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NNPC records N20.36bn trading surplus in July – Report

The Nigerian National Petroleum Corporation (NNPC) has recorded an increased trading surplus of N20.36 billion in July 2020 compared to the N2.12 billion surplus in June 2020 in its operations.

Kennie Obateru, the spokesperson of the corporation, who confirmed the report explained that details of the figure in the July 2020 NNPC Monthly Financial and Operations Report (MFOR) indicated that the 858 percent overall upswell in performance was largely due to the 178 percent rise in the surplus posted by the Nigerian Petroleum Development Company (NPDC), NNPC’s flagship upstream entity.

He stated that the NPDC’s impressive result was bolstered by the continuous improvement in global crude oil demand for the third consecutive month.

According to the report, the corporation’s fortune was further enhanced by the 739 percent increased profit posted by the Integrated Data Services Limited (IDSL) and a 51 percent growth in performance by Duke Oil Incorporated, both companies of NNPC.

Read also: How IDSL is spearheading NNPC’S moves for $10 oil production cost

Returns from NNPC Retail Limited and Nigerian Gas Marketing Company (NGMC) during the period under review also grew by 28 percent and 24 percent, respectively, owing to increased sales and improved debt collection.

In the gas sector, gas production in July 2020 increased by 2.19 percent at 236.34 Billion Cubic Feet (BCF) compared to output in June 2020; translating to an average daily production of 7,623.98 Million Standard Cubic Feet of gas per day (mmscfd).

Likewise, the daily average natural gas supply to gas power plants stood at 707mmscfd, equivalent to power generation of 2,421MW.

For the period July 2019 to July 2020, 3,079.64BCF of gas was produced, representing an average daily production of 7,812.11mmscfd during the period.

Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 70.88 percent, 20.37 percent and 8.75 percent, respectively, to the total national gas production.

In the downstream sector, to ensure continuous stability in Premium Motor Spirit (PMS) supply and effective distribution across the country, 1.02 billion litres of PMS translating to 32.95mn litres/day were supplied for the month.

The July NNPC MFOR stated that the corporation has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the nation.

The report noted that during the period under review, 36 pipeline points were vandalised, representing about 9 percent increase from the 33 points recorded in June 2020.

Atlas Cove-Mosimi and Aba-Enugu network accounted for 28 percent each, while PHC-Aba and the other locations recorded 14 percent and the remaining 31 percent, respectively.

NNPC in collaboration with the local communities and other stakeholders continuously have strived to reduce the menace of pipeline vandalism.

The July NNPC MFOR is the 60th edition in the series meant to sustain effective communication with stakeholders.

The report is published monthly on the corporation’s website, national dailies and online media

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