Operations of Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) raised the trading surplus reported by the national oil company to by 23.64 percent in April.
The corporation said in the April 2021 edition of its Monthly Financial and Operations Report (MFOR) that it recorded a trading surplus of ₦43.57billion during the month, from about ₦35.24bilion recorded in the March 2021.
The increased trading surplus is an indictation of the corporation’s increasing profitability despite the devastating impact of the COVID-19 pandemic.
Trading surplus or trading deficit is the difference between the corporation’s expenditure profile and its revenue over a specified period.
In the report, the NNPC Group operating revenue in April 2021, compared to March 2021, increased by 17.73 percent, or N80.67billion, to about N535.61billion.
Also, the corporation’s expenditure for the month grew by 17.24 percent, or N72.34bilion, to about N492.05billion, while expenditure as a proportion of revenue stood at 0.92 percent as last month.
The report attributed the increase in the Corporation’s trading surplus to the operational activities of NPDC, its Upstream subsidiary.
Some of NPDC’s activities included crude oil lifting from oil mining lease (OML) 119 (Okono Okpoho) and OMLs 60, 61, 62, 63 (Nigerian Agip Oil Company), as well as increase in gas sales.
“The positive outlook was further consolidated by the robust gains of two other subsidiaries, namely Duke Oil and the National Engineering and Technical Company (NETCO),” the report said.
In the Downstream, the report said to ensure uninterrupted supply and effective distribution of petroleum products across the country, a total of 1.67billion litres of Premium Motor Spirit (PMS), popularly called petrol, translating to an average of about 55.79million litres per day were supplied during the month.
The report also showed a 34.29 percent reduction in the number of pipeline points vandalized during the month, from 70 in March 2021 to 46 in April 2021.
While Port Harcourt area accounted for 54 percent , Mosimi area in Lagos accounted for 46 percent of the vandalized points.
In the gas sector, the report said a total of 209.27billion standard cubic feet (bcf) of natural gas was produced during the month, translating to an average daily production of 6,975.72million standard cubic feet per day (mmscfd).
For the period of April 2020 to April 2021, a total of 2,902.52 billion cubic feet of gas was produced, representing an average daily production of 7,369.76mmscfd during the period.
Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 62.07 percent, 19.95 percent and 17.98 percent respectively to the total national gas production.
In terms of natural gas off-take, commercialization and utilization, the report said out of the 206.40BCF supplied in April 2021, a total of 126.83BCF of gas was commercialized, consisting of 42.92BCF and 83.91BCF for the domestic and export markets respectively.
This translates to a total supply of 1,430.90MSCF/D of gas to the domestic market and 2,976.94 MMSCF/D of gas supplied to the export market for the month.
This implies that 61.45 percent of the average daily gas produced was commercialized, while the balance of 38.55 percent was either re-injected into the oil well for better oil production, or used as upstream fuel gas or flared. Gas flare rate was 9.74 percent for the month under review (i.e. 670.19mmscfd), compared with average gas flare rate of 7.42 percenrt (i.e. 542.22MMSCF/D) for the period of April 2020 to April 2021.
A total of 795MMSCF/D WAS SEEdelivered to gas-fired power plants in the month of April 2021 to generate an average power of about 3,416 MW.
NNPC started publishing its Monthly Financial and Operation Report in October 2015, making the April 2021 edition the 69th in the series.
It is published in line the commitment of the Corporation’s Management to be more transparent, accountable to its stakeholders and the Nigerian public.