Melee Kyari
Oil & Gas

NNPC’s Downstream Subsidiary, PPMC, Records ₦337.63bn Petroleum Products Sales

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…posts 34% Increase in Trading Surplus in December 2019

The Nigerian National Petroleum Corporation’s (NNPC) Downstream Sector subsidiary, the Petroleum Products Marketing Company (PPMC), has raked in N337.63 billion from the sale of white products in December 2019 compared to the ₦105.62 billion sales in November 2019.

The Downstream entity in charge of bulk supply and distribution of petroleum products also distributed and sold 2.775 billion litres of white products in December 2019 compared with 0.841billion litres in November same year.

This comprised 2.762billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003billion litres of Low Pure Fuel Oil (LPFO) in the month under review.

The corporation’s Group General Manager, Group Public Affairs Division of the NNPC, Dr Kennie Obateru, disclosed this in a report published in a statement in Abuja on Sunday, a copy of which was emailed to Persecondnews.
The details of the surplus were captured in the December 2019 edition of NNPC’s Monthly Financial and Operations Report (MFOR).

The MFOR indicated that sale of white products for the period December 2018 to December 2019 stood at 21.861billion litres with PMS accounting for 21.514 billion litres or 98.41 per cent.

The report said revenues generated from the sales of white products for the period December 2018 to December 2019 stood at ₦2,705.76 billion, with PMS contributing about 97.56 per cent  of the sales with a value of ₦2,639.68 billion.

He also announced an increased trading surplus of ₦5.28 billion representing 34 per cent in its December 2019 operations compared to the ₦3.95 billion surplus posted in November last year.

“The 34 per cent increase for the period resulted from improved performances by some of its entities both in the Upstream and Downstream sectors.’’

The report listed NNPC’s subsidiaries with notable improved positions to include Integrated Data Services Limited (IDSL), Nigeria Gas Marketing Company (NGMC), Nigerian Pipeline and Storage Company (NPSC) and Duke Oil Incorporated.

It explained that in general terms, the performance was impacted positively by the reduced deficit posted by NNPC corporate Headquarters during the period under review; adjustments to previously understated revenues by IDSL and Duke Oil; and reduction in the costs of pipeline repairs/Right of Way maintenance and gas purchases by NPSC and NGMC respectively.

In the gas sector, out of the 239.29billion Cubic Feet (BCF) of gas supplied in December 2019, a total of 148.32BCF of gas was commercialized, consisting of 34.78BCF and 113.54BCF for the domestic and export market respectively.

This translates to a supply of 1,121.77Million Standard Cubic Feet per day (mmscfd) of gas to the domestic market and 3,662.70mmscfd of gas supplied to the export market for the month.

The corporation noted that 62.22 per cent of the average daily gas produced was commercialized, while the balance of 37.78 per cent was re-injected, used as Upstream fuel gas or flared, adding that gas flare rate was 7.78 per cent for the month under review i.e. 598.03mmscfd, compared with the average gas flare rate of 8.56 per cent i.e. 678.02mmscfd for the period December 2018 to December 2019.

The gas supply for the period December 2018 to December 2019 stood at 3,105.48BCF out of which 466.00BCF and 1,369.90BCF were commercialized for the domestic and export market respectively, the report states, explaining that gas re–injected, Fuel gas and Gas flared, stood at 1,269.59BCF.

The 53rd edition of the MFOR reported 40 vandalized pipeline points, representing about 41 per cent decrease from the 68 points vandalized in November 2019.

Out of the vandalized points, 10 failed to be welded, while none was ruptured.

Atlas Cove-Mosimi and Mosimi-Ibadan axis accounted for 35 per cent and 30 per cent of the breaks respectively, while other routes accounted for the remaining 35 per cent.

To stem pipeline vandalism, NNPC said it had stepped up collaboration with the local communities and other stakeholders.

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