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NNPC spends N42bn on repair of 293 pipeline breaks in February

NNPC spends N42bn on repair of 293 pipeline breaks in February

The data obtained from the corporation’s latest financials report showed that an average of N47.86 million was expended in the repair of each of the line breaks.

The NNPC monthly Financial and Operational Report for February 2016, also showed, that N107.44 billion was spent in the repairs of 3,039 vandalised points from March 2015 to February 2016.

According to the report, the Port Harcourt and Mosimi pipelines were the worst affected areas with 145 and 112 line breaks respectively, even as the corporation lamented that incessant vandalism and products theft have continued to destroy value and put it at disadvantaged competitive position.

The NNPC alsonoted that reduction in vandalism will indeed unlock several industry upsides, which include improved upstream oil production due to reduced pipeline disruptions, improved refinery utilisation due to increased crude oil feed from restored pipelines, and reduction of crude/product losses.

Read also: Oando may post N70b loss as auditors refer account to FRC

The report also noted, that dollar receipts by the NNPC dipped by 41.97 per cent to $236.7 million in February from $407.86 million recorded in January 2016, and that total export proceeds of $236.70 million were recorded in February, 2016 consisting of crude oil receipt of $153.63million, Liquefied Petroleum Gas (LPG) &Escravos Gas to Liquid (EGTL) proceed of $72.53 million, and miscellaneous receipt amounting to $10.544 million.

The report attributed the drastic slump in total export receipt to a further 26 per cent slide in average crude oil prices, from $39.0405 to $29.0173 and shut-in at Escravos, Yoho, Sea Eagle & Bonny Terminals.

“Other incidents include shut down at Forcados& Brass Terminals and production loss at Agbami terminal for mini Turnaround Maintenance (TAM),” the report noted.

 

 

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