Home / OIL & GAS / Refineries receive N80.74bn crude oil despite being dormant

Refineries receive N80.74bn crude oil despite being dormant

Refineries receive N80.74bn crude oil despite being dormantA total of 4,084,560 barrels of crude oil valued at N80.74bn were supplied to Nigeria’s refineries for a period of 13 months despite the poor performance of the often dormant facilities at various intervals.

Latest industry figures obtained from the Nigerian National Petroleum Corporation on Friday showed that between October 2018 and October 2019, the country’s refineries under the management of the NNPC got N80.74bn worth of crude oil in six out of the 13-month period.

The refineries are the Warri Refining and Petrochemical Company, Port Harcourt Refining Company and Kaduna Refining and Petrochemical Company.

For several months, the facilities operated far below expectation. For instance, in November 2019, the refineries processed no crude oil and their production of finished products was recorded as negative.

“In November 2019, the three refineries processed no crude and produced -5031 metric tonnes of finished products; comprising -3052MT and -1979MT utilised by WRPC and PHRC respectively,” the NNPC stated.

It added, “Combined yield efficiency is 0.00 per cent owing largely to ongoing rehabilitation work in the refineries. For the month of November 2019, the three refineries produced 385MT of intermediate products at combined capacity utilisation of 0.00 per cent.

“The intermediate product was primarily used by the PHRC. The declining operational performance recorded is attributable to ongoing revamping of the refineries which is expected to further enhance capacity utilisation once completed.”

For the 13-month period of October 2018 to October 2019, crude oil was delivered to the refineries from November 2018 to March 2019.

The volume of crude delivered to the refineries in the five months was put at 700,340 barrels, 619,950 barrels, 823,530 barrels, 513,740 barrels and 996,900 barrels respectively.

There was no crude oil delivery in April 2019. But in May 2019, the facilities received a combined crude volume of 430,090 barrels.

The refineries got no crude deliveries in October 2018, April 2019 and from June to October 2019.

Providing latest figures on the utilisation of crude oil for domestic product supply, the NNPC stated that in October 2019, the corporation lifted 9,560,513 barrels of crude oil from the daily allocation for domestic utilisation, translating to an average volume of 308,404 barrels of oil per day in terms of performance.

“In order to meet domestic product supply requirement for the month of October 2019, the 9,560,513 barrels in its entirety were processed under the Direct-Sale-Direct Purchase scheme, while no deliveries to the domestic refineries for processing,” the oil firm stated.

On crude oil and condensate lifting and utilisation, the firm stated that in October 2019, 64.68 million barrels of crude oil and condensate were lifted by all parties.

It explained that out of this volume, 22.22 million barrels were lifted by the NNPC on behalf of the federation.

“This comprises 15.69 million barrels lifted on the account of the NNPC (domestic and federation export) while 5.73 million barrels and 0.80 million barrels were superintended for the Federal Inland Revenue Service and the Department of Petroleum Resources respectively,” it said.

It further stated that of the 15.69 million barrels lifted on the account of the NNPC in October 2019, 9.56 million barrels and 6.13 million barrels were for domestic and export markets respectively.

The corporation stated that at an average oil price of $63.06/barrel and exchange rate of N306/$, the domestic crude oil lifted by the NNPC was valued at $602,913,863 or a naira equivalent of N184,491,641,934.48 for the month of October 2019.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

*

× Get News Alert