Refineries Lost N77.15bn In Six Months – NNPC

BUSINESS & ECONOMY
Refineries lost N77.15bn in six months – NNPC
Published

September 3, 2019
’Femi Asu

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Federal
Government-owned refineries located in Port Harcourt, Kaduna and Warri
lost N77.15bn in the first six months of the year, the Nigerian National
Petroleum Corporation has said.

The refineries posted a loss of
N68.10bn in the same period in 2018, according to the NNPC data obtained
by our correspondent on Monday.

The Port Harcourt Refining
Company has two refineries, while the Warri Refining and Petrochemical
Company and the Kaduna Refining and Petrochemical Company have one each.

The
refineries have a combined installed capacity of 445,000 barrels per
day but have continued to operate far below the installed capacity for
many years.

They lost N8.362bn in January; N10.26bn in February;
N16.04bn in March; N11.44bn in April; N13.63bn in May, and N17.42bn in
June.

Kaduna refinery, which was idle during the six-month period, lost N30.1bn, the NNPC said.

Warri
lost N23.87bn as it did not process any crude oil in April and June,
while Port Harcourt refinery recorded a deficit of N23.17bn as it was
idle in January, April, May and June.

The NNPC said it had been adopting a merchant plant refineries business model since January 2017.

It
said, “The combined value of output by the refineries (at import parity
price) in June amounted to N2.01bn while the associated crude plus
freight costs and operational expenses were N6.34bn and N13.10bn
respectively. This resulted in an operating deficit of N17.42bn.

“The
lower operational performance recorded is attributable to the ongoing
revamping of the refineries which is expected to further enhance
capacity utilisation once completed.”

The Group Managing
Director, Nigerian National Petroleum Corporation, Mr Mele Kyari, said
in August at an industry event that the corporation was committed to
revamping the nation’s 445,000-bpd refineries to enable them “work to an
appreciable level or capacity.”

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Kyari
said, “We are progressing with the establishment of condensate
refineries to fast-track domestic supply of petroleum products.

“In
the same vein, the corporation would support the actualisation of the
650,000bpd Dangote refinery, as well as other private initiatives along
this line.

Source:- Punchng

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