Share This Post

General

Zero crude oil process by Nigerian refinery in a Month

The mixed yield effectivity of Nigeria’s refineries has crashed to zero, the most recent report on the efficiency of the amenities has proven.

Nigeria’s refineries are the Warri Refining and Petrochemical Company, Kaduna Refining and Petrochemical Company, and Port Harcourt Refining Company.

In the report, which was launched by the Nigerian National Petroleum Corporation, the refineries additionally carried out woefully when it comes to the quantity of crude oil they processed.

The company said in its simply launched month-to-month monetary and operations report for July 2019 that the three refineries processed no drop of crude oil and produced no product through the month below overview.

It stated their mixed yield effectivity dropped from the 31.19 per cent in June to zero per cent in July 2019.

An evaluation of the mixed efficiency of the amenities additionally confirmed that after they recorded a gap inventory of 212,165 metric tonnes, the refineries posted zero per cent as crude processed, completed and intermediate merchandise.

They additionally recorded zero per cent as plant consumption, losses and capability utilisation. Their mixed plant capability was put at 445,000 barrels per day.

The NNPC stated, “In July 2019, the three refineries processed no crude and produce no product for the month as in opposition to 38,977MT processed in June 2019.

“Combined yield efficiency is zero per cent compared to 31.19 per cent recorded in June 2019 owing largely to rehabilitation work being carried out in the refineries.”

The nationwide oil agency insisted that the poor output of the amenities was because of the work being carried out on the refineries.

It stated, “For the month of July 2019, the three refineries produced no intermediate product, therefore, mixed capability utilisation is at zero per cent.

“The waning operational performance recorded is attributable to ongoing revamp of the refineries which is expected to further enhance capacity utilisation once completed.”

The NNPC additionally said that the refineries posted a lack of N13.84bn in July 2019.

The report said, “The company has been adopting a Merchant Plant Refineries Business Model since January 2017. The mannequin takes cognisance of the merchandise price and crude prices.

“The combined value of output by the three refineries (at import parity price) for the month of July 2019 amounted to N0.83bn. No associated crude plus freight cost for the three refineries since there was no production while operational expenses amounted to N14.66bn. This resulted in an operating deficit of N13.84bn by the refineries.”

On Wednesday, the Group Managing Director, NNPC, Mele Kyari, introduced that the company engaged Russian buyers and the international nation’s state firm to rehabilitate Nigeria’s refineries.

Kyari, in a message he retweeted, additionally said that gasoline infrastructure improvement was mentioned with the Russian buyers.

He said {that a} staff involving himself, the Minister of State for Petroleum Resources, Timipre Sylva; the NNPC’s Chief Financial Officer, Umar Ajiya; the NNPC’s Chief Operating Officer, Refineries, Mustapha Yakubu; amongst others, engaged the buyers through the Russia/Africa Economic Forum in Sochi, Russia.

“The team engaged Russian state company and private entities to secure development cooperation of mutual benefit,” Kyari retweeted.

He added, “Refinery rehabilitation and gas infrastructure development on the front burner.”

Nigeria’s refineries had over time been performing abysmally, as they proceed to fail to satisfy as much as lower than 50 per cent of their capability utilisation.

Share This Post

1 Comment

  1. Hmmm

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.