Refineries can’t account for N2.44bn crude — NNPC

13 September 2015, Abuja – The nation’s refineries wasted or illegally disposed of 258,810 barrels of crude, which they received for processing in April and May this year, the Nigerian National Petroleum Corporation has disclosed.


Dr Ibe Kachikwu, NNPC GMD

According to the petroleum information report, the refineries received the crude oil for the two months but failed to produce any refined product during the period.

The report obtained on Friday specifically indicated that the Port Harcourt Refining Company, Kaduna Refining and Petrochemical Company Limited, and Warri Refining and Petrochemical Company Limited, which received the crude, could not account for the supplies for the period.

As of Friday, the price of crude oil was $47.96 per barrel. Going by this, the cost of the 258,810 barrels of crude oil supplied to the refineries in the two months will therefore be $12.41m.

The Central Bank of Nigeria naira exchange rate to the United States dollar was 197 on Friday. Therefore, the naira equivalent for the supplied crude to the three refineries during the period under review is N2.44bn.

The NNPC stated in the report, that the refineries, which received 204,720 barrels of crude in April, failed to churn out any refined product.

It also said that the only refinery, WRPC, which got 54,090 barrels of crude in May, did not process anything either for the month.

Therefore, the total volume of crude oil supplied to the three refineries in April and May was given as 258,810 barrels, but nothing was recorded as processed petroleum products by the firms during the period.

For instance, the report stated that in April, the three refineries received 204,720 barrels of crude oil and had total opening stock of 1.164 million barrels of crude.

In the same month, the total crude available for processing was given as 1.369 million barrels but nothing was processed by the national oil firms in April, the NNPC report stated.

While detailing the operations of the refineries and their various crude balance for April, the NNPC said, “This month, 204,720 barrels of crude oil and slop was received by the three refineries, KRPC, PHRC and WRPC.

“With an opening stock of 1.164 million barrels, the total crude oil available for processing was 1.369 million barrels out of which zero barrel was processed. The respective average capacity utilisation during the month was 0.00%, 0.00% and 0.00% for the KRPC, PHRC and WRPC, respectively.”

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