Refineries incur N6.46b operational expenses

By John Ofikhenua, AbujaThree moribund refineries of the Nigerian National Petroleum Corporation (NNPC) incurred6.46 billion operational expenses in Novermber 2020, The Nation has learnt.It was gathered that in the period under review, the combined value of output by the three refineries (at Import Parity Price) for the month amounted to approximately0.47 billion.The NNPC said the transaction resulted in an operating deficit of6.00 billion by the refineries.The corporation stated this in its Financial and Operations Report of November 2020.The report said: The Corporation has been adopting a Merchant Plant Refineries Business Model since January 2017.The model takes cognisance of the Products Worth and Crude Costs. The combined value of output by the three refineries (at Import Parity Price) for the month of November 2020 amounted to approximately0.47 billion.Read Also:Why we shut our refineries, by KyariNo associated crude plus freight cost for the three refineries since there was no production, but operational expenses amounted to6.46 billion. This resulted to an operating deficit of6.00 billion by the refineries.On utilisation of crude oil for domestic product supply, the report said in October 2020, the NNPC lifted 10,333,451 barrels of crude oil from the daily allocation for domestic utilization, translating to an average volume of 333,337 barrels of oil per day in terms of performance.The corporation said in order to meet domestic product supply requirement for October 2020, the entire 10,333,451 barrels were processed under the Direct-Sales-Direct Purchase (DSDP) scheme while there were no deliveries to the domestic refineries for processing.
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