NNPC. Monthly Report. Financial and Operations Report

Transcription

1 NNPC Monthly Report Financial and Operations Report January 218

2 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 1% 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. 2 NNPC Monthly Financial and Operations Report January 218

3 Outline 1. Introduction 2. National Crude Oil & Natural Gas Production, Lifting and Utilization 3. Refinery Operations 4. Petroleum Product Supply & Distribution 5. Budget Performance Report 6. Federation Crude Oil & Gas Revenue 7. Key Determinants For Change 8. Glossary 3 NNPC Monthly Financial and Operations Report January 218

4 1 Introduction The average international Brent crude price was $69.8/b in January 218 as against $64.37/b in December 217. Over last 12 months the price has risen to about 26.57%. The continuing efforts by OPEC and non-opec producers to stabilize the market and crude inventory pulls in the middle of healthy economic growth and improving oil demand supported the oil price. The OPEC Reference Basket increased for the 5 consecutive months in January 218 to average $66.85/b (an increase of 7.7%), the highest monthly average since November 214. NYMEX WTI also increased by $5.71 to $63.66/b. According to OPEC January 218 Oil Market Report, the global GDP growth forecast was revised up by.1 percentage points to 3.8% for both 217 and 218, majorly supported by advanced economies. The US and Euro-zone growth was revised to 2.7% and 2.2% in 218 against 217 growth of 2.3% and 2.5% respectively. However, Japan s growth forecast remains unchanged in both 217 and 218 at 1.8% and 1.6%, respectively. While China s 217 growth was better than expected at 6.9%, the 218 growth forecast remains unchanged at 6.5%. The Nigerian economy came out of recession in Q2 of 217 following five quarters of recession with.8% year-on-year growth as against 1.% year-on-year growth in the previous quarter, according to the National Bureau of Statistics. The benchmark interest rate in January 218 was kept at 14% by the central bank of Nigeria. The world oil demand in 218 is estimated to reach 98.6mb/d, an increase of 1.59mb/d in relation to 217. This also represents an upward adjustment of 6kb/d to the previous month s projections and mainly reflecting the positive economic outlook. OECD Europe and China contributed towards most of the upward revision. Global oil supply in January 218 increased by.35mb/d to average 97.67mb/d compared to previous month, representing an increase of 1.75mb/d year-on-year. The OPEC crude oil production decreased by 8kb/d to average 32.3mb/d Preliminary non-opec oil supply including OPEC NGLs, was up by.36mb/d relative to previous month and rose by 1.63mb/d year on year to average 65.36mb/d. In December, 217, Crude Oil production in Nigeria averaged 1.96mb/d which represents a slight decrease relative to November 217 on daily average production but up by 24.1% relative to December 216 performance. The steadiness in production is associated to the resumption of export activities at the Forcados Terminal after many months of non operational activities as well as the engagement with the various stakeholders. The January 218 National Gas production stood at BCF translating to an average daily production of 8,25.1mmscfd representing 6.28% increase compared to the previous month of December 217. While the daily average natural gas supply to gas 4 NNPC Monthly Financial and Operations Report January 218

5 power plants was at 731.1mmscfd, equivalent to power generation of 3,76MW. The result when compared with January, 217 means that over 1MW was added all things being equal. In the downstream sector, products hoarding and diversion has remained the challenge of fuel supply shortages witnessed recently in some parts of the country. This is evident with the recent interception of smuggled 276 Kegs of Petrol (PMS), 9 drums and 32 kegs of diesel (AGO) and 5 drums of kerosene (DPK) by Nigeria Customs Service (NCS) in Ogun State and arrest of 8 trucks laden with a total of 469, litres of PMS in Niger State by Nigeria Security and Civil Defense Corps (NSCDC) on their way to Babana, a border town between Nigeria and Republic of Benin. The Fuel War Room activated by the Corporation comprising of team members from the NNPC, the Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA), and Petroleum Equalization Fund (PEF), with support from the security agencies have continue to intensify efforts in ensuring petroleum products availability. The sustained loading at Ejigbo depot has continued to ease up the fuel scarcity in the south west. In January 218, a total of 194 pipeline points were vandalized, 22 pipeline points either failed to be welded or ruptured/clamped. Thus, 216 pipeline points were destroyed for the month under review as against the 176 points recorded in the previous month. PHC-ABA and ABA-ENUGU pipeline segment accounted for 187 points or 86.57% of the affected pipeline points. This 3th edition of the report indicated a trading deficit of 1.56Billion which is comparatively lower than the previous month s deficit of 6.81Billion. This represents 5.25Billion decrease in trading deficit compared to the December 217 performance. This improvement is attributable to the decreased cost in upstream activities especially NPDC and relative decrease in PPMC operation s cost. The report also highlighted NNPC s activities for the period of January 217 to January, 218. The Corporation has continued to sustain effective communication with stakeholders through this report via publications on its website and in national dailies. This is in line with the Corporation s commitment to becoming more accountable, responsive, and transparent and a FACTI based Organization. NNPC in return demands continued support from Nigerians especially in areas of security to achieve zero vandalism of the Nation oil & gas infrastructure. Activity update NNPC maintains the supply of PMS far above the normal daily supply of 35million litres per day to ensure product availability nationwide. NNPC is inching closer to choosing financiers for its Refineries towards a 9 per cent capacity utilisation per stream day before the end of NNPC Monthly Financial and Operations Report January 218

6 Following the successful AKK construction contract approval, NNPC is exploring possibility of building power generating plants with combined capacity of 36MW in Abuja (135MW), Kaduna (9MW) and Kano (135MW) States. The Corporation has restored Escravos-Lagos Pipeline (ELP) which came down as a result of a fire incident. The affected power plants resume power generation of a combined generating capacity of 1,143MW. The Corporation has also stepped up the resuscitation of some of its critical pipelines and depots, and plan to build more depots across the nation to complement the existing 23 depots nationwide 6 NNPC Monthly Financial and Operations Report January 218

7 2 National Crude Oil & Natural Gas Production, Lifting and Utilization 2.1 National Crude Oil & Condensate Production A total of 6.66 million barrels of crude oil & condensate was produced in the month of December 217 representing an average daily production of 1.96million barrels. This represents a decrease of.8% in the average daily production compared to November 217 average daily performance. Of the December 217 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 32.23% and 4.17% respectively. While AF, NPDC and Independents accounted for 13.72%, 6.69% and 7.18% respectively. The tables and charts below provide details of the National Crude Oil Production for the period January to December 217. Table 2.1.1: Fiscalised National Crude Oil & Condensate Production Month JVs PSC AF NPDC Independent / Marginal Fields Total Average Daily Production Barrels Barrels Barrels Barrels Barrels Barrels Barrels Jan-17 16,23,623 28,22,745 8,57,624 1,179,155 2,77,951 56,954,98 1,837,229 Feb-17 14,435,492 25,71,2 6,92,45 1,122,621 2,739,528 5,91,246 1,817,92 Mar-17 14,913,967 22,622,74 7,76,966 1,95,16 3,229,166 49,567,855 1,598,963 Apr-17 16,764,871 24,739,716 8,222,131 1,83,758 2,983,645 53,794,121 1,793,137 May-17 19,815,838 27,237,239 6,869,7 1,555,621 2,746,34 58,224,738 1,878,217 Jun-17 17,316,961 25,283,637 7,764,397 3,536,242 4,71,828 58,63,65 1,953,436 Jul-17 18,454,17 27,124,92 8,278,33 3,956,272 4,65,824 62,463,625 2,14,956 Aug-17 2,1,666 25,837,13 6,498,88 4,342,668 5,44,442 61,823,669 1,994,312 Sep-17 17,48,213 25,55,812 7,654,19 4,631,183 3,53,782 57,92,99 1,93,67 Oct-17 18,855,5 25,893,649 7,939,815 3,934,522 3,717,99 6,34,9 1,946,481 Nov-17 19,363,865 23,743,61 7,92,8 3,86,8 3,921,24 58,754,326 1,958,478 Dec-17 19,551,14 24,37,374 8,324,954 4,59,375 4,357,98 6,663,787 1,956,896 PTD 212,85,712 35,811,278 92,652,391 34,32,513 44,394,635 69,11,529 1,89,443 Note: Crude oil Production is reported 1 month in arrears & still subject to further reconciliation with DPR and IOCs NPDC s Crude production was based on NPDC s wholly owned assets and percentage holding in JV assets. NPDC 6 Series production is included in JVs & MCA production, the volume included in December 17 was 2,98,843bbls. For more details on production by company, streams and well-head productions (Non-Fiscalised) click on these links: company streams and well-head respectively. Chart 2.1.1: Crude Oil & Condensate Production: January December Total Monthly Crude Oil & Condensate Production (Million Barrels) Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 JVs PSC AF NPDC Independent / Marginal Fields 7 NNPC Monthly Financial and Operations Report January 218

8 Chart 2.1.2: Average Daily Crude Oil & Condensate Production & Percentage distribution Average Daily Crude Oil & Condensate Production (Million Barrels/Day) PTD Percentage Distribution of Crude Oil Production by Commercial Arrangements 13.4% 5.1% 6.4% 3.8% JVs PSC AF % NPDC Independent / Marginal Fields Table 2.1.2: NPDC monthly Crude oil & Condensate Production Field/Company Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 PTD Block NPDC Owned Direct Operated Assets Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Abura OML 65 7, , , , ,35 196, , ,948 1,353,682 Oredo OML 111 4,472 6,84 155, ,412 29,384 35,182 42,92 4,58 67,671 78,54 Oziengbe OML ,544 1,471 23,268 15,39 11,154 14,72 8,899 Okono_Okpoho OML ,98 635, , , , , , , , ,895 59,686 64,756 7,794,216 SUB-TOTAL 721,98 646, , ,832 76, ,358 1,79,85 1,18, ,33 879, , ,446 1,9,31 NPDC JV Direct Operated Assets Ogini_Isoko/FHN OML 26 12,641 9,649 9,993 36,936 69,896 79,123 82,192 63,499 86,738 84, ,492 Opuama/Elcrest OML 4 118,412 57,456 22, ,72 191,9 21,75 29,14 2, ,896 22, ,951 1,734,741 Batan_Odidi/Neconde OML ,237 22,53 157,54 31, , ,536 64,27 857,44 744, , , ,24 5,86,98 Afiesere_Kokori/Shoreline OML , , ,924 87, , , ,84 845,65 95,16 5,853,512 Utorogu_Ughelli/NDW OML 34 69,416 71,95 62,381 69,56 125,8 167, , ,825 1,33,75 218,517 26,813 32,124 3,251,174 SUB-TOTAL 313,377 44,21 286,54 255, ,4 1,66,543 2,,614 2,25,293 2,995,977 2,149,636 2,86,465 2,261,3 17,235,899 NPDC JV Non-Operated Assets OBEN_Amukpe_Sapele/SEPLAT OML 4,38&41 143,798 71,53 14, , , , ,853 1,28,53 761,173 95, , ,899 7,57,313 SUB-TOTAL 143,798 71,53 14, , , , ,853 1,28,53 761,173 95, , ,899 7,57,313 GRAND TOTAL 1,179,155 1,122,621 1,95,16 1,83,758 1,555,621 3,536,242 3,956,272 4,342,668 4,631,183 3,934,522 3,86,8 4,59,375 34,32,513 Average Daily Production 38,37 4,94 35,323 36,125 5, , ,622 14,86 154, ,92 126,869 13,948 93,979 The NPDC January to December 217 cumulative production from all fields amounted to 34,32,513 barrels of Crude oil which translated to an average daily production of 93,979 barrels per day. Comparing PTD NPDC performance to National Production, the company s production share amounted to 4.97%. NPDC production continued to improve as a result of success recorded in repairs of vandalized pipeline in the Niger- Delta and resumption of Crude Oil lifting activities at Forcados Terminal. NPDC is projected to ramp-up production level to 25,bp/d in the near future. PTD production from NPDC wholly operated assets amounted to 1,9,31 barrels (or 29.18% of the total NPDC production) with Okono Okpoho (OML 119) alone producing 77.87% of the NPDC wholly owned operated Assets or 22.72% of the total NPDC production. Also on the NPDC operated JV assets, in which NPDC owns 55% controlling interest, Crude Oil production amounted to 17,235,899 barrel (or 5.25% of the NPDC total production). On the Non-operated assets, production level stood at 7,57,313 barrels or 2.57% of the company s production. 8 NNPC Monthly Financial and Operations Report January 218

9 Chart NPDC Monthly Crude Oil & Condensate Productions 5, 4, 3, NPDC Crude Monthly Production (Thousand Barrels) 4,631 4,343 3, ,935 3,86 3,536 1, , ,1 2,25 2,996 2, 1,556 2,15 1,67 2,86 2,261 1,179 1,123 1,95 1, , ,8 1, Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 NPDC Owned Direct Operated Assets NPDC JV Direct Operated Assets NPDC JV Non-Operated Assets Chart NPDC Monthly Average Daily Crude Production by Field NPDC Average Daily Crude Oil Production (Thousand Barrels/Day) Okono_Okpoho OBEN_Amukpe_Sapel Batan_Odidi/Neconde Afiesere_Kokori/Sho Utorogu_Ughelli/NDW Opuama/Elcrest Ogini_Isoko/FHN NPDC PTD Ranking by Field (Thousand Barrels) Abura Oredo Oziengbe ,735 1, ,251 7,57 5,861 5,854 7,794 4, 8, 12, 2.2. National Gas Production A total of Billion Cubic Feet (BCF) of natural gas was produced in the month of January 218 translating to an average daily production of 8,25.1 Million Standard Cubic Feet Per Day (mmscfd). For the period January 217 to January 218, a total of 3,54.33 BCF of gas was produced representing an average daily production of 7,79.89 mmscfd during the period. Period to date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.42%, 22.58% and 8.% respectively to the total national gas production. The table and charts overleaf provide details of the national gas production for the period January 217 to January NNPC Monthly Financial and Operations Report January 218

10 Table 2.2.1: National Gas Production by Regime Total Monthly Production Daily Average Production PERIOD JV PSC NPDC TOTAL BCF BCF BCF BCF Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Total 2, ,54.33 PERIOD JV PSC NPDC TOTAL mmscfd mmscfd mmscfd mmscfd Jan-17 5, , ,46.2 Feb-17 4, , , Mar-17 5, , , Apr-17 5,826. 1, ,77.19 May-17 5, , , Jun-17 5, , ,571.5 Jul-17 5,3.78 1, , Aug-17 5, , ,71.79 Sep-17 5, , ,431.6 Oct-17 5, , , Nov-17 5, , ,899.1 Dec-17 5, , ,551.9 Jan-18 5,64.6 1, ,25.1 Average 5, , ,79.89 Chart 2.2.1: Average Daily National Gas Production for the period 1,. 9,. 8,. 7,. 6,. 5,. 4,. 3,. 2,. 1,.. Average Daily National Gas Production (mmscfd) 8,77 7,829 7,925 7,46 7,255 7,32 7,571 7,711 7, ,758 1,752 1,8 1,764 1,666 1,792 1,829 1,718 1,697 8,174 7,899 7,551 8, ,771 1,682 1,647 1,75 5,826 5,149 4,951 5,162 5,556 5,82 5,31 5,278 5,763 5,112 5,476 5,284 5,641 JV PSC NPDC Chart 2.2.2: Monthly National Gas Production & Percentage Distribution Total Monthly Natural Gas Production (BCF) Percentage Distribution of Upstream Gas Production- January '17 - January '18 Average 8.% JV % 1 PSC % NPDC 1 NNPC Monthly Financial and Operations Report January 218

11 2.3 Crude Oil & Condensate Lifting & utilization A total volume of 6.92million barrels of crude oil and condensate was lifted in the month of December 217 by all parties. Out of this volume, 2.42 million barrels was lifted by NNPC on behalf of the Federation. This comprises of million barrels lifted on the account of NNPC (Domestic and Federation Export) while 4.48 million barrels and 1.47 million was superintended for FIRS and DPR respectively. Of the FIRS liftings 1.95 million barrels was converted into DSDP to ensure steady petroleum products supply in the domestic market. Table 2.3.1: Crude Oil & Condensate Lifting and utilization LIFTING MONTH NNPC Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Jan-17 3,532, , 2,846,59 8,993,48 11,839,638 15,953,96 36,399,715 1,8, 53,361,675 Feb-17 5,988,451 1,69, 4,63,126 5,693,92 1,324,28 18,2,479 3,948,39 159, 49,19,518 Mar-17 3,21, ,2 1,428,49 1,927,538 12,355,947 15,518,582 33,735, , 49,812,525 Apr-17 4,546,69 1,414,539 2,62,933 1,297,662 12,918,595 18,879,23 31,43,855 1,268,126 51,191,184 May-17 4,842,786 14, 3,478,582 12,67,544 16,86,126 21,68,912 39,84, , 61,7,287 Jun-17 3,87,267 19, 7,61,969 9,53,59 17,15,559 21,165,826 34,876,868 26, 56,68,694 Jul-17 7,746, ,7 6,349,55 7,26,34 13,555,854 21,564,788 4,43,794 1,86,79 63,775,372 Aug-17 2,448,119 1,267,54 4,599,572 9,76,674 14,36,246 18,21,419 41,79,311 1,4, 6,5,73 Sep-17 4,32, ,519 4,8,861 6,452,172 1,461,33 15,432,2 45,698,16 3,559,312 64,689,492 Oct-17 5,773,143 1,72,36 2,561,37 9,2,59 11,563,546 19,56,995 34,338,71 2,183,483 55,578,549 Nov-17 6,737,22 35, 5,424,555 5,766,199 11,19,754 18,277,974 4,649,85 1,27,8 59,955,579 Dec-17 4,481,518 1,472,942 4,695,969 9,767,455 14,463,424 2,417,884 38,576,868 1,924,476 6,919,228 TOTAL 57,29,32 9,899,26 5,246,153 15,924, ,17,75 223,36,42 447,59,84 15,711, ,662,833 Note: FIRS (PSC) DPR (PSC) NIGERIAN GOVERNMENT FEDERATION EXPORT DOMESTIC SUB-TOTAL (NNPC) SUB-TOTAL GOVERNMENT LIFTING IOCs & INDEPENDENTS (INC. NPDC) AF GRAND TOTAL Crude oil liftings are reported one month in arrears For more details on crude oil lifting under each AF liftings arrangement and MCA performance analysis follow the link Of the million barrels lifted on the account of NNPC in December 217, 9.77 million barrels and 4.7 million barrels were for domestic and export markets respectively. At an average oil price of $65.23/barrel and exchange rate of N35./$, the domestic crude oil lifted by NNPC is valued at $637,17,71.68 or a Naira equivalent of N194,337,66,757.1 in December 217. The remaining crude oil lifted for export was valued at $38,68,53 at an average price of $65.72/barrel. The total value of crude oil lifted on the account of NNPC in December 217 was thus $945,778,763. From January to December 217, a total volume of million barrels of crude oil and condensate was lifted by all parties. The tables above and charts overleaf provide the details of crude oil and condensate lifting and their corresponding accrual values for the period January to December NNPC Monthly Financial and Operations Report January 218

12 Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements Monthly Lifting Entitlement (Million Barrels) Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 SUB-TOTAL (NNPC) FIRS (PSC) DPR (PSC) IOCs & INDEPENDENTS (INC. NPDC) AF Table 2.3.2: Crude Oil Lifting Values LIFTING MONTH FIRS (PSC) DPR (PSC) NIGERIAN GOVERNMENT FEDERATION NNPC DOMESTIC SUB-TOTAL SUB-TOTAL GOVERNMENT LIFTING IOCs & INDEPENDENTS (INC. NPDC) EXPORT (NNPC) USD USD USD USD USD USD USD USD USD Jan ,919,32 32,21, ,651, 498,3,69 655,654,69 884,594,73 2,15,93,749 55,211,751 2,955,71,24 Feb ,632,888 92,396,38 255,498,86 311,957, ,456, ,485,419 1,77,769,296 8,769,164 2,75,23,879 Mar ,659,432 6,735,341 71,814,31 566,554, ,368, ,763,238 1,696,99,267 27,917,668 2,523,78,173 Apr ,97,527 69,623,49 133,81, ,63, ,414,42 977,134,617 1,584,928,361 66,976,14 2,629,39,82 May ,548,132 6,75,58 175,461, ,112,18 814,573,835 1,64,827,547 2,9,572,8 4,549,37 3,114,948,862 Jun ,786,949 1,23,28 351,93, ,22,67 795,15, ,96,17 1,614,49,268 1,23,28 2,588,789,717 Jul ,531,65 12,5,149 38,964,95 349,549, ,514,667 1,44,51,421 1,966,21,91 9,364,828 3,1,438,149 Aug ,587,422 67,677, ,479,415 52,248, ,727, ,992,535 2,138,818,432 7,45,72 3,146,261,687 Sep ,498,741 37,598, ,828, ,823,11 597,651, ,748,16 2,597,78,97 27,616,29 3,684,443,276 Oct ,994,35 1,575, ,799,226 53,416, ,215,547 1,115,785,776 1,981,673, ,625,38 3,229,84,763 Nov ,74,785 21,378, 342,184,98 368,796,216 71,981,124 1,159,63,99 2,564,219,517 65,225,673 3,788,59,99 Dec ,63,14 98,248,681 38,68,53 637,17, ,778,763 1,343,63,458 2,535,181,154 13,319,826 4,9,131,438 TOTAL 3,143,564, ,168,12 2,721,4,89 5,756,436,924 8,477,441,734 12,167,173,955 24,411,756,86 896,229,568 37,475,16,328 AF GRAND TOTAL 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. Chart Government Crude Oil Lifting and utilization on Account of NNPC Government Crude Oil Lifting & Utilisation (Million Barrels) Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 DOMESTIC FEDERATION EXPORT 12 NNPC Monthly Financial and Operations Report January 218

13 2.4 Utilization of Crude Oil for Domestic Product Supply In December 217, NNPC lifted 9,767,455 barrels of Crude Oil for domestic utilization translating to an average volume of 315,79.19 barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of December 217 about 7,593,452. barrels was processed under the Direct-Sales- Direct Purchase (DSDP) scheme and the balance of 2,174,3 barrels was delivered 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 January to December 217. Table Domestic Crude Purchased By NNPC Period Volume Ave. Price Sales Value Sales Value Average Lifting Barrels $/bbl USD NGN Barrels Per Day Jan-17 8,993, ,3, ,392,933, ,98.32 Feb-17 5,693, ,957, ,913,22, , Mar-17 1,927, ,554, ,515,74, ,51.23 Apr-17 1,297, ,63, ,767,968, ,255.4 May-17 12,67, ,112, ,833,326, , Jun-17 9,53, ,22, ,956,666, , Jul-17 7,26, ,549, ,577,722, , Aug-17 9,76, ,248, ,1,14, , Sep-17 6,452, ,823, ,74,544, ,72.4 Oct-17 9,2, ,416, ,645,129, ,43.52 Nov-17 5,766, ,796, ,49,86, ,26.63 Dec-17 9,767, ,17, ,337,66, ,79.19 Total/Ave 15,924, ,756,436, ,754,99,221, ,24.38 Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels) Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 DIRECT EXPORT REFINERY DSDP 13 NNPC Monthly Financial and Operations Report January 218

14 Table Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply Month EXPORT DELIVERIES TO REFINERIES DIRECT SALES DIRECT PURCHASE TOTAL Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Jan , , , ,7.4 8, , Feb , , , , , ,913.2 Mar , , , , , , , Apr ,83.8 2, , , , , , May , , , , , , Jun , , , , , , Jul , , , ,62.3 7, , Aug , , , , , ,1.1 Sep , , , , ,74.54 Oct , , , , , , , Nov , , , , , ,49.9 Dec , , , , , ,337.7 PTD 2, , , , , , ,156. 1,266, , , ,754,99.22 Chart 2.4.3: Percentage Distribution for December 217 Domestic Crude Utilization December 217 Crude Oil Utilization For Domestic Product Consumption PTD Crude Oil Utilization For Domestic Product Consumption 22.3% REFINERY 2.7% 25.% REFINERY DSDP DSDP 77.7% DIRECT EXPORT 72.3% DIRECT EXPORT 2.5 Natural Gas Off take, Commercialization & Utilization Out of the 253BCF of gas supplied in January 218, a total of BCF of gas was commercialized comprising of 34.1 BCF and 11.18BCF for the domestic and export market respectively as shown in Table This translates to a total supply of 1,96.99 mmscfd of gas to the domestic market and 3,554.4 mmscfd of gas supplied to the export market for the month as shown in Table This implies that 56.93% of the average daily gas produced was commercialized while the balance of 43.7% was re-injected, used as upstream fuel gas or flared. Gas flare rate was 12.51% for the month of January 218 i.e. 1,21.83 mmscfd compared with average Gas flare rate of 1.18% i.e mmscfd for the period January 217 to January NNPC Monthly Financial and Operations Report January 218

15 Table Total Gas Commercialization and utilization Period Domestic Gas To Power Domestic Gas Domestic Gas to Industry Total Domestic Gas Supply Gas Commercialisation Export Gas WAPG EGTL NGL/ LPG NLNG Total Export Gas Non-Commercialized Gas Re-Injection Fuel Gas Flare Total Non- Commerialized Gas Grand Total BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Total , , , ,45.37 Note: For more details on Gas Liftings follow this link Total gas supply for the period January 217 to January 218 stood at 3,45.37BCF out of which BCF and 1,337.58BCF were commercialized for the domestic and export market respectively. Gas Injected, Fuel gas and Gas flared stood at BCF. The table and chart provides more details of the gas utilization and commercialization for the period January 217 to January 218. Chart January 17 January 18 Percent Distribution of Gas Utilization PTD Year Average Percentage Distribution of Gas Utilisation January 218 Percentage Distribution of Gas Utilisation 14.1% Total Gas To Domestic 13.4% Total Gas To Domestic 41.9% Total Gas To Export 43.1% Total Gas To Export 44.% Total Non- Commeriali zed Gas 43.5% Total Non- Commerializ ed Gas As shown in Table overleaf, out of the 1,96.99 mmscfd of gas supplied to the domestic market in January 218, about mmscfd of gas representing 66.64% was supplied to Gas-Fired power plants while the balance of mmscfd or 33.36% was supplied to other industries. Similarly, for the period of January 217 to January 218 an average of 1,77.93 mmscfd of gas was supplied to the domestic market comprising of an average of mmscfd or (62.43%) as gas supply to the power plants and 45.1 mmscfd or (37.57%) as gas supply to industries. 15 NNPC Monthly Financial and Operations Report January 218

16 Table Total Average Daily Gas Commercialization and utilization Period Domestic Gas To Power Domestic Gas Domestic Gas to Industry Total Gas To Domestic Gas Commercialisation Export Gas WAPG EGTL NGL/LPG NLNG Total Gas To Export Non-Commercialized Gas Re-Injection Fuel Gas Flare Total Non- Commerialized Gas Grand Total mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd Jan , , , , ,245.4 Feb , , , , ,124.4 Mar , , , , , ,298.9 Apr , , , , , ,75.53 May , , , , , ,87.94 Jun , , , , , , Jul , , , , , ,91.59 Aug , , , , , , Sep , , , , , , Oct , , , , , ,155.9 Nov , , , , , , Dec , , ,29.7 1, , , Jan , , , , , , , Average , , , , , , About 3,37.21 mmscfd or 93.5% of the export gas was sent to Nigerian Liquefied Natural Gas Company (NLNG) Bonny for January 218 compared with the period (January 217 to January 218) average of 3,79.57 mmscfd or 91.24% of the export gas. Chart Average Daily National Gas to Domestic, Export & Gas Non-Commercialized 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, Average Daily National Gas to Domestic, Export & Gas Non-Commericlized (mmscfd) 8,76 7,88 7,92 8,156 8,17 7,245 7,124 7,298 7,557 7,666 7,893 7,375 7,365 3,358 3,11 3,26 3,478 3,198 3,118 2,928 3,134 3,235 3,339 3,518 3,189 2,88 3,339 3,58 3,26 3,616 3,553 3,279 3,527 3,48 3,16 3,536 3,377 3,21 3, ,19 1,11 1,146 1,145 1,115 1,23 1,26 1,142 1,177 1,275 1,97 Total Gas To Domestic Total Gas To Export Total Non-Commerialized Gas 16 NNPC Monthly Financial and Operations Report January 218

17 3 Refinery Operations 3.1 Capacity Utilization Total Crude processed by domestic Refineries (KRPC & PHRC) for the month of January 218 was 24,877 MT. PHRC accounting for 183,22MT while a total of 21,855MT was processed by KRPC. This translates to a combined yield efficiency of 89.97% as against the 88.99% in December 217 Table 3.1.1: Monthly Consolidated Refineries Operational Performance Operational Parameters Units Consolidated Refineries Operations Total Opening Stock (A) MT 679,5 447,15 414, ,56 442,939 57, , ,257 51, , ,62 636,97 414,15 6,678,777 Crude Received (B) MT 495,47 567, , , ,2 331, ,24 21, ,126 37,644 18, ,6 244,68 4,871,358 Crude Transferred to KRPC (C) MT 45,55 1,3 181,124 19, ,55 85,473 3,16 9,654 19,764 9, ,64 Total Crude Available (D=A+B-C) MT 1,129, , ,85 92,94 935,94 753, , ,524 73, , ,759 92, ,194 1,683,495 Closing Stock (E=D-F) MT 438,73 42, , ,22 51, , ,47 59, ,42 564,64 624, , ,317 6,46,157 Crude Processed (F) MT 691, , ,18 447, , , , , , ,75 15,735 57,732 24,877 4,22,93 (i) Finished Products MT 394, , ,164 37,946 35,76 222,585 16,642 95, , ,222 55,187 3, ,676 3,21,733 (ii) Intermediate Products MT 259, ,983 59,791 95,42 22,79 21,731 39,492 53,496 47,837 71,919 39, ,554 29, ,869 (iii) Plant Consumption MT 3,915 41,729 24,241 37,884 52,3 25,315 18,639 21,418 19,851 25,356 9,229 47,466 17,31 371,374 (iv) Losses MT 5,96 5,825 6,566 6,866 8,894 5,666 5,811 8,325 5,443 6,28 3,77 8,448 3,239 8,967 Plant Capacity kpd Capacity Utilization % 36.73% 29.6% 13.46% 24.59% 23.9% 12.73% 11.94% 9.5% 6.34% 17.63% 5.81% 26.99% 1.89% 17.56% Losses %.85% 1.18% 2.59% 1.53% 2.5% 2.44% 2.59% 4.66% 4.71% 1.87% 3.57% 1.66% 1.58% 1.92% Plant Consumption % 4.47% 8.45% 9.57% 8.46% 11.98% 1.92% 8.3% 11.98% 17.2% 7.64% 8.73% 9.35% 8.44% 8.8% Yields Efficiency based on CDU, CRU & FCC (%) % 94.67% 9.37% 87.83% 9.1% 85.98% 86.64% 89.11% 83.36% 78.9% 9.48% 89.61% 88.99% 89.97% 89.33% Note: KRPC received their crude via WRPC. For the month of January 218, the two Refineries produced 154,676 MT of finished Petroleum Products and 29,661 MT of intermediate products out of the 24,877 MT of Crude processed at a combined capacity utilization of 1.89% compared to 26.99% combined capacity utilization achieved in the month of December 217. The decrease in operational performance recorded is attributable to the decrease in crude processed by PHRC & KRPC. The ongoing revamping of the Refineries will enhance capacity utilization once completed. Chart 3.1.1: Monthly Refineries Consolidated Capacity Utilization 4% 35% 3% 25% 36.73% 29.6% 24.59% 23.9% 26.99% 2% 17.63% 15% 1% 5% 13.46% 12.73% 11.94% 9.5% 6.34% 5.81% 1.89% % 17 NNPC Monthly Financial and Operations Report January 218

18 Table Refineries Monthly Operations Operational Parameters Units Total WRPC Opening Stock (A) MT 196, ,11 2,825 23, ,75 163, , ,69 61, ,62 161,161 25, ,285 2,219,119 Crude Received (B) MT 217,19 177,463 18, ,233 25,774 92,3 5,554 69,946 14,42 44,748 14,12 1,515,42 Crude Transferred to KRPC (C) MT 45,55 1,3 181,124 19, ,55 85,473 3,16 9,654 19,764 9, ,64 Total Crude Available (D=A+B-C) MT 368, ,543 2,562 28, ,424 17,16 189, , , ,368 31, , ,766 2,867,899 Closing Stock (E=D-F) MT 143,177 27,125 2, , ,424 17,16 179,386 63, , , ,12 195, ,766 2,219,743 Crude Processed (F) MT 224,958 22,418 5,753 9, ,788 53,25 15, ,748 (i) Finished Products MT 79,91 15,545 23,857 4,439 3, ,11 68,717 28,481 27,38 55,187 24,343 8,37 39,987 (ii) Intermediate Products MT 138,536 2,93 32,878 2,654 1, ,563 1,721 37,525 17,451 41,425 25,697 9, ,562 (iii) Plant Consumption MT 5,637 3,74 6,267 6,398 1,945 3,61 6,391 4,899 5,39 7,366 1,354 1,358 52,789 (iv) Losses MT ,754 1, ,958 4,145 3,47 3,77 2,423 Plant Capacity kpd Capacity Utilization % 42.56% 4.7%.% 9.92%.%.% 1.87% 33.83%.% 1.7% 2.67%.%.% 9.56% Losses %.39% 3.88%.% 2.49%.%.% 3.86% 1.65%.% 6.4% 3.57%.%.% 3.16% Plant Consumption % 2.51% 13.71%.% 12.61%.%.% 3.95% 3.57%.% 9.47% 6.97%.%.% 8.17% Yields Efficiency based on CDU, CRU & FCC (%) % 97.11% 82.41%.% 84.91%.%.% 65.19% 94.77%.% 84.13% 91.37%.%.% 88.97% Operational Parameters Units PHRC Opening Stock (A) MT 243, , , , , , ,412 81,236 24,445 17,71 155,16 195, ,324 2,132,123 Crude Received (B) MT 261,61 39,371 14,81 269,53 296,5 178, , ,588 81,76 262,896 4, , ,416 2,678,77 Total Crude Available (C=A+B) MT 54, , ,383 44,976 48,86 355, ,929 21, , ,66 195,71 487,449 36,74 4,81,83 Closing Stock (D=C-E) MT 162, , , , , ,412 81,236 21,824 17,71 155,16 195,71 117, ,718 2,73,195 Crude Processed (E) MT 341, , ,91 256,121 34, , , , ,5 37, ,22 2,737,635 (i) Finished Products MT 251, ,22 143, , , ,77 135,762 22,314 19,53 2, , ,773 2,93,827 (ii) Intermediate Products MT 77,716 85,636 42,69 53,74 17,77 12,961 63,387 34,194 4,36 63, ,439 31,19 44,434 (iii) Plant Consumption MT 9,467 12,811 12,11 11,972 28,94 15,439 1,575 6,744 8,676 11,37 17,283 1, ,722 (iv) Losses MT 3,3 2,997 1,925 3,686 7,1 5,666 4,969 5,136 1,298 2,81 6,824 3,49 48,652 Plant Capacity kpd Capacity Utilization % 38.51% 4.73% 12.94% 29.81% 34.29% 26.98% 24.18%.% 13.44% 31.37%.% 41.69% 2.61% 24.14% Losses %.97%.92% 1.68% 1.44% 2.3% 2.44% 2.31%.% 1.12% 1.1%.% 1.84% 1.67% 1.78% Plant Consumption % 2.77% 3.92% 1.54% 4.67% 9.23% 6.66% 4.93%.% 7.52% 4.8%.% 4.67% 5.56% 5.65% Yields Efficiency based on CDU, CRU & FCC (%) % 96.27% 95.16% 87.79% 93.89% 88.47% 9.9% 92.76%.% 91.36% 94.91%.% 93.49% 92.77% 92.57% Operational Parameters Units KRPC Opening Stock (A) MT 24, ,192 67,896 13,59 112, , , , , , , ,546 99,496 2,327,535 Crude Received (B) MT 16,778 8, , , ,241 6,51 4,953 2,387 2,149 1, ,231 Total Crude Available (C=A+B) MT 256, ,65 241,86 253, ,62 228, , , , , , ,695 1,688 3,4,766 Closing Stock (D=C-E) MT 132,75 67,896 13,59 112, , , , , , , ,795 1,88 78,833 2,167,219 Crude Processed (E) MT 124, ,79 138,27 14, , ,67 21, ,547 (i) Finished Products MT 63,25 9, ,742 8,748 12,331 25, ,517 46,342 7, ,919 (ii) Intermediate Products MT 43,477 26,417 15,777 38,684 3,759 35,641 6,332 13,31 6,276 8,947 1,863 6,812 8,37 124,873 (iii) Plant Consumption MT 15,811 25,844 5,864 19,514 21,991 9,876 5,3 8,283 6,276 8,947 1,863 28,829 5, ,863 (iv) Losses MT 1,73 1,959 1,887 1,918 1, , ,892 Plant Capacity kpd Capacity Utilization % 26.72% 34.45% 29.73% 31.3% 27.95%.%.%.%.%.%.% 29.59% 4.7% 14.1% Losses % 1.39% 1.35% 1.36% 1.36% 1.46%.%.%.%.%.%.% 1.18%.87% 1.42% Plant Consumption % 12.72% 17.86% 4.24% 13.85% 16.92%.%.%.%.%.%.% 2.95% 26.36% 19.56% Yields Efficiency based on CDU, CRU & FCC (%) % 85.88% 8.79% 94.39% 84.79% 81.62%.%.%.%.%.%.% 77.87% 72.77% 79.2% Note: For more details on breakdown for Refineries Crude grade received follow this link. 18 NNPC Monthly Financial and Operations Report January 218

19 .%.%.% 4.7%.% 1.9%.%.%.%.%.%.%.%.%.% 4.7% 12.9% 9.9% 13.4% 1.1% 2.7% 33.8% 42.6% 38.5% 4.7% 34.4% 29.8% 31.3% 34.3% 27.9% 27.% 24.2% 2.6% 26.7% 29.7% 31.4% 29.6% 41.7% Chart 3.1.2: Refineries Capacity Utilization 6% 5% 4% 3% 2% 1% % WRPC PHRC KRPC 3.2 Refineries Economics for period of January 218 The Corporation has been adopting a Merchant Plant Refineries Business Model since January 217. 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 218 amounted to 26.18billion while the associated Crude plus freight costs and operational expenses were 28.88billion and 1.88billion respectively. This resulted to an operating deficit of 13.59billion by the refineries as shown in Table 3.2. Also, during the period under review, refineries combined capacity utilization was 1.89%. Table 3.2 Refinery Financial Performance January January 218 Description 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 WRPC Revenue 31, , , , , , , , Crude + Frieght (COGS) (29,153.46) (2,99.59) (2,99.59) (6,217.68).. (1,24.76) (21,324.45) (527.) (7,386.46) (15,28.27).. Opex (1,783.51) (1,678.11) (1,764.16) (1,684.22) (1,944.8) (1,745.24) (2,3.9) (2,573.21) (2,73.46) (2,118.68) (3,85.78) (1,781.39) (2,687.32) Operating Surplus/Deficit (1,852.4) (1,938.9) (314.3) (1,938.48) (1,734.88) (2,281.85) (1,237.2) (1,135.9) (2,922.69) (5,46.84) (1,745.23) (2,678.12) KRPC Revenue 17, , , , , (588.35) (663.52) (676.26) (627.31) (854.47) (165.5) 15,477.3 (92.89) Crude + Frieght (COGS) (16,116.74) (18,16.79) (22,65.54) (16,1.37) (14,96.53) (17,475.12). Opex (3,21.32) (4,135.13) (2,455.81) (2,354.16) (3,65.65) (2,872.94) (2,937.79) (2,914.37) (3,152.21) (3,84.74) (2,9.74) (2,44.89) (3,275.62) Operating Surplus/Deficit (2,163.23) (1,12.25) (1,173.13) (2,335.7) (3,461.29) (3,61.32) (3,59.63) (3,779.52) (3,939.21) (3,65.79) (4,42.98) (4,178.51) PHRC Revenue 5, , , , , , , , , , , ,69.34 Crude + Frieght (COGS) (42,972.13) (42,63.28) (13,526.84) (29,18.94) (35,18.7) (24,737.1) (22,927.21). (12,781.5) (34,697.93). (51,662.65) (28,883.61) Opex (2,521.62) (2,691.87) (3,732.7) (3,562.35) (3,756.71) (4,469.86) (4,242.44) (2,925.97) (3,392.) (3,742.13) (3,34.14) (3,999.32) (4,915.22) Operating Surplus/Deficit 5, , , , , , (2,634.61) , (9.35) (3,32.19) (4,947.8) (6,729.48) Consolidated Revenue 99, , , , , , , , , , , , , Crude + Frieght (COGS) (88,242.32) (62,989.66) (39,86.98) (51,498.99) (5,14.6) (24,737.1) (24,131.97) (21,324.45) (13,38.51) (42,84.39) (15,28.27) (69,137.76) (28,883.61) Opex (7,515.45) (8,55.1) (7,952.4) (7,6.73) (9,36.43) (9,88.4) (9,211.14) (8,413.55) (8,617.67) (8,945.55) (9,2.66) (8,185.6) (1,878.16) Operating Surplus/Deficit 3, (522.82) 3, , , , (8,517.78) (4,636.29) (3,518.6) (7,762.25) (11,144.81) (11,95.28) (13,586.11) 19 NNPC Monthly Financial and Operations Report January 218

20 4 Petroleum Product Supply & Distribution 4.1 Petroleum Product Supply from Direct sales Direct Purchase (DSDP) In January 218, 1,463.66million litres of PMS and 33.79million litres of DPK were supplied into the country through the DSDP arrangements as against the 1,14.7million litres supplied in the month of December 217. 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 OPA & DSDP in litres Period PMS DPK TOTAL Litres Litres Litres Jan ,156, ,156, Feb-17 1,21,291, ,21,291, Mar-17 1,491,29, ,491,29, Apr-17 1,29,442, ,29,442, May-17 1,6,163, ,6,163, Jun ,84, ,84, Jul-17 1,173,27, ,173,27, Aug ,981, ,442, ,424,912.4 Sep ,458, ,458, Oct-17 1,478,736, ,287, ,512,23, Nov ,99, ,99, Dec-17 1,14,66, ,14,66,542. Jan-18 1,463,656, ,794, ,497,45,855.2 TOTAL 14,43,373, ,524, ,527,898, * Please note that in our previous Publications, the February 217 AGO litres of 127,71,174 were inadvertently reported as DPK. Chart 4.1.1: Petroleum Products Supply from OPA and DSDP (Million Litres) 1,7 1,5 1,3 1, Petroleum Products from Offshore Processing Arrangement (Million Litres) 1,491 1,512 1,497 1,29 1,21 1,173 1,14 1, ,491 1,479 1,464 1,21 1,29 1,173 1,6 1, PMS DPK 4.2 Petroleum Products Supply from Domestic Refineries The petroleum products (PMS & DPK Only) production by the domestic refineries in January 218 amounted to million litres compared to million litres in December 217 as shown in Table NNPC Monthly Financial and Operations Report January 218

21 Table 4.2.1: Monthly Refined White Petroleum Products from Local Refineries Period PMS DPK Total (PMS+DPK) Litres Litres Litres Jan ,555,227 92,111, ,666,883 Feb ,728,62 77,83,46 263,559,8 Mar ,363,242 39,814, ,178,166 Apr-17 17,32,248 62,46, ,79,26 May ,69,176 65,949,68 222,18,856 Jun-17 14,71,716 45,553, ,264,235 Jul-17 47,97,146 32,213,822 8,183,968 Aug-17 46,2,251 32,436,576 78,438,827 Sep-17 59,874,21 27,591,74 87,465,95 Oct ,376,158 61,933,95 24,31,63 Nov-17 24,454,672 19,977,39 44,432,62 Dec ,74,337 75,482, ,556,561 Jan-18 77,82,28 34,79,28 111,881,488 Total 1,586,283,22 667,381,918 2,253,665,12 Table Total White Petroleum Product Supply from NNPC (DSDP+ Refineries) Period Total Product Supply (OPA, DSDP+Refineries) Average Daily Supply PMS DPK Total PMS DPK Total Litres Litres Litres Litres/Day Litres/Day Litres/Day Jan ,711, ,111, ,823, ,313, ,971, ,284, Feb-17 1,396,19, ,83,46. 1,473,85, ,857, ,779, ,637, Mar-17 1,633,572, ,814,924. 1,673,387, ,695, ,284, ,98, Apr-17 1,46,744, ,46,778. 1,523,151, ,691, ,8, ,771,713.3 May-17 1,216,232, ,949,68. 1,282,182, ,233, ,127, ,36, Jun-17 1,,551, ,553,519. 1,46,15, ,351, ,518, ,87,17.16 Jul-17 1,221,24, ,213,822. 1,253,454, ,394, ,39, ,434,7.13 Aug ,984, ,879, ,61,863, ,225, ,28, ,253,669.1 Sep ,332, ,591, ,924, ,544, , ,464, Oct-17 1,621,112, ,221, ,716,333, ,293, ,71, ,365, Nov-17 85,554, ,977, ,531, ,851, , ,517, Dec-17 1,297,14, ,482,224. 1,372,623,13. 41,843, ,434, ,278, Jan-18 1,541,458, ,873, ,69,332, ,724,47.8 2,189, ,913, Total 16,16,656, ,96, ,781,563, ,21, ,11, ,132, Chart Total White Petroleum Product Supply from NNPC (DSDP + Refineries) 1,9 1,7 1,5 1,3 1, Total Petroleum Products Supply From NNPC Via OPA, DSDP + Refineries (Million Litres) 1,673 1,716 1, , , , ,282 1, , , ,634 1,621 1,396 1, ,541 1,216 1,221 1,297 1, PMS DPK 21 NNPC Monthly Financial and Operations Report January 218

22 Chart Average Daily Petroleum Product Supply from NNPC Daily Average Petroleum Products Supply From NNPC Via OPA, DSDP & Refineries (Million Litres) PMS DPK 4.3 Downstream Petroleum Product Distributions A total of 1.14 billion litres of white products were distributed and sold by PPMC in the month of January 218 compared with 1, million litres in the month of December 217. This comprised of million litres of PMS, million litres of Kerosene and million litres of Diesel. Total sale of white products for the period January 217 to January 218 stood at 16.39billion litres, PMS amounted to billion litres or 87.29%. The Tables and Charts below provide more details of white products sold by NNPC/PPMC for the period January 217 to January 218. While total special products for the month of January 218 was million litres comprising of million litres of LPFO and other special products of million litres. Table Downstream Petroleum product sales by PPMC Period PMS AGO DPK Total White Products LPFO Other Special Products Total Special Products Litres Litres Litres Litres Litres Litres Litres Jan ,427,348 14,36,894 62,561, ,349,737 14,652,788 4,49,5 18,72,288 Feb-17 1,56,893, ,137,771 79,334,183 1,387,365,565 11,788,439 1,595,6 13,384,39 Mar-17 1,535,621,24 17,8,26 49,786,68 1,692,487,118 28,333,126 4,193,176 32,526,32 Apr-17 1,531,23,213 78,995,881 53,152,835 1,663,351,929 7,493,277 6,289,138 13,782,415 May-17 1,71,762,21 82,828,617 49,76,28 1,24,297,35 27,723,62 6,512,672 34,236,292 Jun-17 1,83,911,294 81,817,714 4,237,256 1,25,966,264 33,325,76 96,159, ,485,228 Jul-17 1,3,8,655 77,239,65 41,668,59 1,121,916,364 9,766,117 9,766,117 Aug ,24,549 76,733,33 59,916,387 95,674,239 1,131, ,1 11,89,214 Sep-17 1,16,729,279 86,32,344 35,577,171 1,282,68,794 21,776,494 58,563,349 8,339,843 Oct-17 1,119,79, ,344,135 95,724,568 1,352,858,93 63,819,329 5,667, ,486,948 Nov ,965,84 9,339,64 29,666,19 996,97,797 9,76,7 31,68,73 4,756,143 Dec-17 1,474,29,69 123,419,122 5,58,4 1,647,686,591 67,77,378 5,759, ,836,619 Jan ,894,911 76,829,235 62,564,825 1,135,288,971 32,57,595 83,133, ,641,384 Total 14,39,44,474 1,374,428,296 79,953,564 16,393,822, ,471,53 394,561,78 732,32,833 For more details on downstream petroleum products sales please click here. 22 NNPC Monthly Financial and Operations Report January 218

23 Chart Monthly White Product sales by PPMC 2, 1,5 1, Total Montly PPMC Product Distribution Sales Volume (Million Litres) 1, , , , , , ,24.3 1, , , ,536 1,531 1,474 1,57 1,72 1,84 1,161 1,3 1, PMS DPK AGO Table Average Daily Petroleum Product Sales by PPMC Period 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-17 18,884,753 3,366,48 2,18,113 24,269, ,671 13,629 63,3 Feb-17 37,746,2 8,969,26 2,833,364 49,548,77 421,16 56, ,1 Mar-17 49,536,162 3,454,194 1,66,2 54,596, , ,264 1,49,236 Apr-17 51,4,17 2,633,196 1,771,761 55,445,64 249,776 29, ,414 May-17 34,572,975 2,671,891 1,63,426 38,848, ,31 21,86 1,14,397 Jun-17 36,13,376 2,727,257 1,341,242 4,198,875 1,11,857 3,25,317 4,316,174 Jul-17 32,355,118 2,491,62 1,344,131 36,19,85 315,36 315,36 Aug-17 26,258,856 2,475,268 1,932,787 3,666, ,81 3,96 357,717 Sep-17 38,69,976 2,876,745 1,185,96 42,753, ,883 1,952,112 2,677,995 Oct-17 36,122,265 4,43,456 3,87,889 43,64,611 2,58,688 1,634,439 3,693,127 Nov-17 29,232,169 3,11,32 988,87 33,232,36 32,536 1,56,2 1,358,538 Dec-17 47,555,131 3,981,262 1,614,787 53,151,18 2,163,786 1,637,395 3,81,181 Jan-18 32,125,642 2,478,362 2,18,22 36,622,225 1,48,632 2,681,735 3,73,367 Average 36,134,951 3,47,779 1,792,812 41,398, ,2 996,368 1,848,568 For more details on average daily PPMC downstream petroleum products sales please click here. Chart Average Daily White Products Distribution by PPMC Average Daily PPMC Product Distribution Sales Volume (Million Litres) PMS DPK AGO 23 NNPC Monthly Financial and Operations Report January 218

24 A total sale of 16.2 billion was made on the petroleum products for white products by PPMC in the month of January 218 compared with of billion sold in the prior month of December 217. Total revenues generated from the sales of white products for the period January 217 to January 218 stands at 2,24.24 billion, where PMS contributed about 84.87% of the total sales with a value of 1, billion. Table and chart below provide details accordingly. Table Revenue from Sales of White Product Period PMS AGO DPK Total White Products Revenue LPFO Other Special Products Total Special Products Revenue Naira Naira Naira Naira Naira Naira Naira Jan-17 69,19,342,697 17,81,429,769 8,445,81,825 94,717,574,291 1,68,188, ,664,16 1,39,852,45 Feb ,497,446,724 42,61,792,187 1,71,114,75 179,89,353, ,377,23 127,137,48 986,514,611 Mar ,64,612,96 18,155,253,526 6,658,216,119 26,418,82,552 2,65,484, ,976,354 2,694,461,239 Apr ,792,456,262 12,26,421,32 7,112,875,22 199,111,752, ,64, ,37,753 1,591,975,86 May ,611,96,58 12,459,772,361 6,71,338,8 145,782,7,949 2,392,493, ,9,865 3,369,394,599 Jun ,84,493,969 11,137,755,162 5,432,29,56 142,654,278,691 2,938,596,757 18,292,585,38 21,231,182,137 Jul ,953,485,44 9,524,3,7 5,563,518, ,41,33,72 79,469,51 79,469,51 Aug-17 93,69,51,167 9,666,286,234 8,88,712, ,364,58,645 82,12,367 9,779,975 91,792,342 Sep ,985,226,142 11,613,643,947 4,821,867, ,42,737,747 1,754,71,62 5,327,542,745 7,82,244,347 Oct ,366,813,41 19,854,34,35 13,342,911, ,563,758,717 5,397,532,767 7,74,734,939 13,138,267,76 Nov-17 18,75,156,293 13,352,953,92 4,31,585,85 125,729,696, 849,61,913 5,33,172,282 6,179,783,195 Dec-17 18,552,465,11 18,615,956,456 7,258,468, 26,426,889,566 6,456,672,159 6,963,48,515 13,42,8,674 Jan ,559,3,137 12,444,44,55 9,192,476,576 16,195,92,263 3,26,39,497 1,65,833,223 13,866,223,72 Total 1,717,882,972,396 28,714,39,546 97,638,915,31 2,24,235,927,252 29,32,134,974 57,35,16,598 86,652,241,572 Note: For more details on downstream petroleum products sales please click here. Chart Monthly Sales Revenue from Petroleum Product Distribution Sales Revenue From PPMC Product Distribution (Billion Naira) PMS DPK AGO 24 NNPC Monthly Financial and Operations Report January 218

25 mmscfd 4.4 Domestic Gas Supply to the Power Sector A total of 731 mmscfd was delivered to the gas fired power plants in the month of January 218 to generate an average power of about 3,76 MW compared with the December 217, where an average of 828 mmscfd was supplied to generate 3,342MW. The table and chart below provide more details. Table Domestic Gas Supply to the Power Sector & Generation Period Gas Supply To Gas-Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW) % of Total Generation including Hyrdo mmscfd MW % Jan ,47 MW 68.2% Feb ,761 MW 74.3% Mar ,56 MW 75.1% Apr ,787 MW 76.9% May ,95 MW 82.1% Jun ,969 MW 83.8% Jul ,655 MW 77.% Aug ,37 MW 71.% Sep ,465 MW 7.1% Oct ,885 MW 74.4% Nov ,115 MW 76.3% Dec ,342 MW 81.4% Jan ,76 MW 76.7% Average 673 2,812 MW 76.% Chart Domestic Gas Supply to the Power Sector & Generation 1, ,47 MW 387 Gas Supply to Thermal Power plants vs Generation from Thermal Power Plants 3,56 MW 3,95 MW 2,969 MW 2,761 MW 2,787 MW ,655 MW 2,465 MW 2,37 MW ,342 MW 3,115 MW 3,76 MW 2,885 MW , MW 3,5 MW 3, MW 2,5 MW 2, MW 1,5 MW 1, MW 5 MW MW Gas Supply To Gas-Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW) 5.1 Summary of Group Operating Revenue and Expenditure for January 218 Group operating revenue for the months of December 217 and January 218 were 46.83Billion and Billion respectively. These represent 11.63% and 87.89% respectively of monthly budget. Similarly, operating expenditure for the same periods were Billion and Billion respectively, which also represents 13.22% and 12.24% of budget for the months respectively. This 3th edition of the report indicated a trading deficit of 1.56Billion which is comparatively lower than the previous month s deficit of 6.81Billion. This represents 5.25Billion decrease in trading deficit compared to the December 217 performance. 25 NNPC Monthly Financial and Operations Report January 218

26 This improvement is attributable to the decreased cost in upstream activities especially NPDC and relative decrease in PPMC operation s cost. Table 5.1.: Group Financial Performance by Entity SBU/CSU Revenue MONTHLY BUDGET (=N= MILLION) Expense Surplus/ (Deficit) Revenue (=N= MILLION) DECEMBER, 217 Expense Surplus/ (Deficit) Revenue (=N= MILLION) JANUARY, 218 Expense Surplus/ (Deficit) Revenue 217 BUDGET Expense PTD (=N= MILLION) Surplus/ (Deficit) NPDC 71,46 24,255 47,151 81,71 58,329 23,38 71,46 42,456 28,95 71,46 24,255 47,151 71,46 42,456 28,95 IDSL 2,45 1, (8) 2,45 1, (8) NETCO 1,25 1, ,759 1, ,122 (472) 1,25 1, ,122 (472) NGPTC/NGMC/GPIC 24,852 15,61 9,242 24,718 16,354 8,365 27,86 2,224 6,862 24,852 15,61 9,242 27,86 2,224 6,862 Sub-Total 99,913 42,539 57,373 19,19 77,41 31,978 99,88 64,548 35,26 99,913 42,539 57,373 99,88 64,548 35,26 KRPC 8,924 9,37 (384) 15,477 19,88 (4,43) (93) 3,276 (4,179) 8,924 9,37 (384) (93) 3,276 (4,179) PHRC 37,83 3,685 7,145 5,715 55,662 (4,947) 27,69 33,799 (6,729) 37,83 3,685 7,145 27,69 33,799 (6,729) WRPC 26,245 22,98 4, ,781 (1,745) 9 2,687 (2,678) 26,245 22,98 4, ,687 (2,678) Sub-Total 72,999 62,91 1,98 66,228 77,323 (11,95) 26,176 39,762 (13,586) 72,999 62,91 1,98 26,176 39,762 (13,586) RETAIL 26,52 25,115 1,387 16,6 16,446 (44) 25,542 24,391 1,151 26,52 25,115 1,387 25,542 24,391 1,151 PPMC/NPSC/ML 166, ,89 (2,512) 215, ,325 (11,6) 17, ,698 (2,721) 166, ,89 (2,512) 17, ,698 (2,721) Sub-Total 192,88 194,5 (1,125) 231,27 242,77 (11,5) 196,52 198,89 (1,569) 192,88 194,5 (1,125) 196,52 198,89 (1,569) CHQ ,165 (15,689) ,115 (13,871) ,325 (2,643) ,165 (15,689) ,325 (2,643) VENTURES 1,467 2,839 (1,371) ,393 (2,325) ,33 (1,25) 1,467 2,839 (1,371) 8 1,33 (1,25) Sub-Total 1,943 19,4 (17,61) ,58 (16,196) ,358 (21,669) 1,943 19,4 (17,61) ,358 (21,669) Grand Total 367, ,638 5,96 46,83 413,643 (6,813) 323, ,757 (1,564) 367, ,638 5,96 323, ,757 (1,564) Note: Revenue 218 ACTUAL The December 217 figure in the above table was updated with NNPC Retail figures. SBUs/CSUs retained the excess revenue generated but share Head Office Cost through Corporate Overhead Cost Allocation. Expense Surplus/ (Deficit) Chart 5.1.1: Group Operating Revenue: January 217 January NNPC Group Revenue: January '17 - January '18 (Billion Naira) NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES 26 NNPC Monthly Financial and Operations Report January 218

27 Chart 5.1.2: Group Operating Expenditure: January 217 January NNPC Group Expenses: January '17 - January '18 (Billion Naira) NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES Chart 5.1.3: Monthly Group Surplus/Deficit: January 217 January 218 (2) (4) (6) (8) (1) (12) (14) (16) (18) (2) Monthly NNPC Group Surplus/Deficit: January - December 217 (Billion Naira) (.41) (1.56) (2.81) (3.55) (5.62) (5.27) (5.19) (5.74) (6.79) (6.81) (11.87) (14.25) (14.12) Suplus/ (Deficit) Chart 5.1.4: NNPC Group Surplus/Deficit for the period January 218 NNPC Group Surplus/Deficit in YTD 218 (Million Naira) 4, 3, 28,95 6,862 1, ,25 2,678 2,721 4,179 6,729 2, 2,643 1, 1, 1,564 Surplus Deficit 27 NNPC Monthly Financial and Operations Report January 218

28 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 Central Bank of Nigeria (CBN). Domestic Crude Oil of 445,bopd 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 IOC Partners & PSC Contractor Liftings Equity Crude Export 3rd Party Finance Liftings Other Liftings Domestic Crude (445kbpd) CBN/NNPC JP Morgan USD Crude Oil Accounts Price Balance Debt Service Royalty to DPR PPT/CIT to FIRS Local Refining Direct Sales Direct Purchase Payment to CBN/NNPC JVCC Account CBN/DPR JP Morgan USD Crude Oil Account CBN/FIRS JP Morgan USD Crude Oil Account Direct Export Adjustment for Subsidy, Losses & Pipeline Mgt. Costs Federation Account CBN/NNPC Naira Crude Oil Account 28 NNPC Monthly Financial and Operations Report January 218

29 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 $439.6Million was recorded in January, 218. This performance is 1.79% lower than the previous month. Crude oil export sales contributed $38.61Million (7.2%) of the dollar transactions compared with $342.18Million contribution in the previous month. Also the export Gas sales amounted to $13.99Million in the month. The January 217 to January 218 Crude Oil and Gas transactions indicated that Crude Oil & Gas worth $4.29Billion was exported. See Table & Chart overleaf for details. 29 NNPC Monthly Financial and Operations Report January 218

30 Table NNPC/FGN Export Crude Oil & Gas Dollar Accruals, Receipts & Payments Payment Month Crude Oil Sales Proceed Export Sales Proceed Value Due Gas Sales Proceed Total Oil & Gas Sales Proceed Crude Oil Proceed Receipts NNPC/FGN Export Lifting Only Export Sales Proceed Reciepts Gas Proceed Reciepts (NLNG,EGTL,NGLs,N- GAS) Other Receipts Total Sales Proceed Receipts Allocation of Proceeds to Federation JV Cost Recovery Balance Remitance to FAAC USD USD USD USD USD USD USD USD USD Jan-17 93,965,963 18,197,224 22,163,187 93,965,963 69,76,562 7,39, ,117, ,117,193 Feb ,651, 15,46, ,111, ,65,932 1,536,651 1, ,189,53 168,189,53 Mar ,498,86 16,45, ,949, ,998, ,526,572 24,262 44,549, ,114, ,435,566 Apr-17 71,814,31 86,21, ,25,224 71,814,31 7,294,124 12,52 142,12, ,12,936 May ,81, ,929, ,74, ,237,787 13,831,444 2,754, ,823, ,269,25 59,554,69 Jun ,13,326 96,98, ,11, ,461,727 78,831,78 6,711, ,4, ,61, ,43,28 Jul ,93,874 96,575,23 448,478,897 35,526,699 64,718,2 14,983,922 43,228,64 363,86,227 66,422,414 Aug-17 38,964,95 124,421, ,386,477 31,342,5 116,561,955 15,569, ,473, ,68,4 154,865,848 Sep ,479, ,69, ,548,6 239,479,415 1,275,556 27,316, ,71, ,596, ,474,998 Oct ,828,174 93,861, ,689, ,657,1 49,9,87 756,82 277,54,7 155,758,25 121,745,83 Nov ,799, ,129, ,928, ,387,149 5,171,85 3,55,583 21,18, ,549,376 56,559,442 Dec ,184,845 15,437, ,622,22 342,158,481 94,847,246 39,24, ,246,61 388,464,81 87,782,52 Jan-18 38,68,53 13,991,54 439,599,17 35,764,13 113,139,139 15,216, ,119,42 327,436,285 16,683,135 Total 2,856,639,38 1,431,714,466 4,288,353,774 2,798,444,523 1,73,584,22 151,529,417 4,23,558,16 2,974,63,798 1,48,927,362 Note: Export Crude Oil Sales proceeds are received 3 days after bill of lading date. In January 218, Naira portion of N32,92,865, equivalent to a functional Dollar of $15,222,58.64 at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $ 327,436, Chart Monthly dollar receipts from NNPC/Federation Oil & Gas Exports 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 Dollar Payments to JV Cost Recovery & Federation Account Total export receipt of $434.12Million was recorded in January 218 as receipt against $ Million in December 217. Contribution from Crude oil amounted to $35.76Million while Gas and miscellaneous receipt stood at $113.14Million and $15.22Million respectively. Of the export receipts, $16.68Million was remitted to Federation Account while $327.44Million was remitted to fund the JV cost recovery for the month of January, 218 to guarantee current and future production. 3 NNPC Monthly Financial and Operations Report January 218

31 $/bbl Millions Barrels Total export crude Oil & Gas receipt for the period January 217 to January 218 stood at $4.2Billion. Out of which the sum of $2.97Billion was transferred to JV Cash Call as first line charge and the balance of $1.5Billion was paid into Federation Account (See Table & Chart 6.3.1). Chart Monthly Dollar Allocation to JV Cost Recovery & Federation Account Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports (Million Dollar) JV Cost Recovery Balance Remitance to FAAC In January 218, Naira portion of N32,92,865, equivalent to a functional Dollar of $15,222,58.64 at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $ 327,436, Chart NNPC Federation Lifted Volumes vs. Crude Oil Prices NNPC/Federation Lifted Volumes and Crude Prices Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec NNPC Lifted Volumes Crude Price Source: NNPC Average monthly lifting in tables and of pages 11 & 12 respectively. 6.4 Naira Payments to Federation Account The Domestic Crude Oil and Gas receipt during the month amounted to N111.74Billion, consisting of N18.98Billion from Domestic Crude Oil and the sum of N2.75Billion from Domestic Gas. Out of the Naira receipt, the sum of N32.9Billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account. 31 NNPC Monthly Financial and Operations Report January 218

32 Table 6.4.1: Naira Proceed from Sale of Domestic Crude Oil & Gas Receipt/ Payment Month Proceed Value Due Total Domestic Sales Proceed due Domestic Crude Proceed Receipts Domestic Sales Proceed Recipets Gas Proceed Receipts Other Receipts Total Sales Proceed Receipts NGN NGN NGN NGN NGN Jan-17 18,622,99, ,17,97,437 1,184,769, ,21,866,91 Feb ,476,32, ,85,923,222 3,979,142, ,785,65,444 Mar ,937,684,9 132,495,629,389 2,283,428,75 181,242, ,96,299,82 Apr ,392,933, ,864,134,236 2,23,212, ,94,346,613 May-17 94,913,22,316 73,932,647,393 2,551,435,748 76,484,83,141 Jun ,515,74, ,583,154,592 5,379,58,823 15,962,735,416 Jul ,767,968,118 14,274,4,12 5,56,852, ,834,892,629 Aug ,833,326,77 166,9,419,827 13,65,752,73 26,635,321 18,757,87,878 Sep ,956,666, ,256,551,636 5,527,49,56 3,, 126,786,61,196 Oct-17 16,577,722,516 88,354,855,533 6,164,54,985 94,518,91,517 Nov ,1,14, ,926,248,911 7,214,825,59 135,141,74,51 Dec ,74,544,869 89,16,972,513 7,57,748,42 96,677,72,555 Jan ,645,129,794 18,983,34,894 2,754,79,93 111,737,419,987 TOTAL 1,974,388,884,329 1,633,51,15,594 66,5,931,325 39,877,678 1,699,942,824,597 Chart: Monthly Naira Crude Oil, Gas and other Receipts Domestic Crude Oil, Gas Sales & Other Reciepts (Billion Naira ) Gas Proceed Receipts Domestic Crude Proceed Receipts Other Receipts 32 NNPC Monthly Financial and Operations Report January 218

33 Table 6.4.2: Allocation of Naira Proceeds from Sale of Domestic Crude Oil: Payment to FAAC Receipt/ Payment Month Proceed Value Due Domestic Crude Cost Domestic Crude Payments Allocation of Domestic Sales Proceeds Under Recovery Crude Losses Product Losses Pipeline Repairs & Managmet Cost Gas & Other Receipts Total Remittances JV Cost Recovery (Naira Only) Tramsfers To JV Cost Recovery, FG & Federation Account Transfer to Federation Account Debt Repayemt To FG (N45bn) Total Payment To FAAC Jan-17 18,622,99, ,17,97,437 37,263,846,591 1,117,572,295 11,223,583,353 1,184,769, ,137,262,69 49,172,34,67 83,29,526,231 6,33,393, ,532,26,451 Feb ,476,32, ,85,923,222 6,297,594,169 1,569,328,834 15,83,186,3 3,979,142,223 21,785,568,296 61,287,96,28 11,497,159,164 6,33,393, ,115,458,993 Mar ,937,684,9 132,495,629,389 8,26,727,836 2,24,222,976 68,54,246 11,53,599,643 2,464,67, ,732,748,71 46,461,38,9 88,499,26,92 6,33,393, ,29,693,37 Apr ,392,933, ,864,134,236 8,26,727,836 2,388,28,668 1,245,73,21 8,571,81,55 2,23,212, ,56,796,877 46,536,29,14 95,558,317, ,94,346,613 May-17 94,913,22,316 73,932,647,393 7,743,923,2 4,121,733,826 1,328,119,1 7,786,598,978 2,551,435,748 97,464,458,64 56,971,25,97 19,512,832,171 76,484,83,141 Jun ,515,74, ,583,154,592 11,792,197,288 4,591,38,868 1,73,988,377 11,792,197,288 5,379,58,823 18,212,157,237 9,577,641,249 6,385,94,166 15,962,735,416 Jul ,767,968,118 14,274,4,12 1,25,12, ,385,2 46,298,676 13,494,231,481 5,56,852,616 17,328,82,734 56,32,478,63 89,532,413, ,834,892,629 Aug ,833,326,77 115,,, 7,938,985,582 1,137,12,392 16,485,861 18,84,422,416 13,857,388,51 156,79,294,31 83,757,32,233 45,1,85, ,857,388,51 Sep ,956,666,418 86,357,978,999 7,521,59,52 17,76, ,97,386 4,545,139,142 5,53,49,56 14,985,84,278 49,727,218,563 42,16,89,996 91,888,28,559 Oct-17 16,577,722,516 88,354,855,533 6,848,622, ,945,671 14,74,815 1,824,223,972 6,164,54, ,741,777,51 29,985,641,128 64,533,269,39 94,518,91,517 Nov ,1,14, ,926,248,911 16,785,193,827 1,191,496,759 11,9,84 7,5,984,54 7,214,825,59 16,224,839,98 54,16,871,333 8,98,23, ,141,74,51 Dec ,74,544,869 89,16,972,513 15,676,576,185 26,92,436 6,85,78 8,453,678,323 7,57,748,42 12,894,153,26 19,11,881,195 77,566,839,36 96,677,72,555 Jan ,645,129,794 18,983,34,894 45,782,75,844 6,77,873 1,5,56,33 5,812,814,853 2,754,79,93 164,399,28,887 32,92,865,135 79,644,554, ,737,419,987 TOTAL 1,974,388,884,329 1,546,72,23,13 19,314,73,71 19,123,821,74 6,945,881, ,684,47,352 66,441,89,3 1,984,23,89, ,143,465, ,,366,77 18,991,18,648 1,632,135,12,781 NNPC transferred the sum of N79.64Billion into Federation Account for the month under review. From January 217 to January 218, Federation, JV, and FG for debt repayment received the sum N937.Billion, N676.14Billion and N18.99Billion respectively. The table above shows the Naira proceeds from the Sale of Domestic Crude Oil as well as Gas and the corresponding Naira remittances to Federation Account. Chart: Monthly Naira Payments to JV Cash Call, FG and Federation Account Tranfers to JV Cash Call and FG & Federation Account (Billion Naira) JV Cost Recovery (Naira Only) Transfer to Federation Account Debt Repayemt To FG (N45bn) Note: In January 218, Naira portion of N32,92,865, equivalent to a functional Dollar of $15,222,58.64 at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $ 327,436, NNPC Monthly Financial and Operations Report January 218

34 7. Key Determinants for Change 7.1 Key events and activities during the period DSDP Crude Oil Allocation In December 217, NNPC allocated about 78% of domestic crude oil to Direct Sale-Direct Purchase (DSDP) arrangement to ensure petroleum products availability. So far the arrangement guarantees products stability and creates room for savings. The DSDP arrangement is constantly being reviewed to ensure value is delivered to the Corporation and Nigeria as envisaged/promised. Other Achievements NNPC maintains the supply of more than doubled the normal daily supply of Premium Motor Spirit (PMS) from 85 trucks per day supply to 15 trucks per day (52 million litres) to ensure product availability nationwide. The Corporation is inching closer to choosing financiers for the Port Harcourt Refining Company Limited, Warri Refining and Petrochemical Company Limited and Kaduna Refining and Petrochemical Company Limited towards a 9 per cent capacity utilisation per stream day before the end of 219 The recently approved contract for the construction of Ajaokuta-Abuja-Kaduna- Kano Gas Pipeline project, dubbed AKK Pipeline, has started yielding early benefits with the commitment by NNPC to build power generating plants with combined capacity of 36MW in Abuja, Kaduna and Kano States. The corporation has also stepped up the resuscitation of some of its critical pipelines and depots such as the Ejigbo depot, the Atlas Cove - Mosimi Depot Pipeline, Port-Harcourt Refinery Aba Depot Pipeline, Kaduna Kano Pipeline and the Kano Depot which have enhanced efficiency in products distribution. 7.2 Key challenges The following are the key inhibiting factors that dragged the industry performance: i. QUA IBOE TERMINAL About 163,bopd was shut-in for the entire month of December, 217 due to facility integrity issues. 34 NNPC Monthly Financial and Operations Report January 218

35 ii. BONNY TERMINAL The TNP was shut down from 13th 17th December, 217 due to a leaking crude theft point in the Bodo area which resulted in the production shut-in of about 12,bbls for 5 days at Bonny Terminal Funding of Projects NNPC has signed two sets of alternative financing agreements with NNPC/Chevron Nigeria Limited (CNL) JV and NNPC/Shell Petroleum Development Company (SPDC) JV on Joint Venture (JV) projects expected to generate incremental revenues of about $16billion within the assets life cycle including a flurry of exploratory activities that would generate employment opportunities in the industry, boost gas supply to power and rejuvenate Nigeria s industrial capacity utilization Products theft and Pipeline Security Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position. A total of 1336 vandalized points have been recorded between January 217 to January 218 (see chart 7.1). Chart PPMC Pipeline Breaks January 217 January 218 PPMC Pipeline Breaks January January Mosimi Kaduna Port Harcourt Warri Gombe 35 NNPC Monthly Financial and Operations Report January 218

36 National Gas Production and Utilization 8 Glossary and Definition of Terms 36 NNPC Monthly Financial and Operations Report January 218