NNPC Records N 273,74 Million As Operating profit In May

The Nigerian National Petroleum Corporation (NNPC) says it has recorded the total operating profit of N273.74 million for the month of May and reversing the losses of N35 billion made by NNPC over the last 15 years.

The report which was contained in the management report showed that the corporation’s N273.74 million operating profit in May 2016 as against its operating loss of N19.43 billion in April was attributed to improved cost efficiency at the corporate headquarters of NNPC and performance by the Petroleum Products Marketing Company (PPMC).

The monthly report stated: “PPMC recorded a net gain of N17.69 billion as against the net loss of N6.91 billion in April, 2016 following complete stoppage of commercially unfavourable swaps and offshore processing agreements (OPAs).

“Direct-Sale and Direct-Purchase has now replaced the previous regime. Notwithstanding these improvements, renewed and vigorous vandalism of pipelines in Niger Delta means that productions were shut-in and cargoes deferred, which denied revenues streams accruing to NPDC and the federation.”

The report showed that the group’s operating revenue for the months of April and May 2016 were N95.51 billion and N142.53 billion respectively, representing 30.36% and 45.32% respectively of the monthly budget.

Similarly, operating expenditure for the same periods were N121.86 billion and N142.26 billion respectively, which also represents 45.62% and 52.63% of the budget for the months respectively.

Operating deficits of N19.43 billion and a margin of N0.27 billion were recorded for the months of April and May 2016 respectively as against the monthly budgeted surplus of N44.23 billion.

The report said the deficit “was inverted in the month of May 2016 due to significant increase in revenue generation which could be attributed to the rise in petroleum product sales by 51.13%”.

However, NPDC’s substantial portion of crude sales for the month amounting to about N20 billion could not be realised due to crude pipeline vandalism.

The report also highlighted the corporation’s activities for twelve months period of June 2015 – May 2016 to allow for trend recognition.

In the area of crude oil and condensate production, the report showed that a total of 59.56 million barrels of crude oil and condensate was produced in the month of April 2016, representing average daily production of 1.99 million barrels and a decrease of 1.72% compared to March 2016 performance.

“Of the April 2016 production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 33.82% and 46.77% respectively. While AF (Alternative Funding or Financing), NPDC and independent oil firms accounted for 13.81%, 1.73% and 3.87% respectively,” the report stated.

On NNPC’s exploration and production subsidiary, NPDC, the report showed that NPDC’s PTD (period-to-date – May 2015 to April 2016) cumulative production from all fields amounted to 33,028,954 barrels of crude oil which translated to an average daily production of 90,243 barrels.

“Comparing NPDC’s performance to national production, the company’s production share amounted to 4.31%. NPDC production is expected to hit production levels of 250,000bp/d after the completion of the on-going NPDC re-kitting project and repairs of vandalised facilities.

“Production from NPDC wholly operated assets amounted to 10,216,198 barrels (or 30.93% of the total production) with Okono Okpoho (OML 119) alone producing more than 82.66% of the NPDC wholly owned operated assets or 25.57% of the total NPDC total production.

“Also on the NPDC operated JV assets, in which NPDC owns 55% controlling interest, crude oil production amounted to 13,296,309 (or 40.26% of the NPDC total production). On the JV assets not operated by NPDC, production level stood at 9,516,447 barrels or 28.81% of the company’s production,” the report revealed.

In the area of national gas production, NNPC in the report stated that a total of 223.63 billion standard cubic feet (bcf) of natural gas was produced in the month of May 2016 translating to an average daily production of 7.21billion standard cubic feet per day (bscfd).

For the period June 2015 to May 2016, a total of 2,836.01bcf of gas was produced, representing an average daily production of 7,749.70 mmscfd during the period.

Production from Joint Ventures (JVs), Production Sharing Contracts (PSC) and NPDC contributed about 69.97%, 21.71% and 8.32% respectively to the total national gas production, the report showed.

On NNPC’s refinery operations, the report said that total crude processed by the three refineries – Kaduna, Port Harcourt and Warri – for the month of May 2016 was 301,604MT (2,211,361 bbls), which translated to a combined yield efficiency of 83.47% compared to crude processed in April 2016 of 351,698MT (2,578,650 bbls) with combined yield efficiency of 89.70%.

“For the month of May 2016, the three refineries produced 242,053MT of finished petroleum products out of 301,604MT of crude processed at a combined capacity utilisation of 16.03% compared to 19.32% combined capacity utilisation achieved in the month of April 2016.

“The adverse performance was due to crude pipeline vandalism in the Niger Delta region coupled with on-going refineries revamp; however the three refineries continue to operate at minimal capacity,” the report stated.