NNPC’s Downstream SBUs List Achievements, Retail Arm Records N255bn Revenue
Shipping line announces collection of N44bn legacy debts
Some downstream Strategic Business Units (SBUs) of the Nigerian National Petroleum Company Limited (NNPC) have listed some of their key feats in 2022, with the retail arm of the national company recording N255.6 billion revenue as at Q3,2022.
In a note from the company , made available to THISDAY yesterday, NNPC Retail, also disclosed that it achieved a 6 per cent year-on-year increase in total white product sales, N15 billion EBITDA, and N14.14 billion profit from January to September last year.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation.
It further stated that it completed the construction of two standard stations in Kaduna and Kano States and on-boarded 71 new stations within the year , with five leased and 66 affiliate stations.
Besides , the NNPC stated that its retail arm completed Phase 1 Solar Power Project with three stations in Borno, Bauchi and Nasarawa States and carried out rehabilitation and facelift of 15 company-owned stations within the network.
According to the NNPC, the retail SBU also nominated and won two awards – foremost motor fuel retailer of the year and best downstream oil and gas company from Automobiles and Road Safety Initiative and Africa Finance Award respectively.
For NNPC Trading Limited, it said that it grew former PPMC profitability by 261 per cent, from N3.59 billion in 2020 to N12.95 billion in 2021 and reduced demurrage costs by 85 per cent
“NNPC Trading Limited also secured all government crude oil and gas entitlements from International Oil Companies (IOCs) and coordinated the Pricing Transition Arrangements with the Nigerian Upstream Petroleum Regulatory Commission (NURPC),” it pointed out.
Besides, it stated that the SBU improved former PPMC efficiency and significantly curbed product theft/ diversion through the implementation of the Trade Distribution Zones (TDZ) product allocation based on historical consumption.
“It also served as a supplier of intervention PMS cargoes at competitive price to meet shortfall in the domestic market, successfully negotiated and executed the emergency procurement intervention for Q4 2022 and execution of CORDPA Agreement to address decline in national production volumes to ensure national energy security,” it noted.
In addition, NNPC said that the unit processed payments for Q1, Q2, Q3 and Q4 export permits for crude oil, condensate and gas and successfully renegotiated lease renewal and settlement of disputes for OMLs 118, 125, 128, 130, 133 and 138.
According to the note from the national oil company, the unit also successfully processed and settled all Crude Handling Agreement (CHA) charges of NPDC and completed CNL Cheetah Cashcall Repayment Agreement in February 2022.
It explained that Total Energies Cashcall Repayment Agreement was settled in November 2022 while repayment of NNPC/FEP JV Carry Arrangement and First E&P JV Carry Arrangement were in April 2022.
As for NNPC Shipping, the company listed its transitioning to a profit-making entity and incorporation of NNPC Shipping & Logistics Limited and update of directors records as part of its gains in 2022.
The shipping arm also disclosed that it reviewed its coastal commercial construct to eliminate FX exposure on business activities through transition from naira to dollar revenues.
It stressed that it further collected N44 billion legacy debt from internal and external customers and facilitated the alternate crude oil evacuations in OML 18 & 24.
Furthermore, it revealed that it fixed 27 international gas cargoes, nine domestic gas cargoes, nine crude cargoes, 111 Clean Petroleum Products (CPP) cargoes as at November 2022.
“We also carried out 275 voyages on behalf of customers and moved 6.70 billion litres of petroleum products as at November 2022,” it revealed.
On its part, NNPC Refineries and Petrochemicals listed the ongoing Port Harcourt Refinery Rehabilitation and the attainment of over 5,000,000 man-hours with zero Lost Time Injury (LTI) till date as part of its achievements.
It also stated that that the award of contract for the provision of maintenance services on the quick-fix repairs of Warri and Kaduna refineries as well as renewal and extension of contract for provision of project management consultancy as worthy of applause.
In the same vein, NNPC Downstream Investment Services said it secured NNPC board approval for award of contract for the Front-End Engineering Design of the 3x10Kbpd Condensate Refineries in Utorogu, Oben and Oredo to UOP Limited.