Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu

NNPC Saves $336m With Direct Purchase In 4 Months

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The Nigerian National Petroleum Corporation (NNPC) said it saved a total of $336,379,854.98 from the sales of refined products through the application of the Direct Sale, Direct Purchase (DSDP) framework, a new strategy deployed to ensure supply of petroleum products in the country since April.

According to the July/August edition of the Corporation’s Energy Brief publication, the new strategy earned an average $53 million savings monthly for it resulting in a total saving of $336,379,854.98 million for the four months of April – July, 2016.

This is even as the Corporation said it recorded another loss worth N24.18 billion in the month of July due to turbulence in the oil and gas industry during the period.

According to the report, the rate of disruption to the country’s crude oil production reach it highest since January 2009 in July as it stood at 750,000 barrels per day.

“This follows increase militant attacks on major oil and natural gas infrastructure in the country,” it stated.

The report added that 876.18 million litres of petroleum products was distributed in July as against 860.46 million litres in June, while the total sum of N36.6 billion was paid into the federation account during the month of July.

Meanwhile, the Group Managing Director (GMD) of the Corporation, Dr. Maikanti Kacalla Baru has projected a 200,000 barrels per day increase in the country’s crude oil production by the first quarter of 2018.

He attributed the growth to the Umbilical Flow-lines and Riser for the Egina Deep Offshore, which was recently commissioned by the GMD at Saipem base in Port Harcourt.

The Egina oil field, according to reports is being developed by Total Upstream Nigeria in partnership with CNOOC, Sapetro and Petrobras. It is the third deep offshore development of Total in Nigeria with production scheduled to begin in 2018.

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