NNPC budgets N4bn for 30 new petrol stations

The Nigerian National Petroleum Corporation (NNPC) plans to build 10 new petrol stations for about N4billion next year even as it said that the Federal Government lost N241.93 billion to crude theft between 2006 and this year. The highest N98.03 billion was recorded in 2011.
The nation lost another N105 billion to pipeline vandalisation in Niger Delta. These figures were contained in the Nigerian National Petroleum Corporation’s (NNPC) 2012 budget performance and its proposed 2013 budget which it submitted to the National Assembly Joint Committees on Petroleum Resources (Upstream/Downstream/Gas).
A breakdown of serial crude theft as contained in NNPC’s 2012 budget performance and 2013 budget presentation shows that in 2006, N52.85 billion was lost. The remaining figures are as follows: 2007, N2.42 billion; 2008, 29.53 billion; 2009, N3.15 billion; 2010, N22.83; 2011, N98.03; and 2012, N33.12, totalling N241.93 billion in just six years.
In the second chart presented on Page 30 of the NNPC’s budget proposal and performance, pipeline product losses in six years, starting from 2006 are: 2006, N20.92 billion; 2007, 18.95 billion; 2008, N14.36billion; 2009, N9.81billion; 2010-N9.01billion; 2011, N18.97billion; and 2012, N12.97billion, totalling N105 billion In the explanatory note provided by NNPC stated that the causes of pipeline losses are in three folds: (a) crude losses; (b) product losses (theft); (c) cost of repairs/environmental remediation with N8/ litre average loss for products imports.
Only N4.2 billion was recorded as PPMC depot losses from 2007 to 2012 with the only figure supplied for 2010. There was no figure supplied for between 2007 and 2009 and 2011-2012. A total of N81.85 billion was calculated as depot and demurrals losses. For 2013, NNPC has allocated N1,332.90 billion for what it tagged: “Three ultra-mega stations in YEPHLAG (Yenagoa, Port Harcourt and Lagos).” Construction of 10 standard stations would gulp another N1,850 billion while in the same list of major projects for 2013, NNPC voted another N750 million for 10 standard stations while the corporation will spend another N750 million to buy/lease 20 stations next year.
About N300 million was voted for trailer parks along Abuja-Lokoja and Ibadan Expressway. In the breakdown of major capital projects for rehabilitation of pipelines in 2013 (pipelines), NNPC said it would spend N3,950 billion to rehabilitate Escravos-Warri pipeline. Another N3,950 billion would be deployed to reconstruct the Escravos-Warri pipeline. Other pipeline expenditures are: rehabilitation of Port Harcourt-Enugu pipeline (N28,440 billion); rehabilitation of Warri-Benin pipeline (N15,800 billion); rehabilitation of Enugu-Auchincloss-Benin pipeline (N3,950 billion) and rehabilitation of Bonny-PH crude supply line pipeline will gulp N7,900 billion.
In its budget defence before the National Assembly, NNPC got $10.482 billion as its 2012 budget while it will spend $13.8 billion in 2013. It had initially requested $12.781 billion which was turned down. NNPC Group Executive Director (Exploration and Production), Abiye Membere, stated this during the corporation’s budget defence before the Senate’s Petroleum Resources (Upstream) Committee. The Group Managing Director, Andrew Yakubu sat beside Membere during the budget defence.
A breakdown of the budget indicates that government equity funding in Joint Venture (JV) companies is: $4.954 billion; funding for government’s priority project is $0.585 million, bringing total government equity funding to $7.365 billion. Government equity share of alternatively funded joint venture projects is $3.117 million, bringing totalling $10.482 billion for 2012 with 61 per cent performance ratio.

Sun