NNPC In Need Of Investors To Repair Pipelines And Depots

The Nigerian National Petroleum Corporation (NNPC) is soliciting for investors to repair pipelines and depots within the country. This is expected to reduce the Federal Government's financial exposure to the repairs.

Most of the pipelines were built about 40 years ago, and the NNPC is requesting investors to tender their bids in order to repair the pipelines that transport crude to Port Harcourt, Kaduna, and Warri refineries.

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Due to theft and vandalism, the pipelines have been operating below capacity and not functioning seamlessly. Note that the pipelines are also used for refined products, which are moved from the depots and distributed to final consumers.

Faulty Refineries Affecting NNPC Revenue

AllNews had reported that NNPC released its refinery audited financial report for the 2018 period, and it is scary, to say the least. The report disclosed how over N58 billion was spent on the refineries, only to generate about N2 billion as revenue in one year. It was revealed that Nigeria's three refineries recorded combined losses of N154 billion, with Kaduna Refinery recording zero revenue for the period under review (2018).

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Port Harcourt Refinery reportedly recorded a gross loss of N22.5 billion having recorded N22 billion as processing expenses, but generating only N1.4 billion as revenue. For Warri Refining And Petrochemical Company, N1.9 billion was generated as revenue after a cost of sales of N12.7 billion, resulting in a gross loss of N10.7 billion in 2018.

While for Kaduna Refinery, no amount was generated as revenue in 2018, despite N24.6 billion recorded as a direct cost for operation within the same period. This led to a gross loss of N24.6 billion, with no income to show for the amount spent.