NNPC refineries record N101.69bn operation expenses with no fuel output in 2020

The Nigerian National Petroleum Corporation (NNPC) has revealed that a total of N101.69 billion was spent on overhead expenses from January to December last year.

The refineries are the Warri Refining and Petrochemical Company, Port Harcourt Refining Company (PHRC), and Kaduna Refining and Petrochemical Company (KRPC).

The refineries have a combined production capacity of 445,000 barrels of oil per day (bpd), however, NNPC report revealed that all the refineries processed no crude last year.

The breakdown shows during the year, KRPC recorded the biggest overhead expenses of N34.16 billion, followed by PHRC N33.97 billion while WRPC recorded N33.55 billion.

The biggest operating deficit was recorded in the month of March.

In January, the refineries incurred N9.6 billion operating deficit, while in February, N9.36 billion loss was incurred.

In March a consolidated loss of N10.30 billion was recorded by the three refineries and N9.6 billion in April.

Read also: NNPC to address power supply in Borno with new gas power plant

In the month of May and June, the refineries recorded losses of N9.54 billion and N10.23 billion respectively.

In July N9.05 billion loss was recorded by the three refineries.

Although the operating deficits dropped in the following months of August, September, and October, yet the refineries posted N7.08 billion, N7.04 billion, and N5.48 billion losses respectively.

In the last two months of the year, N5.9 billion loss was recorded in November before increasing to N8.2 billion in December.

NNPC in its January monthly report noted that declining operational performance is attributable to the ongoing revamping of the refineries, which is expected to further enhance capacity utilization once completed.

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