Nigeria's state oil firm records over $32 million trading surplus

Nigerian National Petroleum Corporation (NNPC) announces a trading surplus of N9.85 billion (about $32.2 million) for the month of September 2018.

The Group Managing Director (GMD), NNPC, Dr Maikanti Baru,
  • The financial surplus is due to higher revenue by the Nigerian Petroleum Development Company (NPDC), the corporation’s upstream subsidiary.
  • The amount is higher than the previous month’s deficit of N3.90 billion.
  • During the period, NNPC records higher petrol supply and effective distribution across the country, totalling 1.66 billion litres of petrol for the month.

Nigeria's state oil firm, Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of N9.85 billion (about $32.2 million) for the month of September 2018.

The amount is higher than the previous month’s deficit of N3.90 billion.

The country's state oil firm made this known in its monthly financial and operations report for September 2018 released on Wednesday, December 26, 2018.

The report indicated that the improved performance of N13.75 billion increase, relative to that of August 2018, is attributable to higher revenue by the Nigerian Petroleum Development Company (NPDC), the corporation’s upstream subsidiary.

In a statement corroborating the report, Ndu Ughamadu, NNPC Group General Manager, Group Public Affairs, explained that NPDC’s production has been on the rise as a result of success recorded in repairs of vandalised pipeline in the Niger Delta and the resumption of crude oil lifting activities at Forcados Terminal.

According to the report, a total crude oil and gas export sale of $626.62 million was made in September 2018 under the NNPC’s US dollar transactions which are 33.32% higher than the previous month.

It stated that crude oil export sales contributed $508.54 million which is 81.16% of the dollar transactions compared with $337.62 million contribution in the previous month.

It also said that export gas sales amounted to $118.08 million in the month, adding that the September 2017 to September 2018 crude oil and gas transactions indicated that crude oil & gas worth $5.45 billion was exported.

In the downstream sector, the report noted that during the period, NNPC continued to ensure increased petrol supply and effective distribution across the country, saying that during the month, 1.66 billion litres of petrol, translating to 55.50 million litres/day, were supplied by the corporation.

It also stated that in the month under review, a total of 125 pipeline points were vandalised; out of which eight pipeline points failed to be welded and only one pipeline point was ruptured. The figure translates to a significant increase from the 86 vandalised points recorded last month.

A further breakdown of the September 2018 records indicates that Aba-Enugu and Mosimi-Ibadan accounted for 36 points and 33 points respectively or approximately 29% or 26% of the vandalised points respectively. While PHC-Aba and Zaria-Gusau accounted for 10% each; Atlas Cove-Mosimi and other locations accounted for 14% and 11% of the pipeline breaks respectively.

Regarding natural gas off-take, commercialisation & utilisation, the report indicated that out of the 238.91 Billion Cubic Feet (BCF) of gas supplied in September 2018, a total of 142.09 bcf of gas was commercialised, comprising 30.36 bcf and 111.73 bcf for the domestic and export market respectively.

This translates to a total supply of 1,011.96 mmscf/d of gas to the domestic market and 3,724.26mmscf/d of gas supplied to the export market for the month.

This implies that 59.47% of the average daily gas produced was commercialised while the balance of 40.53% of gas was re-injected, used as upstream fuel gas or flared.

The report gave gas flare rate for the month at 8.60% i.e. 684.69mmscfd compared with average Gas flare rate of 10.17% which is 800.59mmscfd for the period September 2017 to September 2018.

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