The Nigerian Nationwide Petroleum Company (NNPC) is asking buyers to restore pipelines and deposits within the nation. It’s deliberate to cut back the Federal Authorities’s monetary publicity to the repairs.
Many of the pipelines have been constructed about 40 years in the past, and the NNPC is asking buyers to submit their bids to restore the pipelines transporting the crude to the refineries in Port Harcourt, Kaduna and Warri.
Because of theft and vandalism, the pipelines operated beneath capability and didn’t work completely. Observe that pipelines are additionally used for refined merchandise, that are then moved from warehouses and distributed to finish customers.
Faulty refineries affecting the NNPC:
AllNews had stated that NNPC has launched its refinery-controlled monetary report for the interval 2018, and it’s scary, to say the least. The report revealed how greater than N58 billion was spent on refineries, solely to generate about N2 billion as income in a 12 months. It was revealed that Nigeria’s three refineries have recorded whole losses of N154 billion, with Kaduna refinery recording zero income for the interval beneath evaluation (2018).
The Port Harcourt Refinery would have recorded a gross lack of N22.5 billion having recorded N22 billion as processing prices, however producing solely N1.4 billion as income. For Warri Refining And Petrochemical Firm, N1.9 billion was generated as income after a gross sales value of N12.7 billion, leading to a gross lack of N10.7 billion in 2018.
Whereas for the Kaduna Refinery, no quantity was generated as income in 2018, regardless of N24.6 billion recorded as a direct value for the operation in the identical interval. This led to a gross lack of N24.6 billion, with no income to point out for the quantity spent.