By Adedapo Adesanya
The Nigerian National Petroleum Corporation (NNPC) has disclosed that it recorded a 34 percent increase in trading surplus, amounting to N5.3 billion in its December 2019 operations compared with the N3.9 billion surplus posted in November.
This disclosure was made through a statement released by the corporation’s Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, who explained that details of the surplus were captured in the December 2019 edition of the National Oil companies’ Monthly Financial and Operations Report (MFOR).
The national oil company noted that its downstream subsidiary, the Petroleum Products Marketing Company (PPMC), also posted N337.63 billion products sales during the period under review.
It was further disclosed that the breaches of the corporation’s pipelines was a major problem during the period, adding that the Mosimi-Ibadan axis accounted for 31 percent of the breaks while Atlas Cove-Mosimi network which contributed 19 percent to vandalised facilities both in November, increased in the latest report with the breakages spiking to 35 percent and 30 percent respectively, while other pipelines in the country accounted for 35 percent of pipelines vandalism.
In previous times, the NNPC explained that most of the damages to pipelines were reportedly carried out in the Niger Delta, where the country’s oil and gas resources are found but this changed in December 2019.
The corporation explained that the 34 percent increase for the period resulted from improved performances by some of its entities both in the upstream and downstream sectors.
It was further disclosed that the corporation’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.
“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,” the NNPC said in the statement.
In the gas sector, out of the 239.29 billion cubic feet (BCF) of gas supplied in December 2019, a total of 148.32 BCF was commercialised, consisting of 34.78 BCF and 113.54 BCF for the domestic and export market respectively.
It said that this translated to a supply of 1,121.77 million standard cubic feet per day (mmscfd) of gas to the domestic market and 3,662.70 mmscfd of gas supplied to the export market for the month.
The oil agency noted that 62.22 percent of the average daily gas produced was commercialised, while the balance of 37.78 per cent was re-injected and used as upstream fuel gas or flared.
It added that gas flare rate was 7.78 percent lower for the month under review, a total of 598.03 mmscfd, compared with the average gas flare rate of 8.56 per cent which is 678.02 mmscfd for the year-on-year period December 2018 to December 2019.
The report stated that gas supply for the period December 2018 to December 2019 stood at 3,105.48 bcf out of which 466.00 bcf and 1,369.90 bcf was commercialised for the domestic and export market respectively. The National oil company explained that gas re-injected, fuel gas and gas flared in tbr month under review stood at 1,269.59 bcf.
“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 2.775 billion litres of white products in December 2019 compared with 0.841 billion 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,” it said.
The NNPC added that sale of white (refined) products for the period December 2018 to December 2019 stood at 21.861 billion litres, with PMS asccounted for 21.514 billion litre.
Modupe Gbadeyanka