NNPC. Monthly Report. Financial and Operations Report

Transcription

1 NNPC Monthly Report Financial and Operations Report October 217

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 October 217

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 October 217

4 1 Introduction Global oil market prices improved to an average of $54.79/b in October, 217, buoyed by rising global oil demand and the growing sentiment that OPEC and Non-OPEC would extend the 1.8 mb/d production adjustment to ensure market rebalancing. The surge in the prices was further fuelled by reduction in US Crude Stocks as import fell and export surged. Brent Crude Oil Spot Price surged to $57.28/b, a gain of $2.13 relative to previous month of September 217. NYMEX WTI also recorded $51.59/b, adding $1.72 relative to the preceding month performance, while the OPEC Reference Basket (ORB) averaged $55.5/b in October, 217, adding about $2.6 According to OPEC Report, the world economic growth was revised up to 3.7%, instead of 3.6%, following better-than-expected growth seen recently in the OECD group economies, potential tax reform in the US, upward growth in Euro-Zone, Japan and China. India growth decelerates to 6.8%, and the Euro-Zone was revised upward to 2.3% while China s growth is forecasted to grow by 6.8%. In Nigeria, the National Bureau of Statistic (NBS) reported the economy registered.6% year on year growth in 2Q 217 a confirmation that the country has emerged from economic recession after five quarters of downturn. World oil demand growth in 217 is projected at 1.53mb/d with total global demand to average 96.94mb/d. It is expected that OECD, China and India consumption will continue to anchor oil demand growth. World oil supply increased by.53mb/d in October 217 to average 96.71mb/d. OPEC oil production averaged 32.59mb/d a slight reduction relative to previous month. Non-OPEC oil supply is estimated to average 57.67mb/d. In September, 217, Crude Oil production in Nigeria averaged 1.93mb/d which represents a slight decrease compared to August 217 production but up by 17.11% relative to September 216 performance. The stability in production is connected to engagement with the various stakeholders and the resumption of export activities at the Forcados Terminal after many months of non operational activities. Some of the major negative impact on production are shut-in of about 195,bopd at Qua Iboe Terminal, other production shut-in was in Bonny and Akpo Terminals. National Gas production for October 217 stood at BCF translating to an average daily production of 8,174.41mmscfd. This represents 1% increase relative to the previous month. The Daily Average Natural Gas supply to Gas Power Plants amounted to mmscfd (or equivalent to power generation of 2,885 MW) and is 17.4% higher than last month and 18% higher than the corresponding supply recorded in October NNPC Monthly Financial and Operations Report October 217

5 In the downstream sector, NNPC has continued to ensure adequate petroleum products availability in all parts of the Country despite challenges in the downstream petroleum sector. As part of efforts to consolidate on the successes recorded in the steady supply and distribution of petroleum products across the country, NNPC has mapped out strategies to boost security around its depots and pump stations to ensure they remain functional. NNPC is engaging reputable and competent security firms to safeguard its critical assets to ensure unimpeded operations and efficient service delivery. A total of 34 firms bided for the security services out of the 54 companies that were invited for the jobs through selective tendering. During the month, products pipeline breaks stood at 126 points for the month of October 217 out of which 116 pipelines were vandalized. PHC-ABA and ABA-ENUGU pipeline segment accounted for almost 8% vandalized points. The 27 th publication recorded a trading deficit of.41 Billion which is significantly lower than the previous month s deficit of 2.81Billion. This represents 85% or 2.4Billion improvement compared to the last month s performance. This improved performance is mainly due to enhances NPDC s performance and NGPTC/NGMC/GPIC. Also improved operational efficiency in PPMC has contributed to reduce the trading deficit recorded in the period. This edition of the report also highlighted NNPC s activities for the period of October, 216 to October, 217. The Corporation has sustained 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 is aggressively exploring inland basins; Anambra, Bida, Benue, Chad, Dahomey, Gongola and Sokoto in keeping with the Presidential mandate to shift oil and gas frontier. NPDC has successfully drilled and completed five horizontal wells in OML 26. It has also carried out turnaround of OML 4 and OML 65. Other completed projects include 15 mmscfd capacity Utorogu Non-Associated Gas II plant and Oredo to Pan-Ocean gas plant (capacity of 1 mmscfd) 5 NNPC Monthly Financial and Operations Report October 217

6 NNPC is exploring possible partnership with Unibio A/S Limited, Danish Company, in the production of animal feeds through conversion of methane gas into protein. The Corporation has also stepped up the resuscitation of some of its critical pipelines and depots 6 NNPC Monthly Financial and Operations Report October 217

7 2 National Crude Oil & Natural Gas Production, Lifting and Utilization 2.1 National Crude Oil & Condensate Production A total of million barrels of crude oil & condensate was produced in the month of September 217 representing an average daily production of 1.93million barrels. This represents a decrease of 6.31% compared to August 217 performance. Of the September 217 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 29.43% and 43.26% respectively. While AF, NPDC and Independents accounted for 13.21%, 8.% and 6.1% respectively. The tables and charts below provide details of the National Crude Oil Production for the period September 216 to September 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 Sep-16 14,523,49 27,728,624 4,114,46 1,211,935 1,878,78 49,456,83 1,648,56 Oct-16 16,62,683 28,654,62 6,426,155 1,376,79 2,43,453 54,923,62 1,771,73 Nov-16 18,776,344 27,253,176 8,146,24 1,238,37 2,44,686 57,854,6 1,928,487 Dec-16 18,48,538 21,985,5 4,936,297 1,235,48 2,676,594 48,881,977 1,576,838 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 PTD 222,491, ,426,114 92,9,64 27,564,598 41,796, ,369,516 1,826,252 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 September 17 was 1,744,866bbls. 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: September 16 September Total Monthly Crude Oil & Condensate Production (Million Barrels) Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 JVs PSC AF NPDC Independent / Marginal Fields 7 NNPC Monthly Financial and Operations Report October 217

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 4% 12.8% 6% 3.8% JVs PSC AF % NPDC Table 2.1.2: NPDC monthly Crude oil & Condensate Production Field/Company Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 PTD Block NPDC Owned Direct Operated Assets Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Abura OML 65 97,665 87,743 8,155 7, , , , ,35 1,1,99 Oredo OML 111 3,336 8,65 2,673 4,472 6,84 155, ,412 29,384 35, ,821 Oziengbe OML 111 1, ,544 1,471 23,268 42,658 Okono_Okpoho OML ,23 762, , , ,98 635, , , , , , , ,233 8,95,45 SUB-TOTAL 844, , ,53 731, ,98 646, , ,832 76, ,358 1,79,85 1,18, ,33 1,621,793 NPDC JV Direct Operated Assets Ogini_Isoko/FHN OML 26 57,247 14,561 4,125 7,263 12,641 9,649 9,993 36,936 69,896 79,123 82,192 63, ,125 Opuama/Elcrest OML 4 21, ,412 57,456 22, ,72 191,9 21,75 29,14 2,418 1,142,895 Batan_Odidi/Neconde OML 42 27,631 91,84 87, , ,237 22,53 157,54 31, , ,536 64,27 857,44 744,885 4,66,666 Afiesere_Kokori/Shoreline OML 3 8,444 32,48 33,648 7, , , ,924 87, , ,469 3,187,552 Utorogu_Ughelli/NDW OML 34 94,798 18, ,123 1,348 69,416 71,95 62,381 69,56 125,8 167, , ,825 1,33,75 2,892,319 SUB-TOTAL 188,12 247,14 284, , ,377 44,21 286,54 255, ,4 1,66,543 2,,614 2,25,293 2,995,977 11,736,558 NPDC JV Non-Operated Assets OBEN_Amukpe_Sapele/SEPLAT OML 4,38&41 178,839 27, , , ,798 71,53 14, , , , ,853 1,28,53 761,173 5,26,247 SUB-TOTAL 178,839 27, , , ,798 71,53 14, , , , ,853 1,28,53 761,173 5,26,247 GRAND TOTAL 1,211,935 1,376,79 1,238,37 1,235,48 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 27,564,598 Average Daily Production 4,398 44,41 41,279 39,84 38,37 4,94 35,323 36,125 5, , ,622 14,86 154,373 69,784 The NPDC September 216 to September 217 cumulative production from all fields amounted to 27,564,598 barrels of Crude oil which translated to an average daily production of 69,784 barrels per day. Comparing PTD NPDC performance to National Production, the company s production share amounted to 8.%. 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. Production from NPDC wholly operated assets amounted to 1,621,793 barrels (or 38.53% of the total NPDC production) with Okono Okpoho (OML 119) alone producing 83.84% of the NPDC wholly owned operated Assets or 32.31% of the total NPDC production. Also on the NPDC operated JV assets, in which NPDC owns 55% controlling interest, Crude Oil production amounted to 11,736,558 barrel (or 42.58% of the NPDC total production). On the Non-operated assets, production level stood at 5,26,247 barrels or 18.89% of the company s production. 8 NNPC Monthly Financial and Operations Report October 217

9 Chart NPDC Monthly Crude Oil & Condensate Productions 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 1,377 1, NPDC Crude Monthly Production (Thousand Barrels) 1,2381,235 1,179 1,123 1,95 1, , , ,67 3, ,1 4,343 1,29 2, ,8 1,19 4, ,996 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep 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) NPDC PTD Ranking by Field (Thousand Barrels) Okono_Okpoho 8,95 OBEN_Amukpe_Sapele /SEPLAT Batan_Odidi/Neconde Afiesere_Kokori/Shore line Utorogu_Ughelli/NDW Opuama/Elcrest Abura Oredo Ogini_Isoko/FHN Oziengbe ,143 1,11 4,67 3,188 2,892 5,26 4, 8, 12, 2.2. National Gas Production A total of Billion Cubic Feet (BCF) of natural gas was produced in the month of October 217 translating to an average daily production of 8, Million Standard Cubic Feet Per Day (mmscfd). For the period October 216 to October 217, a total of 3,3.13 BCF of gas was produced representing an average daily production of 7,582.6 mmscfd during the period. Period to date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.2%, 22.94% and 7.87% respectively to the total national gas production. The table and charts overleaf provide details of the national gas production for the period October 216 to October NNPC Monthly Financial and Operations Report October 217

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 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Total 2, ,3.13 PERIOD JV PSC NPDC TOTAL mmscfd mmscfd mmscfd mmscfd Oct-16 4, , ,82.5 Nov-16 5, , , Dec-16 5, , ,1.9 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, , , Average 5, , ,582.6 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) 7,63 8,77 7,829 7,925 8,174 7,46 7,83 7,11 7,255 7,32 7,571 7,711 7, ,758 1,763 1,752 1,771 1,822 1,474 1,8 1,764 1,666 1,792 1,829 1,718 1,697 5,289 5,826 4,672 5,65 5,149 4,951 5,162 5,556 5,82 5,31 5,278 5,763 5,112 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- October October % JV % PSC % NPDC 1 NNPC Monthly Financial and Operations Report October 217

11 2.3 Crude Oil & Condensate Lifting & utilization A total volume of million barrels of crude oil and condensate was lifted in the month of September 217 by all parties. Out of this volume, million barrels was lifted by NNPC on behalf of the Federation. This comprises of 1.46 million barrels lifted on the account of NNPC (Domestic and Federation Export) while 4.3 million barrels and.67 million was superintended for FIRS and DPR respectively. Of the FIRS liftings.97million 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 NIGERIAN GOVERNMENT IOCs & NNPC SUB-TOTAL INDEPENDENTS AF GRAND TOTAL FIRS (PSC) DPR (PSC) FEDERATION SUB-TOTAL GOVERNMENT DOMESTIC (INC. NPDC) EXPORT (NNPC) LIFTING Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Sep-16 4,29, , 452,661 5,159,28 5,611,689 1,52,975 37,279,27 1,436,55 48,768,57 Oct-16 4,16, ,489 1,943,53 11,91,838 13,844,891 18,49,253 35,27, , 53,384,947 Nov-16 3,921,311 2,169,768 2,243,42 13,584,651 15,828,53 21,919,132 42,39,53 1,194, 65,53,185 Dec-16 4,494,376 77, 1,777,48 9,422,823 11,2,33 16,464,679 32,159,329 28, 48,94,8 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 TOTAL 56,939,997 9,715,269 43,981, ,456, ,437, ,93, ,62,163 13,614, ,769,674 Note: 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 1.46 million barrels lifted on the account of NNPC in September 217, 6.45 million barrels and 4.1 million barrels were for domestic and export markets respectively. At an average oil price of $57.32/barrel and exchange rate of N34.65/$, the domestic crude oil lifted by NNPC is valued at $369,823,11 or a Naira equivalent of N112,74,544,868.9 in September 217. The remaining crude oil lifted for export was valued at $227,828,174 at an average price of $56.83/barrel. The total value of crude oil lifted on the account of NNPC in September 217 was thus $597,651,185. From September 216 to September 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 September 216 to September NNPC Monthly Financial and Operations Report October 217

12 Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements Monthly Lifting Entitlement (Million Barrels) Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 SUB-TOTAL (NNPC) FIRS (PSC) DPR (PSC) IOCs & INDEPENDENTS (INC. NPDC) AF Table 2.3.2: Crude Oil Lifting Values LIFTING MONTH NIGERIAN GOVERNMENT IOCs & NNPC SUB-TOTAL INDEPENDENTS AF GRAND TOTAL FIRS (PSC) DPR (PSC) FEDERATION SUB-TOTAL GOVERNMENT DOMESTIC (INC. NPDC) EXPORT (NNPC) LIFTING USD USD USD USD USD USD USD USD USD Sep-16 23,61,332 23,45,384 21,41, ,813,79 267,215, ,275,865 1,762,515,118 67,814,4 2,324,65,382 Oct-16 23,824,153 9,36,579 96,311, ,575, ,887,127 93,17,859 1,847,87,246 6,441,196 2,757,266,31 Nov ,943,887 93,357,159 1,367, ,685,928 73,53,676 1,1,354,722 1,896,492,89 57,884,752 2,955,731,563 Dec-16 24,11,215 41,15,57 93,965,963 59,663,435 63,629, ,746,182 1,7,93,566 15,267,92 2,6,17,668 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 TOTAL 2,95,741,62 493,95,188 2,234,458,882 6,198,792,767 8,433,251,648 11,832,88,439 24,537,59,25 716,467,299 37,86,145,942 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) Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 DOMESTIC FEDERATION EXPORT 12 NNPC Monthly Financial and Operations Report October 217

13 2.4 Utilization of Crude Oil for Domestic Product Supply In September 217, NNPC lifted 6,452,172 barrels of Crude Oil for domestic utilization translating to an average volume of 215,72.4 barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of September 217 about 5,694,64 barrels was processed under the Direct-Sales-Direct Purchase (DSDP) scheme and the balance of 757,568 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 September 216 to September 217. Table Domestic Crude Purchased By NNPC Period Volume Ave. Price Sales Value Sales Value Average Lifting Barrels $/bbl USD NGN Barrels Per Day Sep-16 5,159, ,813, ,973,25, ,967.6 Oct-16 11,91, ,575, ,622,99, ,93.26 Nov-16 13,584, ,685, ,476,32, ,821.7 Dec-16 9,422, ,663, ,937,684, ,962.3 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 Total/Ave 121,456, ,198,792, ,887,716,96, ,485.5 Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels) Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 OPA DIRECT EXPORT REFINERY DSDP 13 NNPC Monthly Financial and Operations Report October 217

14 Table Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply Month EXPORT OFFSHORE PROCESSING 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 Qty (' Bbls) Value in US$'Mn Naira'Mn Sep , , , , , , Oct , , , , , , ,622.1 Nov , , , , , , ,476.3 Dec , , , , , , , Jan , , , ,7.4 8, , Feb , , , , , ,913.2 Mar , , , , , , , Apr , , , , , , , May , , , , , , Jun , , , , , , Jul , , , ,62.3 7, , Aug , , , , , ,1.1 Sep , , , , ,74.54 PTD 3, , , , , , , , ,367, , , ,887, Chart 2.4.3: Percentage Distribution for September 217 Domestic Crude Utilization September 217 Crude Oil Utilization For Domestic Product Consumption 11.74% REFINERY OPA PTD Crude Oil Utilization For Domestic Product Consumption 3.1% 23.6% REFINERY OPA.8% DSDP DSDP 88.26% DIRECT EXPORT 72.5% DIRECT EXPORT 2.5 Natural Gas Off take, Commercialization & Utilization Out of the BCF of gas supplied in October 217, a total of BCF of gas was commercialized comprising of BCF and BCF for the domestic and export market respectively as shown in Table This translates to an average daily supply of 1, mmscfd of gas to the domestic market and 3, mmscfd of gas supplied to the export market as shown in Table This implies that 57.36% of the average daily gas produced was commercialized while the balance of 42.64% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.59% for the month of October 217 i.e mmscfd compared with average Gas flare rate of 1.3% i.e mmscfd for the period October 216 to October NNPC Monthly Financial and Operations Report October 217

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 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Total , , , , Note: For more details on Gas Liftings follow this link Total gas supply for the period October 216 to October 217 stood at 2, BCF out of which BCF and 1, BCF were for the domestic and export market respectively and Commercialized while Non-Commercialized stood at 1,253.5 BCF. The table and chart provides more details of the gas utilization and commercialization for the period October 216 to October 217. Chart October 216 October 217 Percent Distribution of Gas Utilization PTD Year Average Percentage Distribution of Gas Utilisation October 217 Percentage Distribution of Gas Utilisation 13.3% Total Gas To Domestic 14.% Total Gas To Domestic 42.2% Total Gas To Export 42.6% Total Gas To Export 44.5% Total Non- Commeriali zed Gas 43.4% Total Non- Commeriali zed Gas As shown in Table overleaf, out of the 1, mmscfd of gas supplied to the domestic market in October 217, about mmscfd of gas representing 62.71% was used for Gas-Fired power plants while the balance of mmscfd or 37.29% was supplied to other industries. Similarly, for the period of October 216 to October 217 an average of 1,3.76 mmscfd of gas was supplied to the domestic market comprising of an average of mmscfd or (61.46%) as gas supply to the power plants and mmscfd or (38.54%) as gas supply to industries. 15 NNPC Monthly Financial and Operations Report October 217

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 Oct , , , ,26.7 6,95.5 Nov , , , , ,51.3 Dec , , , , , Jan , , , , ,245.4 Feb , , , , ,124.4 Mar , , , , , ,298.9 Apr , , , , , ,75.53 May , , , , , ,87.94 Jun , , , , , , Jul , , , , , ,91.59 Aug , , , , , , Sep , , , , , , Oct , , , , , ,155.9 Average , , , , , ,56.21 About 3, mmscfd or 88.69% of the export gas was sent to Nigerian Liquefied Natural Gas Company (NLNG) Bonny for October 217 compared with the period (October 216 to October 217) average of 3,66.29 mmscfd or 91.9% 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 7,51 7,557 7,666 7,245 6,951 6,921 7,124 7,298 7,375 3,358 3,11 3,26 3,478 3,253 3,27 2,868 3,198 2,928 3,134 3,235 3,118 3,189 2,979 3,398 3,26 3,616 3,553 3,279 3,527 3,263 3,339 3,58 3,48 3,536 3, ,19 1,11 1,146 1,145 1,115 1,23 1,26 1,142 Total Gas To Domestic Total Gas To Export Total Non-Commerialized Gas 16 NNPC Monthly Financial and Operations Report October 217

17 3 Refinery Operations 3.1 Capacity Utilization Total Crude processed by PHRC & WRPC out of the three domestic Refineries (KRPC, PHRC & WRPC) for the month of October 217 was 331,75MT which translates to a combined yield efficiency of 9.48% compared to crude processed in September 217 of 115,441MT which translates to a combined yield efficiency of 78.9%. Table 3.1.1: Monthly Consolidated Refineries Operational Performance Operational Parameters Units Consolidated Refineries Operations Total Opening Stock (A) MT 581, ,36 569,93 679,5 447,15 414, ,56 442,939 57, , ,257 51, ,125 6,657,76 Crude Received (B) MT 366, , , ,47 567, , , ,2 331, ,24 21, ,126 37,644 5,398,27 Crude Transferred to KRPC (C) MT -93,296-18,23-75,85-45,55-1,3-181,124-19, ,55-85,473-3,16-9,654-19,764-1,25,475 Total Crude Available (D=A+B-C) MT 854,27 82, ,999 1,129, , ,85 92,94 935,94 753, , ,524 73, ,769 1,85,438 Closing Stock (E=D-F) MT 411, ,93 68,1 438,73 42, , ,22 51, , ,47 59, ,42 564,64 6,63,393 Crude Processed (F) MT 442, , , , , ,18 447, , , , , , ,75 4,22,45 (i) Finished Products MT 251, ,17 121, , , ,164 37,946 35,76 222,585 16,642 95, , ,222 3,63,193 (ii) Intermediate Products MT 137,776 24,599-4, , ,983-59,791 95,42 22,79-21,731 39,492 53,496-47,837 71, ,976 (iii) Plant Consumption MT 39,42 23,978 22,288 3,915 41,729 24,241 37,884 52,3 25,315 18,639 21,418 19,851 25, ,686 (iv) Losses MT 13,95 6,84 2,647 5,96 5,825 6,566 6,866 8,894 5,666 5,811 8,325 5,443 6,28 88,191 Plant Capacity kpd Capacity Utilization % 23.53% 12.78% 7.55% 36.73% 29.6% 13.46% 24.59% 23.9% 12.73% 11.94% 9.5% 6.34% 17.63% 17.56% Losses % 3.15% 2.61% 1.86%.85% 1.18% 2.59% 1.53% 2.5% 2.44% 2.59% 4.66% 4.71% 1.87% 2.9% Plant Consumption % 8.82% 1.3% 15.7% 4.47% 8.45% 9.57% 8.46% 11.98% 1.92% 8.3% 11.98% 17.2% 7.64% 9.7% Yields Efficiency based on CDU, CRU & FCC (%) % 88.3% 87.8% 82.44% 94.67% 9.37% 87.83% 9.1% 85.98% 86.64% 89.11% 83.36% 78.9% 9.48% 88.84% Note: KRPC received their crude via WRPC. For the month of October 217, the three Refineries produced 228,222MT of finished Petroleum Products and 71,919MT of intermediate products out of 331,75MT of Crude processed at a combined capacity utilization of 17.63% compared to 6.34% combined capacity utilization achieved in the month of September 217. An improved operational performance recorded was attributed to increase in crude processed by PHRC & WRPC while KRPC remain shut down during the month under review. The ongoing revamping of the Refineries will enhance capacity utilization once completed. Chart 3.1.1: Monthly Refineries Consolidated Capacity Utilization Refineries Consolidated Capacity Utilisation 4% 36.73% 35% 3% 29.6% 25% 23.53% 24.59% 23.9% 2% 15% 12.78% 13.46% 12.73% 11.94% 1% 7.55% 9.5% 5% 6.34% 17.63% % 17 NNPC Monthly Financial and Operations Report October 217

18 Table Refineries Monthly Operations Operational Parameters Units Total WRPC Opening Stock (A) MT 167,43 158,48 194, , ,11 2,825 23, ,75 163, , ,69 61, ,62 2,174,619 Crude Received (B) MT 227, ,482 78, ,19 177,463 18, ,233 25,774 92,3 5,554 69,946 14,42 44,748 1,897,889 Crude Transferred to KRPC (C) MT -93,296-18,23-75,85-45,55-1,3-181,124-19, ,55-85,473-3,16-9,654-19,764-1,25,475 Total Crude Available (D=A+B-C) MT 31, , , , ,543 2,562 28, ,424 17,16 189, , , ,368 2,867,33 Closing Stock (E=D-F) MT 138, , , ,177 27,125 2, , ,424 17,16 179,386 63, , ,163 2,163,912 Crude Processed (F) MT 163,18 224,958 22,418 5,753 9, ,788 53,25 73,121 (i) Finished Products MT 19,542 45,754 27,965 79,91 15,545 23,857 4,439-3, ,11 68,717 28,481 27,38 486,681 (ii) Intermediate Products MT 35,67-57,65-32, ,536 2,93-32,878 2,654 1, ,563 1,721-37,525 17, ,573 (iii) Plant Consumption MT 9,29 8,282 3,596 5,637 3,74 6,267 6,398 1,945 3,61 6,391 4,899 5,39 63,618 (iv) Losses MT 8,867 3, ,754 1, ,958 4,145 3,47 29,25 Plant Capacity kpd Capacity Utilization % 3.86%.%.% 42.56% 4.7%.% 9.92%.%.% 1.87% 33.83%.% 1.7% 1.41% Losses % 5.44%.%.%.39% 3.88%.% 2.49%.%.% 3.86% 1.65%.% 6.4% 4.16% Plant Consumption % 5.54%.%.% 2.51% 13.71%.% 12.61%.%.% 3.95% 3.57%.% 9.47% 9.5% Yields Efficiency based on CDU, CRU & FCC (%) % 89.3%.%.% 97.11% 82.41%.% 84.91%.%.% 65.19% 94.77%.% 84.13% 86.79% Operational Parameters Units PHRC Opening Stock (A) MT 35,74 16,24 136,33 243, , , , , , ,412 81,236 24,445 17,71 2,266,78 Crude Received (B) MT 73,694 28, ,99 261,61 39,371 14,81 269,53 296,5 178, , ,588 81,76 262,896 2,634,229 Total Crude Available (C=A+B) MT 379, ,81 385,132 54, , ,383 44,976 48,86 355, ,929 21, , ,66 4,9,37 Closing Stock (D=C-E) MT 159, ,33 243, , , , , , ,412 81,236 21,824 17,71 155,16 2,121,352 Crude Processed (E) MT 219,71 232, , , , ,91 256,121 34, , , , ,5 2,778,955 (i) Finished Products MT 1, ,267 93, , ,22 143, , , ,77 135,762 22,314 19,53 2,914 2,4,773 (ii) Intermediate Products MT 14,633 11,327 36,889 77,716 85,636-42,69 53,74 17,77 12,961 63,387-34,194-4,36 63, ,825 (iii) Plant Consumption MT 9,929 7,131 9,967 9,467 12,811 12,11 11,972 28,94 15,439 1,575 6,744 8,676 11,37 154,285 (iv) Losses MT 4,34 3,43 1,946 3,3 2,997 1,925 3,686 7,1 5,666 4,969 5,136 1,298 2,81 48,72 Plant Capacity kpd Capacity Utilization % 24.74% 27.9% 15.99% 38.51% 4.73% 12.94% 29.81% 34.29% 26.98% 24.18%.% 13.44% 31.37% 24.5% Losses % 1.96% 1.31% 1.37%.97%.92% 1.68% 1.44% 2.3% 2.44% 2.31%.% 1.12% 1.1% 1.73% Plant Consumption % 4.52% 3.6% 7.2% 2.77% 3.92% 1.54% 4.67% 9.23% 6.66% 4.93%.% 7.52% 4.8% 5.55% Yields Efficiency based on CDU, CRU & FCC (%) % 93.52% 95.63% 91.61% 96.27% 95.16% 87.79% 93.89% 88.47% 9.9% 92.76%.% 91.36% 94.91% 92.72% Operational Parameters Units KRPC Opening Stock (A) MT 17, , ,543 24, ,192 67,896 13,59 112, , , , , ,795 2,217,9 Crude Received (B) MT 65,44 126,759 16,778 8, , , ,241 6,51 4,953 2, ,89 Total Crude Available (C=A+B) MT 173, , , , ,65 241,86 253, ,62 228, , , , ,795 3,83,98 Closing Stock (D=C-E) MT 113,54 239, , ,75 67,896 13,59 112, , , , , , ,795 2,345,129 Crude Processed (E) MT 59, , ,79 138,27 14, , ,969 (i) Finished Products MT 41,548 11, ,25 9, ,742 8,748 12,331 25, , ,739 (ii) Intermediate Products MT 2,527 19,663 9,119 43,477 26,417 15,777 38,684 3,759 35,641 6,332 13,31 6,276 8,947 26,578 (iii) Plant Consumption MT 2,84 8,565 8,725 15,811 25,844 5,864 19,514 21,991 9,876 5,3 8,283 6,276 8, ,783 (iv) Losses MT ,73 1,959 1,887 1,918 1, ,869 Plant Capacity kpd Capacity Utilization % 12.88%.%.% 26.72% 34.45% 29.73% 31.3% 27.95%.%.%.%.%.% 12.42% Losses % 1.3%.%.% 1.39% 1.35% 1.36% 1.36% 1.46%.%.%.%.%.% 1.47% Plant Consumption % 33.54%.%.% 12.72% 17.86% 4.24% 13.85% 16.92%.%.%.%.%.% 22.33% Yields Efficiency based on CDU, CRU & FCC (%) % 65.16%.%.% 85.88% 8.79% 94.39% 84.79% 81.62%.%.%.%.%.% 76.2% Note: For more details on breakdown for Refineries Crude grade received follow this link. 18 NNPC Monthly Financial and Operations Report October 217

19 .%.%.%.%.%.%.% 4.7% 1.9%.%.%.%.%.%.% 12.9% 9.9% 1.1% 16.% 12.9% 13.4% 3.9% 24.7% 27.1% 26.7% 42.6% 38.5% 4.7% 34.4% 29.7% 29.8% 31.3% 34.3% 27.9% 27.% 24.2% 33.8% 31.4% Chart 3.1.2: Refineries Capacity Utilization 6% 5% 4% 3% 2% 1% % WRPC PHRC KRPC 3.2 Refineries Economics for period of October 217 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 October 217 amounted to 43.27billion while the associated Crude plus freight costs and operational expenses were 42.8billion and 8.95billion respectively. This resulted to an operating deficit of 7.76billion by the refineries as shown in Table 3.2. Also, during the period under review, refineries combined capacity utilization was 17.63%. Table 3.2 Refinery Financial Performance October October 217 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 2, , , , , , , , , , Crude + Frieght (COGS) (18,49.42).. (29,153.46) (2,99.59) (2,99.59) (6,217.68).. (1,24.76) (21,324.45) (527.) (7,386.46) Opex (1,676.25) (2,181.65) (1,863.77) (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) 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) KRPC Revenue 7, , , , , , , (588.35) (663.52) (676.26) (627.31) (854.47) Crude + Frieght (COGS) (5,585.73) (2,32.6) (1,99.37) (16,116.74) (18,16.79) (22,65.54) (16,1.37) (14,96.53).... Opex (3,518.61) (2,77.33) (3,344.5) (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) Operating Surplus/Deficit (1,489.4) (2,697.15) (4,362.9) (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) PHRC Revenue 29, , , , , , , , , , , , ,539.7 Crude + Frieght (COGS) (24,11.98) (26,958.2) (17,652.1) (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) Opex (3,383.36) (4,39.8) (3,456.75) (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) Operating Surplus/Deficit 2, , , , , , , , (2,634.61) , (9.35) Consolidated Revenue 57, , , , , , , , , , , , , Crude + Frieght (COGS) (48,187.13) (28,99.8) (18,751.38) (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) Opex (8,578.22) (8,991.78) (8,664.57) (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) Operating Surplus/Deficit 1, , , (522.82) 3, , , , (8,517.78) (4,636.29) (3,518.6) (7,762.25) 19 NNPC Monthly Financial and Operations Report October 217

20 4 Petroleum Product Supply & Distribution 4.1 Petroleum Product Supply from Direct sales Direct Purchase (DSDP) In October 217, 1,512.2 million litres of PMS was supplied into the country through the DSDP arrangements as against the million litres supplied in the month of September 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 Oct-16 82,752, ,752, Nov-16 1,3,28, ,3,28, Dec ,146, ,792, ,938, Jan ,156, ,156, Feb-17 1,21,291, ,71, ,337,362, 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, TOTAL 13,534,73, ,593, ,765,324,27.12 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 1,337-1, ,173 1,6 1, ,491 1, ,21 1,29-1,173 1,3 1, PMS DPK 4.2 Petroleum Products Supply from Domestic Refineries The petroleum products (PMS & DPK Only) production by the domestic refineries in October 217 amounted to million litres compared to million litres in September 217 as shown in Table NNPC Monthly Financial and Operations Report October 217

21 Table 4.2.1: Monthly Refined White Petroleum Products from Local Refineries Period PMS DPK Total (PMS+DPK) Litres Litres Litres Oct ,845,811 84,153,826 29,999,637 Nov ,434,866 42,313, ,748,182 Dec-16 99,588,576 23,59, ,179,142 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 Total 1,71,821, ,9,732 2,389,721,97 Table Total White Petroleum Product Supply from NNPC (OPA, 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 Oct ,598, ,153,826. 1,12,752, ,954, ,714, ,669,432.9 Nov-16 1,152,715, ,313,316. 1,195,28, ,423, ,41, ,834, Dec ,734, ,383, ,117, ,249, ,44, ,294, Jan ,711, ,111, ,823, ,313, ,971, ,284, Feb-17 1,396,19, ,91, ,6,921, ,857, ,317, ,175,77.2 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, Total 15,236,551, ,494, ,155,46, ,23, ,528, ,758, Chart Total White Petroleum Product Supply from NNPC (OPA, 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 1,61 4 1, ,282 1,253 1, , ,46 1, ,634 1,621 1,396 1,461 1,153 1,216 1, , PMS DPK 21 NNPC Monthly Financial and Operations Report October 217

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, million litres of white products were distributed and sold by PPMC in the month of October 217 compared with 1, million litres in the month of September 217. This comprised of 1, million litres of PMS, million litres of Kerosene and million litres of Diesel. Total sale of white products for the period October 216 to October 217 stood at billion litres, PMS amounted to billion litres and accounts for 87.22%. The Tables and Charts below provide more details of white products sold by NNPC/PPMC for the period October 216 to October 217. While total special products for the month of October 217 was million litres comprising of million litres of LPFO and other special products of 5.67 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 Oct ,184,115 83,724,6 4,164, ,72,58 11,646,151 12, 11,766,151 Nov-16 1,84,717,529 97,276,333 66,838,12 1,248,831,982 14,253,14 843, 15,96,14 Dec-16 1,263,58,89 85,448,841 43,196,836 1,392,154,486 26,82,31 19,64,5 45,722,81 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 Total 14,18,781,863 1,35,289, ,863,573 16,176,934,951 28,791, ,592,177 53,383,752 For more details on downstream petroleum products sales please click here. 22 NNPC Monthly Financial and Operations Report October 217

23 Chart Monthly White Product sales by PPMC 2, Total Montly PPMC Product Distribution Sales Volume (Million Litres) 1,5 1, 5 1, , , , ,85 1, , , ,536 1,531 1,24.3 1, , , , ,72 1,84 1, ,161 1,12 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 Oct-16 25,747,875 2,7,774 1,295,625 29,744, ,682 3,871 53,23 Nov-16 36,157,251 3,242,544 2,227,937 41,627, ,13 28,1 1,474,929 Dec-16 4,758,349 2,756,414 1,393,446 44,98,29 841, ,565 63,3 Jan-17 18,884,753 3,366,48 2,18,113 24,269, ,671 13, ,1 Feb-17 37,746,2 8,969,26 2,833,364 49,548,77 421,16 56,986 1,49,236 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 Average 33,119,26 3,169,694 1,685,126 37,974,26 659, ,897 1,245,32 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 October 217

24 A total sale of billion was made on the petroleum products for white products by PPMC in the month of October 217 compared with billion sold in the prior month of September 217. Total revenues generated from the sales of white products for the period October 216 to October 217 stands at 1, billion, where PMS contributed about 84.81% 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 Oct-16 94,6,844,488 12,37,566,582 5,422,192, ,52,63, ,4,48 9,561,6 858,566,8 Nov ,145,954,267 14,228,867,427 7,93,912, ,468,734,388 1,39,51,281 67,17,24 1,16,221,521 Dec ,657,75,56 11,82,546,2 4,297,229,264 16,756,85,844 2,368,391,877 2,36,69,745 4,45,1,622 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 Total 1,653,56,222,17 22,369,668,667 93,699,719,133 1,949,629,69,97 22,991,98,971 36,564,34,163 59,555,943,134 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 4.4 Domestic Gas Supply to the Power Sector A total of 716 mmscfd was delivered to the gas fired power plants in the month of October 217 to generate an average power of about 2,885MW compared with the September 217, where an average of 625 mmscfd was supplied to generate 2,465 MW. The table and chart in the next page provide more details. 24 NNPC Monthly Financial and Operations Report October 217

25 mmscfd 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 % Oct ,452 MW 69.9% Nov ,344 MW 68.6% Dec ,214 MW 67.3% 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% Average 617 2,618 MW 74% Chart Domestic Gas Supply to the Power Sector & Generation 1, Gas Supply to Thermal Power plants vs Generation from Thermal Power Plants 3,56 MW 3,95 MW 2,761 MW 2,787 MW 2,969 MW 2,885 MW 2,452 MW 2,655 MW 2,465 MW 2,344 MW 2,214 MW 2,37 MW 2,47 MW ,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 October 217 Group operating revenue for the months of September 217 and October 217 were 37.59Billion and 354.8Billion respectively. These represent 83.65% and 96.29% respectively of monthly budget. Similarly, operating expenditure for the same periods were 31.4Billion and Billion respectively, which also represents 97.72% and 111.6% of budget for the months respectively. The 27 th publication recorded a trading deficit of.41 Billion which is significantly lower than the previous month s last month s performance. This represents 85.49% or 2.4Billion improvement compared to the last month s performance. 25 NNPC Monthly Financial and Operations Report October 217

26 This improved performance is mainly due to revamping of Forcados export terminal which enhanced NPDC s performance as well as steady performance from NGPTC/NGMC while high crude oil inventory occasioned by unplanned operational shutdown of KRPC and WRPC led to a loss from the Refineries in October 217. Table 5.1.: Group Financial Performance by Entity SBU/CSU Revenue MONTHLY BUDGET (=N= MILLION) Expense Surplus/ (Deficit) Revenue SEPTEMBER, 217 Expense ACTUAL (=N= MILLION) Surplus/ (Deficit) Revenue OCTOBER, 217 Expense Surplus/ (Deficit) Revenue Expense 217 YTD (=N= MILLION) Surplus/ (Deficit) NPDC 71,46 24,255 47,151 87,667 76,953 1,714 87,375 8,143 7, ,65 242,55 471,515 51, ,678 81,956 IDSL 2,45 1, ,369 1,17 1,262 1, ,46 15,378 8,667 16,571 8,65 7,922 NETCO 1,25 1, ,743 1, ,73 2, ,498 11,363 1,135 14,68 9,689 4,919 NGPTC/NGMC/GPIC 24,852 15,61 9,242 25,315 17,35 8,28 24,733 16,37 8, ,52 156,13 92, ,91 168,861 57,23 Sub-Total 99,913 42,539 57, ,94 96,678 2, ,153 99,227 16, , , , ,94 66, ,26 KRPC 8,924 9,37 (384) (627) 3,152 (3,78) (854) 3,85 (3,939) 89,235 93,75 (3,839) 94, ,514 (24,32) PHRC 37,83 3,685 7,145 17,57 16,174 1,397 37,54 38,44 (9) 378,34 36,85 71, , ,32 28,65 WRPC 26,245 22,98 4,147 1,465 2,6 (1,136) 6,582 9,55 (2,923) 262,45 22,983 41,467 76,78 91,29 (14,951) Sub-Total 72,999 62,91 1,98 18,48 21,926 (3,519) 43,268 51,3 (7,762) 729,99 62,98 19,82 491,972 52,575 (1,63) RETAIL 26,52 25,115 1,387 13,237 13,593 (356) 14,812 14,84 (28) 265,21 251,147 13, ,64 168,637 3,4 PPMC/NPSC/ML 166, ,89 (2,512) 158, ,149 (9,638) 179, ,261 (1,522) 1,663,778 1,688,898 (25,12) 1,626,856 1,72,716 (93,86) Sub-Total 192,88 194,5 (1,125) 171, ,742 (9,995) 194, ,1 (1,55) 1,928,799 1,94,45 (11,246) 1,798,497 1,889,353 (9,856) Revenue Expense Surplus/ (Deficit) CHQ ,165 (15,689) ,83 (8,496) 6.9 6,886 (6,826) 4, ,648 (156,892) ,41 (17,766) VENTURES 1,467 2,839 (1,371) ,224 (1,213) ,246 (1,195) 14,673 28,388 (13,715) ,817 (11,64) Sub-Total 1,943 19,4 (17,61) 344 1,54 (9,79) 111 8,132 (8,21) 19,429 19,36 (17,67) ,218 (119,46) Grand Total 367, ,638 5,96 37,593 31,4 (2,87) 354,82 354,49 (47) 3,677,346 3,176,384 5,962 3,5,185 3,119,23 (68,838) Note: From January 217 Refineries figures in the above table are in line with the Newly adopted Refineries Business Model SBUs/CSUs retained the excess revenue generated but share Head Office Cost through Corporate Overhead Cost Allocation. BUDGET ACTUAL Chart 5.1.1: Group Operating Revenue: October 216 October NNPC Group Revenue: October October 217 (Billion Naira) NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES 26 NNPC Monthly Financial and Operations Report October 217

27 Chart 5.1.2: Group Operating Expenditure: October 216 October NNPC Group Expenses: October October 217 (Billion Naira) NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES Chart 5.1.3: Monthly Group Surplus/Deficit: October 216 October 217 (5) (1) (15) (2) (25) (3) (35) (4) Monthly NNPC Group Surplus/Deficit: October October 217 (Billion Naira) (.41) (3.55) (2.81) (5.62) (5.27) (5.19) (5.74) (11.87) (14.25) (14.12) (16.85) (18.72) (17.1) Suplus/ (Deficit) Chart 5.1.4: NNPC Group Surplus/Deficit for the period January October 217 NNPC Group Surplus/Deficit in YTD 217 (Million Naira) 25, 2, 15, 1, 81,956 57,23 28,65 7,922 4,919 3,4 11,64 14,951 24,32 93,86 5, 17,766 5, 1, 68, NNPC Monthly Financial and Operations Report October 217

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 lift 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 October 217

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 $ Million was recorded in October, 217. This performance is 8.75% lower than the previous month. Crude oil export sales contributed $ Million (or 71%) of the dollar transactions compared with $ Million contribution in the previous month. Also the export Gas sales amounted to $93.86Million in the month. The October 216 to October 217 Crude Oil and Gas transactions indicate that Crude Oil & Gas worth $3.6 Billion was exported. See Table & Chart overleaf for details. 29 NNPC Monthly Financial and Operations Report October 217

30 Table NNPC/FGN Export Crude Oil & Gas Dollar Accruals, Receipts & Payments NNPC/FGN Export Lifting Only Export Sales Proceed Value Due Export Sales Proceed Reciepts Allocation of Proceeds to Federation Payment Month Crude Oil Sales Proceed Gas Sales Proceed Total Oil & Gas Sales Proceed Crude Oil Proceed Receipts Gas Proceed Reciepts (NLNG,EGTL,NGLs,N-GAS) Other Receipts Total Sales Proceed Receipts JV Cash Call Funding Balance Remitance to FAAC USD USD USD USD USD USD USD USD USD Oct-16 21,41,359 84,339,597 15,74,956 18,91,49 78,137, ,548 97,29,416 97,29,416 Nov-16 96,311,189 69,873,68 166,184,257 96,311,162 66,86, ,398, ,398,217 Dec-16 1,367,748 95,35,13 195,42,878 97,867,748 77,159,275 14, ,41,75 175,41,75 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 Total 2,276,127,481 1,319,44,516 3,595,531,997 2,216,215,19 1,36,89,831 93,788,72 3,346,813,659 2,548,911, ,92,265 Note: Export Crude Oil Sales proceeds are received 3 days after bill of lading date. In October 217 Naira portion of N29,985,641,128 equivalent to a functional Dollar of $98,313, at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $155,758,25. 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 $277.5 Million was recorded in October 217 as receipt against $367.7 Million in September, 217. Contribution from Crude oil amounted to $ Million while Gas and miscellaneous receipt stood at $ 49.9 Million and $.76 Million respectively. Of the export receipts, $ Million was remitted to Federation Account while $ Million was remitted to fund the JV cost recovery for the month of October, 217 to guarantee current and future production. 3 NNPC Monthly Financial and Operations Report October 217

31 $/bbl Millions Barrels Total export crude Oil & Gas receipt for the period of October, 216 to October, 217 stood at $3.35 Billion. Out of which the sum of $2.51Billion was transferred to JV Cash Call as first line charge and the balance of $.8Billion 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 Cash Call Funding Balance Remitance to FAAC In October 217 Naira portion of N29,985,641,128 equivalent to a functional Dollar of $98,313, at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $155,758,25. Chart NNPC Federation Lifted Volumes vs. Crude Oil Prices NNPC/Federation Lifted Volumes and Crude Prices Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep NNPC Lifted Volumes Crude Price 6.4 Naira Payments to Federation Account The Domestic Crude Oil and Gas receipt during the month amounted to N94.52Billion, consisting of N88.35Billion from Domestic Crude Oil, the sum of N6.16Billion from Domestic Gas. Out of the Naira receipt, the sum of N29.99 Billion 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 October 217

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 Oct ,173,876,975 11,44,41,481 3,236,91,288 14,676,951,769 Nov ,382,76, ,628,215,639 2,433,87,39 121,61,32,678 Dec-16 74,973,25,846 53,95,493,642 5,11,493,96 58,25,987,62 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 TOTAL 1,867,522,984,268 1,58,648,24,38 59,291,769,889 39,877,678 1,64,33,851,65 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 October 217

33 Table 6.4.2: Allocation of Naira Proceeds from Sale of Domestic Crude Oil: Payment to FAAC Proceed Value Due Allocation of Domestic Sales Proceeds Tramsfers To JV Cash Call, FG & Federation Account Receipt/ Payment Month Domestic Crude Cost Domestic Crude Payments Under Recovery Crude Losses Product Losses Pipeline Repairs & Managment Cost Gas & Other Receipts Total Remittances JV Cash Call (Naira Only) Transfer to Debt Repayemt To Federation Account FG (N45bn) Total Payment To FAAC =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= Oct ,173,876,975 11,44,41, ,333,76 12,338,51,734 3,236,91, ,7,345,318 59,498,978,61 45,177,973,159 6,33,393,549 51,58,366,78 Nov ,382,76, ,628,215, ,263,975 45,315,2 11,785,911,358 2,433,87,39 127,391,696,227 75,298,978,61 45,762,324,68 6,33,393,549 52,92,717,617 Dec-16 74,973,25,846 6,797,613,789 7,72,12,147 5,11,493,96 79,94,621,446 25,866,371,877 4,41,735,872 6,33,393,549 46,372,129,422 Jan-17 18,622,99, ,17,97,437 37,263,846,591 1,117,572,295 11,223,583,353 1,184,769, ,755,843,83 49,172,34,67 83,29,526,231 6,33,393,549 89,359,919,781 Feb ,476,32, ,85,923,222 6,297,594,169 1,569,328,834 15,83,186,3 3,979,142, ,918,645,293 61,287,96,28 11,497,159,164 6,33,393, ,827,552,713 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, ,821,293,13 46,461,38,9 88,499,26,92 6,33,393,549 94,829,654,47 Apr ,392,933, ,864,134,236 8,26,727,836 2,388,28,668 1,245,73,21 8,571,81,55 2,23,212,377 15,666,157,163 46,536,29,14 95,558,317,473 95,558,317,473 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 84,27,682,118 56,971,25,97 19,512,832,171 19,512,832,171 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, ,754,932,74 9,577,641,249 6,385,94,166 6,385,94,166 Jul ,767,968,118 14,274,4,12 1,25,12, ,385,2 46,298,676 13,494,231,481 5,56,852, ,329,124,19 56,32,478,63 89,532,413,999 89,532,413,999 Aug ,833,326,77 115,,, 7,938,985,582 1,137,12,392 16,485,861 18,84,422,416 13,857,388,51 147,697,81,467 83,757,32,233 45,1,85,818 45,1,85,818 Sep ,956,666,418 86,357,978,999 7,521,59,52 17,76, ,97,386 4,545,139,142 5,53,49,56 96,433,167,71 49,727,218,563 42,16,89,996 42,16,89,996 Oct-17 16,577,722,516 88,354,855,533 6,848,622, ,945,671 14,74,815 1,824,223,972 6,164,54,985 15,343,134,489 29,985,641,128 64,533,269,39 64,533,269,39 TOTAL 1,867,522,984,268 1,51,551,331, ,7,227,845 19,164,122,47 5,824,459, ,238,526,361 59,682,647,566 1,721,33,453, ,443,176,86 829,79,82,427 37,982,361, ,773,163,724 On the receipt from net domestic crude oil and gas, NNPC transferred the sum of N29.99Billion into Federation Account and N64.53Billion to JV cash Call for the month under review. From October 216 to October 217, Federation, JV, and FG for debt repayment received the sum N Billion, N731.44Billion and N37.98 Billion 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 Cash Call (Naira Only) Transfer to Federation Account Debt Repayemt To FG (N45bn) Not e: In October 217 Naira portion of N29,985,641,128 equivalent to a functional Dollar of $98,313, at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $155,758, NNPC Monthly Financial and Operations Report October 217

34 7. Key Determinants for Change 7.1 Key events and activities during the period DSDP Crude Oil Allocation In October 217, NNPC allocated 63.25% 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 is aggressively exploring inland basins; Anambra, Bida, Benue, Chad, Dahomey, Gongola and Sokoto in keeping with the Presidential mandate to shift oil and gas frontier. NPDC scorecard indicates that the company has successfully drilled and completed five horizontal wells in OML 26 within nine months, leading to an incremental production of 7, bpd. The company had carried out turnaround of OML 4 taking production from bpd to 12, bpd. Intervention activities in OML 65 also led to peak production of approximately 1, bpd in June, 217. On Gas supply to power, the record indicates that the company is contributing an average of 7 million standard cubic feet per day making NPDC the largest supplier of gas to the domestic market. Recent project completed includes 15 mmscfd capacity Utorogu Non-Associated Gas II plant and Oredo to Pan-Ocean gas plant (capacity of 1 mmscfd) NNPC is exploring possible partnership with Unibio A/S Limited, Danish Company, in the production of animal feeds from Nigeria s abundant natural gas resources through conversion of methane gas into protein and has no negative impact for human consumption. The Corporation has also stepped up the resuscitation of some of its critical pipelines and depots such as 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. 34 NNPC Monthly Financial and Operations Report October 217

35 7.2 Key challenges The following are the key inhibiting factors that dragged the industry performance: i. BONNY TERMINAL As a result of leaks on the Nembe Creek Trunk Line (NCTL) a Force Majeure was declared in September 217 and remained in place until 17th October, 217. About 12,bopd was shut-in for sixteen (16) days in October 217. ii. QUA IBOE TERMINAL About 195,bopd remained shut-in for the entire month of October 217 due to slow recoveries from some wells and repairs on the 42- inch export line and fuel gas line. iii. BONGA TERMINAL A plant trip a result of gas detected caused a drop in production for a day on 2/1/17. The production shut-in was 22, bbls. Production also dropped for eight (8) days from 9-16/1/17due to shut-in of some wells as a result of request from NLNG for Akpo to cut off gas export due to operational issues. The production shut-in was 61,bopd. 83,bbls of production was also shut-in for a day due to intervention and preventive maintenance activities on 3/1/12. iv. FORCADOS TERMINAL The TFP was shut down for eight (8) days from 1-3/1/17 and 17-21/1/17 due to leaks in the Oteghele and Yeye axis with the loss of approximately 2,bopd of production 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 to grow reserves and production in line with government s aspiration Products theft and Pipeline Security Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position. A total of 97 vandalized points have been recorded between October 216 to October 217 (see chart 7.1). 35 NNPC Monthly Financial and Operations Report October 217

36 Chart PPMC Pipeline Breaks October 216 October PPMC Pipeline Breaks October October Mosimi Kaduna Port Harcourt Warri Gombe 7.3 Average National Truck PMS Distribution by State 36 NNPC Monthly Financial and Operations Report October 217