The Nigerian National Petroleum Corporation (NNPC) has recorded a loss of $1.6 billion at the end of January, culminating in a total loss of N546.63 billion in the past three years.
The state oil company of Africa’s biggest producer is bleeding money as a statement released on its website – the corporation’s unaudited financial operations reports – showed that the Corporation reported losses of N267.14 billion, N197.49 billion and N82 billion in 2015, 2016 and 2017, respectively, was in contrast to its budgets that showed operating surpluses of N466.94 billion, N334.04 billion and N601.15 billion for the three years under review.
In spite of this, analysts of the Ecobank Transnational Inc. have predicted that the apex oil firm will probably register another loss in 2018, as its refineries and fuel-retailing arm fail to generate profit.
It is understood that the NNPC is paying at least N60 on every litre of petrol brought into the country, a payment it defines as “under recovery”.
Its refineries combined to produce only 10 per cent or 1.05 billion of the 14.96 billion littres of petrol consumed in the country last year.
Most of that importation was done by the corporation, who then sold at a loss of N145. Worse still, Shell Petroleum Development Company (SPDC) temporarily halted shipment of Nigeria’s favoured crude grade — Bonny Light. It declared Force Majeure — inability to continue with a contract due to a fault in the Nembe Creek Trunkline, which is used to move petroleum to the Bonny export terminal.
The Trans Niger Pipeline is also used to move crude to the terminal. Operators of the pipeline, Iteo E and P, say they noticed a drop in pressure an decided to shot down the pipeline.
“We are suspecting sabotage but it is too early to conclude as investigation is still ongoing,” an official of the company told Thisday. While the Nembe Trunkline got shot in Eastern Niger Delta, the Trans Forcados Pipeline in the Western part, was also sealed off.
The shutdown of TFP causes a loss of 250,000 bpd. While Nigeria’s oil company continues to endure losses, the oil firms in Norway, Saudi Arabia and Mexico, are enjoying the dividend of higher oil prices.