Nnpc Records N24b Loss, Gas Shortage To Forcados Vandals

BEVERLY HILLS, April 11, (THEWILL) – The Nigerian National Petroleum Corporation (NNPC) has revealed that it recorded a N24.23 billion loss in February 2016 due to vandalism of the 48-inch Forcados export pipeline.

The corporation made this known in its February oil and gas report adding that gas supply to power plants recorded a decline of 70million standard cubic feet per day (mmscf/d) in the same month due to vandals.

The report showed that average gas supply was 734mmscf/d in January, but dropped to 664mmscf/d in February which led to power supply dipping to 3065 megawatts (Mw) in February from 3237Mw recorded in January.

It also noted that the Warri refinery was not in working condition in January and February, while Kaduna refinery didn't produce in February and it was compelled to assume importation of over 90 per cent of the petroleum products without the necessary logistics put in place.

The report revealed that the Corporation recorded a loss of N24 billion in February as revenue fell to N104.8 billion in February, from N130.86 billion in January, with expenses of N129 billion in February.

“A combination of the pre-existing challenges, especially inadequate foreign exchange for importation of petroleum products, resulted in pulling out of most oil majors from importation business, worsening the lingering fuel crisis,” it said.

“In the short-term, NNPC nationwide petroleum supply and distribution have been ramped up to all states to ensure product availability in the country, while mid and long-term measures, including rehabilitation of oil and gas infrastructure nationwide, as well as Pipelines, Depots, Pump Stations and Refineries, are ongoing.

“The new NNPC leadership is fully committed to ensuring a fit-for-purpose organisation structure which is in tune with NNPC vision and stakeholders expectations.

“The leadership is embarking on restructuring the Corporation into autonomous entities, to ensure clarity of purpose and well-designed and defined roles and responsibilities to support the desired outcome, and establish the necessary enablers for high performance.”

Story by David Oputah