repositioning nigeria’s downstream sector atk bitumen lpfo independent ... 4 escravos onshore land...
TRANSCRIPT
REPOSITIONING NIGERIA’S
DOWNSTREAM SECTOR
A Presentation by the Director of Petroleum Resources
DEPARTMENT OF PETROLEUM RESOURCES
Global Dynamics
National Aspiration
Industry Best Practices & Operational Excellence
Imperatives for Repositioning the Nigerian
Downstream Sector
Transparency & Efficiency
Stakeholder Value
Energy Sufficiency
Gas Valorization
Regional Competitiveness Petroleum Product Sufficiency
Energy Sufficiency
Market Volatility
Technology
Geo-politics
Sustainable Development
DEPARTMENT OF PETROLEUM RESOURCES
Strength Opportunities
Extensive market opportunities Rapid technology adaptation in Nigeria
Abundant natural resource base Large regional market opportunities
Appreciable base sub-sector infrastructure Government reforms- Downstream liberalization etc
Substantial Indigenous Participation
Weakness Threat
Poor capacity utilization in the downstream sector Vandalism and sabotage of pipeline systems
Investment Capital constraints Increasing global / regional competitiveness
Business models are largely socio-politically oriented Unstable macro-economic environment in Nigeria- Forex
Poor RAM index of critical infrastructure
The Nigerian Downstream Sector Analysis
DEPARTMENT OF PETROLEUM RESOURCES
Grow the downstream sector in Nigeria into reliable growth
enabler for national development
Improve the downstream sectoral capacity to ensure stable
performance
Develop a robust downstream sector promote guarantees
sustainable investment returns
Strategic Issues of the Nigerian Downstream
Sector
DEPARTMENT OF PETROLEUM RESOURCES
Secure energy availability for increasing national development in Nigeria through an active downstream sector
Fully Liberalize the downstream sector for competitive and more efficient business profitability driven model for domestic self sufficiency
Export downstream products / services to neighboring countries and transform to a regional hub for all downstream related activities
Short-Medium Term Strategic Focus For
Repositioning the Downstream Sector
DEPARTMENT OF PETROLEUM RESOURCES
Infrastructural Status of the Nigerian Downstream Industry
PIPELINE NETWORK OF ABOUT
5,120 KILOMETRES
DEPOTS (183)
PETROL STATIONS (27,238)
TERMINALS (26)
REFINERIES (5)
LUBE BLENDING
PLANTS (46)
DEPARTMENT OF PETROLEUM RESOURCES
Depot Owners No of Depot
NNPC/PPMC 22
Independent Marketers 133
Major Marketers 28
Total 183
7
Downstream Depot Disposition - Global Overview
DEPARTMENT OF PETROLEUM RESOURCES
Downstream Infrastructure Depots
SUMMARY OF PETROLEUM PRODUCTS STORAGE IN NIGERIA
PMS AGO HHK
Capacity (M3) No of Tanks Capacity (M3) No of Tanks Capacity (M3) No of Tanks
Independent Marketers 2254489 277 1112512 191 5815016 159
Major Marketers 758062 52 713799 40 25335 9
NNPC/PPMC 1422699 109 755057 65 1240816 70
Total 4,435,250 438 2,581,368 296 7,081,167 238
ATK BITUMEN LPFO
Independent Marketers 172288 62 81397 26 64540 13
Major Marketers 128872 133 21646 8 7711 7
NNPC/PPMC 0 0 0 0 28378.63 6
Total 301,160 195 103,043 34 100,629.63 26
BASE OIL
Independent Marketers 90157 60
Major Marketers 51745 45
NNPC/PPMC 0 0
Total 141,902 105 8
DEPARTMENT OF PETROLEUM RESOURCES
9
Downstream Infrastructure
ROM
Petrol Stations INDUSTRIAL CONSUMERS KEROSENE IN SURFACE TANKS
INDEPENDENT MARKETERS NNPC RETAIL OUTLETS MAJOR MARKETERS
24,773 36* 2,461 1,584 10,034
Total Nos of Licensed Petrol Stations: 27,238
* THIS DOES NOT INCLUDE THE AFFILIATED STATIONS WHICH ARE ADDED IN THE
INDEPENDENT MARKETRS FIGURE
DEPARTMENT OF PETROLEUM RESOURCES
Downstream Infrastructure
Terminals
Western Zone
S/N TERMINAL TERRAIN TYPE PRODUCT CAPACITY (BBLs) OPERATOR
1 UKPOKITI Offshore FPSO Crude Oil 1,970,258 EXPRESS/SHEBA
2 EA (Sea Eagle) Offshore FPSO Crude Oil 1,479,858 SPDC
3 TULJA Offshore FSO Crude Oil 1,762,445 STERLING
4 ESCRAVOS Onshore Land Crude Oil 2,223,754 CHEVRON
5 FORCADOS Onshore Land Crude Oil 6,289,832 SHELL
6 PENINGTON Offshore FPSO Crude Oil 2,224,132 CHEVRON
7 AJAPA Offshore FPSO Crude Oil 80,000 BRITTANIA-U
TOTAL 16,030,279
10
DEPARTMENT OF PETROLEUM RESOURCES
Downstream Infrastructures-
Terminals Cont’d
Lagos Zone
S/N TERMINAL TERRAIN TYPE PRODUCT CAPACITY (BBLS) OPERATOR
1 ERHA Offshore FPSO Crude Oil 2,211,400 ESSO (MOBIL)
2 BONGA Offshore FPSO Crude Oil 1,998,577 SNEPCO
3 OYO Offshore FPSO Crude Oil 1,109,580 ALLIED
4 AGBAMI Offshore FPSO Crude Oil 2,150,000 CHEVRON
5 AKPO Offshore FPSO Crude Oil 1,999,788 TUPNI
6 ABO Offshore FPSO Crude Oil 933,130 NAE
7 USAN Offshore FPSO Crude Oil NA ESSO (MOBIL)
8 AJE Offshore FPSO Crude Oil NA YINKA FOLAWIYO
TOTAL 10,402,475
11
DEPARTMENT OF PETROLEUM RESOURCES
12
Downstream Infrastructure-
Terminals Cont’d
Eastern Zone
S/N TERMINAL TERRAIN TYPE PRODUCT CAPACITY (BBLS) OPERATOR
1 ODUDU/AMENAM Offshore FSO Crude Oil 2,198,000 TEPNG
2 OKWORI Offshore FPSO Crude Oil 1,700,000 ADDAX
3 ANTAN Offshore FPSO Crude Oil 1,036,750 ADDAX
4 OKONO Offshore FPSO Crude Oil 949,000 NPDC
5 OKORO Offshore FPSO Crude Oil 360,000 AMNI
6 IMA Offshore FSO Crude Oil 994,989 AMNI
7 YOHO Offshore FSO Crude Oil 2,192,653 MOBIL
8 EBOK Offshore FSO Crude Oil 1,175,000 ORIENTAL
9 BONNY Onshore Land Crude Oil 5,700,000 SHELL
10 BRASS Onshore Land Crude Oil 3,271,000 AGIP
11 QUA IBOE Onshore Land Crude Oil 8,520,000 MOBIL
TOTAL 28,097,392
DEPARTMENT OF PETROLEUM RESOURCES
Refineries & Refining
Infrastructure –
Few Specific Contributory
Factors:
14
Capacity Utilization in Downstream Sector
DEPARTMENT OF PETROLEUM RESOURCES
Price Fixing / Regulated
Market Model
Costly to Government
Prone to operational
frauds / market abuses
Limits investors confidence
Weak / Inefficient in ensuring stable market conditions
Open Market Model
Promotes investors
confidence
Enhances operational efficiency
Reduces government
interference in the market
Ensures sufficiency in
Product availability
Market Model for Downstream Sector
DEPARTMENT OF PETROLEUM RESOURCES
Promote sustainable availability for funds
Ensure availability of funds that promotes regional
and global competitiveness
Financing Options for Downstream Activities Must
DEPARTMENT OF PETROLEUM RESOURCES
Implementation of robust policies and strategies that :-
– Ensure high technical availability – (reliability, availability & maintainability) index of all
critical infrastructures in the sector
– Promote progressive improvement of the capacity utilization of all infrastructure in the
downstream sector
– Sustain a vibrant market structure for the downstream sector
– Guarantee availability of finance that supports growth in the sector
Repositioning Nigerian’s Downstream Sector Will Require
DEPARTMENT OF PETROLEUM RESOURCES
Thank You