The oil production subsidiary of the Nigerian National Petroleum Corporation, the Nigerian Petroleum Development Company, has been recording steady monthly losses arising from its inability to sell substantial volumes of crude oil it is producing, largely due to pipeline sabotage, The Punch reports.
An analysis of the month-by-month financial report of the NPDC showed that the company’s inability to sell crude had steadily reduced its revenue between February 2016 and February 2017 by about N20bn monthly. Officials of the NNPC confirmed that the petroleum development company had lost over N260bn as a result of this, adding that the crude production capability of the NPDC had dropped by 70 per cent. They noted that the national oil firm could indeed attain lofty heights with the support of Nigerians, especially in areas of security and integrity of infrastructure.
The NNPC in its just released operations reports for February 2017, showed that the NPDC’s contribution to the national crude oil and condensate production in January this year was the lowest at 1.18 million barrels, when compared with the contributions from joint ventures at 16.23 million barrels; production sharing contracts, 28.2 million barrels; alternative funding, 8.57 million barrels; and independent/marginal fields, 2.77 million barrels.