Friday, December 22, 2017 /03:20PM / FBNQuest Research
In September the
NNPC’s operating deficit halved from N5.7bn the previous month to N2.8bn
(US$9m). Before central costs and ventures, a profit from production (N20.4bn)
covered the losses from refineries (N3.5bn) and retail/marketing (N10.0bn).
Financial and Operations Report for September notes a gentle decline in
crude output (including condensates) in August to 1.99 mbpd from 2.01 mbpd. The
commentary adds that the Trans Forcados pipeline was closed from 28 August to
02 September due to “failed illegal connections”.
Among the corporation’s three refineries, Port Harcourt processed
115,000 metric tonnes of crude in September while the figure for both Warri and
Kaduna was zero.
operating deficit has declined to N68bn in January-September 2017 from N145bn
in the year-earlier period. Without a legal framework for the industry and
root-and-branch change at the refineries, further upside is limited. In the
period sizeable operating surpluses were reported by the Nigerian Petroleum
Development Company (NPDC; N75bn) and the Nigerian Gas Processing and Transportation Company (N49bn).
commentary states that the NPDC has successful drilled and completed five
horizontal wells in OML 26 over nine months, amounting to incremental
production of 7,000 bpd.
conclusion, we recall that the distribution of October’s revenues by the FAAC
was delayed by two weeks because the accounts submitted by the NNPC were
challenged. The corporation pledged to do better next time.