NNPC’s profit drops by 48% as crude oil sales drop to 21mbpd

…revenue slow by 31%

The Nigerian National Petroleum Company (NNPC) Limited recorded a 48 percent decline in its profit after tax, which dropped from N535 billion in June to N279 billion in July. This coincided with the steep drop in crude oil sales that fell to 21 mmbbls in the period.

The company, in its monthly report for July, explained that the crude oil production was affected by a combination of operational disruptions across several assets, including facility outages, equipment unavailability, pipeline incidents, and production constraints.

Gas sales in the period also dropped from 4970 mmscf/d recorded in June to 4581 mmscf per day July, as production slowed to 7489 mmscf/d.

The comapny however stated that going forward, its production improvement efforts will focus on sustaining high facility uptime through effective preventive maintenance programmes and minimizing unplanned downtime.

Key initiatives as proposed by the company include optimising export operations at FEPL and Nembe EP, maturing and delivering incremental production opportunities across its portfolio, and strengthening operational reliability across key facilities.

Additional measures it said would include the activation of tandem offloading operations at Akpo and Erha to enhance export flexibility and the restoration of barging operations at Obodo to improve production evacuation and sustain output.

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Similarly, the company recorded 31.5 percent decline in its revenue which dropped from N4.38 trillion in June to N3 trillion in July.

However, the company’s statutory payments to the federation remained on the positive side, increasing from N1.43 trillion in June to N1.63 trillion in July, bringing the total payment to N7.91 trillion from January to July.

NNPC’s remittance has been on the high side since the introduction of executive order 9, signed by President Bola Tinubu earlier this year.

The presidential directive effectively stripped the national oil company of its historic revenue-deduction powers, specifically halting its ability to withhold the controversial 30 percent Frontier Exploration Fund and 30 percent management fees at the source.

On the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, the company noted that construction and installation works at advanced stage to deliver early gas to Abuja in 2026.

Also, giving update on the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, the company said the pipeline pre-commissioning activities for river Niger crossing was completed in readiness for first gas in August 2026.

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