The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of N6.33 billion for May 2019. This is revealed in the Corporation’s Monthly Financial and Operations Report (MFOR) released on Sunday.
According to the NNPC report, the trading surplus recorded in May is 13% higher than the N5.60 billion surplus posted in the preceding month of April 2019.
Performance Breakdown: The report shows that a total of $580.32 million was generated in the export sales of crude oil and gas, and this is about 23.39% higher than the previous month’s figure.
- A further breakdown shows that out of the total revenue made, crude oil export sales contributed $458.59 million, which translates to 79.02% of the entire transactions compared with $342.11 million contributed in the previous month.
- It was further revealed that between May 2018 and May 2019, crude oil and gas worth $5.97 billion was exported.
- Similarly, in the downstream, a total of 2.06 billion litres of petrol translating to 66.49 million litres/day were supplied.
— NNPC Group (@NNPCgroup) July 21, 2019
Reasons for the Surplus: The NNPC attributed the relative rise in its May trading surplus partly to the increase in gas and power output which contrasts with the figure for the preceding month.
Also, the Group General Manager, Group Public Affairs Division of the Corporation, Ndu Ughamadu, attributed the surplus recorded to the Corporation’s downstream entities like NNPC Retail, PPMC, NPSC and Duke Oil.
Vandalized Pipelines: Meanwhile, vandalization of pipelines dropped drastically in May by 52%. According to the report, within the period, a total of 60 pipeline points were vandalized, which represents a remarkable 52% decrease from the 125 points vandalized in April 2019.
- The Atlas Cove-Mosimi and Ibadan-Ilorin pipelines accounted for 38% and 23% respectively, while other locations accounted for the remaining 39% of the total breaks.
- Also, NNPC reiterated that it was committed to continuing its collaboration with the local communities and other stakeholders in order to eventually eliminate pipeline vandalism in the country.
A major take away from the report is that there appears to be an end in sight to the activities of vandals in the oil and gas sector, as the NNPC recorded over an average decline in pipeline vandalism. This means surplus that will be recorded by year-end may cross the N12.13 billion recorded in 2018 full year.
In the meantime, the NNPC reiterated that beyond supply, it would continue to diligently monitor the daily stock of petrol to achieve smooth distribution of petroleum products and zero fuel queue across the nation.