corporation said that N337.63billion was made from the sale of white products by PPMC in December 2019 compared to N105.62billion in November 2019.
While giving further details on the MFOR, NNPC’s group general manager, Group Public Affairs Division, Dr. Kennie Obateru, said that the corporation recorded an increased trading surplus of ₦5.28billion in its December 2019 operations compared to the N3.95billion surplus posted in November last year.
Obateru listed NNPC’s subsidiaries with notable improved positions as 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.
According to him, further analysis of the report showed that in the gas sector, out of the 239.29billion cubic feet (bcf) of gas supplied in December 2019, a total of 148.32BCF of gas was commercialised, consisting of 34.78BCF and 113.54bcf for the domestic and export market, respectively.
This translated to a supply of 1,121.77 million 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 MFOR stated 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, adding that gas flare rate was 7.78 per cent for the month under review i.e. 598.03 mmscfd, compared with the average gas flare rate of 8.56 per cent i.e. 678.02 mmscfd for the period December 2018 to December 2019.
The report further revealed that gas supply for the period December 2018 to December 2019 stood at 3,105.48bcf out of which 466.00BCF and 1,369.90BCF were commercialized for the domestic and export market respectively, explaining that gas re–injected, Fuel gas and Gas flared, stood at 1,269.59BCF.
The December 2019 edition which is the 53rd in the series of the MFOR reported 40 vandalised pipeline points, representing about 41 per cent decrease from the 68 points in November 2019.
The report added that of the vandalised 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, the corporation said.
NNPC explained that it had stepped up collaboration with the local communities and other stakeholders to stem pipeline vandalism in the country.