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NNPC records 43% drop in oil pipeline vandalism in May

 

The Nigerian National Petroleum Corporation (NNPC) has recorded an encouraging 43 per cent drop in cases of willful damage of its oil pipeline infrastructure by suspected oil thieves in May.

 

This was disclosed in a statement by the spokesperson of the corporation, Kennie Obateru, on Wednesday in Abuja.

 

The statement explained that details of the report contained in the May version of the NNPC Monthly Financial and Operations Report (MFOR) indicated that 37 pipeline points were vandalised, representing about 43 per cent decrease from the 65 points recorded in April.

 

A breakdown of the cases showed that the Mosimi-Ibadan pipeline axis accounted for 38 per cent of the vandalised points.

 

Also, Atlas Cove—Mosimi axis recorded 19 per cent, Suleja-Kaduna logged 16 per cent, while other locations make up for the remaining 27 per cent of the breaks.

 

The NNPC in the May report said in collaboration with the local communities and other stakeholders, it would continuously strive to bring the malaise under control.

 

“The NNPC May MFOR said the corporation had continued to diligently monitor the daily stock of Premium Motor Spirit (PMS), otherwise called petrol, to achieve smooth distribution of the products to ensure zero fuel queue across the nation,” the statement said .

 

Sold products

 

The statement said 950.67million litres of white products were sold and distributed by the corporation’s Downstream subsidiary, the Petroleum Products Marketing Company (PPMC) in

 

“This comprised 950.67million litres of PMS only with no Automotive Gas Oil (AGO) or Dual Purpose Kerosene (DPK), adding that there was no sale of special product in the month,” it added

 

Meanwhile, total sale of white products for the period May 2019 to May 2020 stood at 19,865.80million litres and PMS accounted for 19,704.49million litres or 99.19 per cent.

 

The statement said N92.58 billion was made on the sale of white products by PPMC in May.

 

It highlighted that the total revenue generated from the sales of white products for the period May 2019 to May 2020 stood at N2,393.88billion, where PMS contributed about 98.84 per cent of the total sales with a value of N2,366.15billion.

 

In the gas sector, natural gas production in May increased by 2.38 per cent at 226.51Billion Cubic Feet (BCF), compared to output in April.

 

This translates to an average daily production of 7,480.36million Standard Cubic Feet of gas per day (mmscfd).

 

Likewise, the daily average natural gas supply to gas power plants increased by 5.87 per cent to 834mmscfd, equivalent to power generation of 3,128MW.

 

The NNPC May report stated that the Group’s operating revenue, compared to April’s, increased by 15.33 per cent or N31.68billion to stand at N238.33billion, while expenditure for the month decreased by 0.76 per cent or N1.81Billion, to stand at N235.66billion.

 

The May report indicated a trading surplus of ₦2.68billion compared to the ₦30.81billion deficit posted in April when the effect of COVID-19 was at the peak, leading to reduced demand with fluctuating prices.

 

The NNPC said the 109 per cent upturn in revenue this month is the cumulative result of improved performances by some of the corporation’s strategic business units.

 

While the Nigerian Petroleum Development Company (NPDC) posted a surplus due to substantial growth in the market fundamentals as demand began a slight recovery; the Nigerian Gas Marketing Company (NGMC) recorded 257 per cent increased profit attributed to improved debt collection.

 

Similarly, PPMC’s surplus rose 250 per cent from investment dividend received and significant drop in average product landing cost.

 

In addition, Corporate Headquarters deficit ebbed by 47 per cent in May, according to the report, compared to last month’s, while NNPC Retail, Integrated Data Services Limited (IDSL), NNPC Shipping and Ventures also contributed positively to the month’s performance, leading to the significant NNPC Group surplus position during the period under review.

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