Despite their current inoperative state, Nigeria’s three refineries, Port Harcourt, Warri and Kaduna incurred an approximated N18billion operating deficits between August to October 2020.
According to the Nigerian National Petroleum Corporation (NNPC) 2020 Monthly Financial and Operations report for August, September and October, the combined value of output by the three refineries (at Import Parity Price) for the months is put at N173million.
Although there was no associated crude plus freight cost for the refineries since there was no production, the total operational expenses for the months under review is N20billion.
A breakdown of the total operating deficits for the three months showed that the refineries incurred N7.09billion, N5.40billion and N5.49billion respectively within the period, with August having the highest number of deficits.
For the refineries combined value of output, N70million, N52million and N51million were recorded between August and October bringing the total sum to N173million.
NNPC in the report, states that the three refineries processed no crude while the combined yield efficiency is put at zero per cent owing largely to on-going rehabilitation works in the refineries.
According to Reuters, the oil firm intends to raise the fund in prepayment with trading firms while it is expected to be repaid over seven years through deliveries of Nigerian crude and products from the refinery once the revamping is complete.