President Muhammadu Buhari is committed to putting an end to the importation of refined petroleum products into Nigeria, said the Minister of State for Petroleum Resources, Chief Timipre Sylva.
Sylva said the government is working to reverse Nigeria’s status as a net importer of Premium Motor Spirit, popularly called petrol, and as such had been supporting the establishment of modular refineries to boost indigenous PMS production.
The minister stated this after inspecting the Azikel Hydro-Skimming Refinery, the first hydro-skimming private modular refinery being built by businessman, Azibapu Eruani in Yenagoa, Bayelsa State.
The refinery, which is about 75 per cent completion, has the capacity to process or refine 12,000 barrels of crude per day.
He said this via a statement issued in Abuja on Wednesday by the spokesperson for the company, Austin Ebipade, Sylva said the modular refinery would facilitate the Federal Government’s objectives towards attaining self-sufficiency in the production of refined products.
Nigeria currently imports refined petroleum products such as petrol, diesel, aviation fuel and liquified petroleum gas.
According to the minister, the Azikel refinery was important to Nigerians and the country’s search for economic prosperity.
He was quoted in the statement as saying, “The Azikel Refinery is set to actualise the ‘export’ of refined products from Bayelsa State to other states in the Nigerian federation.
“It comes with a daily production of 1.5 million litres of petrol, one million litres of diesel, 500,000 litres of kerosene and aviation fuel.
“It will thereby reverse the stigma on Nigeria, the world’s fifth largest producer of crude oil being a net importer of refined products.”
Sylva commended the Nigerian Content Development Monitoring Board for the development of the project, as well as the participation of the Nigeria National Petroleum Corporation and Nigerian Agip Oil Company.
Others include Total Nigeria and Shell Petroleum Development Company of Nigeria for the supply of feedstock for the Azikel refinery.
Eruani, who is the President, Azikel Petroleum Refinery, pledged to work assiduously towards actualising the government’s objective of industrialising the nation.
The Nigerian National Petroleum Corporation (NNPC) has said that 218.37billion Cubic Feet (BCF) of natural gas was produced in March 2020, translating to an average daily production of 7493.65Million Standard Cubic Feet per Day (mmscfd).
This was contained in NNPC Monthly Financial and Operations Report for March, 2020, a release by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated, The release said 3,119.89BCF of gas was produced for the period March 2019 to March 2020, representing an average daily production of 7,912.05mmscfd during the period.
It explained that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and 8.95 per cent, respectively, to the total national gas production.
Out of the 218.37BCF of gas supplied in March 2020, according to the report, 120.73BCF of gas was commercialized, consisting of 33.45BCF and 87.28BCF for the domestic and export market respectively, translating to 1,235.56mmscfd of gas to the domestic market and 3,817.40mmscfd of gas supplied to the export market for the month.
The report said 55.63% of the average daily gas produced was commercialized, while the balance of 44.37% was re-injected, used as Upstream fuel gas or flared.
Gas flare rate was 9.08 per cent for the month under review i.e. 679.54mmscfd, compared with average gas flare rate of 8.43 per cent i.e. 666.90mmscfd for March 2019 to March 2020.
During the month under review, the report also announced a trading deficit of ₦9.53billion for March 2020 compared to the ₦3.95billion surplus posted in February 2020.
The report declared that the over 300 per cent decline in March 2020 earnings was due primarily to the huge decrease of 181 per cent in the National Oil Company’s Upstream Subsidiary, Nigerian Petroleum Development Company’s (NPDC) due to the decline in crude oil prices precipitated by the Coronavirus-induced global slowdown which it stated led to reduced exports and dwindling world oil consumption; combined with deficits posted by the refineries, among others.
The NNPC MFOR indicated a total crude oil & gas export sale of $256.19million in March 2020 which decreased by 30.89 per cent, compared to last month’s. Of the total sales, crude oil export sales contributed $184.59million (72.05 per cent) of the dollar transactions compared with $281.14million contribution in the previous month; while the export gas sales amounted to $71.60million in the month.
The March 2019 to March 2020 crude oil and gas transactions indicated that crude oil & gas worth $4.95billion was exported.
In the Downstream, to ensure continuous availability of Premium Motor Spirit (PMS) otherwise called petrol, and effective distribution of the product across the country, 1.73billion litres of PMS, translating to 59.72mn liters/day were supplied for the month.
The corporation stated that it had continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.
Within the period under review, 19 pipeline points were vandalized representing about 47 per cent decrease from the 32 points recorded in February 2020. Atlas Cove-Mosimi accounted for 53 per cent, while Mosimi-Ibadan recorded 21 per cent and Suleja-Minna accounted for the remaining 26 per cent.
The report assured that NNPC, in collaboration with the local communities and other stakeholders, continuously strived to reduce the menace to the barest level.
The March 2020 MFO report of the NNPC is the 56th edition in the series that began in 2016.
The corporation carried its adherence to transparency and accountability a notch higher last week, 19th March, 2020 when it published its 2018 Audited Financial Report, a move that has received accolades from transparency watchdogs locally and internationally, in addition to endorsement by many Nigerians who encouraged other government agencies to follow suit.
The statement was signed by Dr. Kennie Obateru, the Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, NNPC Towers, Abuja on the 24th June, 2020.
The Nigerian National Petroleum Corporation (NNPC), said on Saturday 20th June, 2020, that it is exploring for oil and gas in Wase and Kanam Local Government Areas of Plateau State. The NNPC said Wase and Kanam, which are parts of the Upper and Middle Benue Trough. have oil and gas prospects capable of contributing to the economic growth of the country.
The exploration exercise was disclosed on Saturday when the Management of the organisation paid Governor Simon Bako Lalong a courtesy visit at Government House, Little Rayfield, Jos. The Group Managing Director (GMD) of the NNPC, Mele Kyari through the Group General Manager (GGM), Frontiers Exploration Services, Abdullahi Bomai, while highlighting on the development, stressed that NNPC has acquired and used modern equipment which has resulted to the identification of hydrocarbon materials in the Upper and Middle Benue Trough.
Mr. Bomai, added that the NNPC has identified additional oil and gas province known as the Kolmani discovery in addition to those of the Niger-Delta as well as increase the worth of the Benue Trough with a billion barrels of oil reserves among others. While emphasising on the readiness of Government to cooperate in the process, Kyari also assured that the NNPC will engage people of Plateau, both skilled, semi-skilled and unskilled workers in different operations in the two identified LGAs.
Commenting on the development, the Governor of Plateau State who was represented by his Deputy, Professor Sonni Tyoden, commended the NNPC for such untiring efforts, noting that under the leadership of Mele Kyari, the organisation had done exceedingly well in identifying and unraveling geological deposits in the Upper and Middle Benue Trough.
The annual reports and financial statements for the year ended December 31, 2018, were for 20 of the state-owned national oil company’s subsidiary companies operating within and outside the country.
The companies covered in the reports published in corporation’s website last Friday included the Nigerian Petroleum Development Company (NPDC), Warri Refining & Petrochemical Company Limited (WRPC), Port Harcourt Refining Company Limited (PHRC), Kaduna Refining & Petrochemical Company (KRPC), and Integrated Data Services Limited (IDSL), Nigerian Products and Marketing Company Limited (NPMC), Nigerian Pipelines and Storage Company (NPSC).
The others include the National Engineering & Technical Company Limited (NETCO), Nigerian Gas and Marketing Company Limited (NGMC), Duke Oil Services (UK) Limited, Duke Global Energy Investment Limited, Duke Oil Incorporated, NNPC Retail Limited, National Petroleum Investments Management Services (NAPIMS), The Wheel Insurance, NIDAS Shipping Services, NIDAS UK Agency, and NIDAS Marine.
Disclosure good for transparency
The Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Waziri Adio, congratulated the Group Managing of the NNPC, Mele Kyari, for keeping his promise to publish the audited reports.
“Having such disclosures is good for transparency and accountability. I congratulate @MKKyari and his team and urge them to make this a regular practice and in open data format,” Mr Adio said through a tweet with his personal twitter handle, @Waziriadio.
NEITI has been in the vanguard of the sustained demand for the NNPC to make public the financial statement of its operations and those of its subsidiaries.
On assumption of office last year, Mr Kyari pledged to open the NNPC financial books to the public as part of his management’s commitment to openness, transparency, and accountability in line with the global EITI principles.
Since last year, the NNPC has always published the monthly financial and operational reports, including its upstream, downstream and oil and gas export activities.
Refineries perform poorly
As expected, all the refineries returned poor results, with Kaduna Refinery and Petrochemical Limited posting the worst performance, with an accumulated loss of over N423.43 billion compared to over N359.093 billion in 2017.
Apart from an operating loss of about N64.55 billion, Kaduna refinery reported administrative expenses of about N64.68 billion during the year, down from about N114.347 billion in 2017.
The bulk of the losses were attributed to direct operational costs, despite that none of the four refineries in the country has been functional for years.
Also, Port Harcourt Refining and Petrochemical Company Limited posted a loss of over N46.62 billion during the year, although better than over N57.8 billion loss reported in 2017.
Although the refining company earned about N1.455 billion as revenue during the year, about N22.6 billion was recorded, as gross loss for the year, with about N24.04 billion incurred as processing expenses, even with petroleum refining operations still closed since 2017.
Culled from premium times.
The bulk of the losses declared by the company were administrative expenses of about N24.03 billion, including salaries and other remunerations paid to its workers.
The Warri Refinery posted operating loss of about N45.399 billion against N85.136 billion the previous year, with the cost of sales during the year dropping from N14.54 billion in 2017 to N12.745 billion during the year and gross loss from N13.29 billion in 2017 to N10.757 billion.
Operating expenses stood at about N34.642 billion, down from N71.847 billion in 2017.
Salaries, wages, and allowances took about N13.756 billion in 2018 against N12.9 billion spent for the same purpose in 2017, while directors remuneration gulped about N270.1 million compared to N353 million spent in 2017; travels and hotel expenses took N758.9 million against N471.8 million in 2017. About N10.354 million was written off as bad debt.about:blank
The upstream industry subsidiary, the NPDC, which is one of the few companies that turned in some positive report, did not perform exceptionally well.
Although the company reported earnings of N1.38 trillion as revenue against N82.4 billion in 2017, its cost of sales was about N1.05 trillion, from N483.73 billion in the previous year.
Its gross profit was N339.1 billion compared to about N398.7 billion in 2017, while its operating profit was N278.7 billion, up from N252.2 billion in 2017. Also, finance costs dropped to N19.93 billion, from N34.7 billion in 2017.
Total comprehensive income for the year stood at N799.7 billion against about N179.3 billion in 2017.
The petroleum products marketing subsidiary, the PPMC, realised about N29.55 billion as revenue, a decline from about N113.2 billion in 2017.
The cost of sales gulped about N5.23 billion, a massive drop from over N90.3 billion spent in 2017, while its gross profit increased to N24.3 billion during the year from N22.9 billion in 2017.
The company’s statement showed its comprehensive income recovered to about N11.13 billion during the year against a loss of over N42.534 billion recorded in 2017, while administrative expenses, which contributed most to the companies poor performance, dropped to about N16.233 billion from about N51.035 billion in 2017.
The NNPC Retail, which is in charge of the NNPC mega filling stations and other retail outlets across the country, reported a modest performance, with a revenue yield of about N236.64 billion compared to about N216.14 billion in 2017.
Of the revenue realised for the year, cost of sales gulped about N212.48 billion, up from N200.86 billion in 2017, with gross profit at N24.16 billion against N15.28 billion in the previous year. Profit for the year for the company stood at a paltry N2.27 billion, marginally up from about N1.82 billion in the previous year.
The gas marketing subsidiary in charge of marketing and distributing natural gas and its deliverables to major industrial users and utility distribution companies in Nigeria and the West African sub-region also posted positive returns, with a comprehensive income of about N16.6 billion against N5.2 billion recorded in 2017.
Although, the company’s revenue dropped from N275.1 billion realised in 2017 to about N243.6 billion, gross profit rose to N26.28 billion during the year, from N17.94 billion in 2017, with profit before tax at N12.48 billion compared to N9.37 billion in the previous year. Cost of sales dropped to N217.4 billion, from N257.2 billion in 2017, and administrative expenses up from N8.57 billion in 2017 to N13.8 billion.