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  • Refineries record N11.77bn loss in 3 months

    Refineries record N11.77bn loss in 3 months

    By Isaac Kertyo

    Nigeria’s three refineries recorded a combined operational deficit of N11.77 billion in the months of June, July and August 2021, Monthly Financial Reports released by the Nigerian National Petroleum Corporation (NNPC Limited) on Sunday have shown.

    According to the reports, the refineries located in Port Harcourt, Warri and Kaduna processed no crude oil during the periods due to ongoing rehabilitation.

    A breakdown of the losses showed that the three refineries lost N4.01 billion in August, N3.37 billion in July and N4.01 billion in June.

    The NNPC reports also disclosed that Nigeria’s total crude oil and condensate production for the months of May, June and July 2021 was 140.88 million barrels. An average of 1.53 million barrels per day.

    The reports stated: “In July 2021, a total of 47.55 million barrels of crude oil & condensate were produced representing an average daily production of 1.53million barrels. This translates to an increase of 3.72% in production compared to June 2021 performance. Of the July 2021 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 27.64% and 45.63% respectively. While AF, NPDC and Independents accounted for 9.84%, 8.62% and 8.28% respectively. The tables and charts below provide details of the National Crude Oil Production for the period July 2020 to July 2021.

    “In June 2021, a total of 45.84 million barrels of crude oil & condensate were produced representing an average daily production of 1.53million barrels. This translates to a decrease of 3.48% in production compared to May 2021 performance.

    Of the June 2021 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 29.95% and 44.59% respectively. While AF, NPDC and Independents accounted for 9.94%, 8.94% and 6.57% respectively. The tables and charts below provide details of the National Crude Oil Production for the period June 2020 to June 2021.

    “In May 2021, a total of 47.49 million barrels of crude oil & condensate were produced representing an average daily production of 1.53million barrels. This translates to a decrease of 3.53% in production compared to April 2021 performance. Of the May 2021 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 29.30% and 43.88% respectively. While AF, NPDC and Independents accounted for 10.50%, 8.76% and 7.56% respectively. The tables and charts below provide details of the National Crude Oil Production for the period May 2020 to May 2021”.

    On how the crude oil and condensate was lifted and utilized, the reports added: “In July 2021, a total volume of 46.97 million barrels of crude oil and condensate was lifted by all parties. Out of this volume, 13.82 million barrels was lifted by NNPC on behalf of the Federation while the balance of 31.46 million barrels were lifted by the IOCs and the independents (including NPDC).

    “In June 2021, a total volume of 47.68 million barrels of crude oil and condensate was lifted by all parties. Out of this volume, 14.25 million barrels was lifted by NNPC on behalf of the Federation while the balance of 33.42 million barrels were lifted by the IOCs and the independents (including NPDC).

    “In May 2021, a total volume of 50.46 million barrels of crude oil and condensate was lifted by all parties. Out of this volume, 15.71 million barrels was lifted by NNPC on behalf of the Federation while the balance of 34.75 million barrels were lifted by the IOCs and the independents (including NPDC)”.

  • Reps to invite ministers, NNPC, others in refineries, fuel consumption probe

    Reps to invite ministers, NNPC, others in refineries, fuel consumption probe

    By Joyce Babayeju

    The House of Representatives Ad Hoc Committee on the State of Refineries in Nigeria is billed to invite top Federal Government officials, regulators,

    marketers, workers’ unions, oil companies, and other stakeholders in the petroleum sector in its investigation of the inability of the country to refine its crude oil.

    According to reliable sources in the committee, those who have been penciled down to appear before the committee include: the Minister of Finance, Budget and National Planning, Zainab Ahmed; Minister of Justice and Attorney-General of the Federation, Abubakar Malami (SAN); and Minister of State for Petroleum Resources, Timipre Sylva.

    Also on the list are the Accountant-General of the Federation, Ahmed Idris; Auditor-General of the Federation, Adolphus Aghughu; and the Director-General, Budget Office, Ben Akabueze.

    Officials of the Nigerian National Petroleum Company Limited, Nigerian Midstream and Downstream Petroleum Authority, Nigerian Upstream Petroleum Regulatory Commission, Warri Refining and
    Petrochemical Company Limited, Kaduna Refining and Petrochemical Company Limited, Port Harcourt Refining Company Limited, Dangote Refinery, and all licensed modular refineries, among others, will also appear before the panel.

    The committee had begun an investigation of the current state of the country’s four refineries and the amounts spent on the ‘Turn-Around Maintenance’ of the national assets.

    The Chairman of the committee, Ganiyu Johnson, after the inauguration of the panel on February 3, 2022, had disclosed that stakeholders in the petroleum sector in both the public and private sectors would soon begin to appear before the lawmakers.

    The House had on January 27, 2022, adopted two motions to institutionalise an earlier order by the Speaker, Femi Gbajabiamila, for an investigation of the current state of Nigeria’s four refineries and the actual volume of Premium Motor Spirit, popularly called petrol, being consumed by the country daily.

    Gbajabiamila had earlier ordered separate probes into the issues, setting up ad hoc committees to carry out the tasks.

    The Nigerian National Petroleum Company Limited had said it spent N100bn on refineries’ rehabilitation in 2021 and that funds were pumped into revamping the facilities on a monthly basis last year.

    It disclosed this in a report on the funding performance of the oil firm from January to December 2021, which was seen in Abuja on Sunday.

    Although no refinery was mentioned in the report, Nigeria’s refineries had been under the management of NNPC, as the rehabilitation of one of the facilities, Port Harcourt Refining Company, had been ongoing.

    The other refineries under the NNPC’s management include the Kaduna Refining and Petrochemical Company, as well as the Warri Refining and Petrochemical Company.

    In the NNPC’s latest funding performance report, the firm stated that N8.33bn was spent monthly for a period of 12 months beginning from January to December 2021 on refinery rehabilitation.

  • Senate probes poor state of refineries

    Senate probes poor state of refineries

    The Senate has begun a probe into what it described as the poor state of refineries the nation’s According to the Senate despite $25 billion dollars spent in the last 25 years, the refineries are still in comatose. Consequently, the Senate mandated its Committees on Petroleum Resources Downstream, Upstream and Gas Resources to urgently carry out a holistic investigation into the matter, with a view to finding a lasting solution to the problem. Meanwhile, President of the Senate, Senator Ahmad Lawan, yesterday informed that the Committees on Petroleum Resources Upstream, Downstream and Gas had been mandated to Kick Start the working process on the Petroleum Industry Bill, PIB, for the Senate to begin the passage process next month. Lawan who stated this during discussions on a point of order titled: “The Moribund Refineries In the Country,” by Senator Abubakar Yusuf, said the PIB would be worked on in February, noting that “there are issues that will occupy the committee members saddled with the responsibility of investigating the state of the refineries but urged them to do a thorough job and report back to the Senate. Committees are to investigate the Turn Around Maintenance, TAM, carried out by the NNPC and ascertain their current state,” President of the Senate said.yearly Resolution of the Senate to investigate the poor state of the refineries’ was sequel to a point of order by Senator Yusuf who came under Order 42 and 52. Earlier in his presentation, Senator Yusuf who noted that billions of dollars had been spent on turn around maintenance of the refineries but added that the oil companies still face total collapse, said, “There is negligence on the part of the NNPC.”