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NNPC says its trade surplus jumped by 858% to N20.36bn in July

NNPC says JV partners oil assets sold to incompetent operators

The Nigerian National Petroleum Corporation (NNPC) Thursday announced an 858% leap in its trade surplus from N2.12 billion in June to N20.36 billion in July, citing major performance improvement across its operations and subsidiaries.

Trade surplus, which measures the amount by which the value of exports exceeds that of imported products, advanced by N18.24 billion, according to its monthly financial and operations report for July.

Kennie Obateru, the NNPC spokesperson, said in Abuja that the achievement was largely supported by a surplus of 178% by the corporation’s principal upstream unit, the Nigerian Petroleum Development Company as the global oil market saw demand recovery for a third month.

A 739% profit growth reported by the Integrated Data Services Limited and a 51 per cent growth in performance by Duke Oil Incorporated, both of them subsidiaries of the NNPC, contributed further to the state-owned firm’s overall result.

Read also: NNPC to back deployment of CNG filling stations for cars

In the review month, NNPC Retail Limited expanded its returns by 28% while the Nigerian Gas Marketing Company grew its by 24% as a result of higher sales and more effective debt recovery efforts.

“In the Gas sector, Gas production in July 2020 increased by 2.19 per cent at 236.34 billion cubic feet (bcf) compared to output in June 2020; translating to an average daily production of 7,623.98Million Standard Cubic Feet of gas per day (mmscfd).

“Likewise, the daily average natural gas supply to gas power plants stood at 707mmscfd, equivalent to power generation of 2,421MW,” NNPC said in a note.

1.02 billion litres averaging 32.95 million litres per day were domestically distributed within the month.

Nigeria’s four state refineries with a production capacity of 440,000 barrels of oil per day (bpd) have been largely incapable of processing crude because the infrastructures are ageing and their management has been in inept hand, forcing government to look the way of private sector intervention in revamping them.

On Tuesday, the NNPC extended its crude-for-fuel contracts of 300,000 bpd with 15 private firms by six months.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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