Forcados operations reduce NNPC’s deficit by 53%

Resumed operations at Forcados export terminal reduced the deficit recorded by the Nigerian National Petroleum Corporation by 53 percent.

The latest report by the corporation shows that deficit dropped to N5.74 billion in August from N11.87 billion in July.

“The 25th publication recorded deficit of ₦5.74 billion which is relatively lower than the previous month’s deficit of ₦11.87 billion,” the report read.

“This improved performance is mainly due to revamping of forcados export terminal which enhances NPDC’s performance despite the low performance of the downstream value chain due to high crude oil inventory and the shutdowns of KRPC and PHRC during the period as a result of several maintenance interventions.”

According to the report, product pipelines breaks stood at 70 points in August, out of which 62 were vandalised.

The Port Harcourt-Aba pipeline was the worst hit accounting for 46 vandalised points.

“A total of 62.46 million barrels of crude oil & condensate was produced in the month of July 2017 representing an average daily production of 2.01million barrels. This represents an increase of 2.64 percent compared to June 2017 performance.”

NNPC said it signed two sets of alternative funding agreements with NNPC/Chevron Nigeria Limited Joint Venture (JV) and NNPC/Shell Petroleum Development Company (SPDC) JV, which is expected to generate about $16 billion in revenues.

The shut down of Trans Niger Pipeline and production shut-in to Que Iboe terminal and Bonga Terminal are some of the factors still slowing down production according to the report.