NNPC loses at least N263bn in 2015 as pipeline vandalism persists

Of the 12 months in 2015, the Nigerian National Petroleum Corporation (NNPC) only made profit in January, recording losses from February to November.

While awaiting the NNPC report for December 2015, the company lost N263 billion in 10 months.

According to the November report of the NNPC financial dealings, the corporation lost N14.29 billion in November, with a major part of that due to product losses from vandalised pipes.

“Group operating revenue after subsidy for the months of October and November 2015 were N173.56billion and N155.10billion respectively,” the report read.

“This represents 56.72% and 50.68% respectively of monthly budget. Similarly, operating expenditure for the same periods were N185.78 billion and N169.39 billion respectively, which also represents 69.55% and 63.42% respectively of budget for the months.

“Operating deficits of N12.22 billion and N14.29 for October and November 2015 respectively was attained as against monthly budgeted surplus of N38.91 billion.”

In January 2015, the NNPC made a profit of N7.65 billion, amounting to a total deficit of N255.3 billion in 2015, without imputing December’s profit or loss.

Most of NNPC losses were blamed on claimable subsidy, deficient refineries and pipeline vandalism.

“59.63% of YTD NNPC deficit of N255.278 billion is mainly accounted for by claimable pipeline repairs/management cost of N95.37 billion and crude and product losses of N56.68 billion due to vandalized pipelines,” the NNPC said.

“The N69.59 billion deficit attributable to PPMC was arrived at after adjusting for an estimated claimable subsidy of N293.30 billion from the petroleum products sales.”

The NNPC is currently exploiting the 20 quick fixes, aimed at revamping the Nigeria’s oil sector in the shortest possible time.

A total of $607.8 million has been paid so far to FAAC in the year 2015 from sales of export oil and gas, with no amount remitted in November 2014.