NNPC posts N127.73bn loss in eight months

Okechukwu Nnodim, Abuja

The Nigerian National Petroleum Corporation recorded a total loss of N127.73bn between January and August this year, its latest group financial report released on Wednesday showed.

The report for the month of August, however, indicated that the national oil firm reduced its losses to N11.22bn in the month compared to the N24.18bn recorded in July.

It further revealed that pipeline vandalism in the country was reducing following the Federal Government and the NNPC’s sustained engagements with the Niger Delta militants.

“In August 2016, there was 28.94 per cent drop in the number of pipeline vandalised points relative to July 2016; that is, from 311 vandalised points in July to 221 in August 2016,” the report stated.

It added that the largest single loss of N76.33bn came from the corporation’s headquarters during the eight-month period, adding that the total loss by the country’s refineries during the same period was N48.69bn.

The report showed that from January to August, the NNPC recorded a total expense of N1.14tn, against a total revenue of N1.02tn.

On the improvement in August, the corporation explained that it was largely due to the increase in Pipelines and Products Marketing Company’s coastal sales and the significant improvement in the Nigerian Petroleum Development Company’s revenue for the month.

It noted that the average crude oil spot price stood at $44.87 barrel per day in August, up from $44.13bpd in the preceding month, and down from $45.69bpd a year ago.

This, it said, represented an increase of 1.68 per cent from the previous month and a decrease of 1. 75 per cent from a year ago.

The NNPC said in July, crude oil production stood at 1.65 million barrels per day, adding that this was a 6.47 per cent decrease relative to June and 22.43 per cent lower than the July 2015 performance.

“The shrinkage in the July production is due to subsisting force majeure at the Forcados terminal, which accounts for 300,000bpd. Other factors that negatively impacted on production include the force majeure at the Que Iboe terminal following sabotage on the export loading line 2, sabotage of the Trans Niger Pipeline, Claugh Creek-Tebidaba pipeline and Escravos terminal delivery pipelines,” the corporation said.

It stated that production from the deep water assets, which are beyond easy reach by militants, remained steady.

– Punch