What was NNPC’s performance in Q4 2019? Has there been any improvement in our local refineries?
We examined NNPC’s performance in Q4 2019 and here are our key discoveries.
#Thread
We examined NNPC’s performance in Q4 2019 and here are our key discoveries.
#Thread
All four refineries did not process any crude oil in Q4 2019. In the same quarter, the operating deficit recorded by the refineries was N34.11bn
#FixOurOil
#FixOurOil
NNPC sold 187.98 million barrels of crude oil in Q4 2019. The highest sales came from IOCs and Independent Sources with 65.21% of total sales
#FixOurOil
#FixOurOil
A total of $11.82 billion was made from the sale of crude oil in Q4 2019. The highest sales came from IOCs & Independent Sources, NNPC domestic and NNPC export with $7.75bn, $1.83bn and $917.19m respectively
The Nigeria Petroleum Development Company (NPDC), a subsidiary of NNPC contributed 14.86 million barrels of crude oil to the total crude oil sold in Q4 2019
#FixOurOil
#FixOurOil
42.26 million barrels of crude oil was lifted for domestic use by NNPC in Q4 2019 with the highest volume (15.28m) lifted in November 2019. This is an increase of 42.12% from the volume lifted in Q4 2018
The total volume of gas produced in the same period amounted to 22,920.51MMSCFD with the highest production of 7,689.43MMSCFD recorded in December
#FixOurOil
#FixOurOil
Gas flared stands at 7.83% of the total gas produced in Q4 2019. While this represents a slight decrease compared to Q3 (8.39%), We look forward to having gas flaring reduced to the barest minimum as promised by the NNPC
Despite not processing a single barrel of crude oil, the refineries recorded a whooping sum of N37.69 billion as the operating deficit in Q4 2019
#FixOurOil
#FixOurOil
A total of 5.26 billion litres of petroleum products was supplied by NNPC through Direct Sales Direct Purchase (DSDP) in Q4 2019 while 4.77 billion litres of white products (petrol, diesel, kerosene) were sold
The total revenue generated by Pipeline and Products Marketing Company (PPMC) in Q4 2019 amounted to N586.64 billion. Petrol generated the highest sale of 99.54% while Diesel and Kerosene had 0.45% and 0.01% respectively
64.67% of the total crude oil sales receipt from the dollar payment was remitted into the JV Cost Recovery Account while 35.33% was remitted to FAAC in Q4 2019. The Joint Ventures Cost Recovery is an account for the repayment of debt owed to oil operators by NNPC.
N311.57bn was remitted to FAAC from the naira payments from the crude oil sales while N17.04bn was spent on pipeline repairs and management.
#FixOurOil
#FixOurOil
In Q4 2019, 143 pipeline breaks were reported; a decrease of 370.63% compared to Q4 2018
It is perturbing that NNPC still recorded an operating deficit of N37.69bn despite being out of operation.
The Nigerian government should consider deregulating the downstream sector while adopting stringent techniques in managing the refineries if they are to become profitable.
The Nigerian government should consider deregulating the downstream sector while adopting stringent techniques in managing the refineries if they are to become profitable.
