Baru returns NNPC to loosing trends as Kaduna refinery produces at zero%

Dr. Ibe Kachikwu was fired by President Muhammadu Buhari as the GMD of NNPC.

He thereafter appointed Baru as his replacement.

PMB had sent Kachikwu to China to secure a minimum of $50 billion dollars oil deal.

Kachikwu came back with $120 billion dollars.

Few days after, he was fired.

Baru took over operations as NNPC’s GMD.

The fortunes of the state owned oil giant has reversed.

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NNPC posted an operating loss of N274 million in its latest report.

The corporation lost N26.505 billion in June but paid N55.96 billion into the federation account.

According to NNPC’s latest financial report, the corporation lost N4.69 billion as a result of poor refining facilities.

According to the report, “Poor performance is attributable to upsurge in attack and sabotage of oil facilities in the Niger Delta.

“At Forcados Terminal alone about 380,000bopd were shut in since February 2016 following Force majeure declared by SPDC.

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“A number of crude oil lifting were deferred until the repair is completed.

“Other major terminal affected by the renewed spate of vandalism includes Bonny, Usan and Que Ibo terminals.

“Total export crude Oil & Gas receipt for the period of July 2015 – June 2016 stood at $3.42Billion.

The report showed “A deficit of N26.51 billion as against trading surplus of N274million reported in May, 2016.

“This trading surplus does not represent net profit as there are other expenses that should ordinarily have been captured.

“The deficit in the month of June 2016 was majorly due to decrease in revenue generation as a result of decline in PPMC petroleum products sales by 13.30% or N14.9billion and increase in products distribution costs.

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“Also June 2016 operations witnessed the major impact of incessant vandalism.

“During the month more than 261 vandalized points were recorded.

NNPC says its developing a new strategy that will increase refining output by up to 70%.

The strategy will entail “Co-locating smaller but cost efficient modular refineries within the existing refineries premises.

“This will boost the nation’s refining capacity from 445,000 barrels per day to 650,000,” the report said.

Read NNPC’s full report HERE.