The oil production subsidiary of the Nigerian National Petroleum Corporation, the Nigerian Petroleum Development Company (NPDC), has been recording steady monthly losses arising from its inability to sell substantial volume of crude oil it is producing.
An analysis of the month-by-month financial report of the NPDC showed that the company’s inability to sell crude had steadily reduced its revenue between February 2016 and February 2017 by about N20bn monthly.
Officials of the NNPC confirmed that the petroleum development company had lost over N260bn as a result of this, adding that the crude production capability of the NPDC had dropped by 70 per cent.
They noted that the national oil firm could indeed attain lofty heights with the support of Nigerians, especially in areas of security and integrity of infrastructure.
The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, admitted that the NPDC’s inability to sell crude and the resultant effect on the company’s revenue had been a source of concern to the corporation.
He, however, stated that the management of the NNPC was working out ways to address the issue.
“On the NPDC and pipeline vandalism, the NNPC management is still discussing it,” Ughamadu, who also referred our correspondent to the corporation’s reports on the matter, said.
In one of its financial and operations reports, the corporation stated that “with the restoration of the NPDC production, the NNPC can indeed post more impressive results where substantial portion of crude oil sale for the month of over N20bn could not be realised.”
Similarly, the NNPC in its just released operations reports for February 2017, showed that the NPDC’s contribution to the national crude oil and condensate production in January this year was the lowest at 1.18 million barrels, when compared with the contributions from joint ventures at 16.23 million barrels; production sharing contracts, 28.2 million barrels; alternative funding, 8.57 million barrels; and independent/marginal fields, 2.77 million barrels.
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