Details of the report contained in the NNPC Monthly Financial and Operations Report for the month of November, 2018 released today showed that out of the 212.93 Billion Cubic Feet (bcf) of gas supplied during the period, a total of 123.29bcf of gas was commercialized, consisting of 36.14bcf and 87.15bcf for the domestic and export market respectively.

The release said this translated to a total supply of 1,204.76 mmscfd of gas to the domestic market and 2,905.06 mmscfd of gas supplied to the export market for the month, implying that 57.91% of the average daily gas produced was commercialized while the balance of 42.09% was re-injected, used as upstream fuel gas or flared.

The total gas supply November 2017 to November 2018 stood at 3,071.13bcf out of which 466.44bcf and 1,317.77 bcf were commercialized for the domestic and export market respectively.

A further breakdown of the report indicated that gas – Injected, fuel gas and gas flared – stood at 1,286.92 bcf.

The November report, the edition 40th edition in the series, announced a trading surplus of ₦2.06billion which represented a laudable improvement of 116% over the previous month’s deficit of ₦12.66billion. This increase in performance month-on-month was primarily attributable to improved efficiency of the Nigerian Petroleum Development Company’s (NPDC) operations.

NNPC also posted a total crude oil and gas sale of $668.57 in November, 2018 which is 26.13% higher than the previous month. Crude oil export sales contributed $574.95 million (86.00%) of the dollar transactions compared with $425.00million contribution in the previous month.

Export gas sales amounted to $93.62 million in the month.

The November 2017 to November 2018 crude oil and gas transactions indicated that crude oil & gas worth $5.97 Billion was exported.

In the downstream sector, the NNPC has continued to assiduously monitor the daily stock of Premium Motor Spirit (PMS) to achieve smooth distribution of petroleum products and zero fuel queue across the nation.

To this end, a total of 1.62bn litres of PMS, translating to 54.0mn liters/day, were supplied for the month.

In November, 2018 a total of 197 pipeline points were vandalized; out of which six pipeline points failed to be welded and two pipeline points were ruptured.

The situation improved from the 219 vandalized points recorded in October 2018, with Mosimi-Ibadan, Ibadan-Ilorin and Aba-Enugu accounting for 58, 35 and 34 points respectively or approximately 29%, 18% and 17% of the vandalized points respectively.

While Atlas Cove-Mosimi accounted for 13%, Warri-Kaduna and PHC-Aba accounted for 8% each and other locations accounted for the remaining 7% of the pipeline breaks

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The Corporation’s product supply outlook for March to May, 2017, shows that steps have been taken to ensure adequate supply of diesel and aviation fuel.

For Automotive Gas Oil and Aviation Turbine Kerosene, NNPC will continue to import to supplement local refining. Also, the Central Bank of Nigeria, CBN has released foreign exchange to marketers to import AGO and ATK.

In addition, NNPC has re-commissioned its strategic 479.2 kilometres System 2B petroleum products pipeline network which stretches from the Atlas Cove-Mosimi-Ejigbo-Ibadan, terminating at Ilorin which will enhance effective distribution of petroleum products nationwide, especially with the envisaged resumption of loading activities at the Mosimi, Ejigbo and Ibadan depots.

The Calabar and Aba depots have been stocked with AGO while AGO loadout at Kano depot would commence soon.

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These measures include: increasing the February supply of Premium Motor Spirit (PMS), by six additional cargoes to the existing national PMS sufficiency of over 32 days; immediate importation of three additional Automotive Gas Oil (AGO) cargoes before the end of February; and an order for massive 250 trucks per day loading of AGO and DPK, from across the three NNPC refineries in Port Harcourt, Kaduna and Warri.

Acting NNPC Group Managing Director, Engr. Saidu Mohammed, who chaired an emergency meeting on the Corporation’s downstream operations where the measures were taken between the weekend and Monday in Abuja, said NNPC would transmit the full list of marketers involved in off-taking AGO and DPK to the Department of State Services (DSS) for appropriate follow-up by the security agency to forestall possibility of any stakeholders engaging in foul play.

Engr. Mohammed said the move to provide additional PMS cargoes of 37,000 tonnes each was to give further comfort and stability to the robust petrol sufficiency nationwide.

Other measure the Corporation has taken, apart from ramping up fuel supply nationwide, is an expansion of daily truck load-out of petrol, diesel and kerosene, even during weekends to ensure improved products delivery to the hinterland.

The Corporation would provide additional marine logistics, all geared toward improving products movements from offshore to land, to cater for additional PMS supply nationwide.

Engr. Mohammed charged downstream operators to immediately implement measures that would sustain adequate supply and distribution of petrol, diesel and kerosene to every nook and cranny of the country.

NNPC has also made concerted efforts to pay the outstanding bill owed Duke Oil, the Corporation’s trading arm, for products importation, even as it has put in place modalities for transparent accounting practice.

As part of measures to sustain products supply stability across the Country, NNPC planned to obtain, from the Central Bank of Nigeria (CBN), an AGO Foreign Exchange (FOREX) intervention to marketers as well as Depot and Petroleum Products Marketers Associations (DAPPMAN).

Already, the Corporation would convert the existing issued $144m PMS FOREX intervention to AGO.

NNPC has also developed a comprehensive and clear deadline for the completion of the Atlas Cove-Mosimi pipeline and commenced shipment of AGO to Calabar.

Motorists and other consumers of petroleum products across the Country are enjoined not to engage in panic buying as NNPC has over 32 days sufficiency for petrol, and adequate volumes of diesel and petrol to meet their demand.

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The resumption of refining of AGO and DPK is expected to balance the disequilibrium in demand and supply of the white products being experienced in recent times in parts of the country.

Speaking on the production level of the Warri refinery, the Managing Director of the Warri Refining and Petrochemical Company (WRPC), Engr. Solomon Ladenegan, said the plant had been doing well since the Crude Distillation Unit (CDU) was revved up on Saturday, 7 January, 2017.

Ladenegan said the refinery resumed production last Saturday at about 10:22hrs, with the plant’s CDU functioning.

The refinery MD stated that the plant now refines 2 million litres of kerosene and 3 million litres of diesel daily.

“This morning, we have pumped the products to PPMC and they have started loading. They are going to load up to 1 million litres of DPK and AGO. The products are there in the tank and we are doing everything to get them to the market,” Engr. Ladenegan disclosed.

On his part, the Managing Director of the Port Harcourt Refining Company (PHRC), Dr Bafred Enjugu, said Port Harcourt Refinery was producing 3 million litres of AGO daily, in addition to millions of DPK being churned out by the refinery daily.

Enjugu enthused that his operators were thrilled having rehabilitated the old Port Harcourt Refinery where production of AGO was being carried out by themselves without foreign expertise deployment.

Meanwhile, the Kaduna Refinery has also roared into action, producing millions of litres of white products to ease out the situation in supply and distribution of petroleum products nationwide.

An independent marketer, Alhaji Abubakar Usman Yahaya, of Yamoyus Nigeria Ltd who was at the PHRC Depot for loading, described the refinery and the depot environment as positive, affirming that he and his co-marketers had access to PMS, AGO and DPK in sufficient quantities.

“I think this is because the refinery has started working”, Alhaji Yahaya stated.

Beside the products from the refineries, NNPC has made arrangements for additional supply intervention through direct import of PMS, AGO and DPK to sustain products availability across the country.

It would be recalled that NNPC broke the jinx of end-of-year products shortage during the last Yuletide season by ensuring copious products supply across every nook and cranny of the country.

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The Group Managing Director of the Corporation, Dr. Maikanti Baru, who disclosed this in Abuja Monday said the step was taken to forestall shortage of the product, a situation that had recently led to reported cases of flight delays and cancellations across the nation’s airports.

Dr. Baru said in the build-up to the yuletide period, the Corporation had exceeded the demand of marketers, stating that the NNPC had imported about 38.7 million litres of aviation fuel which represented about 26-day sufficiency.

Specifically, he continued, on December 14, 2016, the Corporation completed the discharge of 8,800MT which represented about 10.6 million litres to major terminals in the country. In addition, as at this morning (December 19, 2016), 23,500MT which represented about 28.2 million litres was being discharged to the major oil terminals.

In order to sustain the tempo, the Corporation had also secured the supply of additional 30,000MT vessel of ATK which represented about 36 million litres expected to berth Nigerian shores before the end of the year.

Furthermore, the NNPC stated that it has over 40-day sufficiency for Premium Motor Spirit(Petrol), PMS and adequate volumes of Automated Gas Oil(Diesel) AGO and DPK to satisfy national demand throughout the yuletide period and beyond.

The GMD further assured Nigerians that the NNPC would sustain the drive towards ensuring availability of petroleum products at all times.

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The NBS, in its Foreign Trade Statistics for Third Quarter 2016, also disclosed that the country spent N1.024 trillion on the importation of Premium Motor Spirit, PMS, also known as petrol, over the nine-month period, dropping by 10.02 per cent or N114 billion compared to N1.138 trillion spent on the commodity in the whole of 2015.

The amount the country earned from the export of crude oil represented 75.2 per cent of Nigeria’s 2016 budget estimates of N6.06 trillion. Again, the NBS report revealed that the value of crude oil export from January to September 2016, was 13.5 per cent or N712 billion lower than total crude oil export value of N5.27 trillion recorded in the same period in 2015.

The report further stated that for the whole of 2015, the country’s total crude oil export stood at N6.81 trillion, while in 2014 and 2013, the country exported N11.89 trillion and N11.81 trillion of crude oil respectively. This means that over a period of 45 months, beginning from January 2013 to September 2016, Nigeria exported crude oil valued at N35.068 trillion.

Further analysis showed that since May 29, 2015, the country had earned N7.708 trillion from crude oil export from July 2015 to September 2016. On the other hand, petrol importation cost the country N1.024 trillion, while the import of other fuels and lubricants cost the country N 620.81 billion over the first nine months period of 2016.

In general, the NBS report stated that the country spent N1.677 trillion on the importation of mineral products, comprising PMS, lubricants and other petroleum products. This, according to the report represented an increase of 80.71 per cent or N749 billion on the N928.46 billion spent on the import of petroleum products in the same period in 2015.

In addition, the report disclosed that in the whole of 2015, total amount spent on PMS importation was N1.138 trillion, while in 2014 and 2013, N1.035 trillion and N1.142 trillion was spent on the import of the commodity respectively.

Further analysis of the NBS data revealed that since the advent of the President Muhammadu Buhari’s administration, the country had from July 2015 to September 2016 — a period of 15 months — spent N2.23 trillion on the importation of petroleum products. This was against a total of N1.643 trillion spent on the import of the same commodity by the country, from the second quarter of 2015 to the second quarter of 2016 — a period of 15 months — during the former President Goodluck Jonathan’s administration, which, however, ended May 29, 2015.

Specifically, in its analysis of Nigeria’s merchandise trade for the third quarter of 2016, the NBS said, “Import trade by section was dominated by the imports of Mineral products, which accounted for N746.2 billion or 30.9 per cent of the total value of import trade in the third quarter of 2016.

“Other commodities which contributed noticeably to the value of import trade in 2016 were boilers, machinery and appliances; parts thereof, at N475.6 billion (19.7 per cent of the total); and products of the chemical and allied industries, at N220.0 billion (9.1 per cent); plastic, rubber and articles thereof, at N153.9 billion (6.4 per cent) and prepared foodstuffs, beverages, spirits and vinegar, tobacco, at N148.2 billion (6.1 per cent).

“At the end of the quarter, the import trade classified by Broad economic category revealed that fuels and lubricants ranked first with N725.119 billion or 30.1 per cent of the total. This was followed by Industrial Supplies with the value of N611.618 billion or 25.3 per cent, and Capital Goods and parts, with ₦460.56 billion or 19.1 per cent of the total.”

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