nnpc monthly financial and operations report august 2015

August 2015

Monthly Report

Financial and Operations

Report

NNPC

1 Monthly Financial and Operations Report August 2015| NNPC

Outline

1.0 Introduction

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

3.0 Plants Operations

4.0 Petroleum Product Supply & Distribution

5.0 Budget Performance Report

6.0 Federation Crude Oil & Gas Revenue

7.0 Summary of Challenges and Way forward


1 Introduction

This publication of Nigerian National Petroleum Corporation (NNPC) monthly operational

report is one of the initiatives of the Corporation in its ongoing restructuring efforts to

ensure probity, transparency and accountability in the conduct of its business. The Report is

being published as part of NNPCs management commitment to keep our shareholders, and

the general public informed about our activities.

The report provide the general public with reliable information, giving an overview of

NNPCs operations across the oil and gas value chain (Upstream, Midstream & Downstream)

as well as NNPCs agency function on behalf of Government of the Federation.

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

2.1 National Crude Oil & Condensate Production

A total of 67.49 million barrels of crude oil and condensate was produced for the month of

July 2015 translating to an average daily production of 2.177 million barrels. A total of 445

million barrels was produced from January to July 2015 representing an average daily

production of 2.099 million barrels for the same period. Production from Joint Ventures (JVs)

and Production sharing contracts (PSC) contributed about 31.5% and 42% respectively to

the total production. The tables and charts below provide details of the national Crude Oil &

Condensate Production for the period January to July 2015.

Table 2.1: National Crude Oil & Condensate Production

Month JVs PSC Af/MCA NPDC

Independent /

Marginal

Fields Total

Average Daily

Production

Barrels Barrels Barrels Barrels Barrels Barrels Barrels

Jan-15 22,221,832 28,141,885 11,055,401 2,923,580 3,723,813 68,066,511 2,195,694

Feb-15 19,631,486 25,112,636 9,800,902 4,003,182 3,312,717 61,860,923 2,209,319

Mar-15 18,780,222 26,845,229 9,614,364 4,511,165 4,405,169 64,156,149 2,069,553

Apr-15 19,568,055 26,008,972 10,799,392 1,889,398 2,575,459 60,841,276 2,028,043

May-15 19,579,478 27,197,671 11,166,850 2,573,919 2,971,181 63,489,099 2,048,035

Jun-15 18,334,670 25,593,567 9,704,798 2,667,540 2,786,281 59,086,856 1,969,562

Jul-15 21,940,240 27,858,467 9,850,062 4,448,460 3,402,327 67,499,556 2,177,405

Total 140,055,983 186,758,427 71,991,769 23,017,244 23,176,947 445,000,370 2,099,659

Figures above are the gross national production including equity interest of international oil

companies and other independent producers.

AF-Alternative financing; MCA-Modified Carry Agreement


Chart 2.1: Monthly Crude Oil & Condensate Production

Chart 2.2: Average Daily Crude Oil & Condensate Production & Percentage distribution

2.2. National Gas Production

A total amount of 225 billion standard cubic feet (BCF) of natural gas was produced for the

month of July 2015 translating to an average daily production of 8,233 million standard cubic

feet per day (mmscfd). For the period January to July 2015, a total of 1,677 BCF of gas was

produced representing an average daily production of 7,908 mmscfd for the same period.

Production from Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed

about 69.6% and 22% respectively to the total national gas production. The tables and charts

below provide details of the national gas production for the period January to July 2015.

22.2 19.6 18.8 19.6 19.6 18.3 21.9

28.1 25.1 26.8 26.0 27.2 25.6

27.9

11.1 9.8 9.6 10.8 11.2 9.7

9.9

68.1 61.9 64.2 60.8 63.5 59.1

67.5

0

10

20

30

40

50

60

70

80

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

Mil

lio

ns

Ba

rre

ls

Total Monthly Crude Oil & Condensate Production

JVs PSC Af/MCA NPDC Independent / Marginal Fields

2.20 2.21 2.07 2.03 2.05 1.97

2.18

0.0

0.5

1.0

1.5

2.0

2.5

3.0


Mil

lio

ns

Ba

rre

ls

Average Daily Crude Oil & Condensate Production

31.5%

42.0%

16.2%

5% 5%

Percentage Distribution of Crude Oil Production by Commercial Arrangements

JVs

PSC

Af/MCA

NPDC

Independent /Marginal Fields


Table 2.2.1: National Gas Production (Total and Daily Average)

Chart 2.2.1: Average Daily National Gas Production

Chart 2.2.1: Monthly National Gas Production & Percentage Distribution

PERIOD JV PSC NPDC TOTAL

BCF BCF BCF BCF

Jan-15 179 58 18 255

Feb-15 146 52 17 215

Mar-15 157 53 21 231

Apr-15 168 54 17 239

May-15 175 54 16 245

Jun-15 164 53 19 236

Jul-15 178 55 23 255

YTD Total 1,168 379 131 1,677

PERIOD JV PSC NPDC TOTAL

mmscfd mmscfd mmscfd mmscfd

Jan-15 5,775 1,869 570 8,214

Feb-15 5,222 1,857 613 7,692

Mar-15 5,080 1,724 663 7,466

Apr-15 5,599 1,811 558 7,968

May-15 5,648 1,729 531 7,908

Jun-15 5,477 1,766 635 7,878

Jul-15 5,729 1,765 739 8,233

Average 5,504 1,788 616 7,908

5,775 5,222 5,080 5,599 5,648 5,477 5,729

1,869 1,857 1,724

1,811 1,729 1,766 1,765

570 613 663

558 531 635 739

8,214 7,692 7,466

7,968 7,908 7,878 8,233

0

2,000

4,000

6,000

8,000

10,000


Average Daily National Gas Production (mmscfd)

JV PSC NPDC

255

215 231 239

245 236 255

0

50

100

150

200

250

300


Total Monthly Natural Gas Production (BCF)

69.6%

22.6%

7.8%

Percentage Distribution of Upstream Gas Production

JV

PSC

NPDC


2.3 Crude Oil & Condensate Lifting & utilization

A total volume of 63.7 million barrels of crude oil and condensate was lifted in the month of

July 2015 by all parties. Out of this volume, 25.2 million barrels was lifted for and on behalf of

the Federal government of Nigeria comprising of 17.4 million barrels lifted on the account of

NNPC and 7.8 million barrels lifted on the account of FIRS.

The 17.4 million barrels lifted on the account of NNPC in July comprises of 15.4 and 1.9

million barrels for the domestic and export markets respectively. At an average oil price of

$51.97/bbl and exchange rate of N195.95/$, the domestic crude oil lifted by NNPC is valued

at $805,220,701 or a naira equivalent of N157, 782,872,917 for the period. The remaining

crude oil lifted for export was valued at $108,916,802.23 at an average price of

$56.76/barrel. The total value of crude oil lifted on the account of NNPC in July was thus

$914,136,873.

For the period from January to July 2015, a total volume of 439 million barrels of crude oil

and condensate was lifted by all parties.

The tables and charts below provide the details of crude oil and condensate lifting and their

corresponding accrual values for the period January to July 2015.

Table 2.3.1: Crude Oil & Condensate Lifting and utilization

Note: Crude oil liftings are reported one month in arrears

Table 2.3.2: Crude Oil Lifting Values

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

Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels

Jan-15 6,599,431 410,000 6,647,330 13,564,197 20,211,527 27,220,958 38,250,075 1,291,873 66,762,906

Feb-15 4,995,452 260,000 6,539,228 14,608,257 21,147,485 26,402,937 36,991,819 1,054,215 64,448,971

Mar-15 2,295,064 1,296,138 6,071,583 14,062,453 20,134,036 23,725,238 35,552,081 1,210,000 60,487,319

Apr-15 4,754,914 51,400 5,119,906 11,173,963 16,293,869 21,100,183 40,410,853 2,297,199 63,808,235

May-15 4,862,603 1,447,689 3,940,965 12,287,020 16,227,985 22,538,277 36,123,485 2,388,624 61,050,386

Jun-15 3,268,292 550,300 5,022,429 11,193,080 16,215,509 20,034,101 37,004,226 1,775,030 58,813,357

Jul-15 7,809,563 0 1,918,716 15,493,685 17,412,401 25,221,964 37,243,405 1,263,140 63,728,509

TOTAL 34,585,319 4,015,527 35,260,157 92,382,655 127,642,812 166,243,658 261,575,944 11,280,081 439,099,683

SUB-TOTAL

(NNPC)DOMESTIC

LIFTING

MONTH

NIGERIAN GOVERNMENT

IOCs &

INDEPENDENTS

(INC. NPDC)

AF

(MCA/RDP) GRAND TOTALFIRS (PSC) DPR (PSC)

NNPC

SUB-TOTAL

GOVERNMENTEXPORT

USD USD USD USD USD USD USD USD USD

Jan-15 310,266,556 19,539,530 323,425,507 643,398,273 966,823,780 1,296,629,866 1,861,055,489 61,313,050 3,218,998,405

Feb-15 292,117,092 15,672,480 361,897,548 824,796,241 1,186,693,789 1,494,483,361 2,047,221,568 62,951,971 3,604,656,901

Mar-15 126,351,941 69,709,608 340,227,160 761,340,884 1,101,568,044 1,297,629,593 1,992,196,044 67,563,676 3,357,389,313

Apr-15 285,992,512 2,942,441 306,598,470 659,356,404 965,954,873 1,254,889,826 2,419,947,884 144,145,396 3,818,983,106

May-15 306,629,363 88,010,118 259,160,157 777,315,998 1,036,476,155 1,431,115,636 2,375,501,442 157,165,605 3,963,782,684

Jun-15 201,845,553 33,793,993 307,749,640 676,152,346 983,901,986 1,219,541,532 2,267,436,179 109,159,403 3,596,137,115

Jul-15 443,053,618 0 108,916,802 805,220,071 914,136,873 1,357,190,491 2,114,139,131 73,988,173 3,545,317,795

TOTAL 1,966,256,635 229,668,170 2,007,975,285 5,147,580,217 7,155,555,501 9,351,480,306 15,077,497,737 676,287,274 25,105,265,317

LIFTING

MONTH

NIGERIAN GOVERNMENT

IOCs &

INDEPENDENTS

(INC. NPDC) AF (MCA/RDP) GRAND TOTALFIRS (PSC) DPR (PSC)

NNPC

SUB-TOTAL

GOVERNMENTEXPORT DOMESTIC

SUB-TOTAL

(NNPC)


Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements

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

2.3.1 Utilization of Crude Oil for Domestic Product Supply

In July 2015, NNPC lifted 15,493,685 barrels of Crude Oil for domestic utilization translating to an average volume of 499,767 barrels of oil per day. In order to meet domestic product supply requirement for the month of July 2015, 8,731,917 barrels of crude oil was processed through Offshore Processing Agreements (OPA), 3,345,992 barrels was processed in the domestic refineries and the balance of 3,415,776 barrels was sold in the export market. Tables and charts below provide details of NNPCs Utilization of Crude Oil For Domestic Product Supply for the period of January to July 2015.

20.21 21.15 20.13 16.29 16.23 16.22 17.41

6.60 5.00 2.30 4.75 4.86 3.27 7.81

38.25 36.99 35.55 40.41 36.12 37.00

37.24

66.76 64.45 60.49

63.81 61.05 58.81 63.73

0

10

20

30

40

50

60

70

80


Mil

lio

n B

arr

els

Monthly Lifting Entitlement

SUB-TOTAL (NNPC) FIRS (PSC) DPR (PSC) IOCs & INDEPENDENTS (INC. NPDC) AF (MCA/RDP)

13.6 14.6 14.1 11.2 12.3 11.2

15.5

6.6 6.5 6.1

5.1 3.9 5.0

1.9

20.2 21.1

20.1

16.3 16.2 16.2 17.4

0

5

10

15

20

25


Mil

lio

n B

arr

els

Government Crude Oil Lifting & Utilisation: NNPC Account

DOMESTIC EXPORT


Table 2.3.1.1Domestic Crude Purchased By NNPC In 2015

Table 2.3.1.2 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$'M

n

Naira'Mn

Qty

('000

Bbls)

Value

in

US$'Mn

Naira'Mn

January 6,994 331 55,262 6,571 312 52,186 - - - 13,564 643 107,448

February 6,409 356 70,134 7,934 441 86,907 265 28 4,276 14,608 825 161,317

March 5,389 294 57,592 8,673 468 91,631 - - - 14,062 761 149,223

April 5,220 306 59,975 5,954 353 69,259 - - - 11,174 659 129,234

May 3,735 239 46,907 8,552 538 105,447 - - - 12,287 777 152,354

June 2,761 167 32,636 7,483 452 88,558 949 58 11,331 11,193 676 132,526

July 3,416 190 37,145 8,732 441 86,448 3,346 174 34,190 15,494 805 157,783

Grand

Total33,924 1,882 359,651 53,899 3,006 580,435 4,560 260 49,797 92,383 5,148 989,884

UTILIZATION OF CRUDE OIL PURCHASED BY NNPC FOR THE YEAR 2015

Month

EXPORT OFFSHORE PROCESSING DELIVERIES TO

REFINERIES TOTAL

Chart 2.3.1.1: NNPC Crude Oil Utilization For Domestic Product Supply

Volume Average Price Sales Value Sales Value Average Lifting

Barrels $/bbl USD NGN Barrels per day

Jan-15 13,564,207 47.43 643,398,273 107,447,511,536 437,555

Feb-15 14,608,257 56.46 824,796,241 161,316,709,514 521,723

Mar-15 14,062,453 54.14 761,340,884 149,222,813,261 453,628

Apr-15 11,173,963 59.01 659,356,404 129,233,855,135 372,465

May-15 12,287,020 63.26 777,315,998 152,353,935,610 396,355

Jun-15 11,193,080 60.41 676,152,346 132,525,859,854 373,103

Jul-15 15,493,685 51.97 805,220,071 157,782,872,917 499,796

Total 92,382,665 56.10 5,147,580,217 989,883,557,826 436,375

Period

6.6 7.9 8.7

6.0 8.6 7.5 8.7

7.0 6.4 5.4

5.2

3.7 2.8

3.4

0.3

0.9

3.3 13.6

14.6 14.1

11.2 12.3

11.2

15.5

0

2

4

6

8

10

12

14

16

18


Mil

lio

n B

arr

els

NNPC Crude Oil Utilisation For Domestic Product Supply

OPA DIRECT EXPORT REFINERY(IES)


Chart 2.3.1.2: Percentage Distribution for July 2015 Domestic Crude Utilization

2.4 Natural Gas Off take, Commercialization & Utilization

Out of the 255 BCF of gas produced in July 2015, a total of 145 BCF of gas was

commercialized comprising of 35.4 and 110.1 BCF for the domestic and export market

respectively. This translates to an average daily supply of 1,141 mmscfd of gas to the

domestic market and 3,552 mmscfd of gas supplied to the export market. This implies that

57% of the total gas produced was commercialized while the balance if 43% was either re-

injected, used as upstream fuel gas or flared. Gas flare rate was 7.3% for the month of July

2015 ie 607mmscfd compared with the 2015 YTD average flare rate of 9.3% ie 759 mmscfd.

From the 1,141 mmscfd of gas supplied to the domestic market in July, about 786 mmscfd of

gas representing 68.9% was used for Gas-Fired power plants while the balance of 355

mmscfd or 32.1% was supplied to other industries. Similarly, for the period of January July

an average of 991 mmscfd of gas was supplied to the domestic market comprising of an

average of 656mmscfd or (66.2 %) as gas supply to the power plants and 335 mmscfd or

(34.8%) as gas supply to industries.

About 3,122 mmscfd or 87.9% of the export gas was sent to Nigerian Liquefied Natural Gas

Company (NLNG). for July 2015 compared with a 2015 YTD average of 2,965mmscfd.

Total gas supply for the period January to July 2015 stands at 210 BCF and 724 BCF for the

domestic and export market respectively. The tables and chart below provides more details

of the gas utilization and commercialization for the period January to July 2015

22%

56%

22%

July 2015 Crude Utilization For Domestic Product Consumption

Export

OPA

Refineries

4.9%

58.3%

36.7%

2015 YTD Crude Utilization For Domestic Product Consumption

Refinery

OPA

Export


Table 2.4.1 Total Gas Commercialization and utilization

Table 2.4.1 Daily Average Gas Commercialization and utilization

Chart 2.4.1 Percentage Distribution of Gas Utilization

Domestic

Gas To

Power

Domestic Gas

to Industry

Total

Domestic Gas

Supply WAPG EGTL

NGL/

LPG NLNG Total Export Gas

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

Jan-15 20.8 9.5 30.3 1.6 4.7 8.3 97.8 112.5 69.1 12.2 26.7 108.0

Feb-15 18.1 9.3 27.4 1.4 3.4 6.1 76.4 87.2 59.8 11.5 26.2 97.5

Mar-15 20.8 11.2 32.0 1.9 4.9 5.6 86.2 98.6 57.6 11.6 28.5 97.7

Apr-15 18.2 10.1 28.3 1.7 5.4 7.4 89.6 104.1 67.6 13.5 22.7 103.7

May-15 16.5 9.9 26.4 1.8 6.4 7.6 93.0 108.8 74.6 13.5 19.1 107.2

Jun-15 20.4 10.0 30.4 1.3 4.1 7.8 89.6 102.7 70.3 12.3 18.7 101.3

Jul-15 24.4 11.0 35.4 2.1 4.0 7.3 96.8 110.1 76.3 12.4 18.8 107.5

Total 139 71 210 12 33 50 629 724 475 87 161 723

Period

Re-

Injection Fuel Gas Flare

Non-Commercialized Gas

Total Non-

Commerial

Gas

Domestic Gas Export Gas

Gas Commercialisation

Domestic

Gas To

Power

Domestic Gas

to Industry

Total Gas To

Domestic WAPG EGTL NGL/LPG NLNG

Total Gas To

Export

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

Jan-15 672 306 978 53 151 269 3,156 3,629 2,230 394 861 3,485

Feb-15 646 333 978 51 120 216 2,728 3,114 2,135 410 936 3,481

Mar-15 672 362 1,033 60 159 182 2,780 3,182 1,858 375 919 3,151

Apr-15 605 337 942 57 180 247 2,986 3,470 2,252 451 755 3,458

May-15 533 320 853 61 207 245 3,000 3,509 2,407 436 615 3,458

Jun-15 679 333 1,012 45 136 259 2,985 3,424 2,345 411 622 3,378

Jul-15 786 355 1,141 68 129 234 3,122 3,552 2,462 399 607 3,468

Average 656 335 991 56 154 236 2,965 3,412 2,241 411 759 3,411

Non-Commercialized Gas

Re-

Injection Fuel Gas Flare

Total Non-

Commerial

GasPeriod

Gas CommercialisationDomestic Gas Export Gas

12.7%

43.7%

43.7%

2015 YTD Percentage Distribution of Gas Utilisation

Total GasToDomestic

Total GasTo Export

Total Non-commercialised Gas

14.0%

43.5%

42.5%

July 2015 Percentage Distribution of Gas Utilisation

Total GasToDomestic

Total GasTo Export

Total Non-commercialised Gas


3 Plants Operations

3.1 Capacity Utilization

3.1.1 Refineries Operations

Total Crude processed by the three Refineries, for the month of August was 3,322,510 bbls

(453,152 MT) which translates to a combined average capacity utilization of 10.04 %.

During the period under review, the three Refineries produced 219,538million MT of

Petroleum Products out of 453,152 MT (3,322,510 bbls) of crude processed. The Capacity

utilization of the refineries during the period was as follows:

Table 3.1: Refineries Capacity Utlisation

YTD

Operational Parameter Jul Aug Jul Aug Jul Aug 2015

Crude Processed (M/tons) 122,118 140,778 122,141 263,537 12,058 48,837 919,889

Crude Loss/Consumed (M/tons) 6,997 10,726 6,119 10,069 3,232 19,341 79,658

Product Yields(M/tons) 115,121 130,052 116,022 253,468 8,826 29,496 840,231

Capacity Utilization 23.11% 26.64% 13.76% 29.68% 2.59% 10.50% 10.04%

Planned Yield (M/tons) 528,505 528,505 887,889 887,889 887,889 887,889 14,247,818

% Loss/Consumption 5.73% 7.62% 5.01% 3.82% 26.80% 39.60% 8.66%

Yields Efficiency (%) 94.27% 92.38% 94.99% 96.18% 73.20% 60.40% 91.34%

WRPC PHRC KRPC

Chart 3.1: Refineries Capacity Utilization

3.2 Crude Processed and Production for August 2015

The combined value of output by the three refineries (at import parity price) for the month

of August 2015 amounted to N 47.26billion while the associated Crude plus freight cost was

N 35.1billion, giving a surplus of N 4.97billion after considering overhead of N 7.18billion as

shown in Table 3.2 below:

23.1%

13.8%

2.6%

26.6% 29.7%

10.5%

0%

10%

20%

30%

40%

WRPC PHRC KRPC

Refineries Capacity Utilization

July August


Table 3.2: Refinery Financial Performance January August 2015

The combined factors of Low Crude Supply due to vandalized pipelines, Plant preservation cost to

maintain plant integrity, Rehab/TAM work are key factors responsible for deficit months prior to August

2015

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15

NGN

Million NGN Million NGN Million

NGN

Million NGN Million

NGN

Million

NGN

Million NGN Million

WRPC

Revenue 18,368 12 26 12 14 19 13,218 12,836

Crude + Frieght (COGS) (12,080) 0 0 0 0 0 (11,464) (11,709)

Opex (1,620) (1,401) (1,364) (1,766) (1,302) (1,551) (1,675) (2,322)

Operating Profit/Loss 4,668 (1,390) (1,338) (1,753) (1,288) (1,532) 79 (1,195)

KRPC

Revenue 378 397 982 179 58 445 212 2,649


Opex (3,238) (3,071) (3,242) (3,223) (2,653) (3,107) (2,853) (3,300)

Operating Profit/Loss (5,111) (2,673) (2,260) (3,045) (2,595) (2,662) (3,847) (3,990)

PHRC

Revenue 432 27 2,480 455 27 37 13,662 29,708

Crude + Frieght (COGS) 0 0 0 0 0 0 (11,347) (22,757)

Opex (1,929) (1,733) (1,775) (1,892) (1,740) (1,742) (1,758) (1,905)

Net Cash Flow (1,497) (1,705) 705 (1,437) (1,713) (1,705) 557 5,045

Consolidated

Revenue 19,178 436 3,487 647 99 501 27,091 45,194


Opex (6,787) (6,205) (6,381) (6,881) (5,695) (6,401) (6,286) (7,527)

Operating Profit/Loss (1,940) (5,768) (2,894) (6,235) (5,596) (5,899) (3,211) (139)

Total Operating Profit (1,940) (5,768) (2,894) (6,235) (5,596) (5,899) (3,211) (139)

Refinery Financial

Performance 2015


4 Petroleum Product Supply & Distribution

4.1 Petroleum Product Supply from Off-shore Processing Agreements (OPA)

In August 2015, 701 million litres of white products was supplied into country through the

OPA arrangements compared with a volume of 810 million litres achieved in the prior month

of July 2015. There was however no DPK receipts in August compared with 36.9 million litres

imported in the prior month of July. The tables and charts below provide more details of the

total petroleum product supply from OPAs.

Table 4.1.1: Imported Petroleum Products from OPA in litres 2015

Period PMS (Litres) DPK (Litres) TOTAL

Jan-15 518,772,436 328,471,904 847,244,339

Feb-15 472,805,827 84,308,867 557,114,694

Mar-15 928,342,422 84,985,825 1,013,328,247

Apr-15 575,901,484 171,709,078 747,610,563

May-15 700,039,658 349,630,514 1,049,670,172

Jun-15 295,642,465 67,562,200 363,204,665

Jul-15 773,679,148 36,968,789 810,647,937

Aug-15 701,294,114 0 701,294,114

TOTAL 4,966,477,554 1,123,637,178 6,090,114,732

There was no DPK supply in August 2015 compared to July 2015 supply of 36.9 million litres.

Chart 4.1: Petroleum Products Supply from Offshore Processing Arrangement

519 473

928

576 700

296

774 701

328

84

85

172

350

68

37

847

557

1,013

748

1,050

363

811 701

0

200

400

600

800

1,000

1,200


Mil

lio

ns

Lit

res

Petroleum Products from Offshore Processing Arrangement

PMS (Litres) DPK (Litres)


4.2 Petroleum Products Supply from Domestic Refineries

The petroleum products production by the domestic refineries in August 2015 amounted to

200 million litres compared to 83 million litres in July 2015 as shown in Table 4.3 below.

Table 4.2.1: Refined Petroleum Products in Litres

Table 4.2.1 Total Petroleum White Product Supply from NNPC (OPA+ Refineries)

Chart 4.2.1 Total Petroleum White Product Supply From NNPC (OPA+ Refineries)

PMS DPK (Litres) Total (PMS+DPK)

Litres Litres Litres

Jan-15 180,510,669 63,937,104 244,447,773

Feb-15 60,764,733 0 60,764,733

Mar-15 55,103,031 0 55,103,031

Apr-15 58,084,074 0 58,084,074

May-15 28,980,351 0 28,980,351

Jun-15 57,822,579 0 57,822,579

Jul-15 53,394,597 29,859,984 83,254,581

Aug-15 116,464,509 83,780,928 200,245,437

Total 611,124,543 177,578,016 788,702,559

Period

PMS DPK Total PMS DPK

Litres Litres Litres Litres/Day Litres/Day

Jan-15 699,283,105 392,409,008 1,091,692,112 22,557,520 12,658,355

Feb-15 533,570,560 84,308,867 617,879,427 19,056,091 3,011,031

Mar-15 983,445,453 84,985,825 1,068,431,278 31,724,047 2,741,478

Apr-15 633,985,558 171,709,078 805,694,637 21,132,852 5,723,636

May-15 729,020,009 349,630,514 1,078,650,523 23,516,774 11,278,404

Jun-15 353,465,044 67,562,200 421,027,244 11,782,168 2,252,073

Jul-15 827,073,745 66,828,773 893,902,518 26,679,798 2,155,767

Aug-15 817,758,623 83,780,928 901,539,551 26,379,310 2,702,611

Total 5,577,602,097 1,301,215,194 6,878,817,291 22,853,570 5,315,419

PeriodTotal Product Supply (OPA+Refineries) Average Daily Supply

699 534

983 634 729

353

827 818

392

84

85

172 350

68

67 84

1,092

618

1,068

806

1,079

421

894 902

0

500

1,000

1,500


Mil

lio

ns

Lit

res

Total Petroleum Products Supply From NNPC (OPA + Refineries)



Table 4.2.2 Daily Average Petroleum Product Supply From NNPC (OPA+ Refineries)

4.3 Downstream Petroleum Product Distributions

A total of 606 million litres of white product was distributed and sold by PPMC in the month

of August 2015 compared with 613 million litres in the prior month of July. This is comprised

of 516.7 million litres of PMS, 83.5 million litres of Kerosene and 6 million litres of Diesel.

Total sale of white products for the period January to August 2015 stands at 5.898 billion

litres, 78% of which comprises of PMS ie 4.6 billion litres. The Tables and Charts below

provide more details of white products sold by NNPC PPMC for the period January August

2015.

Table 4.3.1 Downstream Petroleum product sales by PPMC

22.6 19.1

31.7

21.1 23.5

11.8

26.7 26.4

12.7

3.0

2.7

5.7

11.3

2.3

2.2 2.7

35

22

34

27

35

14

29 29

0

10

20

30

40


Mil

lio

ns

Lit

res

Daily Average Petroleum Products Supply From NNPC (OPA + Refineries)


PMS AGO DPK Total White

Products

Period Litres Litres Litres Litres

Jan-15 512,396,097 20,966,547 303,183,934 836,546,578

Feb-15 499,945,695 19,004,650 93,309,212 612,259,557

Mar-15 795,149,204 31,644,056 124,187,347 950,980,607

Apr-15 582,586,368 17,227,372 191,077,678 790,891,418

May-15 566,290,963 13,988,465 271,031,091 851,310,519

Jun-15 582,416,290 11,601,322 42,022,793 636,040,405

Jul-15 570,023,134 3,292,716 40,506,046 613,821,896

Aug-15 516,699,923 6,562,586 83,581,196 606,843,705

Total 4,625,507,674 124,287,714 1,148,899,297 5,898,694,685


Table 4.3.2 Daily Average Petroleum White Product Sales By PPMC

Chart 4.3.1 Monthly Petroleum White Product sales by PPMC

Chart 4.3.2 Average Daily White Products Distribution sales by NNPC PPMC

PMS AGO DPK Total White

Products

Period Liters/Day Liters/Day Liters/Day Liters/Day

Jan-15 16,528,906 676,340 9,780,127 26,985,373

Feb-15 17,855,203 678,738 3,332,472 21,866,413

Mar-15 25,649,974 1,020,776 4,006,043 30,676,794

Apr-15 19,419,546 574,246 6,369,256 26,363,047

May-15 18,267,450 451,241 8,742,938 27,461,630

Jun-15 19,413,876 386,711 1,400,760 21,201,347

Jul-15 18,387,843 106,217 1,306,647 19,800,706

Aug-15 16,667,739 211,696 2,696,168 19,575,603

Total 19,023,817 513,245 4,704,301 24,241,364

512 500

795 583 566 582 570

303 93

124

191 271 42 41

836.5

612.3

951.0

790.9 851.3

636.0 613.8

0

200

400

600

800

1,000

1,200


Mil

lio

ns

Lit

ers

Total Monthly PPMC Product Distribution Sales Volume

PMS DPK AGO

17 18 26

19 18 19 18

10 3

4

6 9 1 1

27.0

21.9

30.7

26.4 27.5

21.2 19.8

0

5

10

15

20

25

30

35


Mil

lio

ns

Lit

ers

Pe

r D

ay

Average Daily PPMC Product Distribution Sales Volume

PMS DPK AGO


A total value of 44.2 billion naira was collected as sales revenue for white products sold by

PPMC in the month of August 2015 compared with 46.3 billion naira collected in the prior

month of July 2015. Total sales revenues for white products sold for the period January to

August stands at 422 billion naira where PMS contributed over 85% of the revenues

collected with a value of 360 billion naira. Table and chart below provide details accordingly.

Table 4.3.3 Sales Revenue for Petroleum Product White Product Distribution

Chart 4.3.3 Monthly Sales Revenue for Petroleum Product White Product Distribution

4.4 Domestic Gas Supply to the Power Sector

An average of 786mmscfd was delivered to the gas fired power plants in the month of July to

generate an average power of about 3,489MW compared with a 2015 YTD average gas

supply 656mmscfd and power generation of 2,843MW. The table and chart below provides

details.

PMS AGO DPK Total White Products

Period Naira Naira Naira Naira

Jan-15 41,039,382,833 2,892,544,824 12,400,222,901 56,332,150,558

Feb-15 38,731,828,782 2,211,571,121 3,816,346,771 44,759,746,673

Mar-15 61,718,451,733 3,686,952,718 5,079,262,492 70,484,666,943

Apr-15 45,243,657,319 1,974,058,858 7,815,077,030 55,032,793,208

May-15 43,937,131,621 1,612,590,245 11,085,171,622 56,634,893,488

Jun-15 45,230,449,083 1,441,464,259 2,084,424,706 48,756,338,048

Jul-15 44,235,234,795 395,718,609 1,656,697,281 46,287,650,685

Aug-15 40,075,798,540 741,703,470 3,418,470,916 44,235,972,926

Total 360,211,934,706 14,956,604,104 47,355,673,720 422,524,212,529

41 39

62 45 44 45 44

12 4

5

8 11 2 2

3

2

4

2 2

1 0

56.3

44.8

70.5

55.0 56.6 48.8 46.3

0

10

20

30

40

50

60

70

80


Bil

lio

ns

Na

ira

Sales Revenue From PPMC Product Distribution Sales Volume

PMS DPK AGO


Table 4.4.1 Domestic Gas Supply to the Power Sector & Generation

Chart 4.4.1 Domestic Gas Supply to the Power Sector & Generation

5 Budget Performance Report

5.1 Summary of Group Operating Expenditure and Revenue for August 2015

Group operating revenue before subsidy for the months of July and August 2015 were

N149.2billion and N146.6 billion respectively. This represents 48.75% and 47.91%

respectively of monthly budget.

Similarly, operating expenditure for the same periods were N200.12billion and

N207.28billion respectively, which also represents 74.92% and 77.6% respectively of budget

for the months.

Period

Gas Supply To Gas-Fired Power Plants

Average Power Generated from Gas-Fired Power

Plants

% of Gas Fired Generation to Total Power Generation

including Hyrdo

mmscfd MW %

Jan-15 672 2,846 MW 80.2%

Feb-15 646 2,781 MW 80.0%

Mar-15 672 2,885 MW 84.6%

Apr-15 605 2,675 MW 84.1%

May-15 533 2,219 MW 86.2%

Jun-15 679 3,002 MW 87.3%

Jul-15 786 3,489 MW 91.1% Average 656 2,843 MW 84.8%

672 646 672 605 533 679

786

2,846 MW 2,781 MW 2,885 MW 2,675 MW

2,219 MW

3,002 MW

3,489 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

200

400

600

800

1,000


Po

we

r G

en

era

tio

n

Ga

s S

up

ply

(m

msc

fd)

Gas Supply to Power plants & Generation

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


Operating deficits of N51.71billion and N60.67 for July and August 2015 respectively was

attained as against monthly budgeted surplus of N38.91billion. The table and charts below

provides details.

Table 5.1: Group Financial Performance

*NPDC Expense does not include royalty obligations

**73% of YTD NNPC deficit of N378Bn is accounted for by PPMC deficit of N278.8Bn.

***The N278Bn deficit attributable to PPMC mainly comprises of claimable subsidy of N231 Bn ie 82% of PPMC deficit.

Other causes of PPMC deficit include claimable PPMC Pipeline repairs/management cost of N69bn and Crude/ Product

losses of N45Bn due to vandalized pipelines

Values in the table are provisional unaudited numbers.

Revenue Expense

Profit/

(Loss) Revenue Expense

Profit/


Profit/


Profit/


Profit/

(Loss)

NPDC 54,969 17,308 37,660 34,431 19,311 15,120 20,192 37,004 16,812 439,748 138,466 301,282 174,129 123,134 50,995

IDSL 1,970 1,279 692 1,562 792 771 302 691 389 15,764 10,228 5,536 8,923 5,988 2,934

NETCO 604 460 143 386 921 1,307 582 546 36 4,831 3,683 1,148 5,880 5,336 544

NGC 8,574 5,158 3,416 11,586 8,715 2,870 13,621 9,258 4,362 68,594 41,266 27,328 89,134 69,896 19,239

Sub-Total 66,117 24,205 41,912 47,965 27,111 20,068 34,697 47,500 12,803 528,937 193,643 335,294 278,066 204,354 73,712

KRPC 22,142 22,478 336 6 2,696 2,690 2 2,388 2,386 177,132 179,821 2,689 56 21,246 21,190

PHRC 35,345 36,296 952 34 2,048 2,014 15 2,024 2,009 282,758 290,371 7,613 371 15,474 15,103

WRPC 41,469 37,673 3,796 5 1,675 1,670 24 2,204 2,180 331,750 301,385 30,365 108 12,732 12,624

Sub-Total 98,955 96,447 2,508 46 6,420 6,374 41 6,616 6,575 791,640 771,577 20,063 535 49,453 48,917

RETAIL 2,878 1,787 1,091 1,451 970 481 1,730 1,150 580 23,025 14,297 8,728 12,023 8,344 3,679

PPMC before

Subsidy136,737 125,389 11,348 99,486 147,434 47,947 109,910 144,765 34,855 1,093,899 1,003,116 90,784 879,283 1,158,121 278,837

Sub-Total 139,616 127,177 12,439 100,937 148,404 47,467 111,640 145,915 34,275 1,116,924 1,017,413 99,512 891,306 1,166,465 275,159

CHQ 1,187 16,525 15,338 243 16,584 16,341 233 6,234 6,001 9,499 132,202 122,703 1,312 116,019 114,707

CSU 143 2,752 2,609 7 1,607 1,600 6 1,023 1,017 1,143 22,014 20,871 166 13,586 13,420

Sub-Total 1,330 19,277 17,947 250 18,191 17,940 239 7,256 7,017 10,642 154,216 143,574 1,479 129,606 128,127

Grand Total 306,018 267,106 38,912 149,198 200,126 51,714 146,617 207,287 60,669 2,448,144 2,136,849 311,295 1,171,386 1,549,877 378,491

JULY AUGUSTSBU/CSU

2015 BUDGET 2015 ACTUAL

MONTHLY BUDGET

(=N= MILLION)

ACTUAL (=N= MILLION) YEAR TO DATE (=N= MILLION)

**

***

*


Chart 5.1.1: NNPC Group Operating Revenue January August 2015

Chart 5.1.2: NNPC Group Operating Expenditure January August 2015

Chart 5.1.3: NNPC Group Surplus/Deficit January August 2015

153.5 157.3 163.2 141.3

111.4

148.8 149.2 146.6

0

50

100

150

200


Bil

lio

n N

air

a NNPC Group Revenue 2015

NPDC IDSL NETCO NGC RETAIL Refineries PPMC before Subsidy CHQ/CSU

157.5

200.9 200.8 187.9 193.8

200.9 200.9 207.3

0

50

100

150

200

250


Bil

lio

n N

air

a

NNPC Group Expenses 2015

NPDC IDSL NETCO NGC RETAIL Refineries PPMC before Subsidy CHQ/CSU


5.2 FGN Projects Status Report

A total of 85 on-going projects valued at $754million and N71billion are being handled by

NNPC. Out of these the sum of $533million and N57billion have been paid as at 31st August

2015. The FGN funded projects relate to Engineering, Procurement and Construction (EPC)

contracts in respect of Gas pipeline for PHCN power plants at various locations.

6 Federation Crude Oil & Gas Revenue

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

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

remitted to the Federation Account. Monthly export receipts are paid directly into JP Morgan

Account operated by Central Bank of Nigeria (CBN), after adjusting for calenderized Joint

Venture (JV) Cash Calls, being a first line charge as provided in the Appropriation Bill; the

balance is transferred to the Federation Account.

Domestic Crude Oil of 445,000bopd is allocated for Refining to meet domestic products

supply. This volume is utilized through various arrangements such as domestic refining,

offshore refining (Offshore Processing Arrangement: OPA), Crude for Product Exchange and

Direct Export. The net proceeds after adjusting for Fuel Subsidy, Crude & Product Losses and

Pipeline Repairs & Management Cost are remitted to the Federation Account.


6.1 Main Sources of Federation Revenue

Figure 6.1: Sources of Oil & Gas Revenue


6.2 Accounting for Federation Crude Oil & Gas

The summary of Oil & Gas Sales and inflow to Federation Account can be depicted as follows: Figure 6.1

6.3 Dollar Payments to Federation Account

Total US dollar payment to the Federation from sales of export Crude Oil, Gas and NLNG

Feedstock for the month of August 2015 was $225.7 million. Crude oil export sales

contributed $108.9million ie 48% of the dollar payment compared with 76% contribution in

previous month of July 2015 while export Gas sales and NLNG feedstock accounted for

$99.65million ie 44% contribution compared with 23.7% contribution in the prior month of

July 2015. The remaining $16.8milion was attributable to other dollar denominated receipts


by the Corporation. A total of $607.8 million has been paid so far to FAAC in the year 2015

from sales of export Oil and Gas. Table & Chart 6.3.1 provides the details of the dollar

payments due, receipt of proceeds and allocation of proceeds.

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

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

6.3.2 Dollar Payments to JV Cash Call & Federation Account

The total export crude Oil & Gas receipt for the period of January August 2015 is

$3.420billion. Of the total receipts, the sum of $0.61billion was remitted to Federation

Account while the balance of $2.815billion was used to fund the JV Cash Call for the period.

The dwindling oil price has negatively affected the NNPC Dollar contribution to the

Federation Account. The receipts witnessed a sharp decline of more than 67% from

Export Crude

Oil Sales

Proceed due

*Export Gas

Sales Proceed

due

Total Oil & Gas

Sales Proceed

due

Crude Oil

Proceed

Reciepts

Gas Proceed

Reciepts

(NLNG,EGTL,NG

Ls,NGAS)

**Other

Reciepts

Total Sales

Proceed

Reciepts

JV Cash Call

Funding

Balance

Remitance to

FAAC

Units USD USD USD USD USD USD USD USD USD

Dec-14 Jan-15 212,838,844 173,184,756 386,023,600 206,629,106 169,728,467 284,105 376,641,677 300,000,000 76,641,677

Jan-15 Feb-15 323,425,507 151,597,792 475,023,299 307,360,109 163,060,514 196,582,834 667,003,457 320,796,841 346,206,616

Feb-15 Mar-15 361,897,548 113,344,504 475,242,053 400,294,202 105,295,932 185,061 505,775,195 320,796,841 184,978,354

Mar-15 Apr-15 340,227,160 123,190,134 463,417,295 335,023,929 167,104,408 257,969 502,386,306 502,386,306 0

Apr-15 May-15 306,598,470 110,115,836 416,714,305 240,269,115 96,422,239 1,411,600 338,102,954 338,102,954 0

May-15 Jun-15 259,160,157 101,347,202 360,507,359 299,413,261 85,599,747 2,912,709 387,925,718 387,925,718 0

Jun-15 Jul-15 307,749,640 126,633,631 434,383,271 320,122,055 99,230,169 58,921 419,411,144 419,411,144 0

Jul-15 Aug-15 108,916,802 108,916,802 108,916,734 99,965,193 16,860,637 225,742,564 225,742,564 0

2,220,814,129 899,413,855 3,120,227,984 2,218,028,512 986,406,669 218,553,835 3,422,989,016 2,815,162,368 607,826,648

Receipt/

Payment

Month

Lifting

Month

NNPC/FGN Export Lifting Only

Total

Export Sales Proceed RecieptsExport Sales Proceed Value Due Allocation of Proceeds

206.63 307.36

400.29 335.02

240.27 299.41 320.12

108.92

169.73

163.06

105.30 167.10

96.42 85.60

99.23

99.97

376.64

667.00

505.78 502.39

338.10 387.93

419.41

225.74

-

100

200

300

400

500

600

700

800


Mil

lio

n D

oll

ars

Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports

Crude Oil Proceed Reciepts Gas Proceed Reciepts (NLNG,EGTL,NGLs,NGAS) **Other Reciepts


September, 2014, when the receipt was at its peak, to July, 2015 with dire consequences to

the Federation. This continued decline in oil price led to insufficient cash available to meet

monthly JV Cash Calls obligations of about $615.8m as appropriated by the National

Assembly. To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV

Cash Call funding implying a zero remittance to Federation Account since the month of April

2015 indicated in the chart 6.3.2.1 below:

Chart 6.3.2.1 Allocation of Dollar proceed from NNPC/FGN export oil and Gas: JV Cash Call

Chart 6.3.2.1 NNPC Federation Lifted Volumes vs. Crude Oil Prices

6.4 Naira Payments to Federation Account

The sum of N723.82billion for Domestic Crude Oil and Gas Sales proceeds has been paid to

the Federation Account from January to August 2015. The tables below show the Naira

proceed from the Sale of Domestic Crude Oil and Gas and the corresponding naira

remittances to Federation Account.

300.00 320.80 320.80

502.39 338.10 387.93

419.41

225.74

76.64

346.21

184.98 376.64

667.00

505.78 502.39

338.10 387.93 419.41

225.74

-

100

200

300

400

500

600

700

800


Mil

lio

n D

oll

ars

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

JV Cash Call Funding Balance Remitance to FAAC

20.21 21.15 20.13 16.29 16.23 16.22 17.41

47.84 56.12 54.71

59.28 63.87 60.68

52.50 47.84

0

20

40

60

80

0

5

10

15

20

25

30

35


$/

bb

l

Mil

lio

ns

Ba

rre

ls

NNPC/Federation Lifted Volumes and Crude Prices

NNPC Lifted Volumes Crude Price


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

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

Chart 6.4.1 PPMC Pipeline Breaks January August 2015

Domestic Crude Sales

Proceed due

Oil Proceed Reciepts

(M)

Gas Proceed

Reciepts (M) Other Reciepts

Total Sales Proceed

Reciepts (m)

Uints NGN NGN NGN NGN NGN

Oct-14 Jan-15 193,396,589,831 130,258,254,777 1,199,275,878 410,190 131,457,940,845

Nov-14 Feb-15 140,359,919,841 72,127,787,317 5,068,536,722 967,206,524 78,163,530,562

Dec-14 Mar-15 130,786,721,631 94,109,331,892 3,121,971,726 0 97,231,303,617

Jan-15 Apr-15 107,447,511,536 81,021,606,452 2,741,653,924 0 83,763,260,375

Feb-15 May-15 161,316,709,514 95,693,106,452 962,282,254 6,020,506 96,661,409,211

Mar-15 Jun-15 149,222,813,261 93,539,606,452 2,091,998,862 0 95,631,605,314

Apr-15 Jul-15 129,233,855,135 68,983,606,452 2,083,680,988 0 71,067,287,439

May-15 Aug-15 152,353,935,610 67,339,606,452 138,157,794 2,370,034,843 69,847,799,089

1,164,118,056,359 703,072,906,243 17,407,558,146 3,343,672,063 723,824,136,453TOTAL

Receipt/

Payment

MonthLifting Month

Domestic Sales Proceed Recipets

Domestic Sales

Proceed Value Due

Domestic Crude

Sales Proceed due

Total Sales

Proceed Reciepts

(m) Subsidy Crude Losses Product Losses

Repairs &

Managmet Cost

Debt Repayemt

To FG

Total Naira

Payment To FAAC

Uints NGN NGN NGN NGN NGN NGN NGN NGN

Oct-14 Jan-15 193,396,589,831 131,457,940,845 15,351,177,597 0 4,179,073,288 7,797,441,420 6,330,393,548 137,788,334,393

Nov-14 Feb-15 140,359,919,841 78,163,530,562 11,175,067,731 0 3,610,801,700 7,863,634,588 6,330,393,548 84,493,924,111

Dec-14 Mar-15 130,786,721,631 97,231,303,617 31,062,399,328 5,378,809,260 17,188,809,171 6,330,393,548 103,561,697,166

Jan-15 Apr-15 107,447,511,536 83,763,260,375 30,008,360,677 1,807,936,000 6,060,119,430 10,976,056,674 6,330,393,548 90,093,653,924

Feb-15 May-15 161,316,709,514 96,661,409,211 53,049,002,640 364,989,456 6,338,126,300 6,804,615,602 6,330,393,548 102,991,802,760

Mar-15 Jun-15 149,222,813,261 95,631,605,314 18,928,215,273 189,483,278 6,024,148,888 5,697,988,516 6,330,393,548 101,961,998,862

Apr-15 Jul-15 129,233,855,135 71,067,287,439 35,954,234,278 1,807,943,717 4,886,682,912 9,202,611,479 6,330,393,548 77,397,680,988

May-15 Aug-15 152,353,935,610 69,847,799,089 35,510,220,672 5,176,627,751 3,874,456,877 6,330,393,548 76,178,192,6371,164,118,056,359 723,824,136,453 231,038,678,194 4,170,352,451 41,654,389,529 69,405,614,326 50,643,148,387 774,467,284,840

Allocation of Domestic Sales Proceeds

TOTAL

Receipt/

Payment

Month

Lifting

Month

Domestic Sales

Proceed Recipets

Domestic Sales

Proceed Value Due

158 103

60 101

146 151

78 79

78

43

55

60 26

47

36 5

25

15 48

54

71

72 117

23

23

16

15 18

10

27 20

288

198

145

231 250

287

218 225

0

50

100

150

200

250

300

350


PPMC Pipeline Breaks from January - August 2015

Mosimi Kaduna Port Harcourt Warri Gombe

YTD Line Breaks of 1,824


Chart: 6.4.1 Monthly Naira Payments to FAAC

7 Summary of Challenges and Way Forward

Key Challenges facing the Corporation which adversely impacts its profitability include:

Asset Integrity Issues: Incessant pipelines breakages nationwide has led to massive

leakages and huge accounting losses to NNPC; Pipeline repairs and other associated cost

accounted for about N69.4Bn in YTD 2015 alone.

Crude Oil and Product theft/losses: About N45.8Bn recorded as crude oil and product

theft/losses for 2015 YTD resulting from vandalized pipelines. About 1,824 pipeline breaks

recorded by PPMC in 2015 so far.

Sub-commercial Contracts: Poorly negotiated legacy contracts have contributed adversely

to the profitability of the corporation.

Low capacity utilization of refineries: Largely due to refinery asset integrity issues and

lack of crude oil feed due to vandalized pipelines.

Subsidy management: Unrealized subsidy claims of about N231Bn for 2015 alone

responsible for over 61% of the deficit recorded by the Corporation.

Inefficient Business Models: Some of the Corporations business units are not operating the

most efficient business models that will position the company for profitability.

Consequently, NNPC is embarking on a Change agenda termed the 20 Fixes which identifies 20

critical issues that need to be addressed in order to re-position the Corporation on the path of

profitability.

1.20 5.07 3.12 2.74 0.96 2.09 2.08 0.14

130.258

72.128 94.109

81.022 95.693 93.540

68.984 67.340

6.330

6.330

6.330

6.330

6.330 6.330

6.330 6.330

137.788

84.494

103.562 90.094

102.992 101.962

77.398 76.178

-

20

40

60

80

100

120

140

160


Bil

lio

n N

air

a

Monthly Naira Payments To FAAC (Domestic Crude Oil & Gas Sales,Debt & Other Reciepts)

Gas Proceed Reciepts (M) Oil Proceed Reciepts (M) Other Reciepts Debt Repayemt To FG


7.1Way Forward - 20 Fixes

nnpc monthly financial and operations report august 2015

Documents

barrels of crude oil

total production

national gas production

gross national production

operations report nnpc

monthly report financial

international oil companies

budget performance report