Nigeria's state-run oil firm NNPC posted a total loss of 84 billion naira to the inefficiency of the country's three refineries in the first eleven months of last year.
The refineries have continued to operate far below their installed capacity.
Africa's top crude producer three refineries are; the Warri Refining and Petrochemical Company, Port Harcourt Refining Company, and the Kaduna Refinery and Petrochemical Company.
They all have a total installed capacity of 445,000 barrels per day.
However, Port Harcourt refinery posted the biggest deficit of 35.58 billion naira, followed by Kaduna 28.21 billion naira and Warri recorded 20.4 billion naira loss, latest data from the Nigerian National Petroleum Corporation (NNPC) showed.
The KRPC did not process any crude oil from June to November last year; the WRPC was shut down in March, May, June and September, and the PHRC was idle in August and November.
The three government-owned refineries lost a total of 16.67 billion naira in the third quarter of this year, the NNPC data showed.
The NNPC recorded a trading deficit of 6.79 billion naira in November, higher than October’s deficit of 410 million naira.
The corporation attributed the drop in performance to the increased cost in upstream activities as well as the reduced revenue in the downstream value chain due to high crude oil inventory in refineries.
However, Port Harcourt refinery posted the biggest deficit of 35.58 billion naira, followed by Kaduna 28.21 billion naira and Warri recorded 20.4 billion naira loss, latest data from the Nigerian National Petroleum Corporation (NNPC) showed.
The KRPC did not process any crude oil from June to November last year; the WRPC was shut down in March, May, June and September, and the PHRC was idle in August and November.
The three government-owned refineries lost a total of 16.67 billion naira in the third quarter of this year, the NNPC data showed.
The NNPC recorded a trading deficit of 6.79 billion naira in November, higher than October’s deficit of 410 million naira.
The corporation attributed the drop in performance to the increased cost in upstream activities as well as the reduced revenue in the downstream value chain due to high crude oil inventory in refineries.
It said it had been adopting a Merchant Plant Refineries Business Model since January 2017.
According to the NNPC, the model takes cognisance of the products’ worth and crude costs.
It said, “The combined value of output by the three refineries (at import parity price) for the month of November 2017 amounted to 13.08 billion naira while the associated crude plus freight costs and operational expenses were 15.21 billion naira and 9.02 billion naira, respectively.
“This resulted in an operating deficit of 11.15 billion naira by the refineries. Also, during the period under review, refineries’ combined capacity utilisation was 5.92 percent.”
The NNPC, in its quarterly publication for the fourth quarter of 2017, obtained by our correspondent, said it was working in tandem with the Ministry of Petroleum Resources and other stakeholders to implant a novel refining model and other strategies that would restore the refineries and expand existing capacities to record levels.
According to the NNPC, the model takes cognisance of the products’ worth and crude costs.
It said, “The combined value of output by the three refineries (at import parity price) for the month of November 2017 amounted to 13.08 billion naira while the associated crude plus freight costs and operational expenses were 15.21 billion naira and 9.02 billion naira, respectively.
“This resulted in an operating deficit of 11.15 billion naira by the refineries. Also, during the period under review, refineries’ combined capacity utilisation was 5.92 percent.”
The NNPC, in its quarterly publication for the fourth quarter of 2017, obtained by our correspondent, said it was working in tandem with the Ministry of Petroleum Resources and other stakeholders to implant a novel refining model and other strategies that would restore the refineries and expand existing capacities to record levels.
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