Sunday, March 7, 2021

Refineries shut for 15 straight months, lose N152.08bn



The latest data from the Nigerian National Petroleum Corporation have shown the nation’s refineries lost a total of N152.08bn in 15 consecutive months of being idle.

NNPC monthly reports revealed that all the refineries did not refine crude oil from July 2019 to September 2020.

The refineries, which are located in Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity.

The country relies largely on importation of refined petroleum products as its refineries have remained in a state of disrepair for many years despite several reported repairs.

In 2019, Kaduna Refining and Petrochemical Company only processed crude in one month, June; Port Harcourt Refining Company in two months (February and March); and Warri Refining and Petrochemical Company in four months (January, February, March and May).

The Kaduna refinery incurred an operating deficit of N57.99bn from July 2019 to September 2020, according to the NNPC data while Port Harcourt refinery lost N48.99bn in the period under review and the Warri refinery lost N45.10bn.

The NNPC said in its latest monthly report that the declining operational performance of the refineries ‘is attributable to ongoing revamping of the refineries, which is expected to further enhance capacity utilization once completed