Emmanuel Addeh in Abuja
The Nigerian National Petroleum Corporation (NNPC) has said that its operating expenditure increased by N86.4 billion, representing a 26 per cent hike, in August.
The national oil company, in the full report of its Monthly Financial Report (MFOR), however, defended the increase, saying that compared to a higher jump in operating revenue for the month, it had a healthy outing for August.
Also, the report indicated that about N7.7 billion was spent in the month under review on the refineries that have not worked for over a year. But the report said some of the plants are being rehabilitated.
“In August 2020, group operating revenue as compared to July 2020, increased by 27 per cent, or N95.69 billion, to stand at N445.04 billion while the expenditure for the month increased by 26 per cent or N86.45 billion, to N415.44 billion.
“This month, expenditure as a proportion of revenue is 0.93 as against 0.94 last month; signifying an improved healthy performance,” the corporation stated.
The NNPC added that in August, it remitted N47.42 billion to the Federation Account Allocation Committee (FAAC).
“From August 2019 to August 2020, total NNPC remittances to FAAC is N1,805.99 trillion; out of which the federation and JV with government priority projects received the sum of N794.76 billion and N1,011.23 billion respectively.
“No associated crude plus freight cost for the three refineries since there was no production but operational expenses amounted to N7.78 billion. This resulted to an operating deficit of N7.09 billion by the refineries,” it stated.
On crude oil production, the corporation said the Nigerian Petroleum Development Company (NPDC) from July 2019 to July 2020, had a cumulative production from all fields totalling 68,867,580 barrels of crude oil, translating to an average daily production of 173,470 barrels per day.
“NPDC is projected to ramp up production level to 250,000bp/d in the near future. PTD from NPDC wholly operated assets amounted to 25,772,785 barrels (or 37.42 per cent of the total NPDC production) with Okono Okpoho (OML 119) alone producing 22.71 per cent of the NPDC wholly-owned operated assets and 8.50 per cent of the total NPDC production.
“Also, on the NPDC operated JV assets, in which NPDC owns 55 per cent controlling interest, crude oil production amounted to 31,869,743 barrels (or 46.28 per cent of the NPDC total production). On the non-operated assets, production level stood at 11,225,053 barrels or 16.30 per cent of the company’s production,” it stated.
In the month under review, the NNPC said a total of 37 pipeline points belonging to the corporation were vandalised, representing about three per cent increase from the 36 points recorded in July 2020.
“ATC-Mosimi and Mosimi-Ibadan accounted for 38 per cent and 24 per cent respectively while PHC-Aba and the other locations in turn, recorded 22 per cent and the remaining 16 per cent of the total breaks.
“NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace,” the report said.