The Nigerian National Petroleum Corporation (NNPC) yesterday said it paid N790.75 billion into the Federation Account between January and September.
It recorded N38.67billion from the sale of downstream petroleum products in September. The figure for August was N44.24 billion.
These were contained in NNPC’s Monthly Financial and Operation Report for September. The corporation started issuing the report in August in line with its Group Managing Director (GMD), Dr. Emmanuel Ibe Kachikwu’s promise to throw its books open monthly for public scrutiny.
The practice was never in place in all the years – 38 – of NNPC’s existence until Kachikwu became its helmsman in August.
According to the report, the revenue was from “white products” sold by the Pipelines and Products Marketing Company (PPMC).
“White products” include Automotive Gas Oil (AGO) popularly known as diesel; Household Kerosine (HHK) and Premium Motor Spirit (PMS) commonly known as petrol.
The report said the dollar payments to Joint Venture (JV) Cash Call and Federation Account from January to September was $3.69billion.
“Of the total receipts, $0.61billion was remitted to the Federation Account, the balance of $3.09 billion was used to fund the JV Cash Call for the period,” NNPC said, adding:
“The dwindling oil price has negatively affected the NNPC dollar contribution to the Federation Account”.
The continued decline in oil price, it said, led to insufficient cash available to meet JV Cash Calls obligations of about $615.8 million monthly as appropriated by the National Assembly.
To mitigate this effect, the report said: “NNPC was compelled to sweep all the export receipt to JV Cash Call funding implying a zero remittance to Federation Account since April 2015 .”
On refinery operations, NNPC said the “Total Crude processed by three refineries, for September was 261,371.14 bbls (35,648 MT) which translates to a combined capacity utilisation of 1.96%.”
The country has four refineries – one each in Warri (Delta State) and Kaduna and two in Port Harcourt (Rivers).
During the period under review, according to NNPC, only Port Harcourt Refinery Corporation (PHRC) produced 31,008million MT of petroleum products out of 35,648 MT (261,371.14 bbls) of crude processed at an average capacity utilisation of 5.77%.
In terms of crude processed and production for September, it said the combined value of output by the three refineries (at import parity price) for September amounted to N9.91billion; the associated crude plus freight cost was N6.35 billion, giving a loss of N8.84 billion after considering overhead of N12.40 billion.
On Refinery Financial Performance from January to September, NNPC said it was derived from its proceeds from Petroleum Product Supply & Distribution and Petroleum Product Supply from Off-shore Processing Agreements (OPA).
It said: “In September 2015, 763.90 million litres of white products were supplied into the country through the OPA compared with a volume of 701.29 million litres achieved in August. DPK receipt in September was 196.30 million litres compared with zero litres imported in August.”
NNPC maintained that production by the refineries in September amounted to 75.78 million litres compared to 200.25 million litres in August.
On downstream petroleum products distribution, the corporation said 507.90 million litres of white products were distributed and sold by PPMC in September compared with 606.84 million litres in August.
This, said the report, comprised 456.81 million litres of petrol, 31.41 million litres of kerosene and 19.68 million litres of diesel.
Total sale of white products by the NNPC/PPMC between January and September, it said, stood at 6.41billion litres, with petrol (5.08 billion litres) accounting for 79%.
Total sales revenues for white products sold for the period stands at N461.19 billion petrol contributed about 86% of the revenues collected with a value of N395.689 billion.
In the period under review, the sector’s domestic gas supply to power was an average of 773mmscfd that was delivered to the gas fired power plants in September “to generate an average power of about 3,141 MW compared with a 2015 YTD average gas supply 656mmscfd and power generation of 2,843MW.”