BUSINESS & ECONOMY
Refineries lost N77.15bn in six months – NNPC
Published

September 3, 2019
’Femi Asu

Federal Government-owned refineries located in Port Harcourt, Kaduna and Warri lost N77.15bn in the first six months of the year, the Nigerian National Petroleum Corporation has said.

The refineries posted a loss of N68.10bn in the same period in 2018, according to the NNPC data obtained by our correspondent on Monday.

The Port Harcourt Refining Company has two refineries, while the Warri Refining and Petrochemical Company and the Kaduna Refining and Petrochemical Company have one each.


The refineries have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity for many years.

They lost N8.362bn in January; N10.26bn in February; N16.04bn in March; N11.44bn in April; N13.63bn in May, and N17.42bn in June.

Kaduna refinery, which was idle during the six-month period, lost N30.1bn, the NNPC said.

Warri lost N23.87bn as it did not process any crude oil in April and June, while Port Harcourt refinery recorded a deficit of N23.17bn as it was idle in January, April, May and June.


The NNPC said it had been adopting a merchant plant refineries business model since January 2017.

It said, “The combined value of output by the refineries (at import parity price) in June amounted to N2.01bn while the associated crude plus freight costs and operational expenses were N6.34bn and N13.10bn respectively. This resulted in an operating deficit of N17.42bn.

“The lower operational performance recorded is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilisation once completed.”



The Group Managing Director, Nigerian National Petroleum Corporation, Mr Mele Kyari, said in August at an industry event that the corporation was committed to revamping the nation’s 445,000-bpd refineries to enable them “work to an appreciable level or capacity.”

More in Home

Govs take panicky measures as floods ravage states

Mambilla project: Nigeria risks another $2.3bn fine

Osinbajo, ministers meet on $9.6bn judgment, decline comments

From Benin with fraud: DG secures FIIRO top job without claimed PhD certificate
Winners emerge in UNICAF essay competition
Kyari said, “We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products.

“In the same vein, the corporation would support the actualisation of the 650,000bpd Dangote refinery, as well as other private initiatives along this line.

https://punchng.com/refineries-lost-n77-15bn-in-six-months-nnpc/


Was Atiku right about NNPC?
These losses are too high

Lalasticlala

U mean the amount u rogues syphoned in 6 months

rozayx5:
Was Atiku right about NNPC?
These losses are too high

Of course, he was right.
How many government companies are being run profitably in our country?
In which developed country do they have government running oil companies like NNPC?

Just look at these figures... we have incompetent bastards leading this country... Nigeria should be a very great nation if not for the greed of some unfortunate bastards�

rawpadgin:
U mean the amount u rogues syphoned in 6 months

No more rogues in government since barawo bubu came in with his 40 thieves presidency cabal in 2015.
Please note.


www.nairaland.com/attachments/2529890_image_jpeg9f360c5ab7736510df54c882e9dbf188

austin4real:
Just look at these figures... we have incompetent bastards leading this country... Nigeria should be a very great nation if not for the greed of some unfortunate bastards�

If other Nigerians are not equally greedy and selfish, why do they allow themselves to be led by such monsters

See below

Let us have KPMG to investigate NNPC & CBN now.

Some people asking if Atiku was right just crack me. This country is just a funny place

anonimi:


If other Nigerians are not equally greedy and selfish, why do they allow themselves to be led by such monsters

Poverty has given birth to a monster in Nigerians called greed.... people are suffering, and any opportunity they get to alleviate themselves from suffering makes most Nigerians do crazy things...

Morning prayer for all of us. Say a silent amen.

This morning, We are grateful to you God for being faithful to us. We may forget to pray, but you have never forgotten to provide and make ushappy and we know today won't be an exception. Go with us today and as always help us to achieve all that we have set my heart to do.

AMEN.



please read my signature.

77.15bn donated to the cabals, this couldn't have happened under diezaini. That is why she is hated that much

Same refinery that OBJ sold 2 of them to dangote for $500m . And some people's hero Yar adua reversed the sale .https://www.vanguardngr.com/2015/07/how-yaradua-was-pressurised-to-revert-refineries-sold-to-dangote-obasanjo/amp/

Ok...the best title of this Thread should be "N77.5 B looted in the oil sector in six months"


Who is even fooling who in dx country?

We just take one eye dey watch una .........(top officials)..Brothers and sisters of Lai Mohammed

anonimi:


Of course, he was right.
How many government companies are being run profitably in our country?
In which developed country do they have government running oil companies like NNPC?

Its not the government, it's the incompetent people there put in by nepotism and pro-fulani quota system

The Nigerian oil industry is a game park of corruption, some people are benefiting from the reported losses.

Who are the beneficiary to the lost the same people (people in government) use less BARAWO.

soul95:
Its not the government, it's the incompetent people there put in by nepotism and pro-fulani quota system

Is that not the more reason why we should privatise?
Do developed countries that don't have such nepotism problem run companies by the government?

Wetin be these people work sef?

ednut1:
Same refinery that OBJ sold 2 of them to dangote for $500m . And some people's hero Yar adua reversed the sale .https://www.vanguardngr.com/2015/07/how-yaradua-was-pressurised-to-revert-refineries-sold-to-dangote-obasanjo/amp/

Thanks for this reminder.
Yar'Adua is Buhari's twin and soulmate in the competition for the worst president to ever ruin our country.

Pavore9:
The Nigerian oil industry is a game park of corruption, some people are benefiting from the reported losses.

Not anymore.
At least not since Buhari became president and minister of petroleum in 2015.

What has that got to do wit common men?
Lost or gain, koko will no see.

Am looking for a buyer to sell this country off and the people inside the country they are all joker.

Was Atiku right about NNPC?
These losses are too high

when you see a Business man talking,you will know.Atiku is a tested businessman.
when the man was saying it,even people who don't know how a petrol station is run were throwing all manner of shades at him.
even the people in NNPC know that the man is sying the truth.

It's a pity.

The first step before Nigeria can be restored is to review the Constitution



I am a website designer...check my signature

soul95:

Its not the government, it's the incompetent people there put in by nepotism and pro-fulani quota system

That's exactly what I am saying. Let them scrap the quota system and nepotism appointments, and appoint people there base on merit. When nnpc is filled with man no man, there won't be any creativity and productivity

I am not sure why many Nigerians saw more sense keeping this refinery as a loss making asset rather than selling it.

The money lost per year can well fund the healthcare & education sector sectors for some states.

Spending 100s of billions in repairs and other expenses on a refinery that we know will no provide any meaningful returns in day light corruption. Many contractors are feeding fat getting contracts for a refinery that is moribund.

Its a shame many Nigerians were beclouded by the BMC gang to believe Atiku's solution was not viable.

Madridguy and the likes will the rotten BBQ seller will answer to God one day for short selling the country for God knows how much.