NNPC spent N5.9 bln on moribund refineries with zero fuel production
The Nigerian National Petroleum Corporation (NNPC) said it spent N5.92 billion on the country’s three refineries in September 2020, despite the fact that the crude oil processing plants are currently moribund.
In its September 2020 Financial and Operations Report, the expenditure on the three refineries was during on-going rehabilitation of the refineries.
“In September 2020, the three refineries processed no crude and combined yield efficiency is 0.00 percent owing largely to on-going rehabilitation works in the Refineries,” the state oil giant stated.
On Refineries Economics for the Period September 2020, the data recalled that the Corporation has been adopting a Merchant Plant Refineries Business Model since January 2017.
The model, said NNPC, takes cognizance of the Products Worth and Crude Costs.
“The combined value of output by the three refineries (at Import Parity Price) for the month of September 2020 amounted to approximately N0.52 billion.
“No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to N5.92billion.”
NNPC said this resulted to an operating deficit of N5.40billion by the refineries.
In the period under review, the corporation noted that Petroleum Product Supply was from Direct sales Direct Purchase (DSDP).
The report stated that a total of 1,578.93 million litres of PMS were supplied into the country through the DSDP arrangement in September 2020 compared with the 1,139.27 million litres of PMS supplied in the month of August 2020.
On Downstream Petroleum Product Distributions, NNPC said a total of 603.39 million litres of white products were sold and distributed by PPMC in the month of September 2020 compared with 950.66 million litres in the month of August 2020.
According to the data, this comprised 587.57 million litres of PMS,15.57million litres of AGO and 0.255 million litres of DPK.
“There was no sale of special product in the month.Total sale of white products for the period September 2019 to September 2020 stood at 16,255.66million litres and PMS accounted for 16,133.22 million litres or 99.25 percent.”