Nigeria’s Refineries Lost N77.15bn In 6 Months – NNPC
Latest data released by the Nigerian National Corporation (NNPC) has revealed that the Federal Government-owned refineries in Port Harcourt, Kaduna and Warri lost N77.15bn in the first six months of 2019.
There are two refineries in the Port Harcourt, while Kaduna and Warri have one each.
All the refineries have a combined installed capacity of 445,000 barrels of crude oil per day but have continued to operate far below expectations.
According to the data, the refineries recorded a total loss of N8.362 billion in January; N10.26billion in February; N16.04billion in March; N11.44 billion in April; N13.63billion in May, and N17.42billion in June.
The breakdown further revealed that Port Harcourt refinery which was idle for four months; January, April, May and June, recorded a loss of N23.17billion, Warri refinery was idle between April and June and lost N23.87billion.
Kaduna refinery on the other hand, did not process any crude oil within the entire six months under review and lost a total of N30.1billion.
NNPC said it had been adopting a merchant plant refineries business model since January 2017.
It said: “The combined value of output by the refineries (at import parity price) in June amounted to N2.01bn while the associated crude plus freight costs and operational expenses were N6.34bn and N13.10bn respectively. This resulted in an operating deficit of N17.42bn.
“The lower operational performance recorded is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilisation once completed.”
The Corporation’s Group Managing Director, Mele Kyari said at an event in August that the corporation was committed to revamping the nation’s 445,000-bpd refineries to ensure they work to their expected capacity.
“We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products.
“In the same vein, the corporation would support the actualisation of the 650,000bpd Dangote refinery, as well as other private initiatives along this line.
“Our plan is for Nigeria to become a net exporter of petroleum products by 2023.”