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    Nigeria’s State Oil Corp spends N1.2tr on purchase of crude oil

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    Naija247news Editorial Team
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    Ike Amos 15 February 2017, Sweetcrude, Lagos – The Nigerian National Petroleum Corporation, NNPC, spent N1.215 trillion ($5.313 billion) on the purchase of crude for a 12-month period, from November 2015 to October 2016.

    According to its Monthly Financial and Operations Report for November 2016, the amount was spent in the purchase of 128.509 million barrels of crude oil for its refineries in Warri, Kaduna and Port Harcourt.

    In its monthly analysis of the amount spent on the purchase of crude oil, the report stated that the corporation spent N93.34 billion and N87.044 billion in the purchase of the commodity in November and December 2015 respectively, while for January to April 2016, N62.86 billion, N66.31 billion, N107.62 billion and N107.37 billion were expended by the NNPC respectively.

    However, for May to June 2016, the report disclosed that the NNPC purchased crude oil worth N104.64 billion, N84.78 billion, N114.17 billion, N131.38 billion, N74.97 billion and N180.62 billion respectively.

    In its analysis for October, the report said, “In October 2016, NNPC lifted 11.9 million barrels of crude oil for domestic utilisation translating to an average volume of 383,930.26 barrels of oil per day in terms of performance.

    “In order to meet domestic product supply requirement for the month of October, 2016 about 8.59 million barrels was processed under the Direct-Sales-Direct Purchase, DSDP, scheme while 2.367 million barrels was delivered to the domestic refineries for processing and the balance of 947,452 barrels was exported as unutilised.”

    In addition, the NNPC stated that in November 2016, 1.003 billion litres of white products was supplied into the country through the DSDP arrangements while 802.75 million litres was supplied in the month of October 2016.

    It added that only Premium Motor Spirit, PMS, was supplied through DSDP in both October and November 2016.

    It further stated that petroleum products production, PMS and Dual Purpose Kerosene (DPK) only, by the domestic refineries in November 2016 amounted to 191.75 million litres compared to 210 million litres in October 2016.

    Commenting on the financials of the NNPC, the report stated that the, “Group operating revenue for the months of October and November 2016 were N157.50 billion and N187.75 billion respectively. This represents 66.30 per cent and 79.04 per cent respectively of monthly budget.

    “Similarly, operating expenditure for the same periods were N174.35 billion and N206.47 billion respectively, which also represents 83.14 per cent and 98.46 per cent of budget for the months respectively.

    “NNPC has been operating in a challenging environment which limits its aspiration to profitability. Overall, a trading deficit of N18.72 billion was recorded for the month under review as against the reported October, 2016 trading deficit of N16.85 billion. The deficit in the month of November 2016 increased by N1.87 billion or 11.06 per cent due to upsurge in the group operating cost despite an improved revenue generation and enhanced cost control across the group.”

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