NNPC. Monthly Report. Financial and Operations Report

NNPC Monthly Report Financial and Operations Report January 218

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

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

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 248.78BCF 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

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 219. 5 NNPC Monthly Financial and Operations Report January 218

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

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 217 7 6 5 4 3 2 56.95 8.6 28.2 Total Monthly Crude Oil & Condensate Production (Million Barrels) 5.9 49.57 6.9 7.7 25.7 22.6 53.79 8.2 24.7 58.22 58.6 6.9 27.2 7.8 25.3 62.46 61.82 8.3 6.5 27.1 25.8 57.92 7.7 25.1 6.34 58.75 6.66 7.9 7.9 8.3 25.9 23.7 24.4 1 16.2 14.4 14.9 16.8 19.8 17.3 18.5 2.1 17. 18.9 19.4 19.6 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

Chart 2.1.2: Average Daily Crude Oil & Condensate Production & Percentage distribution 2.5 2. 1.5 1. Average Daily Crude Oil & Condensate Production (Million Barrels/Day) 1.84 1.82 1.6 1.79 1.88 1.95 2.1 1.99 1.93 1.95 1.96 1.96 PTD Percentage Distribution of Crude Oil Production by Commercial Arrangements 13.4% 5.1% 6.4% 3.8% JVs PSC AF.5. 44.3% 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 7,251 172,512 193,439 244,794 199,35 196,167 184,221 155,948 1,353,682 Oredo OML 111 4,472 6,84 155,872 218,412 29,384 35,182 42,92 4,58 67,671 78,54 Oziengbe OML 111 15,544 1,471 23,268 15,39 11,154 14,72 8,899 Okono_Okpoho OML 119 721,98 635,194 668,115 672,832 684,374 652,974 667,954 653,223 616,233 625,895 59,686 64,756 7,794,216 SUB-TOTAL 721,98 646,917 668,115 672,832 76,758 981,358 1,79,85 1,18,872 874,33 879,544 826,641 842,446 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 84,825 535,492 Opuama/Elcrest OML 4 118,412 57,456 22,425 121,72 191,9 21,75 29,14 2,418 158,896 22,923 233,951 1,734,741 Batan_Odidi/Neconde OML 42 243,237 22,53 157,54 31,325 226,631 593,536 64,27 857,44 744,885 688,681 759,122 717,24 5,86,98 Afiesere_Kokori/Shoreline OML 3 724 121,881 161,393 584,924 87,838 772,768 656,469 996,84 845,65 95,16 5,853,512 Utorogu_Ughelli/NDW OML 34 69,416 71,95 62,381 69,56 125,8 167,178 272,551 283,825 1,33,75 218,517 26,813 32,124 3,251,174 SUB-TOTAL 313,377 44,21 286,54 255,184 671,4 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 14,361 155,742 177,823 948,341 875,853 1,28,53 761,173 95,342 892,974 955,899 7,57,313 SUB-TOTAL 143,798 71,53 14,361 155,742 177,823 948,341 875,853 1,28,53 761,173 95,342 892,974 955,899 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 5,181 117,875 127,622 14,86 154,373 126,92 126,869 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

Chart 2.1.3 NPDC Monthly Crude Oil & Condensate Productions 5, 4, 3, NPDC Crude Monthly Production (Thousand Barrels) 4,631 4,343 3,956 761 3,935 3,86 3,536 1,29 876 95 893 948 4,59 956 2,1 2,25 2,996 2, 1,556 2,15 1,67 2,86 2,261 1,179 1,123 1,95 1,84 178 1, 144 72 671 313 14 44 156 287 255 722 647 668 673 77 981 1,8 1,19 874 88 827 842 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 2.1.4 NPDC Monthly Average Daily Crude Production by Field 18 16 14 12 1 8 6 4 2 NPDC Average Daily Crude Oil Production (Thousand Barrels/Day) 38 4 35 36 5 128 118 14 154 127 127 131 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 535 81 1,735 1,354 781 3,251 7,57 5,861 5,854 7,794 4, 8, 12, 2.2. National Gas Production A total of 248.78 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 218. 9 NNPC Monthly Financial and Operations Report January 218

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-17 159.62 55.79 15.85 231.26 Feb-17 138.62 49.4 15.11 23.14 Mar-17 16.3 51.64 15.24 226.91 Apr-17 174.78 52.75 14.8 242.32 May-17 172.22 54.3 16.18 242.7 Jun-17 152.47 53.77 2.91 227.15 Jul-17 164.32 56.68 24.66 245.66 Aug-17 163.63 53.25 22.15 239.3 Sep-17 153.36 5.92 18.64 222.92 Oct-17 178.64 54.92 19.85 253.41 Nov-17 164.29 5.48 22.21 236.97 Dec-17 163.8 51.5 19.23 234.8 Jan-18 174.86 54.25 19.67 248.78 Total 2,12.64 689.19 244.5 3,54.33 PERIOD JV PSC NPDC TOTAL mmscfd mmscfd mmscfd mmscfd Jan-17 5,149.7 1,799.65 511.3 7,46.2 Feb-17 4,95.89 1,764.41 539.68 7,254.98 Mar-17 5,162.16 1,665.88 491.54 7,319.58 Apr-17 5,826. 1,758. 493.19 8,77.19 May-17 5,555.59 1,751.63 521.89 7,829.11 Jun-17 5,82.24 1,792.34 696.91 7,571.5 Jul-17 5,3.78 1,828.5 795.55 7,924.83 Aug-17 5,278.49 1,717.83 714.47 7,71.79 Sep-17 5,112.9 1,697.49 621.48 7,431.6 Oct-17 5,762.58 1,771.44 64.39 8,174.41 Nov-17 5,476.22 1,682.49 74.3 7,899.1 Dec-17 5,284.3 1,646.65 62.41 7,551.9 Jan-18 5,64.6 1,749.86 634.54 8,25.1 Average 5,352.37 1,74.48 617.5 7,79.89 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 7,431 493 522 511 54 492 697 796 714 621 1,758 1,752 1,8 1,764 1,666 1,792 1,829 1,718 1,697 8,174 7,899 7,551 8,25 64 74 62 635 1,771 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 3 25 2 231 Total Monthly Natural Gas Production (BCF) 227 242 243 246 253 239 237 227 234 249 223 23 Percentage Distribution of Upstream Gas Production- January '17 - January '18 Average 8.% JV 15 22.6% 1 PSC 5 69.4% NPDC 1 NNPC Monthly Financial and Operations Report January 218

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 14.46 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 3,532,322 582, 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 3,21,435 141,2 1,428,49 1,927,538 12,355,947 15,518,582 33,735,943 558, 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 39,84,375 791, 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 7,746,234 262,7 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 4,32,468 668,519 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 15,924,597 156,17,75 223,36,42 447,59,84 15,711,987 686,662,833 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 14.46 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 686.66 million barrels of crude oil and condensate was lifted by all parties. The tables 2.3.1 above and charts 2.3.1 overleaf provide the details of crude oil and condensate lifting and their corresponding accrual values for the period January to December 217. 11 NNPC Monthly Financial and Operations Report January 218

Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements 8 7 6 5 4 3 2 1 Monthly Lifting Entitlement (Million Barrels) 61.7 63.78 64.69 6.5 59.96 6.92 53.36 56.7 55.58 49.11 49.81 51.19 39.8 4.4 34.9 41.1 45.7 36.4 3.9 33.7 31. 34.3 4.6 38.6 4.8 3.9 3.5 6. 3. 4.5 7.7 2.4 4.3 5.8 6.7 4.5 11.8 1.3 12.4 12.9 16.1 17.1 13.6 14.3 1.5 11.6 11.2 14.5 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-17 196,919,32 32,21,314 157,651, 498,3,69 655,654,69 884,594,73 2,15,93,749 55,211,751 2,955,71,24 Feb-17 328,632,888 92,396,38 255,498,86 311,957,345 567,456,151 988,485,419 1,77,769,296 8,769,164 2,75,23,879 Mar-17 154,659,432 6,735,341 71,814,31 566,554,156 638,368,465 799,763,238 1,696,99,267 27,917,668 2,523,78,173 Apr-17 234,97,527 69,623,49 133,81,412 539,63,629 673,414,42 977,134,617 1,584,928,361 66,976,14 2,629,39,82 May-17 243,548,132 6,75,58 175,461,727 639,112,18 814,573,835 1,64,827,547 2,9,572,8 4,549,37 3,114,948,862 Jun-17 176,786,949 1,23,28 351,93,874 443,22,67 795,15,941 973,96,17 1,614,49,268 1,23,28 2,588,789,717 Jul-17 373,531,65 12,5,149 38,964,95 349,549,762 658,514,667 1,44,51,421 1,966,21,91 9,364,828 3,1,438,149 Aug-17 127,587,422 67,677,169 239,479,415 52,248,529 741,727,944 936,992,535 2,138,818,432 7,45,72 3,146,261,687 Sep-17 244,498,741 37,598,234 227,828,174 369,823,11 597,651,185 879,748,16 2,597,78,97 27,616,29 3,684,443,276 Oct-17 336,994,35 1,575,925 147,799,226 53,416,321 678,215,547 1,115,785,776 1,981,673,948 131,625,38 3,229,84,763 Nov-17 426,74,785 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-17 299,63,14 98,248,681 38,68,53 637,17,711 945,778,763 1,343,63,458 2,535,181,154 13,319,826 4,9,131,438 TOTAL 3,143,564,119 546,168,12 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 2.3.2 Government Crude Oil Lifting and utilization on Account of NNPC 2 18 16 14 12 1 8 6 4 2 Government Crude Oil Lifting & Utilisation (Million Barrels) 17.11 16.9 14.31 14.46 3.5 11.84 12.36 12.92 13.56 7.6 11.56 11.19 1.32 1.4 2.6 4.6 1.46 4.7 2.8 6.3 2.6 4.6 4. 5.4 12.6 1.9 1.3 9. 9.5 9.7 9. 9.8 7.2 5.7 6.5 5.8 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

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 2.4.1 Domestic Crude Purchased By NNPC Period Volume Ave. Price Sales Value Sales Value Average Lifting Barrels $/bbl USD NGN Barrels Per Day Jan-17 8,993,48. 55.38 498,3,69.49 151,392,933,124.66 29,98.32 Feb-17 5,693,92. 54.79 311,957,345.33 94,913,22,316.35 23,353.64 Mar-17 1,927,538. 51.85 566,554,155.71 172,515,74,414.3 352,51.23 Apr-17 1,297,662. 52.4 539,63,629.1 164,767,968,118.2 343,255.4 May-17 12,67,544. 5.69 639,112,17.85 194,833,326,77.46 46,694.97 Jun-17 9,53,59. 46.64 443,22,67.1 134,956,666,418.18 316,786.33 Jul-17 7,26,34. 48.51 349,549,762.27 16,577,722,515.82 232,461.42 Aug-17 9,76,674. 51.74 52,248,529.1 153,1,14,39.62 313,118.52 Sep-17 6,452,172. 57.32 369,823,1.89 112,74,544,868.9 215,72.4 Oct-17 9,2,59. 58.92 53,416,321.7 161,645,129,794.32 29,43.52 Nov-17 5,766,199. 63.96 368,796,215.94 112,49,86,619.12 192,26.63 Dec-17 9,767,455. 65.23 637,17,71.68 194,337,66,757.1 315,79.19 Total/Ave 15,924,597. 54.34 5,756,436,924.34 1,754,99,221,415.4 29,24.38 Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels) 14 12.61 12 1 8.99 1.93 1.3 9.5 9.71 9. 9.77 8 6 4 2 7.21 9.5 6.45 7.6 6.4 5.69 5.77 5.7 5.7 7.6 7.6 8.5 2.8 5.7 5.7 3.8 2.4 3. 2.4 3.3 2.8 3.1 1.9 2. 2.2.9.9 1.5 1.2.8.9 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

Table 2.4.2 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-17... 3,294.98 183.2 55,692.54 5,698.7 314.8 95,7.4 8,993.5 498. 151,392.93 Feb-17... 2,845.14 156.17 47,515.45 2,848.76 155.78 47,397.58 5,693.9 311.96 94,913.2 Mar-17 949.62 47.99 14,611.45 2,4.3 125.84 38,319.74 7,577.63 392.72 119,584.55 1,927.54 566.55 172,515.74 Apr-17 948.64 48.48 14,83.8 2,978.37 152.38 46,528.78 6,37.66 338.75 13,436.12 1,297.66 539.6 164,767.97 May-17... 3,86.89 156.23 47,625.77 9,52.65 482.89 147,27.56 12,67.54 639.11 194,833.33 Jun-17... 1,94.83 89.51 27,246.94 7,598.77 353.69 17,79.73 9,53.59 443.2 134,956.67 Jul-17... 1,462.52 72.2 21,957.42 5,743.78 277.53 84,62.3 7,26.3 349.55 16,577.72 Aug-17... 1,22. 62.62 19,75.75 8,486.67 439.63 133,934.26 9,76.67 52.25 153,1.1 Sep-17... 757.57 42.86 13,65.56 5,694.6 326.96 99,674.98 6,452.17 369.82 112,74.54 Oct-17 948.93 55.42 16,889.61 2,359.7 137.55 41,92.57 5,693.88 337.44 12,834.95 9,2.51 53.42 161,645.13 Nov-17... 1,967.71 126.69 38,613.78 3,798.49 242.11 73,795.31 5,766.2 368.8 112,49.9 Dec-17... 2,174. 143.49 43,764.1 7,593.45 493.68 15,573.6 9,767.46 637.17 194,337.7 PTD 2,847.18 151.89 46,34.13 26,452.1 1,448.55 441,326.3 76,625.4 4,156. 1,266,468.79 15,924.6 5,756.44 1,754,99.22 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 144.19BCF of gas was commercialized comprising of 34.1 BCF and 11.18BCF for the domestic and export market respectively as shown in Table 2.5.1. 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 2.5.2. 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. 78.15 mmscfd for the period January 217 to January 218. 14 NNPC Monthly Financial and Operations Report January 218

Table 2.5.1 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-17 12. 9.96 21.96.55.97 3.91 98.8 13.52 62.76 11.6 24.77 99.13 224.61 Feb-17 16.29 1.26 26.55.41 1.26 2.87 81.8 85.62 55.97 1.93 2.42 87.31 199.48 Mar-17 21.36 13.2 34.38.58 4.4 3.4 93.41 11.7 57.93 11.39 21.47 9.78 226.24 Apr-17 2.15 12.87 33.2.72 5.72 3.22 98.84 18.49 68.36 11.89 2.5 1.75 242.26 May-17 21.88 12.49 34.37.74 5.36 2.73 11.3 11.13 62.99 11.66 21.75 96.39 24.9 Jun-17 21.89 12.46 34.34 1.2 5.42 2.64 89.11 98.37 62.73 11.37 19.9 94.1 226.72 Jul-17 21.35 13.23 34.58 1.38 5.88 2.97 99.11 19.34 67.25 11.42 22.38 11.5 244.97 Aug-17 19.47 12.25 31.72 1.8 8.35 3.29 92.2 15.64 6.53 11.24 28.51 1.28 237.65 Sep-17 18.74 12.4 3.77 1.89 4.65 2.65 85.63 94.81 59.33 1.82 25.53 95.68 221.26 Oct-17 22.21 13.2 35.41 1.59 8.9 2.72 97.22 19.62 71.56 12.1 24.24 17.81 252.83 Nov-17 22.29 13.3 35.33 1.47 6.91 2.21 9.73 11.32 63.2 1.72 26.24 1.16 236.8 Dec-17 25.66 13.87 39.53 1.3 4.82 2.35 9.99 99.46 57.13 1.4 31.88 99.41 238.4 Jan-18 22.66 11.35 34.1 1.21 4.4 2.4 12.52 11.18 66.48 1.92 31.68 19.7 253.26 Total 265.94 16.2 425.96 14.83 65.87 36.64 1,22.24 1,337.58 816.21 146.36 319.26 1,281.83 3,45.37 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 425.96BCF and 1,337.58BCF were commercialized for the domestic and export market respectively. Gas Injected, Fuel gas and Gas flared stood at 1281.83BCF. The table 2.5.1 and chart 2.5.1 provides more details of the gas utilization and commercialization for the period January 217 to January 218. Chart 2.5.1 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 2.5.2 overleaf, out of the 1,96.99 mmscfd of gas supplied to the domestic market in January 218, about 731.1 mmscfd of gas representing 66.64% was supplied to Gas-Fired power plants while the balance of 365.98mmscfd 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 672.92 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

Table 2.5.2 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-17 386.96 321.28 78.24 17.77 31.32 126.21 3,163.98 3,339.29 2,24.46 374.24 799.16 3,197.87 7,245.4 Feb-17 581.7 366.39 948.9 14.54 44.96 12.68 2,895.75 3,57.93 1,998.77 39.35 729.25 3,118.37 7,124.4 Mar-17 689.19 419.99 1,19.18 18.7 13.42 97.96 3,13.38 3,26.45 1,868.68 367.29 692.49 2,928.46 7,298.9 Apr-17 671.76 429.8 1,1.84 23.89 19.73 17.25 3,294.61 3,616.48 2,278.51 396.26 683.44 3,358.2 8,75.53 May-17 729.44 416.25 1,145.69 23.98 172.84 88.1 3,267.9 3,552.72 2,31.87 376.12 71.54 3,19.53 7,87.94 Jun-17 729.55 415.28 1,144.83 39.87 18.53 88.6 2,97.43 3,278.88 2,91.11 379.12 663.31 3,133.54 7,557.25 Jul-17 688.7 426.71 1,115.41 44.39 189.52 95.76 3,197.1 3,526.68 2,169.31 368.23 721.96 3,259.5 7,91.59 Aug-17 628.3 395.32 1,23.35 57.97 269.39 16.24 2,974.34 3,47.94 1,952.58 362.55 919.73 3,234.86 7,666.15 Sep-17 624.58 41.17 1,25.75 63.3 154.87 88.33 2,854.19 3,16.41 1,977.78 36.57 85.94 3,189.28 7,375.44 Oct-17 716.28 425.87 1,142.15 51.13 261.1 87.7 3,136.19 3,536.11 2,38.46 387.42 781.77 3,477.64 8,155.9 Nov-17 743.6 434.43 1,177.49 49.7 23.24 73.66 3,24.46 3,377.42 2,16.6 357.18 874.72 3,338.5 7,893.41 Dec-17 827.76 447.34 1,275.9 43.36 155.42 75.94 2,934.99 3,29.7 1,842.91 335.61 71.81 2,88.33 7,365.12 Jan-18 731.1 365.98 1,96.99 39.13 142.2 65.68 3,37.21 3,554.4 2,144.44 352.2 1,21.83 3,518.47 8,169.51 Average 672.92 45.1 1,77.93 37.45 165.64 92.57 3,79.57 3,375.24 2,61.19 369.78 78.15 3,211.12 7,664.29 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 2.5.2 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 3,554 78 948 1,19 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

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 679,5 447,15 414,294 478,56 442,939 57,387 519,983 496,257 51,499 588,125 552,62 636,97 414,15 6,678,777 Crude Received (B) MT 495,47 567,247 495,635 615,389 687,2 331,634 228,24 21,921 222,126 37,644 18,697 294,6 244,68 4,871,358 Crude Transferred to KRPC (C) MT 45,55 1,3 181,124 19,955 194,55 85,473 3,16 9,654 19,764 9,995 519-866,64 Total Crude Available (D=A+B-C) MT 1,129,852 914,367 728,85 92,94 935,94 753,548 717,991 688,524 73,861 895,769 732,759 92,981 658,194 1,683,495 Closing Stock (E=D-F) MT 438,73 42,594 475,625 455,22 51,485 521,712 493,47 59,736 588,42 564,64 624,616 413,249 453,317 6,46,157 Crude Processed (F) MT 691,122 493,773 253,18 447,738 434,419 231,836 224,584 178,788 115,441 331,75 15,735 57,732 24,877 4,22,93 (i) Finished Products MT 394,573 331,236 282,164 37,946 35,76 222,585 16,642 95,548 137,984 228,222 55,187 3,264 154,676 3,21,733 (ii) Intermediate Products MT 259,729 114,983 59,791 95,42 22,79 21,731 39,492 53,496 47,837 71,919 39,562 151,554 29,661 748,869 (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 445 445 445 445 445 445 445 445 445 445 445 445 445 445 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

Table 3.1.2 Refineries Monthly Operations Operational Parameters Units Total WRPC Opening Stock (A) MT 196,171 152,11 2,825 23,443 145,75 163,279 168,739 181,69 61,259 181,62 161,161 25,832 197,285 2,219,119 Crude Received (B) MT 217,19 177,463 18,861 196,233 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 19,955 194,55 85,473 3,16 9,654 19,764 9,995 519 866,64 Total Crude Available (D=A+B-C) MT 368,135 229,543 2,562 28,721 157,424 17,16 189,277 241,982 181,915 226,368 31,263 195,837 196,766 2,867,899 Closing Stock (E=D-F) MT 143,177 27,125 2,562 157,968 157,424 17,16 179,386 63,194 181,915 173,163 193,12 195,837 196,766 2,219,743 Crude Processed (F) MT 224,958 22,418 5,753 9,891 178,788 53,25 15,735 645,748 (i) Finished Products MT 79,91 15,545 23,857 4,439 3,898 95 24,11 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 1,954 949 17,563 1,721 37,525 17,451 41,425 25,697 9,395 183,562 (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 876 869 2,754 1,262 382 2,958 4,145 3,47 3,77 2,423 Plant Capacity kpd 125 125 125 125 125 125 125 125 125 125 125 125 125 125 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 243,134 162,848 145,573 171,473 184,855 176,415 123,412 81,236 24,445 17,71 155,16 195,592 117,324 2,132,123 Crude Received (B) MT 261,61 39,371 14,81 269,53 296,5 178,833 172,517 129,588 81,76 262,896 4,595 291,857 243,416 2,678,77 Total Crude Available (C=A+B) MT 54,744 472,219 286,383 44,976 48,86 355,248 295,929 21,824 286,151 433,66 195,71 487,449 36,74 4,81,83 Closing Stock (D=C-E) MT 162,848 145,573 171,473 184,855 176,415 123,412 81,236 21,824 17,71 155,16 195,71 117,324 177,718 2,73,195 Crude Processed (E) MT 341,896 326,646 114,91 256,121 34,445 231,836 214,693 115,441 278,5 37,125 183,22 2,737,635 (i) Finished Products MT 251,413 225,22 143,565 186,759 252,273 197,77 135,762 22,314 19,53 2,914 229,579 138,773 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 63,415 116,439 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 1,181 154,722 (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 21 21 21 21 21 21 21 21 21 21 21 21 21 21 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 24,195 132,192 67,896 13,59 112,379 167,693 227,832 233,331 235,795 235,795 235,795 235,546 99,496 2,327,535 Crude Received (B) MT 16,778 8,413 173,964 149,653 185,241 6,51 4,953 2,387 2,149 1,192 677,231 Total Crude Available (C=A+B) MT 256,973 212,65 241,86 253,243 297,62 228,194 232,785 235,718 235,795 235,795 235,795 237,695 1,688 3,4,766 Closing Stock (D=C-E) MT 132,75 67,896 13,59 112,379 167,646 228,194 232,785 235,718 235,795 235,795 235,795 1,88 78,833 2,167,219 Crude Processed (E) MT 124,268 144,79 138,27 14,864 129,974 137,67 21,855 837,547 (i) Finished Products MT 63,25 9,489 114,742 8,748 12,331 25,765 869 4,517 46,342 7,866 536,919 (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 5,762 163,863 (iv) Losses MT 1,73 1,959 1,887 1,918 1,893 46 231 1,624 19 11,892 Plant Capacity kpd 11 11 11 11 11 11 11 11 11 11 11 11 11 11 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

.%.%.% 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 217 - 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 31,341.24 2,735.66 2,735.66 7,587.88 5.59 1.36 953.81 22,66.45 1,464.57 6,582.45 13,247.21 36.16 9.21 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 44.27 (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 17,163.83 21,49.67 25,95.61 17,281.4 16,176.48 (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) 844.26 (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 5,68.84 47,186.62 21,751.83 35,88.24 45,817.84 37,746.23 24,535.4 3,117.52 17,57.32 37,539.7 1.95 5,714.89 27,69.34 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 5,115.1 2,431.47 4,492.91 3,64.95 6,953.7 8,539.37 (2,634.61) 191.55 1,396.81 (9.35) (3,32.19) (4,947.8) (6,729.48) Consolidated Revenue 99,113.91 7,971.95 5,438.9 6,677.52 61,999.91 37,168.24 24,825.33 25,11.71 18,47.58 43,267.68 13,84.12 66,228.8 26,175.66 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 3,356.14 (522.82) 3,399.7 1,577.79 2,678.88 3,343.19 (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

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-17 642,156,762.12-642,156,762.12 Feb-17 1,21,291,311.22-1,21,291,311.22 Mar-17 1,491,29,498.71-1,491,29,498.71 Apr-17 1,29,442,364.94-1,29,442,364.94 May-17 1,6,163,212.55-1,6,163,212.55 Jun-17 859,84,869.71-859,84,869.71 Jul-17 1,173,27,253.15-1,173,27,253.15 Aug-17 952,981,957.9 3,442,955.31 983,424,912.4 Sep-17 886,458,452.46-886,458,452.46 Oct-17 1,478,736,141.62 33,287,35.74 1,512,23,447.36 Nov-17 781,99,646.84-781,99,646.84 Dec-17 1,14,66,542. - 1,14,66,542. Jan-18 1,463,656,364.62 33,794,49.58 1,497,45,855.2 TOTAL 14,43,373,377.3 97,524,751.63 14,527,898,128.66 * 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 1,1 9 7 5 3 1 Petroleum Products from Offshore Processing Arrangement (Million Litres) 1,491 1,512 1,497 1,29 1,21 1,173 1,14 1,6 983 86 886 781 642 1,491 1,479 1,464 1,21 1,29 1,173 1,6 1,14 86 953 886 781 642 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 111.88 million litres compared to 232.56million litres in December 217 as shown in Table 4.2.1. 2 NNPC Monthly Financial and Operations Report January 218

Table 4.2.1: Monthly Refined White Petroleum Products from Local Refineries Period PMS DPK Total (PMS+DPK) Litres Litres Litres Jan-17 235,555,227 92,111,656 327,666,883 Feb-17 185,728,62 77,83,46 263,559,8 Mar-17 142,363,242 39,814,924 182,178,166 Apr-17 17,32,248 62,46,778 232,79,26 May-17 156,69,176 65,949,68 222,18,856 Jun-17 14,71,716 45,553,519 186,264,235 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-17 142,376,158 61,933,95 24,31,63 Nov-17 24,454,672 19,977,39 44,432,62 Dec-17 157,74,337 75,482,224 232,556,561 Jan-18 77,82,28 34,79,28 111,881,488 Total 1,586,283,22 667,381,918 2,253,665,12 Table 4.2.2 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-17 877,711,989.12 92,111,656. 969,823,645.12 28,313,289.97 2,971,343.74 31,284,633.71 Feb-17 1,396,19,931.22 77,83,46. 1,473,85,391.22 49,857,854.69 2,779,659.29 52,637,513.97 Mar-17 1,633,572,74.71 39,814,924. 1,673,387,664.71 52,695,894.86 1,284,352.39 53,98,247.25 Apr-17 1,46,744,612.94 62,46,778. 1,523,151,39.94 48,691,487.1 2,8,225.93 5,771,713.3 May-17 1,216,232,388.55 65,949,68. 1,282,182,68.55 39,233,32.86 2,127,49.3 41,36,711.89 Jun-17 1,,551,585.71 45,553,519. 1,46,15,14.71 33,351,719.52 1,518,45.63 34,87,17.16 Jul-17 1,221,24,399.15 32,213,822. 1,253,454,221.15 39,394,851.59 1,39,155.55 4,434,7.13 Aug-17 998,984,28.9 62,879,531.31 1,61,863,739.4 32,225,297.4 2,28,371.98 34,253,669.1 Sep-17 946,332,653.46 27,591,74. 973,924,357.46 31,544,421.78 919,723.47 32,464,145.25 Oct-17 1,621,112,299.62 95,221,21.74 1,716,333,51.36 52,293,945.15 3,71,651.96 55,365,597.11 Nov-17 85,554,318.84 19,977,39. 825,531,78.84 26,851,81.63 665,913. 27,517,723.63 Dec-17 1,297,14,879. 75,482,224. 1,372,623,13. 41,843,254.16 2,434,91.45 44,278,164.61 Jan-18 1,541,458,572.62 67,873,77.58 1,69,332,343.2 49,724,47.8 2,189,476.47 51,913,946.55 Total 16,16,656,579.3 764,96,669.63 16,781,563,248.66 526,21,599.42 25,11,643.89 551,132,243.31 Chart 4.2.1 Total White Petroleum Product Supply from NNPC (DSDP + Refineries) 1,9 1,7 1,5 1,3 1,1 9 7 5 3 1 Total Petroleum Products Supply From NNPC Via OPA, DSDP + Refineries (Million Litres) 1,673 1,716 1,474 4 1,523 95 1,69 62 1,373 68 78 1,282 1,253 75 66 1,46 32 1,62 97 974 46 63 92 28 826 1,634 1,621 1,396 1,461 2 1,541 1,216 1,221 1,297 1,1 999 878 946 86 PMS DPK 21 NNPC Monthly Financial and Operations Report January 218

Chart 4.2.2 Average Daily Petroleum Product Supply from NNPC 6. 5. 4. 3. 2. 1. 31.28 3. 28.3 Daily Average Petroleum Products Supply From NNPC Via OPA, DSDP & Refineries (Million Litres) 52.64 53.98 1.3 2.8 49.9 52.7 5.77 2.1 48.7 41.36 2.1 39.2 34.87 1.5 33.4 4.43 1. 39.4 34.25 32.46 2..9 32.2 31.5 55.37 3.1 52.3 27.52.7 26.9 44.28 2.4 41.8 51.91 2.2 49.7 - 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 1,647.69 million litres in the month of December 217. This comprised of 995.89 million litres of PMS, 62.56 million litres of Kerosene and 76.83 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 14.31 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 115.64 million litres comprising of 32.51 million litres of LPFO and other special products of 83.13 million litres. Table 4.3.1 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-17 585,427,348 14,36,894 62,561,495 752,349,737 14,652,788 4,49,5 18,72,288 Feb-17 1,56,893,611 251,137,771 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 96,159,522 129,485,228 Jul-17 1,3,8,655 77,239,65 41,668,59 1,121,916,364 9,766,117 9,766,117 Aug-17 814,24,549 76,733,33 59,916,387 95,674,239 1,131,114 958,1 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 1,119,79,227 137,344,135 95,724,568 1,352,858,93 63,819,329 5,667,619 114,486,948 Nov-17 876,965,84 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 5,759,241 117,836,619 Jan-18 995,894,911 76,829,235 62,564,825 1,135,288,971 32,57,595 83,133,789 115,641,384 Total 14,39,44,474 1,374,428,296 79,953,564 16,393,822,334 337,471,53 394,561,78 732,32,833 For more details on downstream petroleum products sales please click here. 22 NNPC Monthly Financial and Operations Report January 218

Chart 4.3.1 Monthly White Product sales by PPMC 2, 1,5 1, 5 752.3 14 63 585 Total Montly PPMC Product Distribution Sales Volume (Million Litres) 1,692.5 1,647.7 1,663.4 1,387.4 17 5 53 79 123 1,282.6 1,352.9 5 1,24.3 1,26. 251 1,121.9 36 86 137 1,135.3 79 5 83 4 82 96 42 77 95.7 997. 77 63 77 6 3 9 1,536 1,531 1,474 1,57 1,72 1,84 1,161 1,3 1,12 814 877 996 PMS DPK AGO Table 4.3.2 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 24,269,346 472,671 13,629 63,3 Feb-17 37,746,2 8,969,26 2,833,364 49,548,77 421,16 56,986 478,1 Mar-17 49,536,162 3,454,194 1,66,2 54,596,359 913,972 135,264 1,49,236 Apr-17 51,4,17 2,633,196 1,771,761 55,445,64 249,776 29,638 459,414 May-17 34,572,975 2,671,891 1,63,426 38,848,291 894,31 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 3,666,911 326,81 3,96 357,717 Sep-17 38,69,976 2,876,745 1,185,96 42,753,626 725,883 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 41,398,541 852,2 996,368 1,848,568 For more details on average daily PPMC downstream petroleum products sales please click here. Chart 4.3.2 Average Daily White Products Distribution by PPMC 6 5 4 3 2 1 24.27 3 2 19 Average Daily PPMC Product Distribution Sales Volume (Million Litres) 54.6 55.45 49.55 3 3 2 2 9 4.2 38.85 36.19 3 3 3 2 1 2 1 5 51 38 35 36 32 42.75 43.64 3 4 1 3 33.23 3.67 3 2 1 39 36 26 29 53.15 4 2 48 36.62 2 32 PMS DPK AGO 23 NNPC Monthly Financial and Operations Report January 218

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 26.43 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 1,717.88 billion. Table and chart below provide details accordingly. Table 4.3.3 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 1,68,188,245 322,664,16 1,39,852,45 Feb-17 126,497,446,724 42,61,792,187 1,71,114,75 179,89,353,616 859,377,23 127,137,48 986,514,611 Mar-17 181,64,612,96 18,155,253,526 6,658,216,119 26,418,82,552 2,65,484,885 628,976,354 2,694,461,239 Apr-17 179,792,456,262 12,26,421,32 7,112,875,22 199,111,752,496 648,64,333 943,37,753 1,591,975,86 May-17 126,611,96,58 12,459,772,361 6,71,338,8 145,782,7,949 2,392,493,735 976,9,865 3,369,394,599 Jun-17 126,84,493,969 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-17 116,953,485,44 9,524,3,7 5,563,518,211 132,41,33,72 79,469,51 79,469,51 Aug-17 93,69,51,167 9,666,286,234 8,88,712,245 111,364,58,645 82,12,367 9,779,975 91,792,342 Sep-17 134,985,226,142 11,613,643,947 4,821,867,657 151,42,737,747 1,754,71,62 5,327,542,745 7,82,244,347 Oct-17 135,366,813,41 19,854,34,35 13,342,911,326 168,563,758,717 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-18 138,559,3,137 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 4.3.3 Monthly Sales Revenue from Petroleum Product Distribution Sales Revenue From PPMC Product Distribution (Billion Naira) 25 2 15 1 5 94.72 17 8 69 179.81 43 11 126 26.42 199.11 18 7 12 7 182 18 145.78 142.65 132.4 12 7 11 5 1 6 127 126 117 111.36 1 8 94 168.56 151.42 2 12 5 13 135 135 125.73 13 4 18 26.43 19 7 181 16.2 12 9 139 PMS DPK AGO 24 NNPC Monthly Financial and Operations Report January 218

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 4.4.1 and chart 4.4.1 below provide more details. Table 4.4.1 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-17 387 2,47 MW 68.2% Feb-17 582 2,761 MW 74.3% Mar-17 689 3,56 MW 75.1% Apr-17 672 2,787 MW 76.9% May-17 729 3,95 MW 82.1% Jun-17 73 2,969 MW 83.8% Jul-17 689 2,655 MW 77.% Aug-17 628 2,37 MW 71.% Sep-17 625 2,465 MW 7.1% Oct-17 716 2,885 MW 74.4% Nov-17 743 3,115 MW 76.3% Dec-17 828 3,342 MW 81.4% Jan-18 731 3,76 MW 76.7% Average 673 2,812 MW 76.% Chart 4.4.1 Domestic Gas Supply to the Power Sector & Generation 1, 8 6 4 2 2,47 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 582 689 672 729 73 689 2,655 MW 2,465 MW 2,37 MW 628 625 3,342 MW 3,115 MW 3,76 MW 2,885 MW 716 743 828 731 4, 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 323.19Billion respectively. These represent 11.63% and 87.89% respectively of monthly budget. Similarly, operating expenditure for the same periods were 413.64Billion and 324.76Billion 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

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 1,538 867 832 831 1 665 745 (8) 2,45 1,538 867 665 745 (8) NETCO 1,25 1,136 114 1,759 1,527 232 651 1,122 (472) 1,25 1,136 114 651 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 4,147 36 1,781 (1,745) 9 2,687 (2,678) 26,245 22,98 4,147 9 2,687 (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 166,378 168,89 (2,512) 215,265 226,325 (11,6) 17,978 173,698 (2,721) 166,378 168,89 (2,512) 17,978 173,698 (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 476 16,165 (15,689) 243.44 14,115 (13,871) 681.75 21,325 (2,643) 476 16,165 (15,689) 682 21,325 (2,643) VENTURES 1,467 2,839 (1,371) 68.88 2,393 (2,325) 7.55 1,33 (1,25) 1,467 2,839 (1,371) 8 1,33 (1,25) Sub-Total 1,943 19,4 (17,61) 312 16,58 (16,196) 689 22,358 (21,669) 1,943 19,4 (17,61) 689 22,358 (21,669) Grand Total 367,735 317,638 5,96 46,83 413,643 (6,813) 323,193 324,757 (1,564) 367,735 317,638 5,96 323,193 324,757 (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 218 5 45 4 35 3 25 2 15 1 5 NNPC Group Revenue: January '17 - January '18 (Billion Naira) 46.83 354.57 354.8 318.29 322.19 323.19 37.87 37.59 295.75 269.3 255.43 265.1 27.8 215 18 215 183 155 28 159 171 12 169 137 12 13 43 66 13 13 15 16 16 99 5 62 25 18 13 26 25 13 27 25 25 26 71 37 25 25 26 61 18 14 27 27 2 23 22 18 22 14 22 41 48 49 64 78 88 87 85 82 2 18 19 71 21 1 NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES 26 NNPC Monthly Financial and Operations Report January 218

Chart 5.1.2: Group Operating Expenditure: January 217 January 218 5 45 4 35 3 25 2 15 1 5 NNPC Group Expenses: January '17 - January '18 (Billion Naira) 36.19 354.49 332.41 327.47 14 311.42 3.95 31.4 8 269.68 17 1 281.18 1 27.84 14 1 9 12 16 181 191 242 119 27 163 168 173 144 133 413.64 17 324.76 277.59 22 12 226 127 174 51 96 59 17 14 15 16 16 71 34 33 3 22 24 77 4 47 59 16 17 16 16 14 13 13 16 21 2 16 24 11 13 15 16 44 48 56 58 77 8 79 2 17 22 25 19 17 16 15 15 58 42 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 1,151 8 472 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

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

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 6.3.1 & Chart 6.3.1 overleaf for details. 29 NNPC Monthly Financial and Operations Report January 218

Table 6.3.1 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 7,39,669 171,117,193 171,117,193 Feb-17 157,651, 15,46,235 263,111,235 157,65,932 1,536,651 1,471 168,189,53 168,189,53 Mar-17 255,498,86 16,45,563 361,949,369 252,998,853 151,526,572 24,262 44,549,687 267,114,122 137,435,566 Apr-17 71,814,31 86,21,914 158,25,224 71,814,31 7,294,124 12,52 142,12,936 142,12,936 May-17 133,81,412 138,929,719 272,74,132 123,237,787 13,831,444 2,754,628 247,823,859 188,269,25 59,554,69 Jun-17 217,13,326 96,98,533 314,11,859 175,461,727 78,831,78 6,711,164 261,4,671 131,61,643 129,43,28 Jul-17 351,93,874 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 38,964,95 124,421,572 433,386,477 31,342,5 116,561,955 15,569,893 442,473,852 287,68,4 154,865,848 Sep-17 239,479,415 113,69,185 352,548,6 239,479,415 1,275,556 27,316,451 367,71,422 238,596,424 128,474,998 Oct-17 227,828,174 93,861,753 321,689,927 227,657,1 49,9,87 756,82 277,54,7 155,758,25 121,745,83 Nov-17 147,799,226 125,129,334 272,928,559 147,387,149 5,171,85 3,55,583 21,18,817 144,549,376 56,559,442 Dec-17 342,184,845 15,437,356 447,622,22 342,158,481 94,847,246 39,24,874 476,246,61 388,464,81 87,782,52 Jan-18 38,68,53 13,991,54 439,599,17 35,764,13 113,139,139 15,216,178 434,119,42 327,436,285 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 N32,92,865,134.86 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 $ 327,436,284.75. Chart 6.3.1 Monthly dollar receipts from NNPC/Federation Oil & Gas Exports 5 4 3 2 1 - Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports (Million Dollars) 476.25 442.47 43.23 434.12 44.55 367.7 64.72 94.85 116.56 113.14 151.53 277.5 247.82 261. 1.28 49.9 21.11 171.12 168.19 78.83 142.12 1.54 13.83 35.53 5.17 342.16 31.34 35.76 69.76 253. 7.29 239.48 227.66 157.65 175.46 93.97 123.24 147.39 71.81 Crude Oil Proceed Receipts Gas Proceed Reciepts (NLNG,EGTL,NGLs,N-GAS) Other Receipts 6.3.2 Dollar Payments to JV Cost Recovery & Federation Account Total export receipt of $434.12Million was recorded in January 218 as receipt against $476.25 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

$/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 6.3.2.1 Monthly Dollar Allocation to JV Cost Recovery & Federation Account 5 4 3 2 1 - Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports (Million Dollar) 476.25 43.23 442.47 434.12 44.55 367.7 88 66 155 17 137 247.82 261. 277.5 128 21.11 171.12 168.19 6 122 142.12 129 363.8 388.5 57 327.4 267.1 287.6 238.6 171.1 168.2 188.3 142.1 131.6 155.8 144.5 JV Cost Recovery Balance Remitance to FAAC In January 218, Naira portion of N32,92,865,134.86 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 $ 327,436,284.75. Chart 6.3.2.2 NNPC Federation Lifted Volumes vs. Crude Oil Prices 45 4 35 3 25 2 15 1 5 NNPC/Federation Lifted Volumes and Crude Prices 63.53 65.39 55.38 54.96 57.13 58.65 51.66 52.13 5.64 51.85 46.48 48.58 16.9 17.11 11.84 1.32 12.36 12.92 13.56 14.31 14.46 1.46 11.56 11.19 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 8 7 6 5 4 3 2 1 NNPC Lifted Volumes Crude Price Source: NNPC Average monthly lifting in tables 2.3.1 and 2.3.2 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

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 18,622,99,676 131,17,97,437 1,184,769,464 132,21,866,91 Feb-17 191,476,32,524 167,85,923,222 3,979,142,223 171,785,65,444 Mar-17 154,937,684,9 132,495,629,389 2,283,428,75 181,242,357 134,96,299,82 Apr-17 151,392,933,125 139,864,134,236 2,23,212,377 142,94,346,613 May-17 94,913,22,316 73,932,647,393 2,551,435,748 76,484,83,141 Jun-17 172,515,74,414 145,583,154,592 5,379,58,823 15,962,735,416 Jul-17 164,767,968,118 14,274,4,12 5,56,852,616 145,834,892,629 Aug-17 194,833,326,77 166,9,419,827 13,65,752,73 26,635,321 18,757,87,878 Sep-17 134,956,666,418 121,256,551,636 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-17 153,1,14,391 127,926,248,911 7,214,825,59 135,141,74,51 Dec-17 112,74,544,869 89,16,972,513 7,57,748,42 96,677,72,555 Jan-18 161,645,129,794 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: 6.4.1 Monthly Naira Crude Oil, Gas and other Receipts Domestic Crude Oil, Gas Sales & Other Reciepts (Billion Naira ) 2 18 171.79 18.76 16 14 132.2 134.96 142.9 15.96 145.83 126.79 135.14 12 111.74 1 8 6 4 131.2 167.81 132.5 139.86 76.48 73.93 145.58 14.27 166.9 121.26 94.52 88.35 127.93 96.68 89.11 18.98 2 13.65 1.18 3.98 2.28 2.23 2.55 5.38 5.56 5.53 6.16 7.21 7.57 2.75 Gas Proceed Receipts Domestic Crude Proceed Receipts Other Receipts 32 NNPC Monthly Financial and Operations Report January 218

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 18,622,99,676 131,17,97,437 37,263,846,591 1,117,572,295 11,223,583,353 1,184,769,464 188,137,262,69 49,172,34,67 83,29,526,231 6,33,393,549 138,532,26,451 Feb-17 191,476,32,524 167,85,923,222 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 6,33,393,549 178,115,458,993 Mar-17 154,937,684,9 132,495,629,389 8,26,727,836 2,24,222,976 68,54,246 11,53,599,643 2,464,67,432 163,732,748,71 46,461,38,9 88,499,26,92 6,33,393,549 141,29,693,37 Apr-17 151,392,933,125 139,864,134,236 8,26,727,836 2,388,28,668 1,245,73,21 8,571,81,55 2,23,212,377 162,56,796,877 46,536,29,14 95,558,317,473 142,94,346,613 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-17 172,515,74,414 145,583,154,592 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-17 164,767,968,118 14,274,4,12 1,25,12,947 343,385,2 46,298,676 13,494,231,481 5,56,852,616 17,328,82,734 56,32,478,63 89,532,413,999 145,834,892,629 Aug-17 194,833,326,77 115,,, 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 45,1,85,818 128,857,388,51 Sep-17 134,956,666,418 86,357,978,999 7,521,59,52 17,76,139 923,97,386 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 6,848,622,525 445,945,671 14,74,815 1,824,223,972 6,164,54,985 112,741,777,51 29,985,641,128 64,533,269,39 94,518,91,517 Nov-17 153,1,14,391 127,926,248,911 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 8,98,23,167 135,141,74,51 Dec-17 112,74,544,869 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-18 161,645,129,794 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 79,644,554,852 111,737,419,987 TOTAL 1,974,388,884,329 1,546,72,23,13 19,314,73,71 19,123,821,74 6,945,881,549 135,684,47,352 66,441,89,3 1,984,23,89,123 676,143,465,426 937,,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: 6.4.2 Monthly Naira Payments to JV Cash Call, FG and Federation Account 2 18 16 14 12 1 8 6 4 2 Tranfers to JV Cash Call and FG & Federation Account (Billion Naira) 178.12 6.33 15.96 138.53 141.29 142.9 145.83 128.86 135.14 6.33 6.33 11.5 6.39 111.74 45.1 91.89 94.52 96.68 89.53 83.3 88.5 95.56 76.48 8.98 19.51 42.16 79.64 64.53 77.57 9.58 83.76 61.29 49.17 56.97 46.46 46.54 56.3 49.73 54.16 29.99 32.9 19.11 JV Cost Recovery (Naira Only) Transfer to Federation Account Debt Repayemt To FG (N45bn) Note: In January 218, Naira portion of N32,92,865,134.86 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 $ 327,436,284.75. 33 NNPC Monthly Financial and Operations Report January 218

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

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. 7.2.2 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. 7.2.3 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 7.2.3 PPMC Pipeline Breaks January 217 January 218 PPMC Pipeline Breaks January 217 - January 218 25 2 15 1 5 216 4 176 9 3 136 126 116 1 17 187 94 2 129 51 82 86 91 71 3 7 7 6 55 77 49 98 35 8 34 45 78 45 6 32 23 2 54 8 3 34 16 1 11 44 28 11 9 19 3 4 3 6 13 24 1 1 8 17 7 8 2 17 Mosimi Kaduna Port Harcourt Warri Gombe 35 NNPC Monthly Financial and Operations Report January 218

7.3 217 National Gas Production and Utilization 8 Glossary and Definition of Terms 36 NNPC Monthly Financial and Operations Report January 218