monthly report · title: monthly report author: ref-user created date: 4/7/2020 6:06:14 pm

January 2020

Monthly Report

Financial and Operations

Report

NNPC

2 NNPC | Monthly Financial and Operations Report January 2020 www.nnpcgroup.com | www.facebook.com/NNPCgroup | www.twitter.com/NNPCgroup

Disclaimer

This publication presents information on the Nigerian oil and gas

industry. Its content reflects individual as well as general analysis and

trend of activities that characterized the industry within the country.

Although NNPC endeavors to ensure accuracy of information in this

unaudited report, it cannot guarantee 100% accuracy, nor can it be held

liable for errors that may be contained therein. Users are to note that use

of any information herein is purely at their own discretion.

http://www.nnpcgroup.com/

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Outline

1.0 Introduction

2.0 National Crude Oil & Natural Gas Production, Lifting and Utilization

3.0 Refinery Operations

4.0 Petroleum Product Supply & Distribution

5.0 Budget Performance Report

6.0 Federation Crude Oil & Gas Revenue

7.0 Key Determinants For Change

8.0 Glossary





1.0 Introduction

The average crude oil price in January 2020 plummeted by $2.35 or 3.69% m-o-m, to

average $63.27/b. Likewise, ICE Brent decreased by $1.50 or 2.3% m-o-m, at $63.67/b

while NYMEX WTI dwindled by $2.28 or 3.8% m-o-m, to close at $57.53/b. Year-to-date

(y-t-d), ICE Brent rose by $3.43 or 5.7% to $63.67/b while NYMEX WTI increased by $5.9

or 11.6% to stand at $57.53/b. The OPEC Monthly Oil Market Report (MOMR) revealed

that the current decline in oil prices is due to anticipations of decelerating global oil

demand amidst concerns about the effect of the Coronavirus on global economy.

The OPEC MOMR reviewed global economic growth forecast for 2019 and 2020 down by

1% each; to 2.9% and 3.0% respectively due to Coronavirus-related impact. US economic

growth remains at 2.3% for 2019 and at 1.9% for 2020. Euro-zone growth is unchanged

at 1.2% for 2019 but at 0.99% for 2020. Gross Domestic Product (GDP) growth in Japan

is steady at 1.1% for 2019 but down at 0.6% for 2020. China’s growth is slashed at 6.1%

for 2019 and at 5.4% for 2020 and so is India’s growth at 5.2% for 2019 and at 6.1% for

2020. Brazil’s economic growth is stagnant at 1.0% for 2019 and at 2.0% for 2020.

Equally, Russia’s growth is unaffected at 1.1% for 2019 and at 1.5% for 2020.

As publicized in the OPEC MOMR, global oil demand growth in 2019 is lower by 0.02

mb/d compared to last month’s assessment; to grow at 0.91 mb/d and reach 99.74 mb/d.

For 2020, global oil demand is revised down by 0.23 mb/d to grow at 0.99 mb/d to 100.73

mb/d. The downward revision is largely attributable to the outbreak of the Coronavirus

throughout Q1 2020 in China. Demand from OECD countries is expected to grow at 0.01

mb/d while demand from non-OECD will grow at 0.98 mb/d. Demand for OPEC crude in

2019 is same as last month’s assessment to remain at 30.6 mb/d while OPEC demand in

2020 decreased slightly at 29.3 mb/d, about 1.3 mb/d lesser than the 2019 level.

For supply, the non-OPEC oil supply growth in 2019 is now up by 0.02mb/d at an average

of 1.88 mb/d to reach 64.36 mb/d. However in 2020, non-OPEC oil supply is estimated to

decrease by 0.10 mb/d at 2.25 mb/d to average 66.60 mb/d. Australia, Brazil, Canada and

the US are the key drivers for growth in 2020, alongside Norway and Guyana. In January

2020, OPEC crude oil production dwindled by 509 tb/d m-o-m to average 28.86 mb/d.

Globally, oil supply decreased by 0.01 mb/d m-o-m to average 100.12 mb/d in the month.

As reported by the National Bureau of Statistics, real GDP in Nigeria grew by 2.55% in Q4

2019; an increase of 0.27% points from the 2.28% recorded in Q3 2019. When compared

to growth rate of 2.38% in Q4 2018, real GDP increased by 0.17% points (year-on-year).

The robust growth rate in Q4 2019 was the highest since 2016 recession. While real GDP

grew by 5.59% quarter-on-quarter, annual real GDP growth in 2019 was 2.27% as against

1.91% in 2018. For the oil sector, real growth stood at 6.36% (year-on-year) in Q4 2019

indicating 7.98% points increase in comparison to the equivalent quarter of 2018. Also, a

decrease of 0.13% points relative to Q3 2019. Annually, the oil sector 2019 growth rate

is 4.59%. Contribution of the oil sector to total real GDP in Q4 2019 stood at 7.32%, higher





than the 7.06% posted in corresponding period of 2018 but lower than the 9.77% posted

in Q3 2019. The contribution of Oil in 2019 real GDP was 8.78%.

In January 2020, total crude oil production in Nigeria decreased by 1.32 mb or 2.22% at

60.80 mb with daily average of 1.96 mb/d. Production was disrupted by shutdown of the

TFP at Forcados for repairs while Bonny NCTL was shut down due to leaks on ROW near

Boro / Awoba axis. Production was also interrupted at Bonga, Egina, Brass, Erha, Usan,

Amenam, Ogo Ocha and Ima terminals due to lube oil loss, pump issues, loss of power,

riser protector replacement, pipeline repairs and flare management.

National Gas production in January 2020 increased by 5.77% at 253.09BCF compared to

output in December 2019; translating to an average daily production of 8,164.23mmscfd.

Similarly, the daily average natural gas supply to gas power plants increased by 7.28% to

639.40mscfd, equivalent to power generation of 2,683MW.

To ensure continuous increased PMS supply and effective distribution across the country,

a total of 1.20bn litres of PMS translating to 38.68mn liters/day were supplied for the

month; in the downstream sector. The Corporation has continued to diligently monitor

the daily stock of Premium Motor Spirit (PMS) to achieve smooth distribution of

petroleum products and zero fuel queue across the Nation.

This month, a total of 60 pipeline points were vandalized representing about 50%

increase from the 40 points vandalized in December 2019. No pipeline failed to be welded

nor ruptured. ATC-Mosimi and Mosimi-Ibadan axes accounted for 50% and 17% of the

breaks respectively while all other routes accounted for the remaining 33%. NNPC in

collaboration with the local communities and other stakeholders continuously strive to

reduce and eventually eliminate this menace.

This 54th edition of the Report indicates a reduced trading surplus of ₦1.87Billion

compared to the ₦5.28Billion surplus posted in December 2019. The 65% decrease in the

month arose due to 17% drop in the cummulative performance of SBUs in the upstream

and midstream as well as over 100% deterioration in downstream activities. These weak

positions along with deficits of the Refineries, Ventures and CHQ, led to a decreased

surplus to the Group.

This report highlights NNPC’s activities for the period of January 2019 to January 2020.

In line with the Corporation’s commitment to becoming more accountable, responsive

and transparent and a FACTI based Organization; the Corporation has continued to

sustain effective communication with stakeholders through this report via publications

on its website and in national dailies. NNPC in return demands continued support from

Nigerians especially in areas of security to achieve zero vandalism of the Nation’s oil &

gas infrastructure.





Activity update

NLNG TRAIN7: NNPC, Partners take Final Investment Decision

Condensate Refinery: NNPC, Partners Kick off First Phase

Nigeria, Best Investment Destination in Africa, Kyari Assures

NNPC Proposes Measure to curb Pipeline Vandalism, Crude Theft

NNPC Retail Limited Enters Lubricants Market with Nitro, Rhino Engine Oils

AKK Pipeline: NNPC, Chinese Company, Brantex Consortium Firm up Plan to Kick

off Construction Work





2 National Crude Oil & Natural Gas Production, Lifting and Utilization

2.1 National Crude Oil & Condensate Production

In December 2019, a total of 60.80million barrels of crude oil & condensate were

produced representing an average daily production of 1.96million barrels. This translates

to an increase of 1.08% in the average daily production compared to November 2019

average daily performance. Of the December 2019 Production, Joint Ventures (JVs) and

Production Sharing Contracts (PSC) contributed about 33.72% and 41.95% respectively.

While AF, NPDC and Independents accounted for 10.56%, 9.06% and 4.71% respectively.

The tables and charts below provide details of the National Crude Oil Production for the

period December 2018 to December 2019.

Table 2.1.1: Fiscalised National Crude Oil & Condensate Production

JVs PSC AF NPDCIndependent /

Marginal FieldsTotal

Average Daily Production

Barrels Barrels Barrels Barrels Barrels Barrels Barrels

Dec-18 19,349,575 21,901,114 7,790,576 4,719,450 5,288,429 59,049,144 1,904,811

Jan-19 18,426,261 22,876,107 7,483,749 4,946,892 5,492,470 59,225,478 1,910,499

Feb-19 17,429,141 22,953,720 7,373,922 4,346,424 3,328,597 55,431,803 1,979,707

Mar-19 19,064,366 27,013,024 7,724,090 3,894,652 4,968,891 62,665,023 2,021,452

Apr-19 17,520,185 26,579,582 6,731,332 5,676,252 3,518,225 60,025,576 2,000,853

May-19 17,567,593 27,188,983 6,464,447 4,875,061 3,752,830 59,848,914 1,930,610

Jun-19 19,020,901 26,938,093 7,529,665 5,665,192 4,372,525 63,526,377 2,117,546

Jul-19 20,989,993 28,019,860 6,552,738 5,548,452 4,472,661 65,583,704 2,115,603

Aug-19 20,641,210 27,377,512 6,292,482 6,312,535 3,988,244 64,611,984 2,084,258

Sep-19 18,474,136 27,427,606 5,258,304 4,350,850 6,387,716 61,898,612 2,063,287

Oct-19 21,266,847 26,519,528 6,761,513 5,878,606 2,947,843 63,374,338 2,044,333

Nov-19 18,402,011 24,970,450 6,387,164 4,638,276 3,851,588 58,249,489 1,941,650

Dec-19 20,501,440 25,507,750 6,420,300 5,509,484 2,863,809 60,802,783 1,961,380

PTD 248,653,658 335,273,330 88,770,282 66,362,127 55,233,828 794,293,224 2,005,791

Month

Notes: December 2019 Crude Oil figure includes Pure Condensate of 7,398,701 barrels & Spiked Condensate of 1,998,575 barrels.

Crude oil Production is reported 1 month in arrears. Jan – Dec 2019 updated to reconciled figures with DPR and IOCs.

NPDC’s Crude production is based on NPDC’s wholly owned assets and percentage holding in JV assets.

NPDC 60 Series production is included in JVs & MCA production, the volume included in December 2019 is 1,706,123 bbls.

For more details on production by company, streams and well-head productions (Non-Fiscalised) click on these links:

Company streams and well-head respectively.




http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/Terminal.pdf

http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/Streams.pdf

http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/WellHead.pdf


Chart 2.1.1: Crude Oil & Condensate Production: December ’18 – December ‘19

Chart 2.1.2: Average Daily Crude Oil & Condensate Production & Percentage distribution

Table 2.1.2: NPDC Monthly Crude Oil & Condensate Production Field/Company YTD Budget

(bbls)Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 PTD

NPDC Owned Direct Operated Assets Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels

Abura OML 65 2,264,163 250,255 271,777 188,258 195,904 198,851 35,716 1,242,635 91,927 146,551 204,821 173,298 16,695 124,951 3,141,637

Oredo OML 111 2,502,500 222,266 244,706 206,824 192,692 201,231 248,611 228,718 246,473 263,086 263,005 130,630 157,251 229,249 2,834,743

Oziengbe OML 111 678,337 0 0 0 0 0 279,221 0 0 0 0 0 0 279,221

Okono_Okpoho OML 119 15,574,163 467,041 500,899 455,427 547,344 534,892 544,066 0 511,745 504,810 482,736 495,160 489,457 412,063 5,945,640

Brass OML 60-63 - 0 0 579,932 0 1,251,210 1,114,874 384,729 1,326,340 2,035,458 0 1,729,923 865,463 1,094,445 10,382,374

SUB-TOTAL 21,019,163 939,562 1,017,382 1,430,441 935,940 2,186,184 1,943,267 2,135,303 2,176,485 2,949,905 950,562 2,529,010 1,528,867 1,860,708 22,583,616

Ogini_Isoko/FHN OML 26 1,457,500 179,020 198,797 89,211 74,836 138,030 84,842 131,464 139,689 156,707 140,256 151,953 180,866 178,377 1,844,048

Opuama/Elcrest OML 40 751,663 424,462 481,714 347,117 234,203 393,530 358,076 323,996 285,836 309,953 273,574 334,096 218,437 456,739 4,441,732

Batan_Odidi/Neconde OML 42 2,731,663 948,135 812,608 696,738 806,658 704,977 626,280 869,746 861,196 604,618 754,558 635,546 547,834 511,220 9,380,113

Afiesere_Kokori/Shoreline OML 30 6,737,500 1,021,417 1,275,053 959,667 904,518 1,118,615 947,255 1,077,375 1,110,506 1,234,239 1,206,716 1,219,297 1,151,412 1,328,908 14,554,977

Utorogu_Ughelli/NDW OML 34 3,125,837 314,775 278,025 232,394 273,517 310,569 204,540 294,203 202,021 168,980 278,817 244,254 143,220 256,656 3,201,973

NPDC JV Direct Operated Assets

Block

SUB-TOTAL 14,804,163 2,887,810 3,046,197 2,325,127 2,293,732 2,665,722 2,220,992 2,696,784 2,599,248 2,474,497 2,653,920 2,585,146 2,241,769 2,731,898 33,422,843 0.5036 11,097,183 OBEN_Amukpe_Sapele/SEPLAT

OBEN_Amukpe_Sapele/SEPLAT OML 4,38&41 28,242,500 892,078 883,313 590,856 664,980 824,347 710,801 833,105 772,720 888,133 746,367 764,450 867,640 916,878 10,355,668

SUB-TOTAL 28,242,500 892,078 883,313 590,856 664,980 824,347 710,801 833,105 772,720 888,133 746,367 764,450 867,640 916,878 10,355,668

GRAND TOTAL 64,065,826 4,719,450 4,946,892 4,346,424 3,894,652 5,676,252 4,875,061 5,665,192 5,548,452 6,312,535 4,350,850 5,878,606 4,638,276 5,509,484 66,362,127

Average Daily Production 175,523 152,240 159,577 155,229 125,634 189,208 157,260 188,840 178,982 203,630 145,028 189,632 154,609 177,725 167,581

NPDC JV Non-Operated Assets

19.3 18.4 17.4 19.1 17.5 17.6 19.0 21.0 20.6 18.5 21.3 18.4 20.5

21.9 22.9 23.027.0 26.6 27.2 26.9 28.0 27.4 27.4 26.5

25.0 25.5

7.8 7.5 7.47.7 6.7 6.5 7.5 6.6 6.3 5.3 6.8

6.4 6.4

59.05 59.2355.43

62.67 60.03 59.8563.53 65.58 64.61 61.90 63.37 58.25 60.80

0

10

20

30

40

50

60

70

Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

Total Monthly Crude Oil & Condensate Production (Million Barrels)

JVs PSC AF NPDC Independent / Marginal Fields

1.90 1.91 1.98 2.02 2.001.93

2.12 2.12 2.08 2.06 2.041.94 1.96

0.0

0.5

1.0

1.5

2.0

2.5

Average Daily Crude Oil & Condensate Production (Million Barrels/Day)

31.3%

42.2%

11.2%

9%7%

PTD Percentage Distribution of Crude Oil Production by Commercial

Arrangements

JVs

PSC

AF

NPDC

Independent /Marginal Fields





The NPDC December 2018 to December 2019 cumulative production from all fields

totaled 66,362,127 barrels of crude oil translating to an average daily production of

167,581 barrels per day. Comparing PTD NPDC performance to National Production, the

Company’s production share is 8.32%. NPDC is projected to ramp-up production level to

250,000bp/d in the near future. PTD production from NPDC wholly operated assets

amounted to 22,583,616 barrels (or 34.03% of the total NPDC production) with Okono

Okpoho (OML 119) alone producing 26.33% of the NPDC wholly owned operated assets

and 8.96% of the total NPDC production. Also, on the NPDC operated JV assets, in which

NPDC owns 55% controlling interest, crude oil production amounted to 33,422,843

barrels (or 50.36% of the NPDC total production). On the non-operated assets,

production level stood at 10,355,668 barrels or 15.60% of the Company’s production.

Chart 2.1.3 NPDC Monthly Crude Oil & Condensate Production

Chart 2.1.4 NPDC Monthly Average Daily Crude Production by Field

940 1,0171,430

936

2,186 1,943 2,135 2,1762,950

951

2,529

1,529 1,861

2,888 3,046 2,325

2,294

2,666

2,2212,697 2,599

2,474

2,654

2,585

2,242

2,732

892883

591

665

824

711

833 773

888

746

764

868

9174,719

4,947

4,3463,895

5,676

4,875

5,665 5,548

6,313

4,351

5,879

4,638

5,509

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


NPDC Crude Monthly Production (Thousand Barrels)

NPDC Owned Direct Operated Assets NPDC JV Direct Operated Assets

152160 155

126

189

157

189179

204

145

190

155

178

0

50

100

150

200

250

NPDC Average Daily Crude Oil Production

(Thousand Barrels/Day)

279

1,844

2,835

3,142

4,442

3,202

5,946

9,765

9,926

10,356

0 4,000 8,000 12,000

Oziengbe

Ogini_Isoko/FHN

Oredo

Abura

Opuama/Elcrest

Utorogu_Ughelli/NDW

Okono_Okpoho

Afiesere_Kokori/Shoreline

Batan_Odidi/Neconde

OBEN_Amukpe_Sapele/SEPLAT

NPDC PTD Ranking by Field (Thousand Barrels)





2.2. National Gas Production

A total of 253.09 Billion Cubic Feet (BCF) of natural gas was produced in the month of

January 2020 translating to an average daily production of 8164.23 Million Standard

Cubic Feet per Day (mmscfd). For the period January 2019 to January 2020, a total of

3,128.57 BCF of gas was produced representing an average daily production of 7,937.25

mmscfd during the period. Period-to-date Production from Joint Ventures (JVs),

Production Sharing Contracts (PSCs) and NPDC contributed about 69.17%, 21.59% and

9.24% respectively to the total national gas production. The tables and charts overleaf

provide details of the national gas production for the period January 2019 to January

2020.

Table 2.2.1: National Gas Production by Regime

Total Monthly Production Daily Average Production

JV PSC NPDC TOTAL

BCF BCF BCF BCF

Jan-19 173.35 48.60 23.88 245.83

Feb-19 153.52 47.16 22.28 222.96

Mar-19 183.41 56.23 23.85 263.49

Apr-19 173.34 56.29 25.44 255.08

May-19 146.79 52.10 24.84 223.73

Jun-19 148.41 51.42 24.16 223.98

Jul-19 177.84 53.64 21.87 253.35

Aug-19 175.72 52.95 19.05 247.72

Sep-19 160.09 53.66 21.38 235.12

Oct-19 165.35 51.85 19.07 236.27

Nov-19 162.69 46.60 19.36 228.65

Dec-19 167.34 50.28 21.68 239.29

Jan-20 176.09 54.82 22.19 253.09

Total 2,163.93 675.59 289.05 3,128.57

PERIOD

JV PSC NPDC TOTALmmscfd mmscfd mmscfd mmscfd

Jan-19 5,778.46 1,619.95 795.93 8,194.34

Feb-19 5,482.93 1,684.30 795.58 7,962.82

Mar-19 5,916.36 1,814.01 769.21 8,499.58

Apr-19 5,778.09 1,876.31 848.14 8,502.54

May-19 4,893.09 1,736.49 801.38 7,430.96

Jun-19 4,946.80 1,713.90 805.39 7,466.09

Jul-19 5,736.81 1,730.32 705.58 8,172.70

Aug-19 5,668.22 1,708.10 614.63 7,990.95

Sep-19 5,336.22 1,788.60 712.60 7,837.42

Oct-19 5,334.00 1,673.00 615.00 7,622.00

Nov-19 5,423.06 1,553.27 645.35 7,621.68

Dec-19 5,397.90 1,621.80 699.29 7,718.99

Jan-20 5,680.18 1,768.26 715.79 8,164.23

Average 5,490.16 1,714.48 732.60 7,937.25

PERIOD

Chart 2.2.1: Average Daily National Gas Production for the period

5,778 5,483 5,916 5,7784,893 4,947

5,737 5,668 5,336 5,334 5,423 5,398 5,680

1,620 1,6841,814 1,876

1,736 1,7141,730 1,708 1,789 1,673 1,553 1,622

1,768

796 796769 848

801 805706 615 713 615 645 699

716

8,194 7,963 8,500 8,5037,431 7,466

8,173 7,991 7,837 7,622 7,622 7,7198,164

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20

Average Daily National Gas Production (mmscfd)

JV PSC NPDC





Chart 2.2.2: Monthly National Gas Production & Percentage Distribution

2.3 Crude Oil & Condensate Lifting & utilization

In December 2019, a total volume of 59.31 million barrels of crude oil and condensate

was lifted by all parties. Out of this volume, 18.29 million barrels was lifted by NNPC on

behalf of the Federation. This comprises 13.92 million barrels lifted on the account of

NNPC (Domestic and Federation Export) while 4.13 million barrels and 0.24 million

barrels were superintended for FIRS and DPR respectively.

Table 2.3.1: Crude Oil & Condensate Lifting and utilization

NNPC

Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels BarrelsDec-18 2,551,482 300,000 4,085,279 11,059,517 15,144,796 17,996,278 38,543,088 1,736,583 58,275,949Jan-19 3,849,293 306,614 5,862,889 8,420,913 14,283,802 18,439,709 35,398,363 3,885,820 57,723,892Feb-19 4,572,984 856,350 4,475,918 7,150,971 11,626,889 17,056,223 38,006,714 1,912,940 56,975,877Mar-19 2,847,027 1,635,562 5,085,876 5,783,416 10,869,292 15,351,881 39,473,600 3,844,913 58,670,394Apr-19 5,776,491 411,977 6,259,548 9,487,883 15,747,431 21,935,899 38,448,458 3,170,082 63,554,439May-19 3,221,008 899,160 3,471,348 8,069,842 11,541,190 15,661,358 40,858,616 2,031,249 58,551,223Jun-19 2,645,264 2,121,765 3,743,417 10,955,223 14,698,640 19,465,669 42,407,067 2,040,752 63,913,488Jul-19 5,027,810 1,032,618 2,403,119 7,932,679 10,335,798 16,396,226 43,102,152 1,497,280 60,995,658Aug-19 2,820,098 1,101,850 4,419,247 11,557,171 15,976,418 19,898,366 44,305,889 2,380,704 66,584,959Sep-19 6,027,754 800,077 6,197,366 10,665,632 16,862,998 23,690,829 40,747,618 1,005,552 65,443,999Oct-19 5,726,139 800,000 6,131,393 9,560,513 15,691,906 22,218,045 41,797,923 669,000 64,684,968Nov-19 2,918,727 271,100 2,161,697 8,621,658 10,783,355 13,973,182 40,058,189 3,826,181 57,857,552Dec-19 4,128,158 241,353 4,891,148 9,033,535 13,924,683 18,294,194 38,300,717 2,719,717 59,314,628

TOTAL 52,112,235 10,778,426 59,188,245 118,298,953 177,487,198 240,377,859 521,448,394 30,720,773 792,547,026

AF GRAND TOTALDPR (PSC)

SUB-TOTAL GOVERNMENT

LIFTINGFEDERATION

EXPORTSUB-TOTAL

(NNPC)

IOCs & INDEPENDENTS

(INC. NPDC)DOMESTIC LIFTING MONTH

NIGERIAN GOVERNMENT

FIRS (PSC)

Notes: Crude oil lifting is reported one month in arrears

For more details on crude oil lifting under each AF lifting arrangement and MCA performance analysis

follow the link

246223

263 255

224 224

253 248235 236 229

239253

0

50

100

150

200

250

300

Total Monthly Natural Gas Production (BCF)

69.2%

21.6%

9.2%

Percentage Distribution of Upstream Gas Production-

January '19 - January '20 Average

JV

PSC

NPDC




http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/AF%20Liftings.pdf

http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/MCA%20Performance.pdf


Of the 13.92 million barrels lifted on the account of NNPC in December 2019, 9.03 million

barrels and 4.89 million barrels were for domestic and export markets respectively. At

an average oil price of $ 68.86/barrel and exchange rate of N306.00/$, the domestic crude

oil lifted by NNPC is valued at $622,061,297.78 or a Naira equivalent of

N190,350,757,121.60 for the month of December 2019. The remaining crude oil lifted for

export was valued at $336,648,965 at an average price of $68.83/barrel. The total value

of crude oil lifted on the account of NNPC in December 2019 was thus $958,710,263.

From December 2018 to December 2019, a total volume of 793 million barrels of crude

oil and condensate was lifted by all parties. The tables 2.3.1 above and charts 2.3.1

overleaf provide the details of crude oil and condensate lifting and their corresponding

accrual values for the period December 2018 to December 2019.

Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements

Table 2.3.2: Crude Oil Lifting Values

NNPC

USD USD USD USD USD USD USD USD USD

Dec-18 142,814,465 15,988,200 240,228,241 619,569,200 859,797,440 1,018,600,105 2,266,464,106 101,436,240 3,386,500,450

Jan-19 225,457,206 17,765,417 350,289,728 506,963,728 857,253,456 1,100,476,079 2,114,944,179 228,578,129 3,443,998,387

Feb-19 301,782,282 56,535,513 294,218,112 465,742,615 759,960,728 1,118,278,523 2,498,317,359 127,262,616 3,743,858,499

Mar-19 196,502,747 109,959,024 342,111,048 393,039,223 735,150,270 1,041,612,041 2,655,266,203 260,854,284 3,957,732,528

Apr-19 417,651,349 30,204,627 458,593,727 697,219,934 1,155,813,661 1,603,669,636 2,816,852,215 165,832,328 4,586,354,180

May-19 210,541,171 68,744,993 248,220,441 556,610,864 804,831,305 1,084,117,470 2,921,615,371 167,322,462 4,173,055,303

Jun-19 173,810,248 138,227,830 249,346,976 728,505,245 977,852,221 1,289,890,299 2,824,711,735 137,091,227 4,251,693,261

Jul-19 322,755,378 68,146,893 150,730,868 508,739,032 659,469,900 1,050,372,171 2,703,496,907 97,362,202 3,851,231,280

Aug-19 166,211,340 64,621,991 267,969,532 693,347,037 961,316,569 1,192,149,900 2,686,572,696 143,972,059 4,022,694,655

Sep-19 378,053,358 49,429,794 396,937,648 675,456,228 1,072,393,876 1,499,877,028 2,609,860,973 60,696,651 4,170,434,652

Oct-19 349,667,917 50,473,400 383,894,138 602,913,863 986,808,000 1,386,949,317 2,617,019,918 41,191,553 4,045,160,788

Nov-19 126,223,579 17,644,884 136,360,677 560,595,652 696,956,329 840,824,791 2,526,885,955 245,323,957 3,613,034,703

Dec-19 286,172,719 16,341,248 336,648,965 622,061,298 958,710,263 1,261,224,231 2,636,169,822 185,518,582 4,082,912,635

TOTAL 3,297,643,760 704,083,813 3,855,550,101 7,630,763,917 11,486,314,018 15,488,041,592 33,878,177,439 1,962,442,291 51,328,661,322

AF GRAND TOTALFIRS (PSC) DPR (PSC)LIFTING MONTH

IOCs & INDEPENDENTS

(INC. NPDC)

NIGERIAN GOVERNMENT

SUB-TOTAL (NNPC)

DOMESTIC

SUB-TOTAL GOVERNMENT

LIFTINGFEDERATION

EXPORT

Note:

IOCs, Independents, & AF values include government taxes and royalties superintended by FIRS and DPR respectively.

For more information on crude oil lifting by Company and Crude Destination click the link.

38.5 35.4 38.0 39.5 38.4 40.9 42.4 43.1 44.3 40.7 41.8 40.1 38.3

58.28 57.72 56.98 58.6763.55

58.5563.91 61.00 66.58 65.44 64.68 57.86 59.31

0

20

40

60

80


Monthly Lifting Entitlement (Million Barrels)

IOCs & INDEPENDENTS (INC. NPDC) AF




http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/Lifting%20By%20Company.pdf

http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/Crude%20destinations.pdf


Chart 2.3.2: Government Crude Oil Lifting and utilization on Account of NNPC

2.4 Utilization of Crude Oil for Domestic Product Supply

In December 2019, NNPC lifted 9,033,535 barrels of crude oil from the daily allocation

for domestic utilization translating to an average volume of 291,404 barrels of oil per day

in terms of performance. In order to meet domestic product supply requirement for the

month of December 2019, the entire 9,033,535 barrels were processed under the Direct-

Sales-Direct Purchase (DSDP) scheme while no deliveries to the domestic refineries for

processing. Tables and charts below provide details of NNPC’s Utilization of Crude Oil for

Domestic Product Supply for the period of December 2018 to December 2019.

Table 2.4.1: Domestic Crude Purchased By NNPC from Federation

Volume Ave. Price Sales Value Sales Value Average Lifting

Barrels $/bbl USD NGN Barrels Per Day

Dec-18 11,059,517.00 56.02 619,569,199.76 189,464,261,286.31 356,758.61

Jan-19 8,420,913.00 60.20 506,963,727.65 155,130,900,659.37 271,642.35

Feb-19 7,150,971.00 65.13 465,742,615.47 142,400,804,681.18 255,391.82

Mar-19 5,783,416.00 67.96 393,039,222.71 120,211,046,266.77 186,561.81

Apr-19 9,487,883.00 73.49 697,219,933.82 213,314,438,751.62 316,262.77

May-19 8,069,842.00 68.97 556,610,864.34 170,295,093,943.29 260,317.48

Jun-19 10,955,223.00 66.50 728,505,244.79 222,886,179,643.20 365,174.10

Jul-19 7,932,679.00 64.13 508,739,031.81 155,623,269,830.37 255,892.87

Aug-19 11,557,171.00 59.99 693,347,036.95 212,060,191,251.77 372,811.97

Sep-19 10,665,632.00 63.33 675,456,227.68 206,689,605,668.55 355,521.07

Oct-19 9,560,513.00 63.06 602,913,862.53 184,491,641,934.48 308,403.65

Nov-19 8,621,658.00 65.02 560,595,651.62 171,542,269,396.33 287,388.60

Dec-19 9,033,535.00 68.86 622,061,297.78 190,350,757,121.60 291,404.35

Total/Ave 118,298,953.00 64.50 7,630,763,916.91 2,334,460,460,434.84 298,734.73

Period

11.18.4

7.25.8

9.58.1

11.0

7.9

11.6 10.7 9.6 8.6 9.0

4.1

5.9

4.55.1

6.3

3.5

3.7

2.4

4.4 6.26.1

2.2

4.9

15.1414.28

11.6310.87

15.75

11.54

14.70

10.34

15.98 16.86 15.69

10.78

13.92

0

2

4

6

8

10

12

14

16

18


Government Crude Oil Lifting & Utilisation (Million Barrels)

DOMESTIC FEDERATION EXPORT





Table 2.4.2: Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply

Qty ('000 Bbls) Value in US$'Mn Naira'Mn Qty ('000 Bbls) Value in US$'Mn Naira'Mn Qty ('000 Bbls) Value in US$'Mn Naira'Mn

Dec-18 619.95 35.31 10,797.59 12,343.12 692.54 211,779.84 12,963.07 727.85 222,577.43

Jan-19 823.53 50.61 15,485.78 8,546.33 508.99 155,749.87 9,369.87 559.59 171,235.64

Feb-19 513.74 33.87 10,355.28 10,460.91 683.87 209,092.97 10,974.65 717.74 219,448.24

Mar-19 996.90 68.86 21,059.62 7,681.44 521.45 159,484.19 8,678.35 590.30 180,543.82

Apr-19 0.00 0.00 0.00 14,284.19 1,042.99 319,101.57 14,284.19 1,042.99 319,101.57

May-19 430.09 29.38 8,990.33 11,162.00 757.33 231,706.60 11,592.09 786.72 240,696.93

Jun-19 0.00 0.00 0.00 13,829.17 918.06 280,879.16 13,829.17 918.06 280,879.16

Jul-19 0.00 0.00 0.00 12,728.27 814.21 249,147.16 12,728.27 814.21 249,147.16

Aug-19 0.00 0.00 0.00 15,374.46 917.94 280,751.62 15,374.46 917.94 280,751.62

Sep-19 0.00 0.00 0.00 14,490.43 917.05 280,616.06 14,490.43 917.05 280,616.06

Oct-19 0.00 0.00 0.00 15,286.65 952.58 291,490.02 15,286.65 952.58 291,490.02

Nov-19 0.00 0.00 0.00 12,490.35 807.61 247,127.50 12,490.35 807.61 247,127.50

Dec-19 0.00 0.00 0.00 14,817.73 1,020.92 312,401.23 14,817.73 1,020.92 312,401.23

PTD 3,384.22 218.03 66,688.60 163,495.05 10,555.52 3,229,327.80 166,879.26 10,773.55 3,296,016.39

Month

TOTAL DELIVERIES TO REFINERIES DIRECT SALES DIRECT PURCHASE - JV/PSC (Domestic)+FIRS-PPT+EXTENDED

Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply

Chart 2.4.2: Percentage Distribution for December 2019 Domestic Crude Utilization

12.3

8.510.5

7.7

14.3

11.2 13.8

12.7 15.4 14.5 14.5 15.3 14.8

0.62

0.82

0.51

1.00

-

0.43

--

-- -

- -13.0

9.4

11.0

8.7

14.3

11.6

13.812.7

15.4 14.5 14.8

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00


NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels)

DSDP REFINERY DIRECT EXPORT

100.0%

December 2019 Crude Oil Utilization For Domestic Product Consumption

REFINERY

DSDP

DIRECTEXPORT

0.0%5.1%

94.9%

0.0%

PTD Crude Oil Utilization For Domestic Product Consumption

REFINERY

DSDP

DIRECTEXPORT





2.5 Natural Gas Off take, Commercialization & Utilization

Out of the 253.09 BCF of gas supplied in January 2020, a total of 151.16 BCF of gas was

commercialized consisting of 36.20 BCF and 114.96 BCF for the domestic and export

market respectively as shown in Table 2.5.1 below. This translates to a total supply of

1,167.80 mmscfd of gas to the domestic market and 3,708.23 mmscfd of gas supplied to

the export market for the month as shown in Table 2.5.2 on page 16.

This implies that 59.89% of the average daily gas produced was commercialized while

the balance of 40.11% was re-injected, used as upstream fuel gas or flared. Gas flare rate

was 7.90% for the month under review i.e. 643.59 mmscfd compared with average Gas

flare rate of 8.46 % i.e. 671.40 mmscfd for the period January 2019 to January 2020.

Table 2.5.1: Total Gas Commercialization and utilization

Domestic Gas To

Power

Domestic Gas to

Industry

Total Domestic Gas

SupplyWAPG EGTL NGL/ LPG NLNG Total Export Gas

BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF

Jan-19 23.48 14.55 38.03 1.98 7.75 3.37 100.36 113.47 62.58 12.26 18.30 93.14 244.65

Feb-19 22.96 14.82 37.77 1.56 6.25 3.50 78.53 89.85 62.98 11.41 21.22 95.61 223.23

Mar-19 24.08 16.28 40.35 1.84 8.20 4.10 100.52 114.66 70.78 12.85 24.95 108.58 263.59

Apr-19 20.38 14.52 34.89 1.90 7.59 3.47 97.99 110.96 68.84 12.28 24.82 105.94 251.79

May-19 21.32 14.93 36.25 2.11 7.13 3.72 75.08 88.04 65.05 12.02 19.84 96.92 221.21

Jun-19 21.03 14.66 35.69 2.43 7.41 3.72 78.17 91.73 64.16 12.34 18.12 94.62 222.04

Jul-19 20.44 14.02 34.45 2.70 5.11 4.03 99.64 111.47 69.89 13.11 20.47 103.47 249.39

Aug-19 20.50 15.77 36.27 3.47 2.90 2.77 105.81 114.95 65.72 12.37 21.66 99.75 250.98

Sep-19 17.84 14.41 32.25 2.43 0.53 2.35 98.07 103.38 67.94 11.61 19.94 99.49 235.12

Oct-19 17.15 14.22 31.37 2.57 0.00 2.13 98.90 103.60 70.34 13.00 17.52 100.86 235.82

Nov-19 19.34 15.96 35.29 1.98 1.35 2.48 95.93 101.73 60.83 11.89 18.97 91.70 228.72

Dec-19 18.48 16.29 34.78 2.87 5.44 2.00 103.24 113.54 59.58 11.94 18.54 90.05 238.37

Jan-20 19.83 16.37 36.20 2.54 6.48 3.08 102.86 114.96 68.64 12.65 19.95 101.24 252.39

Total 266.81 196.78 463.59 30.38 66.14 40.73 1,235.08 1,372.33 857.33 159.73 264.31 1,281.36 3,117.29

Domestic Gas Export Gas

Gas Commercialisation

Grand TotalPeriod

Non-Commercialized Gas

Re-Injection Fuel Gas FlareTotal Non-

Commerialized Gas

Note: For more details on Gas Liftings follow this link

Total gas supply for the period January 2019 to January 2020 stood at 3,117.29 BCF out

of which 464.59 BCF and 1,372.33 BCF were commercialized for the domestic and export

market respectively. Gas re–injected, Fuel gas and Gas flared stood at 1,281.36 BCF. The

table 2.5.1 and chart 2.5.1 provides more details of the gas utilization and

commercialization for the period January 2019 to January 2020.




http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/NGL.pdf


Chart 2.5.1: January ’19 – January ‘20 Percent Distribution of Gas Utilization

As shown in Table 2.5.2 below, out of the 1,167.80 mmscfd of gas supplied to the domestic

market in January 2020, about 639.70 mmscfd of gas representing 54.78% was supplied

to Gas-Fired power plants while the balance of 528.10 mmscfd or 45.22% was supplied

to other industries. Similarly, for the period of January 2019 to January 2020 an average

of 1,203.93 mmscfd of gas was supplied to the domestic market comprising an average of

693.73 mmscfd or (57.62%) as gas supply to the power plants and 510.20 mmscfd or

(42.38%) as gas supply to industries.

Table 2.5.2: Total Average Daily Gas Commercialization and utilization

Domestic Gas To

Power

Domestic Gas to

IndustryTotal Gas To Domestic WAPG EGTL NGL/LPG NLNG Total Gas To Export

mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd

Jan-19 757.49 469.34 1,226.83 63.98 258.40 112.41 3,345.44 3,780.24 2,086.01 408.69 610.07 3,104.77 8,111.84

Feb-19 819.85 529.17 1,349.03 55.72 223.21 125.14 2,804.67 3,208.74 2,249.21 407.52 757.94 3,414.66 7,972.43

Mar-19 776.60 525.02 1,301.62 59.38 264.51 132.28 3,242.43 3,698.59 2,283.20 414.64 804.69 3,502.53 8,502.73

Apr-19 727.67 518.40 1,246.06 67.95 253.12 115.72 3,266.28 3,703.07 2,294.69 409.26 827.42 3,531.37 8,480.50

May-19 761.46 533.12 1,294.57 70.43 237.53 124.09 2,502.73 2,934.78 2,168.33 400.79 661.47 3,230.59 7,459.94

Jun-19 751.18 523.62 1,274.80 81.00 246.90 124.15 2,605.60 3,057.65 2,138.72 411.34 603.97 3,154.03 7,486.48

Jul-19 729.84 500.68 1,230.52 87.00 164.68 130.04 3,214.06 3,595.78 2,254.40 422.74 660.04 3,337.18 8,163.48

Aug-19 666.15 508.82 1,174.97 111.89 93.65 89.42 3,413.23 3,708.19 2,119.93 399.13 698.78 3,217.84 8,100.99

Sep-19 594.56 480.30 1,074.86 81.00 17.53 78.36 3,269.12 3,446.02 2,264.71 387.05 664.70 3,316.46 7,837.34

Oct-19 553.15 458.70 1,011.85 82.84 0.00 68.84 3,190.16 3,341.84 2,269.00 419.28 565.17 3,253.45 7,607.13

Nov-19 644.58 531.82 1,176.40 65.90 44.93 82.67 3,197.54 3,391.04 2,027.71 396.43 632.37 3,056.51 7,623.95

Dec-19 596.27 525.50 1,121.77 92.59 175.58 64.36 3,330.17 3,662.70 1,921.94 384.99 598.03 2,904.96 7,689.43

Jan-20 639.70 528.10 1,167.80 81.82 209.13 99.18 3,318.10 3,708.23 2,214.18 407.89 643.59 3,265.66 8,141.69

Average 693.73 510.20 1,203.93 77.04 168.40 103.59 3,130.73 3,479.76 2,176.31 405.37 671.40 3,253.08 7,936.76

Grand Total

Non-Commercialized Gas

Re-Injection Fuel Gas FlarePeriodTotal Non-

Commerialized Gas

Gas Commercialisation

Export GasDomestic Gas

15.2%

43.8%

41.0%

PTD Year Average Percentage Distribution of Gas Utilisation

Total GasToDomestic

Total GasTo Export

Total Non-Commerialized Gas

14.3%

45.5%

40.1%

January 2020Percentage Distribution of Gas

Utilisation

Total GasToDomestic

Total GasTo Export

Total Non-Commerialized Gas





About 3,318.10 mmscfd or 89.48% of the export gas was sent to Nigerian Liquefied

Natural Gas Company (NLNG) Bonny for January 2020 compared with the period,

January 2019 to January 2020 average of 3,130.73 mmscfd or 89.97% of the export gas.

Chart 2.5.2: Average Daily National Gas to Domestic, Export & Gas Non-Commercialized

2.6 Domestic Gas Supply to the Power Sector

A total of 640 mmscfd was delivered to gas fired power plants in the month of January

2020 to generate an average power of about 2,683 MW compared with December 2019

where an average of 596 mmscfd was supplied to generate 2,498 MW. The table 2.6.1 and

chart 2.6.1 below provide more details.

Table 2.6.1: Domestic Gas Supply to the Power Sector & Generation

Gas Supply To Gas-Fired Power Plants

(mmscfd)

Power Generated from Gas-Fired Power Plants

(MW)

% of Total Generation including Hyrdo

mmscfd MW %

Jan-19 757 3,124 MW 76.4%

Feb-19 820 3,336 MW 78.9%

Mar-19 777 3,223 MW 77.4%

Apr-19 728 3,095 MW 80.8%

May-19 761 2,958 MW 81.6%

Jun-19 751 2,896 MW 82.5%

Jul-19 730 2,864 MW 81.6%

Aug-19 666 2,462 MW 77.7%

Sep-19 595 2,227 MW 69.2%

Oct-19 553 2,050 MW 64.3%

Nov-19 645 2,178 MW 66.7%

Dec-19 596 2,498 MW 68.4%

Jan-20 640 2,683 MW 72.9%

Average 694 2,738 MW 75.3%

Period

1,227 1,349 1,302 1,246 1,295 1,275 1,231 1,175 1,075 1,012 1,176 1,122 1,168

3,780 3,209 3,699 3,7032,935 3,058 3,596 3,708 3,446 3,342 3,391 3,663 3,708

3,105 3,4153,503 3,531

3,231 3,1543,337 3,218 3,316 3,253 3,057 2,905 3,266

8,112 7,9728,503 8,480

7,460 7,4868,163 8,101 7,837 7,607 7,624 7,689

8,142

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000


Average Daily National Gas to Domestic, Export & Gas Non-Commericlized (mmscfd)

Total Gas To Domestic Total Gas To Export Total Non-Commerialized Gas





Chart 2.6.2: Domestic Gas Supply to the Power Sector & Generation

757820 777

728 761 751 730666

595 553645

596 640

3,124 MW3,336 MW

3,223 MW3,095 MW

2,958 MW 2,896 MW 2,864 MW

2,462 MW2,227 MW

2,050 MW2,178 MW

2,498 MW2,683 MW

0 MW

500 MW

1,000 MW

1,500 MW

2,000 MW

2,500 MW

3,000 MW

3,500 MW

4,000 MW

0

100

200

300

400

500

600

700

800

900

1,000


mm

scfd

Gas Supply to Thermal Power plants vs Generation from Thermal Power Plants

Gas Supply To Gas-Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW)





3 Refinery Operations

3.1 Capacity Utilization

In January 2020, the three refineries processed no crude but utilized 1,603 MT of finished

products; particularly by WRPC. Combined yield efficiency is 0.00% owing largely to on-

going rehabilitation works in the Refineries.

Table 3.1.1: Monthly Consolidated Refineries Operational Performance

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Total

Opening Stock (A) MT 447,121 455,780 306,852 249,224 249,224 413,004 412,971 413,896 413,896 425,969 425,953 425,718 410,722 5,050,330

Crude Received (B) MT 113,538 70,430 138,016 0 62,915 0 925 0 12,485 4 4 0 10,743 409,060

Crude Transferred to KRPC (C) MT 4,000 0 -3,702 0 0 0 0 0 0 0 0 0 -74,037 73,739

Total Crude Available (D=A+B-C) MT 564,659 526,210 441,166 249,224 312,139 413,004 413,896 413,896 426,381 425,973 425,957 425,718 347,428 5,385,651

Closing Stock (E=D-F) MT 460,200 302,235 381,477 249,224 279,172 374,027 413,896 413,896 426,381 425,973 425,957 425,718 347,428 4,925,584

Crude Processed (F) MT 104,459 223,975 59,689 0 32,967 38,977 0 0 0 0 0 0 0 460,067

(i) Finished Products MT 123,725 118,911 76,369 420 22,676 23,878 59,311 29,979 967 2,504 5,031 619 1,603 445,639

(ii) Intermediate Products MT 47,249 84,313 33,013 5,575 3,118 11,722 72,313 39,542 9,599 575 385 4,513 1,603 133,532

(iii) Plant Consumption MT 18,031 17,588 13,045 5,088 27,038 21,018 9,429 3,986 7,209 4,918 3,157 4,321 0 124,992

(iv) Losses MT 9,953 3,142 3,288 470 2,422 5,803 3,573 5,577 1,423 6,847 1,489 810 0 44,797

Plant Capacity kpd 445 445 445 445 445 445 445 445 445 445 445 445 445 445

Capacity Utilization % 5.55% 13.18% 3.17% 0.00% 1.75% 2.14% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.78%

Losses % 9.53% 1.40% 5.51% 0.00% 7.35% 14.89% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 9.74%

Plant Consumption % 17.26% 7.85% 21.85% 0.00% 82.02% 53.92% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 27.17%

Yields Efficiency based on CDU, CRU & FCC (%) % 73.21% 90.74% 72.64% 0.00% 78.24% 31.19% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 67.84%

Operational Parameters UnitsConsolidated Refineries Operations

Note: KRPC received their crude via WRPC.

The declining operational performance is attributable to ongoing revamping of the

refineries which is expected to further enhance capacity utilization once completed.





Chart 3.1.1: Monthly Refineries Consolidated Capacity Utilization

Table 3.1.2: Refineries Monthly Operations

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Total


Crude Received (B) MT 113,538 70,430 138,016 0 62,915 0 404 0 12,485 4 4 0 0 397,796

Crude Transferred to KRPC (C) MT 4,000 0 -3,702 0 0 0 0 0 0 0 0 0 -74,037 73,739

Total Crude Available (D=A+B-C) MT 324,709 286,680 216,685 170,891 233,806 200,839 201,243 201,243 213,728 213,732 213,736 214,196 125,163 2,816,651

Closing Stock (E=D-F) MT 220,250 77,754 170,891 170,891 200,839 200,839 201,243 201,243 213,728 213,732 213,736 214,196 125,163 2,424,505

Crude Processed (F) MT 104,459 208,926 45,794 0 32,967 0 0 0 0 0 0 0 0 392,146

(i) Finished Products MT 119,541 119,005 71,178 2,487 21,347 10,420 17,537 10,424 511 559 3,052 2,593 1,603 365,761

(ii) Intermediate Products MT 36,293 80,178 35,764 5,176 4,771 18,463 22,152 10,759 511 559 0 1,489 1,603 44,614

(iii) Plant Consumption MT 11,835 7,769 7,562 2,689 31,541 5,064 2,851 335 0 0 3,052 4,081 0 76,779

(iv) Losses MT 9,377 1,973 2,818 0 1,426 2,979 1,764 0 0 0 0 0 0 20,337



Losses % 8.98% 0.94% 6.15% 0.00% 4.33% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 5.19%



Operational Parameters Units

Opening Stock (A) MT 161,617 161,197 146,148 133,832 133,799 134,320 134,320 133,908 133,888 133,189 133,189 1,539,407

Crude Received (B) MT 0 0 0 0 0 0 521 0 0 0 0 0 10,743 11,264

Total Crude Available (C=A+B) MT 161,617 161,197 146,148 0 0 133,832 134,320 134,320 134,320 133,908 133,888 133,189 143,932 1,550,671

Closing Stock (D=C-E) MT 161,617 146,148 132,253 0 0 133,832 134,320 134,320 134,320 133,908 133,888 133,189 143,932 1,521,727

Crude Processed (E) MT 0 15,049 13,895 0 0 0 0 0 0 0 0 0 0 28,944

(i) Finished Products MT 4,184 426 5,191 2,907 1,329 717 41,774 19,555 456 3,063 1,979 1,974 0 66,223

(ii) Intermediate Products MT 7,580 8,206 2,751 399 5,630 3,131 44,583 25,189 1,879 1,134 385 3,024 0 78,939

(iii) Plant Consumption MT 2,372 5,248 5,483 2,399 0 1,024 1,000 57 0 0 105 240 0 17,928

(iv) Losses MT 1,024 1,169 470 470 470 2,824 1,809 5,577 1,423 1,929 1,489 810 0 19,464



Losses % 0.00% 7.77% 3.38% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 67.25%


Yields Efficiency based on CDU, CRU & FCC (%) % 0.00% 57.36% 57.16% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -43.93%



Crude Received (B) MT 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Crude Available (C=A+B) MT 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 78,333 1,018,329

Closing Stock (D=C-E) MT 78,333 78,333 78,333 78,333 78,333 39,356 78,333 78,333 78,333 78,333 78,333 78,333 78,333 979,352

Crude Processed (E) MT 0 0 0 0 0 38,977 0 0 0 0 0 0 0 38,977

(i) Finished Products MT 0 520 0 0 0 14,175 0 0 0 0 0 0 0 13,655

(ii) Intermediate Products MT 3,376 4,071 0 0 3,977 9,872 5,578 3,594 7,209 0 0 0 0 9,979

(iii) Plant Consumption MT 3,824 4,571 0 0 4,503 14,930 5,578 3,594 7,209 4,918 0 0 0 30,285

(iv) Losses MT 448 0 0 0 526 0 0 0 0 4,918 0 0 0 4,996



Losses % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 12.82%




PHRC

KRPC

WRPC

Note: For more details on breakdown for Refineries Crude grade received, follow this link.

5.55%

13.18%

3.17%

0.00%

1.75% 2.14%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0%

2%

4%

6%

8%

10%

12%

14%


Refineries Consolidated Capacity Utilization




http://nnpcgroup.com/Portals/0/Monthly%20Financial%20and%20Operations%20Data/Links/Crude%20Grade.pdf


Chart 3.1.2: Refineries Capacity Utilization

3.2 Refineries Economics for the Period January 2020

The Corporation has been adopting a Merchant Plant Refineries Business Model since

January 2017. The model takes cognizance of the Products Worth and Crude Costs. The

combined value of output by the three refineries (at Import Parity Price) for the month

of January 2020 amounted to approximately ₦2.88billion. No associated crude plus

freight cost for the three refineries since there was no production but operational

expenses amounted to ₦12.48billion. This resulted to an operating deficit of ₦9.60billion

by the Refineries as shown in Table 3.2 beneath.

Table 3.2: Refinery Financial Performance December 2018 - December 2019 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20

NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million NGN Million

Revenue 32,640.00 32,640.00 6,205.30 31.93 4,627.57 151.44 70.13 41.76 40.39 45.22 38.51 38.66 35.77

Crude + Frieght (COGS)(31,580.53) (31,578.96) (7,183.48) 0.00 (5,304.41) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Opex (3,565.36) (4,498.38) (4,587.13) (3,709.72) (3,933.78) (4,222.07) (3,644.61) (3,357.25) (3,160.52) (3,140.91) (3,140.91) (5,180.42) (3,152.69)

Operating Surplus/Deficit(2,505.89) (3,437.34) (5,565.30) (3,677.79) (4,610.63) (4,070.63) (3,574.48) (3,315.49) (3,120.13) (3,095.69) (3,102.40) (5,141.76) (3,116.92)

Revenue 522.93 579.57 42.14 555.21 567.45 1,848.83 720.29 507.53 930.74 2.23 1.34 2.20 2,834.68

Crude + Frieght (COGS) 0.00 0.00 0.00 0.00 0.00 (6,336.18) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Opex (4,264.71) (3,643.50) (5,136.06) (4,893.61) (4,878.66) (5,068.19) (5,103.95) (6,420.95) (4,598.06) (5,242.68) (5,048.26) (4,620.70) (4,931.12)


Revenue 527.50 1,243.73 1,522.62 4.76 45.82 12.00 34.72 6.36 62.84 3.77 2.40 55.11 9.51

Crude + Frieght (COGS) 0.00 (2,252.48) (2,158.52) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Opex (2,641.85) (2,749.25) (4,741.05) (3,428.43) (4,753.26) (3,806.30) (5,912.62) (3,986.53) (3,476.91) (3,384.19) (4,370.17) (3,752.43) (4,397.64)

Operating Surplus/Deficit(2,114.35) (3,758.00) (5,376.95) (3,423.67) (4,707.44) (3,794.30) (5,877.90) (3,980.17) (286.86) (3,380.42) (4,367.77) (3,697.32) (4,388.13)

Revenue 33,690.43 34,463.30 7,770.07 591.90 5,240.84 2,012.27 825.14 555.65 1,033.97 51.22 42.25 95.97 2,879.96

Crude + Frieght (COGS)(31,580.53) (33,831.44) (9,342.00) 0.00 (5,304.41) (6,336.18) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Opex (10,471.92) (10,891.13) (14,464.24) (12,031.76) (13,565.70) (13,096.56) (14,661.18) (13,764.73) (11,235.49) (11,767.78) (12,559.34) (13,553.56) (12,481.45)


KRPC

PHRC

Consolidated

WRPC

Description

Note: For PHRC, The overstated losses for June -236.49 and July -2890.72 have been added to the current deficit of -3434.07 to arrive at the adjusted

balance of -286.86 in September 2019.

19

.8%

43

.8%

8.7

%

0.0

% 6.2

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

1.9

%

1.6

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

% 8.7

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0.0

%

0%

10%

20%

30%

40%

50%

60%


Refineries Capacity Utilization

WRPC PHRC KRPC





4 Petroleum Product Supply & Distribution

4.1 Petroleum Product Supply from Direct sales Direct Purchase (DSDP)

In January 2020, 1,961.41 million litres of PMS were supplied into the country through

the DSDP arrangement as against the 1,637.85 million litres of PMS supplied in the month

of December 2019. The table and chart below provide more details of the total petroleum

products supply from DSDP.

Table 4.1.1: Monthly Imported Petroleum Products via DSDP in litres

Month DSDP (Domestic) Extended DSDP/NFSF Total DSDP

PMS PMS PMS AGO DPK

Litres Litres Litres Litres Litres

Jan-19 1,066,047,263.08 151,804,588.71 1,217,851,851.79 - -

Feb-19 567,886,452.03 101,915,055.94 669,801,507.97 - -

Mar-19 769,656,769.13 209,994,955.73 979,651,724.86 - -

Apr-19 2,436,497,208.14 154,517,419.64 2,591,014,627.78 - -

May-19 2,098,547,949.47 0.00 2,098,547,949.47 - -

Jun-19 1,687,689,202.03 544,893,026.37 2,232,582,228.41 - -

Jul-19 1,221,285,513.13 238,027,042.72 1,459,312,555.85 38,761,200.00 -

Aug-19 1,441,693,147.46 198,789,390.77 1,640,482,538.23 113,378,702.98 -

Sep-19 1,601,487,407.47 325,323,613.59 1,926,811,021.06 - -

Oct-19 1,198,434,182.52 425,522,978.04 1,623,957,160.55 111,860,420.95 -

Nov-19 1,293,661,505.17 499,446,697.29 1,793,108,202.46 - -

Dec-19 1,245,207,523.63 392,640,519.53 1,637,848,043.15 95,014,557.83 -

Jan-20 1,466,760,725.98 494,650,034.16 1,961,410,760.15 - -

TOTAL 18,094,854,849.25 3,737,525,322.48 21,832,380,171.73 359,014,881.76 0.00

DSDP (Domestic)

Notes: DSDP has been adjusted to include daily crude allocation from Federation (Domestic), FIRS-PPT Crude & Extended DSDP. This

is reported retrospectively from July 2018. Under recovery for DSDP (Domestic) is charged to the Federation account. Under recovery for Flush Volumes and Extended DSDP is charged to the National Fuel Support Fund (NFSF).

Chart 4.1.1: Petroleum Products Supply from DSDP (Million Litres)

1,218

670980

2,591

2,099 2,233

1,4591,640

1,9271,624 1,793 1,638

1,961

0

0

0

1,218

670

980

2,591

2,0992,233

1,498

1,7541,927

1,736 1,793 1,7331,961

0

500

1,000

1,500

2,000

2,500

3,000


Petroleum Products from Direct Sales Direct Purchase (Million Litres)

PMS AGO





4.2 Petroleum Products Supply from Domestic Refineries

Table 4.2.1 shows comparison of white petroleum products produced by the domestic

refineries. No white product (PMS & DPK) was produced in January 2020 and apparently

for the past seven consecutive months. The lack of production is due to ongoing

rehabilitation works at the refineries.

Table 4.2.1: Monthly Refined White Petroleum Products from Local Refineries

PMS DPK Total (PMS+DPK)

Litres Litres Litres

Jan-19 45,489,052 36,005,130 81,494,182

Feb-19 44,147,374 36,131,130 80,278,504

Mar-19 44,147,374 38,247,397 82,394,771

Apr-19 0 0 0

May-19 9,101,176 4,990,044 14,091,220

Jun-19 0 0 0

Jul-19 0 0 0

Aug-19 0 0 0

Sep-19 0 0 0

Oct-19 0 0 0

Nov-19 0 0 0

Dec-19 0 0 0

Jan-20 0 0 0

Total 142,884,976 115,373,701 258,258,677

Period

Table 4.2.2: Total White Petroleum Product Supply from NNPC (DSDP + Refineries)

PMS AGO Total PMS AGO Total

Litres Litres Litres Litres/Day Litres/Day Litres/Day

Jan-19 1,263,340,903.79 36,005,130.00 1,299,346,033.79 40,752,932.38 1,161,455.81 41,914,388.19

Feb-19 713,948,881.97 36,131,130.00 750,080,011.97 25,498,174.36 1,290,397.50 26,788,571.86

Mar-19 1,023,799,098.86 38,247,397.00 1,062,046,495.86 33,025,777.38 1,233,787.00 34,259,564.38

Apr-19 2,591,014,627.78 - 2,591,014,627.78 86,367,154.26 - 86,367,154.26

May-19 2,107,649,125.47 4,990,044.00 2,112,639,169.47 67,988,681.47 160,969.16 68,149,650.63

Jun-19 2,232,582,228.41 - 2,232,582,228.41 74,419,407.61 - 74,419,407.61

Jul-19 1,459,312,555.85 38,761,200.00 1,498,073,755.85 47,074,598.58 1,250,361.29 48,324,959.87

Aug-19 1,640,482,538.23 113,378,702.98 1,753,861,241.21 52,918,791.56 3,657,377.52 56,576,169.07

Sep-19 1,926,811,021.06 - 1,926,811,021.06 64,227,034.04 - 64,227,034.04

Oct-19 1,623,957,160.55 111,860,420.95 1,735,817,581.51 52,385,714.86 3,608,400.68 55,994,115.53

Nov-19 1,793,108,202.46 - 1,793,108,202.46 59,770,273.42 - 59,770,273.42

Dec-19 1,637,848,043.15 95,014,557.83 1,732,862,600.98 52,833,807.84 3,064,985.74 55,898,793.58

Jan-20 1,961,410,760.15 - 1,961,410,760.15 63,271,314.84 - 63,271,314.84

Total/Average 21,975,265,147.73 474,388,582.76 22,449,653,730.49 55,493,093.81 1,197,950.97 56,691,044.77

Total Product Supply (OPA, DSDP+Refineries)

Period

Average Daily Supply





Chart 4.2.1: Total White Petroleum Product Supply from NNPC (DSDP+ Refineries)

Chart 4.2.2: Average Daily Petroleum Product Supply from NNPC (DSDP+ Refineries)

4.3 Downstream Petroleum Product Distributions

A total of 1,208.46 million litres of white products were sold and distributed by PPMC in

the month of January 2020 compared with 2,774.78 million litres in the month of

December 2019. This comprised 1,199.02 million litres of PMS and 9.44 million litres of

AGO only. There was sale of special product of 0.01 million litres of LPFO in the month.

Total sale of white products for the period January 2019 to January 2020 stood at 21,111.

31 million litres and PMS accounted for 20,775.67 million litres or 98.41%. The tables

and charts below provide more details of white products sold by NNPC/PPMC for the

period January 2019 to January 2020.

1,263

7141,024

2,591

2,108 2,233

1,4591,640

1,9271,624

1,7931,638

1,961

36

36

38

0

50

39

113

0

1120

95

0

1,299

750

1,062

2,591

2,1132,233

1,498

1,7541,927

1,736 1,793 1,7331,961

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800


Total Petroleum Products Supply From NNPC Via DSDP + Refineries (Million Litres)

PMS AGO

40.8

25.533.0

86.4

68.074.4

47.152.9

64.252.4

59.852.8

63.3

1.2

1.3

1.2

0.0

0.2

0.0

1.3

3.7

0.0

3.60.0

3.1

0.0

41.91

26.79

34.26

86.37

68.15

74.42

48.32

56.58

64.23

55.99 59.77

55.90

63.27

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00


Daily Average Petroleum Products Supply From NNPC Via DSDP & Refineries (Million Litres)

PMS AGO





Table 4.3.1: Downstream Petroleum Product Sales by PPMC

PMS AGO DPK Total White Products LPFO Other Special

Products Total Special

Products

Litres Litres Litres Litres Litres Litres Litres

Jan-19 1,690,738,286 51,046,470 17,961,107 1,759,745,863 13,463,819 0 13,463,819

Feb-19 1,274,823,499 45,676,227 10,207,009 1,330,706,735 1,752,000 300,000 2,052,000

Mar-19 1,294,610,496 47,341,709 22,502,046 1,364,454,251 6,437,387 0 6,437,387

Apr-19 2,080,538,397 12,440,922 19,322,583 2,112,301,902 1,254,000 0 1,254,000

May-19 2,061,148,901 26,154,932 19,511,492 2,106,815,325 9,628,756 0 9,628,756

Jun-19 1,759,615,504 8,661,566 9,293,903 1,777,570,973 30,987,463 0 30,987,463

Jul-19 1,727,960,801 16,313,314 33,000 1,744,307,115 4,818,000 0 4,818,000

Aug-19 1,916,624,803 299,404 0 1,916,924,207 0 0 0

Sep-19 1,013,064,625 1,250,832 3,375,055 1,017,690,512 0 0 0

Oct-19 1,156,217,879 262,648 15,000 1,156,495,527 33,000 0 33,000

Nov-19 839,698,013 1,062,016 301,860 841,061,889 759,000 0 759,000

Dec-19 2,761,609,174 13,124,103 45,000 2,774,778,277 3,366,000 0 3,366,000

Jan-20 1,199,015,926 9,439,315 0 1,208,455,241 99,000 0 99,000

Total 20,775,666,304 233,073,458 102,568,055 21,111,307,817 72,598,425 300,000 72,898,425

Period

Chart 4.3.1: Monthly White Product sales by PPMC

1,691

1,275 1,295

2,081 2,0611,760 1,728

1,917

1,0131,156

840

2,762

1,199

18

10 23

19 20

9 0

0

30

0

0

0

51

46 47

12 26

9 16

0

10

1

13

9

1,759.75

1,330.71 1,364.45

2,112.30 2,106.82

1,777.57 1,744.311,916.92

1,017.691,156.50

841.06

2,774.78

1,208.46

0

500

1,000

1,500

2,000

2,500

3,000


Total Montly PPMC Product Distribution Sales Volume (Million Litres)

PMS DPK AGO





Table 4.3.2: Average Daily Petroleum Product Sales by PPMC

PMS AGO DPK Total White Products LPFO Other Special

Products Total Special

Products

Litres/Day Litres/Day Litres/Day Litres/Day Litres/Day Litres/Day Litres/Day

Jan-19 54,539,945 1,646,660 579,391 56,765,996 434,317 0 434,317

Feb-19 45,529,411 1,631,294 364,536 47,525,241 62,571 10,714 73,286

Mar-19 41,761,629 1,527,152 725,872 44,014,653 207,658 0 207,658

Apr-19 69,351,280 414,697 644,086 70,410,063 41,800 0 41,800

May-19 66,488,674 843,707 629,403 67,961,785 310,605 0 310,605

Jun-19 58,653,850 288,719 309,797 59,252,366 1,032,915 0 1,032,915

Jul-19 55,740,671 526,236 1,065 56,267,971 155,419 0 155,419

Aug-19 61,826,607 9,658 0 61,836,265 0 0 0

Sep-19 33,768,821 41,694 112,502 33,923,017 0 0 0

Oct-19 37,297,351 8,473 484 37,306,307 1,065 0 1,065

Nov-19 27,989,934 35,401 10,062 28,035,396 25,300 0 25,300

Dec-19 89,084,167 423,358 1,452 89,508,977 108,581 0 108,581

Jan-20 38,677,933 304,494 0 38,982,427 3,194 0 3,194

Average 52,463,804 588,569 259,010 53,311,383 183,329 758 184,087

Period

Chart 4.3.2: Average Daily White Products Distribution by PPMC

A total sum of ₦151.79 billion was made on the sale of white products by PPMC in the

month of January 2020 compared to ₦337.63 billion sales in December, 2019. Total

revenues generated from the sales of white products for the period January 2019 to

January 2020 stood at ₦2,616.09 billion, where PMS contributed about 97.57% of the

total sales with a value of ₦2,552.53 billion. The table and chart below provide details

accordingly.

5546 42

69 6659 56

62

34 3728

89

39

1

01

11

00

0

00

0

0

0

2

22

0 1

01

0

00

0

0

0

56.77

47.5344.01

70.4167.96

59.2556.27

61.84

33.9237.31

28.04

89.51

38.98

0

10

20

30

40

50

60

70

80

90

100


Average Daily PPMC Product Distribution Sales Volume (Million Litres)

PMS DPK AGO





Table 4.3.3: Revenue from Sales of White Product

PMS AGO DPK Total White Products

Revenue LPFO

Other Special Products

Total Special

Products Revenue

Naira Naira Naira Naira Naira Naira Naira

Jan-19 208,651,023,319 9,695,568,796 3,412,610,330 221,759,202,445 1,710,479,467 0 1,710,479,467

Feb-19 158,036,092,915 8,678,483,130 1,939,331,710 168,653,907,755 216,915,120 40,875,000 257,790,120

Mar-19 161,353,491,796 8,989,733,510 4,280,498,376 174,623,723,682 797,012,884 0 797,012,884

Apr-19 255,332,011,840 2,363,775,180 3,663,329,322 261,359,116,342 155,257,740 0 155,257,740

May-19 252,350,443,561 4,978,662,080 3,695,374,480 261,024,480,121 1,156,037,500 0 1,156,037,500

Jun-19 213,577,710,940 1,635,008,458 1,719,372,055 216,932,091,453 3,802,266,112 0 3,802,266,112

Jul-19 211,647,332,775 3,050,589,718 6,105,000 214,704,027,493 596,516,580 0 596,516,580

Aug-19 233,367,696,696 55,988,548 0 233,423,685,244 0 0 0

Sep-19 124,311,940,808 233,905,584 624,385,175 125,170,231,567 0 0 0

Oct-19 143,349,124,961 49,115,176 2,775,000 143,401,015,137 4,085,730 0 4,085,730

Nov-19 105,366,620,662 198,596,992 55,844,100 105,621,061,754 93,971,790 0 93,971,790

Dec-19 335,216,500,573 2,401,710,849 8,325,000 337,626,536,422 416,744,460 0 416,744,460

Jan-20 149,969,916,088 1,821,598,795 0 151,791,514,883 12,554,190 0 12,554,190

Total 2,552,529,906,936 44,152,736,816 19,407,950,548 2,616,090,594,300 8,961,841,574 40,875,000 9,002,716,574

Period

Note: The PPMC Sales figure includes PEF & PPPRA collections.

Chart 4.3.3: Monthly Sales Revenue from Petroleum Product Distribution

209

158 161

255 252214 212

233

124 143105

335

150

3

2 4

4 4

2 00

10

0

0

0

10

9 9

2 5

2 30

00

0

2

2

168.65

261.36 261.02

216.93 214.70233.42

125.17143.40

105.62

337.63

151.79

0

50

100

150

200

250

300

350

400


Sales Revenue From PPMC Product Distribution (Billion Naira)

PMS DPK AGO





5.1 Summary of Group Operating Revenue and Expenditure for January 2020

In January 2020, Group operating revenue as compared to December 2019, plunged by

46% or N317.16Billion to stand at N378.01Billion. Similarly, expenditure for the month

decreased by 45% or N313.76Billion, at N376.14Billion. Expenditure as a proportion of

revenue is almost at par for the current month following same trend with the last two

consecutive months.

This 54th edition of the Report indicates a reduced trading surplus of ₦1.87Billion

compared to the ₦5.28Billion surplus posted in December 2019. The 65% decrease in the

month arose due to 17% drop in the cummulative performance of SBUs in the upstream

and midstream as well as over 100% deterioration in downstream activities. These weak

positions along with the deficits of the refineries, Ventures and CHQ, led to a decreased

surplus to the Group.

Table 5.1.0: Group Financial Performance by Entity

Revenue ExpenseSurplus/

(Deficit)Revenue Expense

Surplus/


Surplus/


Surplus/


Surplus/

(Deficit)

NPDC 153,348 44,439 108,909 91,867 70,331 21,537 86,509 65,351 21,158 153,348 44,439 108,909 86,509 65,351 21,158

IDSL 3,455 2,310 1,145 6,069 2,757 3,313 1,340 418 922 3,455 2,310 1,145 1,340 418 922

NETCO 3,434 3,046 388 7,172 6,913 260 249 486 (237) 3,434 3,046 388 249 486 (237)

Sub-Total 160,238 49,795 110,442 105,109 80,000 25,109 88,097 66,254 21,843 160,238 49,795 110,442 88,097 66,254 21,843

NGC 11,016 1,947 9,070 7,074 1,770 5,304 2,526 984 1,541 11,016 1,947 9,070 2,526 984 1,541

NGMC 21,919 16,166 5,753 16,889 13,997 2,892 15,762 11,620 4,142 21,919 16,166 5,753 15,762 11,620 4,142

Sub-Total 32,935 18,113 14,822 23,963 15,767 8,196 18,288 12,604 5,683 32,935 18,113 14,822 18,288 12,604 5,683

KRPC 9 2,008 (1,999) 2 4,621 (4,619) 2,835 4,931 (2,096) 9 2,008 (1,999) 2,835 4,931 (2,096)

PHRC 13 2,515 (2,503) 55 3,752 (3,697) 10 4,398 (4,388) 13 2,515 (2,503) 10 4,398 (4,388)

WRPC 77 1,628 (1,551) 39 5,180 (5,142) 36 3,153 (3,117) 77 1,628 (1,551) 36 3,153 (3,117)

Sub-Total 99 6,151 (6,052) 96 13,554 (13,458) 2,880 12,481 (9,601) 99 6,151 (6,052) 2,880 12,481 (9,601)

RETAIL 29,064 27,709 1,355 18,605 18,970 (365) 18,551 18,064 487 29,064 27,709 1,355 18,551 18,064 487

PPMC 279,313 275,120 4,193 335,260 333,637 1,623 147,509 147,212 297 279,313 275,120 4,193 147,509 147,212 297

NPSC 5,559 5,596 (37) 3,835 2,780 1,056 3,527 5,606 (2,079) 5,559 5,596 (37) 3,527 5,606 (2,079)

SHIPPING 10,165 9,858 307 8,325 8,321 4 8,662 10,229 (1,567) 10,165 9,858 307 8,662 10,229 (1,567)

DUKE OIL 73,094 72,467 627 199,341 196,447 2,895 90,468 89,793 675 73,094 72,467 627 90,468 89,793 675

Sub-Total 397,195 390,750 6,445 565,366 560,155 5,212 268,717 270,904 (2,187) 397,195 390,750 6,445 268,717 270,904 (2,187)

CHQ 823 19,713 (18,890) 242 18,337 (18,095) 29 13,624 (13,595) 823 19,713 (18,890) 29 13,624 (13,595)

VENTURES 587 3,073 (2,486) 402 2,089 (1,687) 3 274 (271) 587 3,073 (2,486) 3 274 (271)

Sub-Total 1,410 22,786 (21,376) 644 20,426 (19,782) 32 13,898 (13,866) 1,410 22,786 (21,376) 32 13,898 (13,866)

Grand Total 591,877 487,596 104,281 695,178 689,902 5,277 378,014 376,142 1,872 591,877 487,596 104,281 378,014 376,142 1,872

PTD (=N= MILLION) (=N= MILLION)

2020 BUDGET

(=N= MILLION)

DECEMBER, 2019SBU/CSU

MONTHLY BUDGET

(=N= MILLION) 2020 ACTUALJANUARY, 2020

Note:

• SBUs/CSUs retained the excess revenue generated but share Head Office Cost through Corporate Overhead Cost Allocation.

• GPIC Performance is captured under the CHQ.

• NGPTC is now merged with NGC which was interchanged with NGMC in previous reports.





Chart 5.1.1: Group Operating Revenue: January 2019 – January 2020

Chart 5.1.2: Group Operating Expenditure: January 2019 – January 2020

97.03 74.33 100.00 80.48109.47 89.17

61.32 83.43 81.90125.93

86.04 91.87 86.51

76

86

76

219 9

8

77

315.34

16.3416.31

13.9614.20

14.5418.13 17.57 18.08

16.35

14.8416.89

15.7616.27 34.46

7.770.59

5.242.01

0.83 0.56 1.03

0.05

0.040.10

2.88

14.05 11.62 14.3721.07

17.3213.63

14.20 12.21 11.82

14.92

14.9318.60

18.55

218.36165.13 171.08 256.67

257.43

217.41210.96

229.34162.55

139.61

102.33

335.26

147.51

0

0 0

0

1

0 0

0 0

0

0

1

0

541.71

427.48449.29

531.23

578.35

518.18502.49

540.59 539.81

391.80

330.80

695.18

378.01

0

100

200

300

400

500

600

700

800


NNPC Group Revenue: January 2019 - January 2020 (Billion Naira)

NPDC IDSL NETCO NGC NGMC REFINERIES RETAIL PPMC NPSC SHIPPING DUKE OIL CHQ/VENTURES

61.17 43.54 69.38 55.5189.90 64.38 45.55 57.89 71.90 94.45

51.97 70.33 65.351

1 6

2

2 3

2 3 3

3

3 6.91269 0.4856812.85

14.75

14.7111.24

11.2511.22

14.66 14.8914.55

15.28

13.7214.00

11.6224.90 44.72

23.8112.03

18.8719.43

14.66 13.76 8.1111.77

12.5613.55

12.4813.79 11.46

14.2720.82

17.1213.52

14.01 12.22 11.8314.85

15.0918.97

18.06

215.37164

168 253

255

217 210

229 160

139

101

334

147

526.67

416.29 438.72

525.62

572.02

514.26498.23

535.40531.22

378.57

326.85

689.90

376.14

0

100

200

300

400

500

600

700

800


NNPC Group Expenditure: January 2019 - January 2020 (Billion Naira)

NPDC IDSL NETCO NGC NGMC REFINERIES RETAIL PPMC NPSC SHIPPING DUKE OIL CHQ/VENTURES





Chart 5.1.3: Monthly Group Surplus/Deficit: January 2019 – January 2020

Chart 5.1.4: NNPC Group Surplus/Deficit YTD 2020

11.19

15.04

4.26

5.60

10.57

3.92

6.33

5.20

8.59

13.23

3.95

5.28

1.87

0

2

4

6

8

10

12

14

16


Monthly NNPC Group Surplus/Deficit: January 2019 - January 2020 (Billion Naira)

2711,567

4,388

3,117

2,096

2,079

13,595

21,158

1,541

297

4,142

922675

237 487

1,872

0

5,000

10,000

15,000

20,000

25,000

30,000

Surplus Deficit





6 Federation Crude Oil & Gas Revenue

Federation Crude Oil and Gas lifting are broadly classified into Equity Export and

Domestic. Both categories are lifted and marketed by NNPC and the proceeds remitted

into the Federation Account.

Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly

into Federation Account domiciled in the Central Bank of Nigeria (CBN). Domestic Crude

Oil of 445,000bopd is allocated for refining to meet domestic products supply. Payments

are effected to Federation Account by NNPC after adjusting crude & product losses and

pipeline repairs & management cost incurred during the period.

6.1 Flow of Oil Revenue into Federation Account.

NNPC also lifts Crude Oil and Gas other than Equity and Domestic Crude Oil on behalf of

DPR and FIRS proceeds of which are remitted into Federation Account.

The Third-Party finance lifting are Crude Oil and Gas lifting from fields that are financed

using alternative finance/loan facility which require the servicing of debt obligations

before remitting the balance into the Federation Account as Price Balance as shown

below:

Oil Field Terminals

Equity Crude Export

3rd Party Finance Liftings

Other Liftings

Domestic Crude (445kbpd)

CBN/NNPC JP Morgan USD Crude

Oil Accounts

Debt Service

Payment to CBN/NNPC

JVCC Account

CBN/DPR JP Morgan USD Crude

Oil Account

CBN/FIRS JP Morgan USD

Crude Oil Account

Local Refining

Direct Export

Adjustment for Subsidy,

Losses & Pipeline Mgt.

Costs

Royalty to DPR

PPT/CIT to FIRS

Federation Account

CBN/NNPC Naira Crude Oil Account

Price Balance

IOC Partners & PSC Contractor Liftings

Direct Sales Direct Purchase





6.2 Accounting for Federation Crude Oil & Gas

The summary of Oil & Gas Sales and inflow into Federation Account can be depicted as

follows:

6.3 Dollar Payments to Federation Account

A total export sale of $434.85 million was recorded in January 2020; increasing by

94.30% compared to last month. Crude oil export sales contributed $336.65 million

(77.42%) of the dollar transactions compared with $136.36 million contribution in the

previous month; while the export Gas sales amounted to $98.20 million in the month. The

January 2019 to January 2020 Crude Oil and Gas transactions indicated that Crude Oil &

Gas worth $5.18 Billion was exported. See Table 6.3.1 & Chart 6.3.1 overleaf for details.

Market Trial





Table 6.3.1: NNPC/FGN Export Crude Oil & Gas Dollar Accruals, Receipts & Payments

Crude Oil Sales Proceed Gas Sales Proceed Total Oil & Gas Sales

Proceed

Crude Oil Proceed

Receipts

Gas Proceed Reciepts

(NLNG,EGTL,NGLs,N-

GAS)

Other ReceiptsTotal Sales Proceed

ReceiptsJV Cost Recovery Balance Remitance to FAAC

USD USD USD USD USD USD USD USD USD

Jan-19 240,228,241 129,749,725 369,977,965 269,430,147 111,747,521 523,771 381,701,439 225,595,965 156,105,474

Feb-19 350,289,728 139,743,447 490,033,176 343,253,620 122,503,939 27,425,821 493,183,380 316,835,413 176,347,967

Mar-19 294,218,112 88,410,952 382,629,064 294,158,058 74,635,086 278,862 369,072,006 300,732,706 68,339,301

Apr-19 342,111,048 128,216,752 470,327,799 339,032,827 92,412,626 1,355,728 432,801,181 368,006,755 64,794,426

May-19 458,593,727 121,728,695 580,322,422 410,250,198 102,438,682 34,919,442 547,608,322 379,018,380 168,589,942

Jun-19 248,220,441 73,009,825 321,230,266 273,083,468 38,909,635 937,718 312,930,820 280,659,348 32,271,473

Jul-19 249,346,976 85,725,509 335,072,485 250,346,938 76,275,053 63,711,805 390,333,796 297,072,023 93,261,773

Aug-19 150,730,868 82,141,744 232,872,612 115,159,511 89,705,282 497,048 205,361,841 110,816,595 94,545,247

Sep-19 267,969,532 87,959,657 355,929,189 303,096,487 56,372,090 71,123,948 430,592,526 312,783,640 117,808,886

Oct-19 396,937,648 86,315,163 483,252,811 396,856,135 85,337,483 21,356,378 503,549,996 350,166,957 153,383,039

Nov-19 383,894,138 120,549,510 504,443,648 327,812,697 115,664,337 32,228,292 475,705,326 362,333,686 113,371,640

Dec-19 136,360,677 87,446,516 223,807,194 115,998,241 65,361,188 124,052,593 305,412,023 118,262,677 187,149,346

Jan-20 336,648,965 98,203,730 434,852,695 361,192,197 91,123,372 174,482,902 626,798,472 384,726,232 242,072,240

Total 3,855,550,101 1,329,201,226 5,184,751,327 3,799,670,525 1,122,486,296 552,894,309 5,475,051,130 3,807,010,375 1,668,040,754

Payment Month

Export Sales Proceed Value Due

NNPC/FGN Export Lifting Only

Allocation of Proceeds to FederationExport Sales Proceed Reciepts

Note: Export Crude Oil Sales proceeds are received 30 days after bill of lading date.

In January 2020, Naira portion of N91,717,234,704 equivalent to a functional Dollar of $300,712,244.93 at a budgeted exchange

rate of N305/$ was transferred to JVCR from Domestic Crude Oil receipts in addition to the $384,726,232.

Chart 6.3.1: Monthly dollar receipts from NNPC/Federation Oil & Gas Exports

269.43343.25

294.16339.03

410.25

273.08 250.35

115.16

303.10

396.86327.81

116.00

361.19

111.75

122.50

74.64

92.41

102.44

38.91 76.28

89.71

56.37

85.34

115.66

65.36

91.12381.70

493.18

369.07

432.80

547.61

312.93

390.33

205.36

430.59

503.55475.71

305.41

626.80

-

100

200

300

400

500

600

700


Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports (Million Dollars)

Crude Oil Proceed Receipts Gas Proceed Reciepts (NLNG,EGTL,NGLs,N-GAS) Other Receipts





6.3.2 Dollar Payments to JV Cost Recovery & Federation Account

Total export receipt of $626.80 million was recorded in January 2020 as against $305.41

million in December 2019. Contribution from Crude oil amounted to $361.19 million

while Gas and miscellaneous receipts stood at $91.12 million and $174.48 million

respectively. Of the export receipts, $242.07 million was remitted to the Federation

Account while $384.72 million was remitted to fund the JV cost recovery for the month

of January 2020 to guarantee current and future production. Total export crude Oil & Gas

receipt for the period January 2019 to January 2020 stood at $5.48 Billion. Out of which

the sum of $3.81 Billion was transferred to JV Cash Call as first line charge and the balance

of $1.67 Billion was paid into Federation Account (See Table & Chart 6.3.1).

Chart 6.3.2.1: Monthly Dollar Allocation to JV Cost Recovery & Federation Account

Note:



Chart 6.3.2.2: NNPC Federation Lifted Volumes vs. Crude Oil Prices

Source: NNPC Average monthly lifting are in tables 2.3.1 and 2.3.2 of pages 11 & 12 respectively.

225.6

316.8 300.7368.0 379.0

280.7 297.1

110.8

312.8350.2 362.3

118.3

384.7

156

176

68

65

169

32

93

95

118

153 113

187

242

381.70

493.18

369.07

432.80

547.61

312.93

390.33

205.36

430.59

503.55475.71

305.41

626.80

-

100

200

300

400

500

600

700


Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports (Million Dollar)

JV Cost Recovery Balance Remitance to FAAC

15.14 14.2811.63 10.87

15.75

11.5414.70

10.34

15.98 16.86 15.69

10.78

13.92

56.7760.02

65.3667.64

73.40 69.7466.53

63.8060.17

63.59 62.89 64.63

50.05

0

10

20

30

40

50

60

70

80

0

5

10

15

20

25

30


$/b

bl

Mil

lio

ns

Ba

rre

ls

NNPC/Federation Lifted Volumes and Crude Prices

NNPC Lifted Volumes Crude Price





6.4 Naira Payments to Federation Account

In January 2020, NNPC remitted the sum of N138.57 Billion to the Federation Account

Allocation Committee (FAAC). From January 2019 to January 2020, total NNPC

remittances to FAAC is N1,710.63 Billion; out of which Federation and JV received the

sum of N711.00 Billion and N999.63 Billion respectively. The tables below show the Naira

proceeds from the Sale of Domestic Crude Oil and Gas as well as the corresponding Naira

remittances to the Federation Account.

Table 6.4.1: Naira Proceed from Sale of Domestic Crude Oil & Gas

Proceed Value Due

Total Domestic Sales

Proceed due

Domestic Crude

Proceed ReceiptsGas Proceed Receipts Other Receipts

Total Sales Proceed

Receipts

NGN NGN NGN NGN NGN

Oct-18 Jan-19 205,544,848,360 148,135,118,804 4,878,190,544 0 153,013,309,349

Nov-18 Feb-19 181,587,180,684 166,511,985,175 7,120,886,924 0 173,632,872,099

Dec-18 Mar-19 189,464,261,286 163,096,447,039 11,827,835,476 0 174,924,282,515

Jan-19 Apr-19 155,130,900,659 43,891,178,674 7,766,116,700 0 51,657,295,374

Feb-19 May-19 142,400,804,681 21,917,668,384 10,502,521,372 0 32,420,189,756

Mar-19 Jun-19 120,211,046,267 68,030,213,679 5,164,680,334 0 73,194,894,013

Apr-19 Jul-19 213,314,438,752 103,108,903,156 5,411,450,341 0 108,520,353,497

May-19 Aug-19 170,295,093,943 111,540,631,373 8,937,711,115 0 120,478,342,488

Jun-19 Sep-19 222,886,179,643 178,478,126,020 7,525,169,751 165,316,812 186,168,612,582

Jul-19 Oct-19 155,623,269,830 120,799,171,155 8,351,843,549 0 129,151,014,703

Aug-19 Nov-19 212,060,191,252 173,797,059,398 3,411,115,325 2,372,617,494 179,580,792,217

Sep-19 Dec-19 206,689,605,669 170,675,544,792 3,727,772,805 14,915,345,008 189,318,662,605

Oct-19 Jan-20 184,491,641,934 133,995,380,877 4,575,365,156 0 138,570,746,033

TOTAL TOTAL 2,359,699,462,961 1,603,977,428,526 89,200,659,392 17,453,279,313 1,710,631,367,231

Domestic Sales Proceed Recipets

Receipt/ Payment

MonthLifting Month

Chart: 6.4.1: Monthly Naira Crude Oil, Gas and Other Receipts

4.88 7.12 11.83 7.77 10.50 5.16 5.41 8.94 7.53 8.35 3.41 3.73 4.58

148.14166.51 163.10

43.8921.92

68.03

103.11111.54

178.48

120.80

173.80 170.68

134.00

153.01

173.63 174.92

51.66

32.42

73.19

108.52120.48

186.17

129.15

179.58189.32

138.57

0

20

40

60

80

100

120

140

160

180

200


Domestic Crude Oil , Gas Sales & Other Reciepts (Billion Naira )

Gas Proceed Receipts Domestic Crude Proceed Receipts Other Receipts





Table 6.4.2: Allocation of Naira Proceeds from Sale of Domestic Crude Oil: Payment to FAAC

Proceed Value Due

Domestic Crude CostDomestic Crude

PaymentsUnder Recovery Crude Losses Product Losses

Pipeline Repairs &

Management CostGas & Other Receipts

JV Cost Recovery (Naira

Only) + Govt. Priority

Projects

Transfer to Federation

Account

Debt Repayemt To FG

(N450bn)

Total Payment

To FAAC

=N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N=

Oct-18 Jan-19 205,544,848,360 148,135,118,804 40,532,561,017 28,039,569 2,248,412,675 14,600,716,294 4,878,190,544 210,423,038,904 98,845,930,785 54,167,378,564 0 153,013,309,349

Nov-18 Feb-19 181,587,180,684 166,511,985,175 2,875,580,922 0 0 10,123,702,555 7,120,886,924 186,632,155,576 135,628,668,355 38,004,203,744 0 173,632,872,099

Dec-18 Mar-19 189,464,261,286 163,096,447,039 13,335,581,366 44,476,005 992,701,161 11,995,055,716 11,827,835,476 201,292,096,762 115,343,804,358 59,580,478,157 0 174,924,282,515

Jan-19 Apr-19 155,130,900,659 43,891,178,674 104,347,173,012 3,331,318,522 -3,141,789,448 7,082,078,048 7,766,116,700 163,276,075,508 15,577,209,148 36,080,086,226 0 51,657,295,374

Feb-19 May-19 142,400,804,681 21,917,668,384 102,338,409,727 57,159,640 5,657,069,733 12,430,497,197 10,502,521,372 152,903,326,053 988,990,794 31,431,198,962 0 32,420,189,756

Mar-19 Jun-19 120,211,046,267 68,030,213,679 30,637,245,949 0 4,730,839,707 16,812,746,932 5,164,680,334 125,375,726,601 2,613,767,092 70,581,126,920 0 73,194,894,013

Apr-19 Jul-19 213,314,438,752 103,108,903,156 93,691,861,719 0 8,437,502,977 12,577,933,569 5,411,450,341 223,227,651,762 47,024,180,062 61,496,173,435 0 108,520,353,497

May-19 Aug-19 170,295,093,943 111,540,631,373 42,926,632,833 0 4,748,766,400 11,079,063,337 8,937,711,115 179,232,805,058 68,692,098,351 51,786,244,137 0 120,478,342,488

Jun-19 Sep-19 222,886,179,643 178,478,126,020 31,405,120,306 0 86,651,362 12,916,281,955 7,690,486,562 230,576,666,205 111,625,169,687 74,543,442,895 0 186,168,612,582

Jul-19 Oct-19 155,623,269,830 120,799,171,155 29,312,835,072 0 659,469,440 4,851,794,164 8,351,843,549 163,975,113,379 75,763,871,104 53,387,143,600 0 129,151,014,703

Aug-19 Nov-19 212,060,191,252 173,797,059,398 33,187,554,072 0 88,971,597 4,986,606,184 5,783,732,819 217,843,924,071 98,857,502,347 80,723,289,870 0 179,580,792,217

Sep-19 Dec-19 206,689,605,669 170,675,544,792 26,628,940,202 0 2,177,221,829 7,207,898,845 18,643,117,813 225,332,723,481 136,952,886,103 52,365,776,502 0 189,318,662,605

Oct-19 Jan-20 184,491,641,934 133,995,380,877 43,306,174,744 0 1,710,494,862 5,479,591,451 4,575,365,156 189,067,007,090 91,717,234,704 46,853,511,329 0 138,570,746,033

TOTAL TOTAL 2,359,699,462,961 1,603,977,428,526 594,525,670,942 3,460,993,736 28,396,312,295 132,143,966,247 106,653,938,705 2,469,158,310,450 999,631,312,891 711,000,054,340 0 1,710,631,367,231

Allocation of Domestic Sales Proceeds

Receipt/ Payment

Month

Lifting Month

Tramsfers To JV Cost Recovery, FG & Federation Account

Total Remittances

Note: The Under recovery is the portion charged to the Federation account.

Chart: 6.4.2: Monthly Naira Payments to JV Cash Call, FG and Federation Account

Note:



98.85

135.63115.34

15.580.99 2.61

47.0268.69

111.63

75.7698.86

136.95

91.72

54.17

38.0059.58

36.08

31.43

70.58

61.50

51.79

74.54

53.39

80.72

52.37

46.85

153.01

173.63 174.92

51.66

32.42

73.19

108.52

120.48

186.17

129.15

179.58 189.32

138.57

0

20

40

60

80

100

120

140

160

180

200


Tranfers to JV Cash Call and FG & Federation Account (Billion Naira)

JV Cost Recovery (Naira Only) + Govt. Priority Projects Transfer to Federation Account Debt Repayemt To FG (N450bn)





7.0 Key Determinants for Change

7.1 Key events and activities during the period

NLNG TRAIN7: NNPC, Partners take Final Investment Decision

The Nigerian National Petroleum Corporation (NNPC) and its investment paid partners,

Shell, Total and ENI, have finally taken the Final Investment Decision [FID] to go ahead

with the construction of Train 7 of the Nigerian Liquefied Natural Gas (NLNG.)

Announcing the development at the NLNG Headquarters Annex in Abuja, a visibly elated

NNPC Group Managing Director, Mele Kyari, said it was a great day for Nigeria as the

NLNG Train 7 project would rake about $20b revenue into the coffers of the Federal

Government and create 10,000 Direct and 40,000 Indirect jobs. He said the FID was a vote

of confidence on the Nigerian economy as a prime investment destination by the

International Oil Companies.

Condensate Refinery: NNPC, Partners Kick off First Phase

As part of plans to guarantee energy security and stop petroleum products importation

in the Country, the NNPC has kicked off the first phase of establishing the first condensate

refinery in the Country with a firm commitment to take the Final Investment Decision

(FID) on it in July 2020. The Group Managing Director of the NNPC, Mele Kyari, disclosed

this at the signing of the Front End Engineering Design (FEED) phase of the condensate

refinery project at the NNPC towers in Abuja.

Nigeria, Best Investment Destination in Africa, Kyari Assures

The Group Managing Director of the NNPC, Mele Kyari, has described Nigeria as the best

investment destination in Africa, urging major players in the oil and gas industry to invest

Nation’s growing economy and with a population of over 200 million people. The GMD

made this disclosure in Abuja while receiving then Chairman and Group Chief Executive

Officer, Total Group, Patrick Jean Pouganne, and the top management of the Group at the

NNPC Towers. Kyari stated that the Corporation would continue to align its business

processes with its partners in accordance with global best practice for the benefit of the

investments and for the good of Nigerians who, he noted, remain the key shareholders of

the National Oil Company.

NNPC Proposes Measure to CURB Pipeline Vandalism, Crude Theft

The Nigerian National Petroleum Corporation NNPC has laid out steps to mitigate the

raging twin menace of pipeline vandalism and crude oil theft in the nation’s oil and gas

industry. Speaking at the inaugural Nigeria Extractive Industries Transparency Initiative

(NEITI) Policy Dialogue which held in Abuja, the Group Managing Director of the NNPC,

Mele Kyari, said oil theft had remained a challenge in the industry despite some strong

interventions in the past. Kyari however averred that the gradual reduction in incidences

would be sustained through improved collaboration, implementation of Global





Memoranda of Understanding (GMoUs), and deployment of appropriate technologies,

among other measures.

NNPC Retail Limited Enters Lubricants Market with Nitro, Rhino Engine Oils

After years of painstaking research and meticulous planning, NNPC retail limited, the

downstream subsidiary of the NNPC in charge of retail sales and marketing of petroleum

products, has entered the lubricant market with the launch of a broad range of high

performance engine oils to provide better options to customers across the country. The

products include Nitro (Diamond, Gold, Super, 2T) and Nitro Super 40, all designed for

petrol-powered engines, while the diesel-propelled engines have the Rhino (Rhino HD40

and Rhino X) engines oils.

AKK Pipeline: NNPC, Chinese Company, Brantex Consortium Firm up Plan to Kick

off Construction Work

The Nigerian National Petroleum Corporation (NNPC), China Petroleum Pipeline

Engineering Company Limited (CPPECL) and Brantex Consortium, have concluded plans

to start the construction of the Abuja-Kaduna-Kano Pipeline project popularly known as

AKK project. Group Managing Director of the NNPC, Mele Kyari, disclosed this during a

business meeting with the President of CPPECL, Sun Quanjun, and the head of the Brantex

Consortium at the NNPC Tower in Abuja. Kyari stated that the AKK project was key to

resolving the power deficit challenge facing the Country, stressing that NNPC was ready

to give all necessary support to CPPECL and Brantex Consortium to deliver the project

within time and budget.

7.2 Key challenges

The following are some key setbacks that affected production in the month:

i. FORCADOS TERMINAL

Batan flow station came down due to trip alarm on the ABB HV switchgera

which led to generator shutting down with10kbd shut-in in 6 days. Opuama

and Otumara flowstations were also shut down on 01/11/19 for 13 days

due to leaks and suspected illegal connection on the TEP with loss of 50kbd.

ii. BONGA TERMINAL

Production shut-down for 3 days due to power loss initiated by a smoke

detection alarm activation which led to ESD. Total loss was 51,000 bpd.

iii. OGU OCHA TERMINAL

Odidi flow station was shut down for 5 days to commission the VIOSS with

shut-in of 20kbd while Jones Creek flow station shutdown over 4 days for

debottlenecking and statutory inspection of pressure vessels and release

valves. 17kbd shut-in.





iv. ERHA TERMINAL

Production shut-in due to emergency for 6 days with aggregate loss of

320,470barrels.

v. BONNY TERMINAL

NCTL shutdown due to leaks on Botokiri axis from 31/10/19 - 11/11/19

(12 days) with shut-in of 120kpd. NCTL was also shut down for 8 days due

to second leak along Cawthorne channel 2 Axis with production cut of

approximately 110kbd. Cumulative loss of production within the period

was 2,320,000 barrels.

vi. AMENAM TERMINAL

OML 102: Well closed due to unavailability of MP/HP compressor B

(Shortfall of 8,393bbls). MP/HP compressor A TRIP on VSD high

temperature due to unavailabilty of OFP 2 HVAC (Shortfall of 10,021bbls).

Equally on OML 102: Field shut down following ESD OFP1 / OFP2 due to

LSHH on HP flare knockout drum with shortfall of 22,396 bbls).

vii. EGINA TERMINAL

This was shut-in 8 times in course of the month due to low /loss of electrical

power from switchgear faults. Cumulative loss was 54,407 barrels.

viii. AKPO TERMINAL

Production dropped due to confirmed gas detection. Also plant trip due to

false gas detection caused by dust cloud from sand blasting as well as

unavailability of gas compressor. Cumulative loss is 84,654 barrels.

ix. BRASS TERMINAL

Addax stopped delivery into NAOC facility with shut-in of 10kbd over 7

days. Likewise the Platform stopped delivery into NAOC facility from

09/07/19 - 31/08/19 with production cut of 10kbd for a period of 30days.

x. USAN TERMINAL

Addax stopped delivery into NAOC facility with shut-in of 10kbd over 7

days. Likewise the Platform stopped delivery into NAOC facility from

09/07/19 - 31/08/19 with production cut of 10kbd for a period of 30days.

xi. OTHER TERMINALS

There was controlled shut down at Ima terminal for annual maintenance

starting from 14/09/19 - Date (30days in November) with production cut

of 1kbd. Similarly, production was shut-in at Qua Iboe terminal for 7days to

carry out PSD EAP maintenance. Cumulative loss of production of 257,000

barrels within this period





7.2.2 Products theft and Pipeline Security

Products theft and vandalism have continued to destroy value and put NNPC at

disadvantaged competitive position. A total of 1,544 vandalized points has been recorded

between January 2019 to January 2020 (see chart 7.2.2.1).

Chart 7.2.2.1 PPMC Pipeline Breaks December January 2019 – January 2020

141

98

45 45 45 5076

20 27 3060

36 44

14

11

15 12 2 2

0

2 0 0

0

00

41

8

11 2712

43

140

133157

5

2

39

23

15

3034

1

0

0

0

0

0

0

00

11

5

107

0

11

12

3

2

0

6

17

230

137

111125

60

106

228

158

186

35

68

40

60

0

50

100

150

200

250


PPMC Pipeline Breaks January 2019 - January 2020

Mosimi Kaduna Port Harcourt Warri Gombe





8 Glossary and Definition of Terms

AF Alternative Funding (Financing)

AGO Automotive Gas Oil

B/L Bill of Lading

BBLS Barrels

CA Carry Agreement

CBN Central Bank of Nigeria

DPK Dual Purpose Kerosene

DPR Department of Petroleum Resources

DSDP Direct Sales Direct Purchase

EGTL Escravos Gas to Liquid

FCCU Fluid Catalytic Cracking Unit

FX Foreign Exchange

FAAC Federation Account Allocation Committee

FACTI Focused, Accountable, Competitive & Transparent with Integrity

FGN Federal Government of Nigeria

FIRS Federal Inland Revenue Service

IOCs International Oil Companies

JV(s) Joint Ventures

JVCC Joint Venture Cash Call

LPG Liquefied Petroleum Gas

MCA Modified Carry Agreement

MMBTU Million British Thermal Unit

M-O-M Month-on-Month

MT Metric Tons

NGL Natural Gas Liquid

NLNG Nigerian Liquefied Natural Gas

NNPC Nigerian National Petroleum Corporation

NPDC Nigerian Petroleum Development Company

OECD Organization for Economic Co-operation and Development

OPA Offshore Processing Agreement

PMS Premium Motor Spirit

PPMC Pipelines and Products Marketing Company

PPPRA Petroleum Products Pricing Regulatory Agency

PPT Petroleum Profit Tax

PSC Production Sharing Contract

PTD Period to Date

QIT Qua Iboe Terminal

QTY Quantity

RDP Reserve Development Project

SC Service Contract

SOF Satellite Oil Field Project

TM Trial Marketing

TMP Trial Marketing Period WTI West Texas Intermediate Y-O-Y Year-on-Year YTD Year-to-Date





Explanatory Notes

Federation Equity Crude Oil & Gas Export Sales

Export sales proceeds are receivable 30 days after B/L date.

About 61% of the NGL sales are dedicated for servicing the NGL II Project debt’s

obligations. The balance is transferred into the Federation Account as price

balance.

NLNG feedstock: Gas supplied by NNPC/JV partners to NLNG.

Domestic Crude Oil Costs

445,000 barrels/day of crude oil is allocated to NNPC for the purpose of supplying

refined products for domestic consumption.

NNPC purchases its allocated crude oil from the Federation at the prevailing

International market price per barrel and payment is due 90 days after the B/L

date.

NNPC obligations are paid in Naira based on CBN determined exchange rate in the

month of lifting.

Remittances To FAAC

Domestic Gas: Revenues received from NNPC Joint Ventures for Gas sales in

Domestic market e.g. - Gas sales to Indorama, IPPs, and NGC etc.

Miscellaneous Income consists of the following:

(a) Assets disposal income

(b) Ullage fees

(c) Osubi air strip

(d) JP Morgan Bank Account interest

(e) Price balance from Third Party financing e.g. RDP, SOF, NGLII

(f) Revenue from Afam-Power

(g) Insurance Claims settlement etc.

FIRS PPT And DPR Royalty Remittances

Receipts from PPT and Royalty crude lifting are paid directly into FIRS/CBN JP

Morgan Accounts and DPR/CBN JP Morgan Accounts respectively without involvement of NNPC in the collection process.




monthly report · title: monthly report author: ref-user created date: 4/7/2020 6:06:14 pm

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