The Nigerian National Petroleum Corporation (NNPC) in its latest Monthly Financial and Operations Report for January released in Abuja yesterday revealed that the capacity utilization of its refineries rose to 36.73 percent in January 2017, as against 7.55 percent in the previous month of December 2016.
According to the report, the combined installed capacity utilization of the refineries located in Port Harcourt, Warri and Kaduna increased by about 29 percentage points in January 2017 compared with their performance in December 2016.
Refineries benefitted from the introduction of a new Refineries Business Model under the 12 BUFAS strategy which has transformed them from “telling plants to merchant plants” thereby placing them on the path of profitability.
The Port Harcourt Refining Company (PHRC ) and Warri Refining and Petrochemical Company (WRPC) also posted surpluses of Five Billion, One Hundred and Fifteen Million Naira (N5,115,000,000) and Four Hundred and Four Hundred and Four Million Naira (N404,000,000) respectively.
Under the new refinery model, each refinery purchases crude oil at export parity price, processes and sells the corresponding products on its own account.
“This is different from the previous Tolling Plant model where the refinery does not take title to the crude, but rather charges a tolling/processing fee to the owner of the crude which was PPMC on behalf of the Corporation”, the report stated.