The Nigeria National Petroleum Corporation (NNPC) released its Monthly Oil & Gas Report for August 2015 in Infographics.
The report covered different segments ranging from Crude Oil $ Condensate Lifting and Utilization, Crude Oil Lifting Values, Refineries Capacity Utilization, NNPC Group Revenue etc. Key findings from the report revealed the following:
Crude Oil & Condensate Lifting and Utilization:
This is made up of Lifting by FIRS, Export, Domestic, IOCs. The value rose by 8.36% from 58,813,357 barrels in June 2015 to 63,728,509 barrels in July 2015.
Government Crude Oil Lifting & Utilisation:
The Crude oil lifting and utilisation in the upstream sector rose by 7.41% from 16.2million barrels in June 2015 to N17.4million barrels in July 2015.
GAS SUPPLY TO POWER PLANTS & GENERATION:
The Gas supply rose from 2,219Mw in May 2015 to 3,002Mw in June, and by July 2015 it was 3,489Mw.
NNPC GROUP REVENUE:
The revenue declined by 1.74% from N149billion in July 2015 to N147billion in August 2015.
The NNPC also explained the key challenges facing it, which include:
- Asset Integrity: Incessant pipelines breakages nationwide which has led to massive leakages and huge accounting losses to NNPC.
- Crude oil and Product losses resulting from theft and vandalism
- Sub-commercial contracts primarily legacy problems.
- Low capacity utilisation of refineries.
The NNPC plans to fix these challenges in 20 Ways:
- Reduce and audit costs.
- Restructure corporate Centre and staffing.
- Renegotiate existing contracts, including PSCs.
- Streamline subsidy management.
- Boost pipeline security.
- Enhance transparency and accountability.
- Achieve zero tolerance for corruption.
- Rebrand NNPC’s image.
- Unbundle PPMC.
- Unbundle NGC.
- Reduce contracting cycle.
- Restructure refineries.
- Improve information technology to drive business.
- Embed staff and business performance management.
- Restructure JV funding and reduce cash call.
- Improve retail profitability.
- Deploy and attract focused investments.
- Re-kit NPDC.
- Expand crude marketing.
- Generate power profitably.