NNPC. Monthly Report. Financial and Operations Report

Transcription

1 NNPC Monthly Report Financial and Operations Report July 218

2 Disclaimer This publication presents information on the Nigerian oil and gas industry. Its content reflects individual as well as general analysis and trend of activities that characterized the industry within the country. Although NNPC endeavors to ensure accuracy of information in this unaudited report, it cannot guarantee 1% accuracy nor can it be held liable for errors that may be contained therein. Users are to note that use of any information herein is purely at their own discretion. 2 NNPC Monthly Financial and Operations Report July 218

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

4 1 Introduction The average crude oil price stood at $72.57/b in July 218 as against $72.67/b in June 218. The Oil price decline was as a result of slight rise in the global inventories and this is expected to continue in the second half of 218. In July the OPEC Reference Basket (ORB) increased marginally by.7% to finish the month at $73.27/b. Compared to the previous year ORB of $68.48/b in the same period, current year value was higher by $4.7 or 7%. ICE Brent lower by $.99 to average $74.95/b in July while NYMEX WTI gained $3.26 to average $7.58/b. Year-to-date ICE Brent is $19.53 higher at $71.72/b while NYMEX WTI gained $16.25 to $66.2/b compared to the same period in 217. The OPEC Oil Market Report indicates that the global GDP growth forecast remains at 3.8% for 218 and 3.6% for 219. US growth was projected to rise by 1% thereby reaching 2.9% in 218 and 2.5% in 219. Also, Euro-zone projected to slow down to 2% and 1.9% for 218 and 219 respectively. Japan s 218 growth forecast was revised down to 1.2% but India and China where forecast to remain at 7.3% and 6.7% in 218 respectively. The Nigerian GDP growth rate for Q2, 218 is pegged at 1.5%, which is lower than Q1 218 by.45% from the previous quarter (Q1, 218). However, growth was.79% higher when compared to the second quarter of 217 which recorded a growth of.72%. The growth in Q2 218 was driven by developments in the non-oil sector as Services sector recorded its strongest positive growth since 216. However, the relatively slower growth when compared to Q1 218 and Q2 217 could be attributed to developments in both the oil and non-oil sectors. Leveraging on the GDP growth rate to the end of Q2 218, GDP value will increase to $ in July 218 representing an increase of $.47 billion over the Q The world oil demand in 218 is estimated to reach mb/d and to increase in 219 to 1mb/d. OECD consumption forecast was revised up to.4mb/d to reflect positive revisions in OECD Americas notwithstanding downward revision of.2mb/d. Non-OECD is projected to grow at 1.27mb/d to reflect less positive consumption outlook in Latin America and Middle East. Global oil supply in July 218 increased by.89% to average 98.89mb/d, compared with previous month. The Non-OPEC oil supply growth increased by.18 month-onmonth to average mb/d as a result of higher supply from Russia in second half of year. OPEC crude oil production averaged 32.33mb/d following higher production from Saudi Arabia, Iraq, Nigeria, Kuwait and UAE with partial offset mainly from Libya, Venezuela and Angola. In June, 218, Crude Oil production in Nigeria averaged 1.78mb/d with little or no change from prior month. Issues that affected production during the period include: shut-down of Nembe Creek Trunk Line (NCTL) and Trans Escravos Pipeline due to leakages. During the period, both ERHA and Qua-Iboe Terminals had power outages which resulted in production shut-down at different period during the month under review. 4 NNPC Monthly Financial and Operations Report July 218

5 The July 218 National Gas production stood at 23.35BCF translating to an average daily production of 7,678.17mmscfd representing 8.81% increase compared to the previous month of June 218. While the daily average natural gas supply to gas power plants stood at mmscfd, equivalent to power generation of 2,898MW. In the downstream sector, NNPC continued to ensure increased PMS supply and effective distribution across the country. In July, 218, 1.84bn litres of PMS were supplied by NNPC translating to 59mn Liters/day to sustain seamless distribution of Petroleum Products and zero fuel queue across the nation. The Corporation continued to maintain an eagle eye on the daily Premium Motor Spirit (PMS). The July 218, pipeline break stood at 24, of which 16 pipeline points either failed to be welded or ruptured/clamped. Thus 188 pipeline points were vandalized as against 165 recorded last month. Ibadan-Mosimi accounted for 124 points or 66% of the vandalized pipeline while Aba-Enugu, PHC-Aba and Other Locations accounted for 16%, 12% and 6% respectively. This 36 th edition of the report indicated a trading surplus of 4.88Billion which is lower than the previous month s surplus of 7.15Billion by 31.72% or 2.27Billion. The declined in performance is mainly attributed to reduction in downstream revenue especially, Shipping and NPSC relative to the cost of sales compared with last month. The report also highlighted NNPC s activities for the period of July 217 to July, 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 The Corporation (NNPC) has secured approval from the President to undertake a review of all Production Sharing Contracts (PSCs) between it and its various partners to reflect the current realities in the industry. NNPC undertook the repairs of ruptured Gas Pipeline which supplies gas to most thermal electricity generating plants in the country. This has increased power generation significantly. NNPC/NAOC JV are fine turning Okpai Phase 2 Project to shore up the current power generation with 5 megawatts of power. NNPC is intensifying efforts towards the rehabilitation of the refineries to meet December, 219 target of ending fuel importation. NNPC is concluding arrangement for the historic groundbreaking of the 4inch x 614km Ajaokuta - Kaduna Kano, (AKK), gas pipeline and stations. 5 NNPC Monthly Financial and Operations Report July 218

6 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 June 218 representing an average daily production of 1.78million barrels. This represents a slight change in the average daily production compared to May 218 average daily performance. Of the June 218 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 31.31% and 43.1% respectively. While AF, NPDC and Independents accounted for 14.1%, 5.84% and 5.74% respectively. The tables and charts below provide details of the National Crude Oil Production for the period June 217 to June 218. 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 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 Jan-18 21,637,764 23,253,975 7,922,333 4,688,259 4,42,587 61,94,918 1,996,933 Feb-18 18,88,641 21,451,962 7,623,86 4,115,61 4,242,481 56,241,78 2,8,635 Mar-18 19,95,334 24,133,1 8,441,597 3,83,63 3,95,565 6,35,56 1,945,341 Apr-18 19,21,118 23,216,779 7,982,997 4,219,576 4,335,5 58,955,475 1,965,183 May-18 18,97,59 23,33,348 8,97,128 2,386,521 3,529,292 55,143,798 1,778,832 Jun-18 16,744,35 23,5,872 7,494,93 3,124,348 3,68,443 53,482,16 1,782,737 PTD 245,129, ,447,575 11,941,799 5,63,719 53,453, ,63,18 1,94,767 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 June 18 was 1,868,918bbls. 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: June 17 June 18 Total Monthly Crude Oil & Condensate Production (Million Barrels) Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 JVs PSC AF NPDC Independent / Marginal Fields 6 NNPC Monthly Financial and Operations Report July 218

7 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 7% 7% 32.% JVs PSC AF NPDC. 41.1% Independent / Marginal Fields Table 2.1.2: NPDC monthly Crude oil & Condensate Production Field/Company Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 PTD Block NPDC Owned Direct Operated Assets Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Abura OML , , , ,35 196, , , ,19 144,23 234, ,235 18, ,446 2,362,951 Oredo OML , ,412 29,384 35,182 42,92 4,58 67, , , , ,434 69,888 16,622 1,512,122 Oziengbe OML 111 1,471 23,268 15,39 11,154 14,72 3,976 9,7 5,385 2, ,41 Okono_Okpoho OML , , , , ,895 59,686 64, , , ,892 54, , ,451 7,744,738 SUB-TOTAL 981,358 1,79,85 1,18, ,33 879, , , ,89 89,878 96, , , ,337 11,77,221 NPDC JV Direct Operated Assets Ogini_Isoko/FHN OML 26 69,896 79,123 82,192 63,499 86,738 84,825 92,326 73,12 66,381 95,775 54,71 66, ,71 Opuama/Elcrest OML 4 191,9 21,75 29,14 2, ,896 22, , , ,24 297, ,399 26, ,13 3,156,165 Batan_Odidi/Neconde OML ,536 64,27 857,44 744, , , ,24 1,59,73 921, ,93 935, , ,197 9,454,347 Afiesere_Kokori/Shoreline OML 3 584,924 87, , , ,84 845,65 95,16 1,16, ,771 71, ,8 355, ,711 9,633,879 Utorogu_Ughelli/NDW OML , , ,825 1,33,75 218,517 26,813 32, , , , ,89 185,525 2,451 4,258,75 SUB-TOTAL 1,66,543 2,,614 2,25,293 2,995,977 2,149,636 2,86,465 2,261,3 2,731,429 2,377,629 2,45,811 2,287,68 1,88,528 1,581,235 27,417,797 NPDC JV Non-Operated Assets OBEN_Amukpe_Sapele/SEPLAT OML 4,38&41 948, ,853 1,28,53 761,173 95, , ,899 1,9,21 928,13 823,626 1,14, , ,776 11,55,71 SUB-TOTAL 948, ,853 1,28,53 761,173 95, , ,899 1,9,21 928,13 823,626 1,14, , ,776 11,55,71 GRAND TOTAL 3,536,242 3,956,272 4,342,668 4,631,183 3,934,522 3,86,8 4,59,375 4,688,259 4,115,61 3,83,63 4,219,576 2,386,521 3,124,348 5,63,719 Average Daily Production 117, ,622 14,86 154, ,92 126,869 13, , , ,55 14,653 76,985 14, ,179 The NPDC June 217 to June 218 cumulative production from all fields amounted to 5,63,719 barrels of Crude oil which translated to an average daily production of 128,179 barrels per day. Comparing PTD NPDC performance to National Production, the company s production share amounted to 6.6%. 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 11,77,221 barrels (or 23.11% of the total NPDC production) with Okono Okpoho (OML 119) alone producing 66.15% of the NPDC wholly owned operated Assets or 15.3% of the total NPDC production. Also on the NPDC operated JV assets, in which NPDC owns 55% controlling interest, Crude Oil production amounted to 27,417,797 barrels (or 54.15% of the NPDC total production). On the Non-operated assets, production level stood at 11,55,71 barrels or 22.72% of the company s production. 7 NNPC Monthly Financial and Operations Report July 218

8 Chart NPDC Monthly Crude Oil & Condensate Productions 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 NPDC Crude Monthly Production (Thousand Barrels) 4,631 4,688 4,343 3, ,935 4,59 4,116 4,22 3,86 1,9 3,83 3,536 1, , , , ,996 2,25 2,731 2,1 2,15 1,67 2,86 2,261 2,378 2,46 2, ,581 1, ,8 1, Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 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) OBEN_Amukpe_Sapel e/seplat Afiesere_Kokori/Sho reline Batan_Odidi/Necond e Okono_Okpoho Utorogu_Ughelli/ND W Opuama/Elcrest Abura Oredo Ogini_Isoko/FHN Oziengbe ,156 2,363 1,512 4,259 9,634 9,454 7,745 11,56 2, 2.2. National Gas Production A total of 23.35Billion Cubic Feet (BCF) of natural gas was produced in the month of July 218 translating to an average daily production of 7, Million Standard Cubic Feet Per Day (mmscfd). For the period July 217 to July 218, a total of 3,84.9 BCF of gas was produced representing an average daily production of 7, mmscfd during the period. Period to date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.38%, 21.69% and 8.93% respectively to the total national gas production. The table and charts overleaf provide details of the national gas production for the period July 217 to July NNPC Monthly Financial and Operations Report July 218

9 Table 2.2.1: National Gas Production by Regime Total Monthly Production PERIOD JV PSC NPDC TOTAL BCF BCF BCF BCF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Total 2, ,84.9 Daily Average Production PERIOD JV PSC NPDC TOTAL mmscfd mmscfd mmscfd mmscfd Jul-17 5,3.78 1, , Aug-17 5, , ,71.79 Sep-17 5, , ,431.6 Oct-17 5, , , Nov-17 5, , ,899.1 Dec-17 5, , ,551.9 Jan-18 5,64.6 1, ,25.1 Feb-18 5, , , Mar-18 5,84.9 1, , Apr-18 5, , ,54.46 May-18 5, , ,785.1 Jun-18 4, , ,56.22 Jul-18 5, , , Average 5, , , Chart 2.2.1: Average Daily National Gas Production for the period ,925 7,711 7, ,829 1,718 1,697 Average Daily National Gas Production (mmscfd) 8,174 8,396 7,899 8,25 8,164 8,54 7,551 7, ,56 7, ,771 1,759 1,682 1,75 1,581 1, ,647 1,54 1,732 1,723 5,31 5,278 5,763 5,112 5,476 5,284 5,641 5,953 5,841 5,622 5,55 5,187 4,68 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 JV PSC NPDC Chart 2.2.2: Monthly National Gas Production & Percentage Distribution 3 Total Monthly Natural Gas Production (BCF) Percentage Distribution of Upstream Gas Production- July '17 - July '18 Average % JV % 1 PSC % NPDC 9 NNPC Monthly Financial and Operations Report July 218

10 2.3 Crude Oil & Condensate Lifting & utilization A total volume of million barrels of crude oil and condensate was lifted in the month of June 218 by all parties. Out of this volume, 19.3 million barrels was lifted by NNPC on behalf of the Federation. This comprises of million barrels lifted on the account of NNPC (Domestic and Federation Export) while 5.4 million barrels and 1.82 million barrels was superintended for FIRS and DPR respectively. Table 2.3.1: Crude Oil & Condensate Lifting and utilization LIFTING MONTH 1 NNPC Monthly Financial and Operations Report July 218 NNPC Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Jun-17 3,87,267 19, 7,61,969 9,53,59 17,15,559 21,165,826 34,876,868 26, 56,68,694 Jul-17 7,746, ,7 6,349,55 7,26,34 13,555,854 21,564,788 4,43,794 1,86,79 63,775,372 Aug-17 2,448,119 1,267,54 4,599,572 9,76,674 14,36,246 18,21,419 41,79,311 1,4, 6,5,73 Sep-17 4,32, ,519 4,8,861 6,452,172 1,461,33 15,432,2 45,698,16 3,559,312 64,689,492 Oct-17 5,773,143 1,72,36 2,561,37 9,2,59 11,563,546 19,56,995 34,338,71 2,183,483 55,578,549 Nov-17 6,737,22 35, 5,424,555 5,766,199 11,19,754 18,277,974 4,649,85 1,27,8 59,955,579 Dec-17 4,481,518 1,472,942 4,695,969 9,767,455 14,463,424 2,417,884 38,576,868 1,924,476 6,919,228 Jan-18 2,64,59 767,529 7,721,289 8,447,137 16,168,426 19,54,545 4,333,246 2,197,539 62,71,33 Feb-18 2,735,826 33,513 2,661,229 13,95,93 16,567,159 19,633,498 35,897,34 2,45,761 57,936,599 Mar-18 3,998, ,535 4,81,25 13,476,68 17,557,93 22,277,777 35,136,157 1,957,43 59,371,337 Apr-18 5,81,47 459,582 3,269,99 6,273,617 9,542,716 15,83,345 35,55,768 5,74,734 55,933,847 May-18 3,821,881 1,622,54 3,551,457 6,156,88 9,78,337 15,152,722 35,931,693 4,58,728 55,665,143 Jun-18 5,41,824 1,82,367 3,744,69 8,63,9 11,87,699 19,29,89 34,468,928 2,13,876 55,512,694 TOTAL 59,722,449 11,653,551 6,27, ,728, ,998, ,374, ,446,9 3,157,92 767,978,594 Note: FIRS (PSC) DPR (PSC) NIGERIAN GOVERNMENT FEDERATION EXPORT DOMESTIC SUB-TOTAL (NNPC) SUB-TOTAL GOVERNMENT LIFTING IOCs & INDEPENDENTS (INC. NPDC) AF GRAND TOTAL Crude oil liftings are reported one month in arrears For more details on crude oil lifting under each AF liftings arrangement and MCA performance analysis follow the link Of the million barrels lifted on the account of NNPC in June 218, 8.6 million barrels and 3.75 million barrels were for domestic and export markets respectively. At an average oil price of $75.19/barrel and exchange rate of N34.95/$, the domestic crude oil lifted by NNPC is valued at $66,282,47 or a Naira equivalent of N184,885,82,14.65 for the month of June 218. The remaining crude oil lifted for export was valued at $283,433,274 at an average price of $75.69 /barrel. The total value of crude oil lifted on the account of NNPC in June 218 was thus $889,715,681. From June 217 to June 218, a total volume of 768 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 June 217 to June 218.

11 Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements Monthly Lifting Entitlement (Million Barrels) Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 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 EXPORT (NNPC) LIFTING (INC. NPDC) USD USD USD USD USD USD USD USD USD Jun ,786,949 1,23,28 351,93, ,22,67 795,15, ,96,17 1,614,49,268 1,23,28 2,588,789,717 Jul ,531,65 12,5,149 38,964,95 349,549, ,514,667 1,44,51,421 1,966,21,91 9,364,828 3,1,438,149 Aug ,587,422 67,677, ,479,415 52,248, ,727, ,992,535 2,138,818,432 7,45,72 3,146,261,687 Sep ,498,741 37,598, ,828, ,823,11 597,651, ,748,16 2,597,78,97 27,616,29 3,684,443,276 Oct ,994,35 1,575, ,799,226 53,416, ,215,547 1,115,785,776 1,981,673, ,625,38 3,229,84,763 Nov ,74,785 21,378, 342,184,98 368,796,216 71,981,124 1,159,63,99 2,564,219,517 65,225,673 3,788,59,99 Dec ,63,14 98,248,681 38,68,53 637,17, ,778,763 1,343,63,458 2,535,181,154 13,319,826 4,9,131,438 Jan ,896,62 53,689, ,55,21 588,718,855 1,124,223,876 1,355,81,485 2,797,286, ,985,15 4,35,81,865 Feb-18 18,386,813 21,8, ,63,492 93,588,37 1,79,191,799 1,28,586,798 2,368,716, ,696,46 3,87,999,87 Mar ,929,162 48,545,69 277,242, ,568,466 1,191,811,437 1,51,286,28 2,386,83, ,637,283 4,32,754,136 Apr ,32,349 34,49, ,721, ,487,96 689,28,647 1,156,1,351 2,624,24, ,244,663 4,156,486,485 May ,424, ,889,83 273,781, ,825, ,66,889 1,171,92,694 2,769,97, ,358,131 4,293,249,452 Jun-18 46,236, ,39, ,433,274 66,282,47 889,715,681 1,43,992,25 2,68,988, ,611,719 4,189,592,284 TOTAL 3,751,883, ,349,288 3,717,56,33 7,134,677,171 1,851,733,51 15,357,966,215 3,953,517,421 2,2,338,521 48,331,822,157 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) NNPC Monthly Financial and Operations Report July Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 DOMESTIC FEDERATION EXPORT

12 2.4 Utilization of Crude Oil for Domestic Product Supply In June 218, NNPC lifted 8,63,9 barrels of Crude Oil for domestic utilization translating to an average volume of 268, barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of June 218 about 5, barrels was processed under the Direct-Sales-Direct Purchase (DSDP) scheme and the balance of 2, 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 June 217 to June 218. Table Domestic Crude Purchased By NNPC Period Volume Ave. Price Sales Value Sales Value Average Lifting Barrels $/bbl USD NGN Barrels Per Day Jun-17 9,53, ,22, ,956,666, , Jul-17 7,26, ,549, ,577,722, , Aug-17 9,76, ,248, ,1,14, , Sep-17 6,452, ,823, ,74,544, ,72.4 Oct-17 9,2, ,416, ,645,129, ,43.52 Nov-17 5,766, ,796, ,49,86, ,26.63 Dec-17 9,767, ,17, ,337,66, ,79.19 Jan-18 8,447, ,718, ,559,25, , Feb-18 13,95, ,588, ,323,357, ,64.36 Mar-18 13,476, ,568, ,851,925, , Apr-18 6,273, ,487, ,412,993, ,12.57 May-18 6,156, ,825, ,984,6, ,69.3 Jun-18 8,63, ,282, ,885,819, , Total/Ave 113,728, ,134,677, ,174,693,584, , Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels) Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 DSDP REFINERY DIRECT EXPORT 12 NNPC Monthly Financial and Operations Report July 218

13 Table Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply Month EXPORT DELIVERIES TO REFINERIES DIRECT SALES DIRECT PURCHASE TOTAL Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Jun , , , , , , Jul , , , ,62.3 7, , Aug , , , , , ,1.1 Sep , , , , ,74.54 Oct , , , , , , , Nov , , , , , ,49.9 Dec , , , , , ,337.7 Jan , , , , , , Feb , , , , , , Mar , , , , , , Apr , , , ,7.92 6, , May , , , , , ,984.1 Jun , , , , , , PTD , , , , , , ,715, , , ,174, Chart 2.4.3: Percentage Distribution for June 218 Domestic Crude Utilization June 218 Crude Oil Utilization For Domestic Product Consumption PTD Crude Oil Utilization For Domestic Product Consumption.8% REFINERY 29.4% REFINERY 19.9% DSDP 7.6% DSDP 79.3% DIRECT EXPORT 2.5 Natural Gas Off take, Commercialization & Utilization Out of the BCF of gas supplied in July 218, a total of BCF of gas was commercialized comprising of 35.55BCF and 91.65BCF for the domestic and export market respectively as shown in Table This translates to a total supply of 1, mmscfd of gas to the domestic market and 3,55. mmscfd of gas supplied to the export market for the month as shown in Table in page 16. This implies that 55.98% of the average daily gas produced was commercialized while the balance of 44.2% was re-injected, used as upstream fuel gas or flared. Gas flare rate 13 NNPC Monthly Financial and Operations Report July 218

14 was 9.33% for the month under review i.e mmscfd compared with average Gas flare rate of 1.44% i.e mmscfd for the period July 217 to July 218. 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 BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Total , , ,3.94 3,9.81 Note: For more details on Gas Liftings follow this link Non-Commercialized Gas Re-Injection Fuel Gas Flare Total Non- Commerialized Gas Grand Total Total gas supply for the period July 217 to July 218 stood at 3,9.81BCF out of which BCF and 1, BCF were commercialized for the domestic and export market respectively. Gas Injected, Fuel gas and Gas flared stood at 1,3.94 BCF. The table and chart provides more details of the gas utilization and commercialization for the period July 217 to July 218. Chart July 17 July 18 Percent Distribution of Gas Utilization July 218 Percentage Distribution of Gas Utilisation PTD Year Average Percentage Distribution of Gas Utilisation 15.6% Total Gas To Domestic 15.2% Total Gas To Domestic 44.% Total Gas To Export 41.9% Total Gas To Export 4.3% Total Non- Commerciali zed Gas 42.9% Total Non- Commerciali zed Gas As shown in Table overleaf, out of the 1, mmscfd of gas supplied to the domestic market in July 218, about mmscfd of gas representing 62.87% was supplied to Gas-Fired power plants while the balance of mmscfd or 37.13% was supplied to other industries. Similarly, for the period of July 217 to July 218 an average of 1,186.2mmscfd of gas was supplied to the domestic market comprising of 14 NNPC Monthly Financial and Operations Report July 218

15 an average of 746.5mmscfd or (63%) as gas supply to the power plants and 439.7mmscfd or (37%) as gas supply to industries. Table Total Average Daily Gas Commercialization and utilization Period Domestic Gas To Power Domestic Gas Domestic Gas to Industry Gas Commercialisation Export Gas Total Gas To Domestic WAPG EGTL NGL/LPG NLNG Total Gas To Export Non-Commercialized Gas Re-Injection Fuel Gas Flare Total Non- Commercialized Gas mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd Jul , , , , , ,91.59 Aug , , , , , , Sep , , , , , , Oct , , , , , ,155.9 Nov , , , , , , Dec , , ,29.7 1, , , Jan , , , , , , , Feb , , , , , , Mar , , , , , , Apr , , , , , ,73.77 May , , , , , , Jun , , , , , , Jul , , ,55. 2, , , Average , ,1.14 3, , , , Grand Total About 2, mmscfd or 87.44% of the export gas was sent to Nigerian Liquefied Natural Gas Company (NLNG) Bonny for July 218 compared with the period, July 217 to July 218 average of 3,1.14 mmscfd or 89.38% of the export gas. Chart Average Daily National Gas to Domestic, Export & Gas Non-Commercialized 1, Average Daily National Gas to Domestic, Export & Gas Non-Commericlized (mmscfd) 9, 8, 7, 6, 5, 7,92 3,26 7,666 3,235 7,375 3,189 8,156 3,478 7,893 3,339 7,365 2,88 8,17 3,518 8,568 3,558 8,215 8,74 3,293 3,267 7,738 3,43 6,985 3,216 7,574 3,334 4, 3, 2, 3,527 3,48 3,16 3,536 3,377 3,21 3,554 3,694 3,616 3,482 3,471 2,562 3,55 1, 1,115 1,23 1,26 1,142 1,177 1,275 1,97 1,316 1,37 1,325 1,224 1,28 1,185 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Total Gas To Domestic Total Gas To Export Total Non-Commercialized Gas 15 NNPC Monthly Financial and Operations Report July 218

16 3 Refinery Operations 3.1 Capacity Utilization Total Crude processed by domestic Refineries for the month of July 218 was 9,872MT as against the 376,185MT processed in the preceding month. This translates to a combined yield efficiency of 73.82% as against the 87.17% in June 218. Table 3.1.1: Monthly Consolidated Refineries Operational Performance Operational Parameters Units Consolidated Refineries Operations Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Total Opening Stock (A) MT 519, ,257 51, , ,62 636,97 414,15 453, , , , , ,39 5,919,863 Crude Received (B) MT 228,24 21, ,126 37,644 18, ,6 244,68 21, ,43 175, , , ,951 3,74,16 Crude Transferred to KRPC (C) MT 3,16 9,654 19,764 9, , ,8 Total Crude Available (D=A+B-C) MT 717, ,524 73, , ,759 92, , ,846 68,8 513,12 76,292 65, ,188 8,927,889 Closing Stock (E=D-F) MT 493,47 59, ,42 564,64 624, , , , , , , , ,316 5,775,336 Crude Processed (F) MT 224, , , ,75 15,735 57,732 24, ,91 271, , , ,185 9,872 3,15,145 (i) Finished Products MT 16,642 95, , ,222 55,187 3, , ,89 159, , , ,93 116,433 2,3,29 (ii) Intermediate Products MT 39,492 53,496 47,837 71,919 39, ,554 29,661 41,681 67, , ,81 54,984 49,35 46,424 (iii) Plant Consumption MT 18,639 21,418 19,851 25,356 9,229 47,466 17,31 28,597 27,8 44,224 28,838 32,874 11, ,336 (iv) Losses MT 5,811 8,325 5,443 6,28 3,77 8,448 3,239 14,814 16,564 8,385 3,658 15,397 12,5 112,112 Plant Capacity kpd Capacity Utilization % 11.94% 9.5% 6.34% 17.63% 5.81% 26.99% 1.89% 13.94% 14.41% 7.% 2.12% 2.66% 4.83% 13.11% Losses % 2.59% 4.66% 4.71% 1.87% 3.57% 1.66% 1.58% 6.25% 6.11% 6.58%.97% 4.9% 13.26% 3.56% Plant Consumption % 8.3% 11.98% 17.2% 7.64% 8.73% 9.35% 8.44% 12.7% 1.25% 34.69% 7.62% 8.74% 12.92% 1.58% Yields Efficiency based on CDU, CRU & FCC (%) % 89.11% 83.36% 78.9% 9.48% 89.61% 88.99% 89.97% 81.68% 83.64% 58.73% 91.42% 87.17% 73.82% 85.92% Note: KRPC received their crude via WRPC. For the month of July 218, only WRPC and PHRC produced 9,872MT of finished Petroleum Products and 49,35MT of intermediate products out of the 9,872MT of Crude processed at a combined capacity utilization of 4.83% compared to 2.66% combined capacity utilization achieved in the month of June 218. The lower operational performance recorded is attributable to the ongoing revamping of the refineries which is expected to further enhance capacity utilization once completed. Chart 3.1.1: Monthly Refineries Consolidated Capacity Utilization 3% 25% 2% Refineries Consolidated Capacity Utilisation 17.63% 26.99% 2.12% 2.66% 15% 1% 5% 11.94% 9.5% 6.34% 5.81% 1.89% 13.94% 14.41% 7.% 4.83% % Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul NNPC Monthly Financial and Operations Report July 218

17 Table Refineries Monthly Operations Operational Parameters Units Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Total WRPC Opening Stock (A) MT 168, ,69 61, ,62 161,161 25, , , ,318 67,347 18,9 77,246 17,645 1,944,88 Crude Received (B) MT 5,554 69,946 14,42 44,748 14,12 178,43 13, , ,34 123,9 1,184,487 Crude Transferred to KRPC (C) MT 3,16 9,654 19,764 9, , ,8 Total Crude Available (D=A+B-C) MT 189, , , ,368 31, , , , , ,85 323, , ,473 3,63,215 Closing Stock (E=D-F) MT 179,386 63, , , ,12 195, , ,318 67,166 18,9 77,246 13,57 14,61 1,91,119 Crude Processed (F) MT 9, ,788 53,25 15,735 39, ,215 17, ,39 138,31 9,872 1,15,688 (i) Finished Products MT 24,11 68,717 28,481 27,38 55,187 24,343 8,37 68, ,162 89, ,89 124, ,52 915,175 (ii) Intermediate Products MT 17,563 1,721 37,525 17,451 41,425 25,697 9,395 55,19 87,778 84,514 12,72 18,873 3,464 7,955 (iii) Plant Consumption MT 3,61 6,391 4,899 5,39 7,366 1,354 1,358 13,662 16,211 1,413 12,466 19,93 8,62 19,915 (iv) Losses MT 382 2,958 4,145 3,47 3,77 12,77 12,65 1,864 1,44 13,262 1,686 56,66 Plant Capacity kpd Capacity Utilization % 1.87% 33.83%.% 1.7% 2.67%.%.% 8.26% 51.32% 3.36% 46.55% 27.4% 17.19% 17.4% Losses % 3.86% 1.65%.% 6.4% 3.57%.%.% 3.61% 4.45% 1.85%.42% 9.59% 1.86% 4.92% Plant Consumption % 3.95% 3.57%.% 9.47% 6.97%.%.% 34.63% 5.98% 6.59% 5.7% 13.8% 9.47% 9.55% Yields Efficiency based on CDU, CRU & FCC (%) % 65.19% 94.77%.% 84.13% 91.37%.%.% 34.75% 89.57% 28.56% 94.51% 76.61% 88.68% 85.7% Operational Parameters Units PHRC Opening Stock (A) MT 123,412 81,236 24,445 17,71 155,16 195, , ,718 19,794 19, , ,579 91,831 1,998,467 Crude Received (B) MT 172, ,588 81,76 262,896 4, , ,416 21,529 45,48 176, ,127 66,51 1,878,938 Total Crude Available (C=A+B) MT 295,929 21, , ,66 195,71 487,449 36,74 388,247 19, ,22 34, ,76 157,882 3,877,45 Closing Stock (D=C-E) MT 81,236 21,824 17,71 155,16 195,71 117, ,718 19,794 19, , ,579 91, ,882 2,37,41 Crude Processed (E) MT 214, , ,5 37, ,22 197,453 11, , ,875 1,839,995 (i) Finished Products MT 135,762 22,314 19,53 2, , ,773 75,663 3,66 162,543 83, ,12 5,381 1,39,226 (ii) Intermediate Products MT 63,387 34,194 4,36 63, ,439 31,19 19,465 7,675 86,393 38,66 8,594 16, ,365 (iii) Plant Consumption MT 1,575 6,744 8,676 11,37 17,283 1,181 9,588 6,242 27,62 7,617 7, ,457 (iv) Losses MT 4,969 5,136 1,298 2,81 6,824 3,49 2,737 4,499 6,521 2,614 2,135 1,364 52,947 Plant Capacity kpd Capacity Utilization % 24.18%.% 13.44% 31.37%.% 41.69% 2.61% 24.62%.% 12.84% 14.93% 27.68%.% 16.22% Losses % 2.31%.% 1.12% 1.1%.% 1.84% 1.67% 1.39%.% 5.91% 1.97%.9%.% 2.88% Plant Consumption % 4.93%.% 7.52% 4.8%.% 4.67% 5.56% 4.86%.% 25.4% 5.74% 2.96%.% 6.71% Yields Efficiency based on CDU, CRU & FCC (%) % 92.76%.% 91.36% 94.91%.% 93.49% 92.77% 93.76%.% 69.4% 92.28% 96.14%.% 9.41% Operational Parameters Units KRPC Opening Stock (A) MT 227, , , , , ,546 99,496 78,833 78,833 78,833 78,833 78,833 78,833 1,976,588 Crude Received (B) MT 4,953 2,387 2,149 1,192 1,681 Total Crude Available (C=A+B) MT 232, , , , , ,695 1,688 78,833 78,833 78,833 78,833 78,833 78,833 1,987,269 Closing Stock (D=C-E) MT 232, , , , ,795 1,88 78,833 78,833 78,833 78,833 78,833 78,833 78,833 1,827,87 Crude Processed (E) MT 137,67 21, ,462 (i) Finished Products MT 869 4,517 46,342 7,866 7,328 7, ,889 (ii) Intermediate Products MT 6,332 13,31 6,276 8,947 1,863 6,812 8,37 12,675 12,675 7,69 9,516 6,737 2,624 18,896 (iii) Plant Consumption MT 5,3 8,283 6,276 8,947 1,863 28,829 5,762 5,347 5,347 6,191 8,755 6,737 2,624 99,964 (iv) Losses MT , ,55 Plant Capacity kpd Capacity Utilization %.%.%.%.%.% 29.59% 4.7%.%.%.%.%.%.% 2.68% Losses %.%.%.%.%.% 1.18%.87%.%.%.%.%.%.% 1.57% Plant Consumption %.%.%.%.%.% 2.95% 26.36%.%.%.%.%.%.% 62.69% Yields Efficiency based on CDU, CRU & FCC (%) %.%.%.%.%.% 77.87% 72.77%.%.%.%.%.%.% 35.74% Note: For more details on breakdown for Refineries Crude grade received follow this link. 17 NNPC Monthly Financial and Operations Report July 218

18 1.9%.%.%.%.%.%.%.%.%.%.%.%.%.% 3.4%.%.%.%.%.% 4.7% 1.1% 8.3% 13.4% 12.8% 14.9% 2.7% 17.2% 24.2% 2.6% 24.6% 27.% 27.7% 33.8% 31.4% 29.6% 41.7% 46.6% Chart 3.1.2: Refineries Capacity Utilization 6% Refineries Capacity Utilisation 5% 4% 3% 2% 1% % Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 WRPC PHRC KRPC 3.2 Refineries Economics for period of July 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 July 218 amounted to 13.78billion while the associated Crude plus freight costs and operational expenses were 15.64billion and 8.59billion respectively. This resulted to an operating deficit of 1.45billion by the refineries as shown in Table 3.2. Table 3.2 Refinery Financial Performance July July 218 Description Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 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 , , , , , ,91.1 6, , , , Crude + Frieght (COGS) (1,24.76) (21,324.45) (527.) (7,386.46) (15,28.27).. (5,978.8) (42,888.1) (2,991.84) (43,942.55) (23,7.4) (15,636.34) Opex (2,3.9) (2,573.21) (2,73.46) (2,118.68) (3,85.78) (1,781.39) (2,687.32) (3,452.33) (3,219.74) (3,111.61) (2,775.63) (2,744.48) (2,598.81) Operating Surplus/Deficit (2,281.85) (1,237.2) (1,135.9) (2,922.69) (5,46.84) (1,745.23) (2,678.12) (9,197.73) (7,163.96) (3,169.69) (4,781.31) KRPC Revenue (663.52) (676.26) (627.31) (854.47) (165.5) 15,477.3 (92.89) (849.62) 1, ,28.1 (87.96) Crude + Frieght (COGS)..... (17,475.12).. (1,946.7).... Opex (2,937.79) (2,914.37) (3,152.21) (3,84.74) (2,9.74) (2,44.89) (3,275.62) (2,965.13) (2,528.82) (24,25.68) (3,415.96) (3,57.28) (2,655.99) Operating Surplus/Deficit (3,61.32) (3,59.63) (3,779.52) (3,939.21) (3,65.79) (4,42.98) (4,178.51) (3,814.75) (2,629.45) 2, (4,223.92) (2,98.16) (2,35.24) PHRC Revenue 24, , , , , , ,34.1 3, , , , Crude + Frieght (COGS) (22,927.21). (12,781.5) (34,697.93). (51,662.65) (28,883.61) (28,264.6). (17,36.52) (2,919.42) (4,399.48). Opex (4,242.44) (2,925.97) (3,392.) (3,742.13) (3,34.14) (3,999.32) (4,915.22) (3,49.71) (3,71.32) (6,969.88) (7,35.17) (4,133.68) (3,336.18) Operating Surplus/Deficit (2,634.61) , (9.35) (3,32.19) (4,947.8) (6,729.48) (4,37.22) (62.33) 2, (8,693.92) (8,36.16) (3,317.64) Consolidated Revenue 24, , , , , , , , , , , , , Crude + Frieght (COGS) (24,131.97) (21,324.45) (13,38.51) (42,84.39) (15,28.27) (69,137.76) (28,883.61) (34,242.68) (44,834.8) (2,298.36) (64,861.97) (64,99.88) (15,636.34) Opex (9,211.14) (8,413.55) (8,617.67) (8,945.55) (9,2.66) (8,185.6) (1,878.16) (9,827.17) (9,449.87) (34,332.17) (13,496.76) (9,935.44) (8,59.98) Operating Surplus/Deficit (8,517.78) (4,636.29) (3,518.6) (7,762.25) (11,144.81) (11,95.28) (13,586.11) (8,55.5) (11,889.51) 6, (2,81.8) (14,51.2) (1,449.19) 18 NNPC Monthly Financial and Operations Report July 218

19 4 Petroleum Product Supply & Distribution 4.1 Petroleum Product Supply from Direct sales Direct Purchase (DSDP) In July 218, 1,19.71million litres of PMS was supplied into the country through the DSDP arrangements as against the 1,194.93million litres of PMS supplied in the month of June 218. 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 DSDP in litres Period PMS DPK TOTAL Litres Litres Litres Jul-17 1,173,27, ,173,27, Aug ,981, ,442, ,424,912.4 Sep ,458, ,458, Oct-17 1,478,736, ,287, ,512,23, Nov ,99, ,99, Dec-17 1,14,66, ,14,66,542. Jan-18 1,463,656, ,794, ,497,45,855.2 Feb-18 1,791,617, ,28, ,818,825, Mar-18 2,383,455, ,383,455, Apr-18 1,51,35, ,51,35,61.87 May-18 1,96,448, ,96,448,744.2 Jun-18 1,194,926, ,427, ,238,354, Jul-18 1,19,714, ,693, ,237,47, TOTAL 17,43,782, ,854, ,258,636, Chart 4.1.1: Petroleum Products Supply from DSDP (Million Litres) 3, Petroleum Products from Direct Sales Direct Purchase (Million Litres) 2,5 2,383 2, 1,819 1,5 1, 5 1,173 1, ,512 1, ,14 1,14 1,497 1,464 1,792 2,383 1,51 1,51 1,96 1,238 1,237 1,96 1,195 1,191 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 PMS DPK 19 NNPC Monthly Financial and Operations Report July 218

20 4.2 Petroleum Products Supply from Domestic Refineries The petroleum products (PMS & DPK Only) production by the domestic refineries in July 218 amounted to million litres compared to million litres in June 218 as shown in Table overleaf. Table 4.2.1: Monthly Refined White Petroleum Products from Local Refineries Period PMS DPK Total (PMS+DPK) Litres Litres Litres Jun-17 14,71,716 45,553, ,264,235 Jul-17 47,97,146 32,213,822 8,183,968 Aug-17 46,2,251 32,436,576 78,438,827 Sep-17 59,874,21 27,591,74 87,465,95 Oct ,376,158 61,933,95 24,31,63 Nov-17 24,454,672 19,977,39 44,432,62 Dec ,74,337 75,482, ,556,561 Jan-18 77,82,28 34,79,28 111,881,488 Feb-18 96,666,284 39,941, ,67,546 Mar-18 14,48,57 48,89, ,37,585 Apr-18 11,19,9 24,752,92 125,861,992 May-18 96,155,21 65,755,18 161,91,39 Jun ,76,546 69,654,42 25,73,588 Jul-18 23,83,56 15,555,82 38,638,642 Total 1,113,124,72 548,263,897 1,661,388,617 Table Total White Petroleum Product Supply from NNPC (DSDP+ Refineries) Period Total Product Supply (OPA, DSDP+Refineries) Average Daily Supply PMS DPK Total PMS DPK Total Litres Litres Litres Litres/Day Litres/Day Litres/Day Jul-17 1,221,24, ,213,822. 1,253,454, ,394, ,39, ,434,7.13 Aug ,984, ,879, ,61,863, ,225, ,28, ,253,669.1 Sep ,332, ,591, ,924, ,544, , ,464, Oct-17 1,621,112, ,221, ,716,333, ,293, ,71, ,365, Nov-17 85,554, ,977, ,531, ,851, , ,517, Dec-17 1,297,14, ,482,224. 1,372,623,13. 41,843, ,434, ,278, Jan-18 1,541,458, ,873, ,69,332, ,724,47.8 2,189, ,913, Feb-18 1,888,283, ,149, ,955,433, ,438, ,398, ,836,9.43 Mar-18 2,487,935, ,89,528. 2,536,826, ,255, ,577, ,833,14.81 Apr-18 1,611,459, ,752,92. 1,636,212, ,715, , ,54,42.1 May-18 1,192,63, ,755,18. 1,258,359, ,471,95.3 2,121, ,592,23.14 Jun-18 1,331,3, ,81, ,444,84, ,366, ,769, ,136, Jul-18 1,213,797, ,248,81.7 1,276,46, ,154, ,8, ,162, Total 18,156,97, ,118, ,92,25, ,28, ,48, ,328, Chart Total White Petroleum Product Supply from NNPC (DSDP + Refineries) Total Petroleum Products Supply From NNPC Via DSDP + Refineries (Million Litres) 3, 2,537 2,5 49 1,955 2, 1,716 1, , ,373 1,444 1, ,5 1,258 1, , , , 28 1,888 1, ,541 1,611 1,221 1,297 1,193 1,331 1, Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 PMS DPK 2 NNPC Monthly Financial and Operations Report July 218

21 Chart Average Daily Petroleum Product Supply from NNPC Daily Average Petroleum Products Supply From NNPC Via DSDP & Refineries (Million Litres) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 PMS DPK 4.3 Downstream Petroleum Product Distributions A total of 2.18billion litres of white products were distributed and sold by PPMC in the month of July 218 compared with 1.46billion litres in the month of June 218. This comprised of 1.84billion litres of PMS,.13billion litres of DPK and.21billion litres of AGO. Total sale of white products for the period July 217 to July 218 stood at 2.16billion litres, PMS amounted to 18.12billion litres or 89.89%. The Tables and Charts below provide more details of white products sold by NNPC/PPMC for the period July 217 to July 218. While total special products for the month of July 218 was 1.7million litres comprising of.87million litres of other special products and 9.83million litres of LPFO 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 Jul-17 1,3,8,655 77,239,65 41,668,59 1,121,916,364 9,766,117 9,766,117 Aug ,24,549 76,733,33 59,916,387 95,674,239 1,131, ,1 11,89,214 Sep-17 1,16,729,279 86,32,344 35,577,171 1,282,68,794 21,776,494 58,563,349 8,339,843 Oct-17 1,119,79, ,344,135 95,724,568 1,352,858,93 63,819,329 5,667, ,486,948 Nov ,965,84 9,339,64 29,666,19 996,97,797 9,76,7 31,68,73 4,756,143 Dec-17 1,474,29,69 123,419,122 5,58,4 1,647,686,591 67,77,378 5,759, ,836,619 Jan ,894,911 76,829,235 62,564,825 1,135,288,971 32,57,595 83,133, ,641,384 Feb-18 1,333,269,67 117,95,93 71,824,28 1,523,44,25 3,122,342,725 46,249,54 3,168,592,229 Mar-18 1,31,321,775 88,586,558 38,15,61 1,427,923,394 13,953,195 28,821,528 42,774,723 Apr-18 2,748,946,982 76,374,96 29,56,35 2,854,882,238 29,74,48 991,1 3,65,58 May-18 2,134,595,58 49,119,635 36,567,551 2,22,282,766 31,551,577 39, 31,941,577 Jun-18 1,319,172,251 77,42,9 66,668,622 1,463,261,773 26,621, ,744, ,365,812 Jul-18 1,841,941, ,497,79 13,484,222 2,184,923,677 9,834,892 87, 1,74,892 Total 18,123,869,94 1,29,158, ,295,533 2,162,322,739 3,447,532, ,828,46 3,922,361,9 21 NNPC Monthly Financial and Operations Report July 218

22 Chart Monthly White Product sales by PPMC 3, 2,5 2, 1,5 1, 5 1, ,3 Total Montly PPMC Product Distribution Sales Volume (Million Litres) 2, , , , ,161 1, , , , , ,749 2,135 1, ,474 1,333 1,31 1, , ,842 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 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 Jul-17 32,355,118 2,491,62 1,344,131 36,19,85 315,36 315,36 Aug-17 26,258,856 2,475,268 1,932,787 3,666, ,81 3,96 357,717 Sep-17 38,69,976 2,876,745 1,185,96 42,753, ,883 1,952,112 2,677,995 Oct-17 36,122,265 4,43,456 3,87,889 43,64,611 2,58,688 1,634,439 3,693,127 Nov-17 29,232,169 3,11,32 988,87 33,232,36 32,536 1,56,2 1,358,538 Dec-17 47,555,131 3,981,262 1,614,787 53,151,18 2,163,786 1,637,395 3,81,181 Jan-18 32,125,642 2,478,362 2,18,22 36,622,225 1,48,632 2,681,735 3,73,367 Feb-18 47,616,752 4,212,533 2,565,15 54,394, ,512,24 1,651, ,164,8 Mar-18 41,978,122 2,857,631 1,226,292 46,62,45 45,13 929,727 1,379,83 Apr-18 91,631,566 2,545,83 985,345 95,162, ,147 33,37 1,2,184 May-18 68,857,922 1,584,54 1,179,598 71,622,25 1,17,793 12,581 1,3,373 Jun-18 43,972,48 2,58,697 2,222,287 48,775, ,389 4,58,139 4,945,527 Jul-18 59,417,473 6,854,767 4,29,168 7,481,49 317,255 28,65 345,319 Average 45,767,346 3,257,975 1,889,635 5,914,956 8,75,89 1,199,62 9,94,952 Chart Average Daily White Products Distribution by PPMC Average Daily PPMC Product Distribution Sales Volume (Million Litres) NNPC Monthly Financial and Operations Report July Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 PMS DPK AGO

23 A total sale of billion was made on the petroleum products for white products by PPMC in the month of July 218 compared with billion sold in the prior month of June 218. Total revenues generated from the sales of white products for the period July 217 to July 218 stands at 2,532.63billion, where PMS contributed about 87.47% of the total sales with a value of 2,215.4billion. 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 Jul ,953,485,44 9,524,3,7 5,563,518, ,41,33,72 79,469,51 79,469,51 Aug-17 93,69,51,167 9,666,286,234 8,88,712, ,364,58,645 82,12,367 9,779,975 91,792,342 Sep ,985,226,142 11,613,643,947 4,821,867, ,42,737,747 1,754,71,62 5,327,542,745 7,82,244,347 Oct ,366,813,41 19,854,34,35 13,342,911, ,563,758,717 5,397,532,767 7,74,734,939 13,138,267,76 Nov-17 18,75,156,293 13,352,953,92 4,31,585,85 125,729,696, 849,61,913 5,33,172,282 6,179,783,195 Dec-17 18,552,465,11 18,615,956,456 7,258,468, 26,426,889,566 6,456,672,159 6,963,48,515 13,42,8,674 Jan ,559,3,137 12,444,44,55 9,192,476,576 16,195,92,263 3,26,39,497 1,65,833,223 13,866,223,72 Feb ,19,116,844 19,249,856,552 1,672,628,42 195,941,61,438 33,129,68 5,82,824,259 5,853,953,867 Mar ,494,231,89 14,96,79,863 5,567,999, ,22,311,417 1,348,18,169 4,934,822,262 6,282,84,431 Apr ,51,964,513 12,36,57,836 4,434,52,5 347,792,524,849 2,82,139, ,275,354 3,139,415,34 May-18 26,38,585,61 8,768,673,918 6,492,77,75 275,57,3,278 12,749,164,736 44,736,9 12,793,91,636 Jun ,778,62,877 14,275,534,351 12,66,173,43 189,714,31,658 2,894,52,391 19,574,423,989 22,468,926,38 Jul ,641,73,4 37,714,76,299 22,489,229,39 283,845,638,378 1,72,494,973 99,797,7 1,172,292,673 Total 2,215,395,864,24 22,346,974, ,886,393,325 2,532,629,231,677 4,246,839,373 66,852,352,144 17,99,191,517 Chart Monthly Sales Revenue from Petroleum Product Distribution Sales Revenue From PPMC Product Distribution (Billion Naira) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 PMS DPK AGO 23 NNPC Monthly Financial and Operations Report July 218

24 mmscfd 4.4 Domestic Gas Supply to the Power Sector A total of 745mmscfd was delivered to the gas fired power plants in the month of July 218 to generate an average power of about 2,898MW compared with the June 218, where an average of 744mmscfd was supplied to generate 2,97MW. The table and chart below provide more details. Table Domestic Gas Supply to the Power Sector & Generation Period Gas Supply To Gas- Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW) % of Total Generation including Hyrdo mmscfd MW % Jul ,655 MW 77.% Aug ,37 MW 71.% Sep ,465 MW 7.1% Oct ,885 MW 74.4% Nov ,115 MW 76.3% Dec ,342 MW 81.4% Jan ,76 MW 76.7% Feb ,346 MW 86.9% Mar ,492 MW 84.1% Apr ,283 MW 82.9% May ,94 MW 8.8% Jun ,97 MW 83.4% Jul ,898 MW 84.7% Average 746 2,983 MW 79.2% Chart Domestic Gas Supply to the Power Sector & Generation 1, , MW 3,492 MW 3,342 MW 3,346 MW 3,283 MW 3,115 MW 2,97 MW 3,76 MW 3,5 MW 2,655 MW 2,885 MW 2,94 MW 2,898 MW 2,465 MW 3, MW 2,37 MW 2,5 MW 689 Gas Supply to Thermal Power plants vs Generation from Thermal Power Plants Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 2, MW 1,5 MW 1, MW 5 MW Gas Supply To Gas-Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW) MW 5.1 Summary of Group Operating Revenue and Expenditure for July 218 Group operating revenue for the month of July 218 stood at N468.52Billion which is N44.68Billion higher than the monthly budgeted revenue following increase in NPDC and PPMC s revenues. Similarly, operating expenditure in the month stood at Billion surpassing the monthly budget by 46.84% due to upsurge in direct and indirect expenses following the gradual implementation of 218 budget approved budget across the Corporation. 24 NNPC Monthly Financial and Operations Report July 218

25 This 36 th edition of the report indicated a trading surplus of 4.88Billion which is lower than the previous month s surplus of 7.15Billion by 31.72% or 2.27Billion. The declined in performance is mainly attributed to reduction in downstream revenue especially, Shipping and NPSC relative to the cost of sales compared with last month. Table 5.1.: Group Financial Performance by Entity SBU/CSU Revenue MONTHLY BUDGET (=N= MILLION) Expense Surplus/ (Deficit) Revenue (=N= MILLION) JUNE, 218 Expense Surplus/ (Deficit) Revenue (=N= MILLION) JULY, 218 Expense Surplus/ (Deficit) Revenue 218 BUDGET Expense PTD (=N= MILLION) Surplus/ (Deficit) NPDC 94,937 17,631 77,35 8,159 55,196 24,963 9,434 69,13 21, , , , ,96 387,83 18,13 IDSL 2,778 2, ,791 1, ,542 1,23 1,519 19,448 14,669 4,778 11,667 6,579 5,88 NETCO 2,212 1, ,745 1, ,982 2, ,482 11,918 3,564 13,58 13,848 (269) Sub-Total ,694 57,295 26,399 95,958 72,817 23, ,486 15,7 549, ,343 47, ,832 NGMC 17,217 13,482 3,735 7,218 1,433 5,785 6,443 3,563 2,88 12,52 94,375 26,146 87,325 52,484 34,841 NGPTC 9,327 1,681 7,646 27,127 23,944 3,182 27,3 23,752 3,252 65,287 11,767 53,52 134, ,226 15,545 Sub-Total ,345 25,377 8,967 33,446 27,315 6, ,87 16,142 79, ,96 171,71 5,386 KRPC 26,8 24,113 2, ,57 (2,98) 36 2,656 (2,35) 187, ,792 18,86 (331) 22,281 (22,613) PHRC 4,13 34,289 5,841 36,173 44,533 (8,36) 19 3,336 (3,318) 28,912 24,24 4,888 14,8 169,545 (28,745) WRPC 31,643 27,82 3,842 23,275 26,445 (3,17) 13,454 18,235 (4,781) 221,53 194,611 26, , ,727 (26,286) Sub-Total ,525 74,35 (14,51) 13,778 24,227 (1,449) 69,12 63,426 86, ,91 347,553 (77,643) RETAIL 23,159 21,955 1,24 13,182 13, ,897 15, , ,686 8, , ,574 3,83 PPMC 144, ,763 2,96 25,715 2,137 5,578 32,25 295,797 6, ,24 916,541 19,664 1,668,758 1,645,391 23,367 NPSC 6,63 4,93 1,7 2,75 3,158 (454) 2,61 5,997 (3,397) 46,221 34,322 11,898 21,635 24,948 (3,313) SHIPPING 4,572 5,9 (518) 2,81 3,173 (1,92) 3,866 7,857 (3,991) 32,6 35,633 (3,627) 17,57 28,81 (11,24) Sub-Total , ,562 4, , ,335 (722) 1,176,546 1,14,181 36,365 1,85,34 1,837,722 12,618 CHQ 18,223 15,19 3, ,523 (17,363) ,15 (12,758) 127,563 15,763 21,81 1,464 91,694 (9,231) VENTURES 1,377 3,13 (1,753) (461) (46) 9,642 21,912 (12,27) 76 6,53 (5,77) Sub-Total ,14 (17,825) ,936 (13,218) 137,25 127,675 9,53 2,224 98,225 (96,1) Grand Total 423, ,748 18,9 41, ,374 7, , ,631 4,884 2,889,56 2,127, ,625 2,936,913 2,862,721 74,192 Note: Revenue 218 ACTUAL SBUs/CSUs retained the excess revenue generated but share Head Office Cost through Corporate Overhead Cost Allocation. NNPC Trading (Duke Oil) and NIDAS Performance are yet to be reported here. However for their details, please refer to quarterly Consolidated Management Account GPIC Performance was captured under the CHQ. Expense Surplus/ (Deficit) Chart 5.1.1: Group Operating Revenue: July 217 July NNPC Group Revenue: July '17 - July '18 (Billion Naira) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 NPDC IDSL NETCO NGMC NGPTC REFINERIES RETAIL PPMC NPSC SHIPPING CHQ/VENTURES 25 NNPC Monthly Financial and Operations Report July 218

26 Chart 5.1.2: Group Operating Expenditure: July 217 July NNPC Group Expendiure: July '17 - July '18 (Billion Naira) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 NPDC IDSL NETCO NGMC NGPTC REFINERIES RETAIL PPMC NPSC SHIPPING CHQ/VENTURES Chart 5.1.3: Monthly Group Surplus/Deficit: July 217 July Monthly NNPC Group Surplus/Deficit: July '17 - July '18(Billion Naira) (1) (2) (11.87) (5.74) (2.81) (.41) (6.79) (6.81) (1.56) (3) (4) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Chart 5.1.4: NNPC Group Surplus/Deficit for the period July 218 3, NNPC Group Surplus/Deficit in YTD 218 (Million Naira) 25, 2, 15, 23,367 15,545 5,88 3, ,313 5,77 11,24 22,613 34,841 26,286 28,745 18,13 9,231 1, 74,192 5, Surplus Deficit 26 NNPC Monthly Financial and Operations Report July 218

27 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 27 NNPC Monthly Financial and Operations Report July 218

28 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 July, 218 which is 5.81% lower than the previous month. Crude oil export sales contributed $ million (72.32%) of the dollar transactions compared with $274.95million contribution in the previous month. Also the export Gas sales amounted to $18.48 million in the month. The July 218 to July 218 Crude Oil and Gas transactions indicated that Crude Oil & Gas worth $5.24 Billion was exported. See Table & Chart overleaf for details. 28 NNPC Monthly Financial and Operations Report July 218

29 Table NNPC/FGN Export Crude Oil & Gas Dollar Accruals, Receipts & Payments NNPC/FGN Export Lifting Only Payment Month Crude Oil Sales Proceed Export Sales Proceed Value Due Gas Sales Proceed Total Oil & Gas Sales Proceed Crude Oil Proceed Receipts 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 Jul ,93,874 96,575,23 448,478,897 35,526,699 64,718,2 14,983,922 43,228,64 363,86,227 66,422,414 Aug-17 38,964,95 124,421, ,386,477 31,342,5 116,561,955 15,569, ,473, ,68,4 154,865,848 Sep ,479, ,69, ,548,6 239,479,415 1,275,556 27,316, ,71, ,596, ,474,998 Oct ,828,174 93,861, ,689, ,657,1 49,9,87 756,82 277,54,7 155,758,25 121,745,83 Nov ,799, ,129, ,928, ,387,149 5,171,85 3,55,583 21,18, ,549,376 56,559,442 Dec ,184,845 15,437, ,622,22 342,158,481 94,847,246 39,24, ,246,61 388,464,81 87,782,52 Jan-18 38,68,53 13,991,54 439,599,17 35,764,13 113,139,139 15,216, ,119,42 327,436,285 16,683,135 Feb ,55,21 11,47, ,552, ,427,225 87,419,454 22,314, ,161, ,472, ,688,732 Mar ,63, ,89, ,412, ,29, ,929,297 3,117, ,336, ,551, ,785,49 Apr ,242, ,181, ,424, ,222, ,686,492 18,667, ,575, ,83,54 124,772,896 May ,721,551 61,73,572 36,425, ,77,646 75,648,32 22,723, ,79, ,911,156 15,168,695 Jun ,946, ,123, ,7,45 274,16, ,52,44 14,378,46 418,58,719 35,66, ,451,988 Jul ,433,274 18,476,43 391,99,74 282,937,4 96,822,677 2,894, ,654, ,75,58 87,948,736 Total 3,718,221,298 1,516,827,626 5,235,48,924 3,711,6,166 1,267,829, ,73,122 5,26,619,661 3,797,269,45 1,49,35,616 Note: Export Crude Oil Sales proceeds are received 3 days after bill of lading date. In July 218, Naira portion of N15,441,534,826 equivalents to a functional Dollar of $5,627,983.4 at a budgeted exchange rate of N35/$ was transferred to JVCR from Domestic Crude Oil receipts in addition to the $294,75,58. Chart Monthly dollar receipts from NNPC/Federation Oil & Gas Exports 7 6 Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports (Million Dollars) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 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 $ million was recorded in July 218 as receipt against $418.6 Million in June 218. Contribution from Crude oil amounted to $ Million while Gas and miscellaneous receipt stood at $96.82 Million and $2.89 Million respectively. 29 NNPC Monthly Financial and Operations Report July 218

30 $/bbl Millions Barrels Of the export receipts, $87.95 Million was remitted to Federation Account while $ Million was remitted to fund the JV cost recovery for the month of July, 218 to guarantee current and future production. Total export crude Oil & Gas receipt for the period July 217 to July 218 stood at $5.21 Billion. Out of which the sum of $3.8 Billion was transferred to JV Cash Call as first line charge and the balance of $1.41 Billion 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) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 JV Cost Recovery Balance Remitance to FAAC In July 218, Naira portion of N15,441,534,826 equivalents to a functional Dollar of $5,627,983.4 at a budgeted exchange rate of N35/$ was transferred to JVCR from Domestic Crude Oil receipts in addition to the $294,75,58. Chart NNPC Federation Lifted Volumes vs. Crude Oil Prices NNPC/Federation Lifted Volumes and Crude Prices Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 NNPC Lifted Volumes Crude Price Source: NNPC Average monthly lifting in tables and of pages 11 & 12 respectively. 3 NNPC Monthly Financial and Operations Report July 218

31 6.4 Naira Payments to Federation Account NNPC transferred the sum of N84.14 Billion into Federation Account for the month under review. From July 217 to July 218, Federation, and JV received the sum N91.5 Billion and N682.2 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. 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 Jul ,767,968,118 14,274,4,12 5,56,852, ,834,892,629 Aug ,833,326,77 166,9,419,827 13,65,752,73 26,635,321 18,757,87,878 Sep ,956,666, ,256,551,636 5,527,49,56 3,, 126,786,61,196 Oct-17 16,577,722,516 88,354,855,533 6,164,54,985 94,518,91,517 Nov ,1,14, ,926,248,911 7,214,825,59 135,141,74,51 Dec ,74,544,869 89,16,972,513 7,57,748,42 96,677,72,555 Jan ,645,129,794 18,983,34,894 2,754,79,93 111,737,419,987 Feb ,49,86,619 39,13,438,453 13,481,44,99 52,584,843,443 Mar ,337,66,757 15,489,893,74 11,437,713, ,927,67,72 Apr ,559,25,729 86,99,84,818 7,242,24,328 94,233,81,146 May ,323,357,66 173,79,826,756 15,435,29, ,145,117,352 Jun ,851,925, ,254,956,169 8,852,677,154 25,17,633,323 Jul ,412,993,796 76,469,837,643 7,945,126,375 84,414,964,18 TOTAL 2,24,425,52,388 1,565,821,222, ,836,816,56 29,635,321 1,678,867,673,615 Chart: Monthly Naira Crude Oil, Gas and other Receipts 25 Domestic Crude Oil, Gas Sales & Other Reciepts (Billion Naira ) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Gas Proceed Receipts Domestic Crude Proceed Receipts Other Receipts 31 NNPC Monthly Financial and Operations Report July 218

32 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 Cost Recovery, FG & Federation Account Receipt/ Payment Month Domestic Crude Cost Domestic Crude Payments Under Recovery Crude Losses Product Losses Pipeline Repairs & Managmet Cost Gas & Other Receipts Total Remittances JV Cost Recovery (Naira Only) Transfer to Federation Account Total Payment To FAAC =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= Jul ,767,968,118 14,274,4,12 1,25,12, ,385,2 46,298,676 13,494,231,481 5,56,852,616 17,328,82,734 56,32,478,63 89,532,413, ,834,892,629 Aug ,833,326,77 115,,, 7,938,985,582 1,137,12,392 16,485,861 18,84,422,416 13,857,388,51 156,79,294,31 83,757,32,233 45,1,85, ,857,388,51 Sep ,956,666,418 86,357,978,999 7,521,59,52 17,76, ,97,386 4,545,139,142 5,53,49,56 14,985,84,278 49,727,218,563 42,16,89,996 91,888,28,559 Oct-17 16,577,722,516 88,354,855,533 6,848,622, ,945,671 14,74,815 1,824,223,972 6,164,54, ,741,777,51 29,985,641,128 64,533,269,39 94,518,91,517 Nov ,1,14, ,926,248,911 16,785,193,827 1,191,496,759 11,9,84 7,5,984,54 7,214,825,59 16,224,839,98 54,16,871,333 8,98,23, ,141,74,51 Dec ,74,544,869 89,16,972,513 15,676,576,185 26,92,436 6,85,78 8,453,678,323 7,57,748,42 12,894,153,26 19,11,881,195 77,566,839,36 96,677,72,555 Jan ,645,129,794 18,983,34,894 45,782,75,844 6,77,873 1,5,56,33 5,812,814,853 2,754,79,93 164,399,28,887 32,92,865,135 79,644,554, ,737,419,987 Feb ,49,86,619 39,13,438,453 59,519,58,738 9,534,649 1,37,38,346 12,47,16,434 13,481,44,99 125,89,491,69 17,431,311,293 35,153,532,15 52,584,843,443 Mar ,337,66,757 15,489,893,74 34,32,433,839 1,172,95,32 81,12,55 8,56,732,2 11,437,713,999 25,774,78,756 88,92,683,486 73,24,923, ,927,67,72 Apr ,559,25,729 86,99,84,818 77,95,112,378 11,32, 1,345,548,413 13,27,429,121 7,242,24, ,81,491,57 2,69,183,97 74,163,897,176 94,233,81,146 May ,323,357,66 173,79,826,756 88,911,776, ,371,626 2,84,45,565 9,227,931,746 15,435,29,596 29,758,647,663 93,767,485,329 95,377,632,22 189,145,117,352 Jun ,851,925, ,254,956,169 68,67,545, ,583,19 1,33,576,925 13,171,176,219 8,852,677, ,612,515, ,267,654,795 83,839,978,528 25,17,633,323 Jul ,412,993,796 76,469,837,643 52,58,31, ,76, ,99,326 5,456,678,212 7,945,126, ,358,12,171 15,441,534,826 68,973,429,192 84,414,964,18 TOTAL 2,24,425,52,388 1,479,22,229, ,287,916,16 5,857,57,717 1,276,382, ,7,457, ,46,451,377 2,231,56,945, ,17,111,915 91,51,569,235 1,592,68,681,151 Chart: Monthly Naira Payments to JV Cash Call, FG and Federation Account Tranfers to JV Cash Call and FG & Federation Account (Billion Naira) Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 JV Cost Recovery (Naira Only) Transfer to Federation Account Note: In July 218, Naira portion of N15,441,534,826 equivalents to a functional Dollar of $5,627,983.4 at a budgeted exchange rate of N35/$ was transferred to JVCR from Domestic Crude Oil receipts in addition to the $294,75, NNPC Monthly Financial and Operations Report July 218

33 7. Key Determinants for Change 7.1 Key events and activities during the period DSDP Crude Oil Allocation In June 218, NNPC allocated about 7.6% 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 Review of PSC Agreement The Corporation (NNPC) has secured approval from the President to undertake a review of all Production Sharing Contracts (PSCs) between it and its various partners to reflect the current realities in the industry. The Repairs of Raptured Gas Pipeline NNPC undertook the repairs of raptured Gas Pipeline which supplies gas to most thermal electricity generating plants in the country. This has boost power generation significantly. Okpai Phase 2 Project As part of efforts to ramp up power supply in the country, NNPC/NOAC JV are fine turning Okpai Phase 2 Project to shore up the current power generation with 5 megawatts of power which will result in increase in the country power generation by between 1 to 12 per cent provided transmission segment is up and running. Ending Fuel Importation NNPC is intensifying efforts towards the rehabilitation of the refineries to meet December, 219 target of ending fuel importation. AKK Projects NNPC is concluding arrangement for the historic groundbreaking of the 4inch x 614km Ajaokuta - Kaduna Kano, (AKK), gas pipeline and stations following the successful execution of contract agreements for the engineering, procurement, construction, commissioning and financing for Lots 1&3 of the over $2.8billion trans-nigeria gas pipeline project. The project is a demonstration of commitment to investing in local gas development and infrastructure. 33 NNPC Monthly Financial and Operations Report July 218

34 7.2 Key challenges The following are the key inhibiting factors that dragged the industry performance: i. BONNY TERMINAL The Nembe Creek Trunk Line (NCTL) was shut down on 8th June 218 due to leaks at San Barth, Owangai and Elem Kalabari. The repair of NCTL was completed and reopened in July 218. The production shut-in was 2, bpd. There was also a complete shutdown of Ogbagi field production into Bonny for condensate spiking. This resulted into production shut-in of about 3,bpd from 27th 3th July ii. FORCADOS TERMINAL The Trans Forcados Pipeline (TFP) was shut down on 3 rd June 218 due to observed leak in the Otegele/ Batan/ Yeye areas. The production shut-in was about 24,bpd. The repair of Trans Forcados Pipeline (TFP) was completed on 16 th June 218. The TRP (Brass Creek / Trans Ramos Pipeline) remained shut down since April 218 due to leak in a creek crossing in the Odimodi area with the loss of approximately 35,bpd of production into Forcados Terminal. The line was down all through the month of June. iii. ERHA TERMINAL Production was shut down from 12 th -13 th June 218 due to power outage. The production shut-in was about 125,bpd. iv. QUA IBOE TERMINAL The terminal was shut down from 4 th 9 th June 218 due to power outage. Production was ramped up following the restoration of power at Qua Iboe Terminal on 1 th June 218. The low production received could not be measured due to power outage 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. 34 NNPC Monthly Financial and Operations Report July 218

35 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 1,858 vandalized points have been recorded between July 217 to July 218 (see chart 7.1). Chart PPMC Pipeline Breaks July 217 July PPMC Pipeline Breaks July July Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Mosimi Kaduna Port Harcourt Warri Gombe NNPC Group Financial Performance January July NNPC Monthly Financial and Operations Report July 218

36 8 Glossary and Definition of Terms AF Alternative Funding (Financing) AGO Automotive Gas Oil B/L Bill of Lading B, BBLS Barrels CA Carry Agreement CBN Central Bank of Nigeria DPK Dual Purpose Kerosene DPR Department of Petroleum Resources DSDP Direct Sales Direct Purchase EGTL Escravos Gas to Liquid FCCU Fluid Catalytic Cracking Unit FAAC Federation Account Allocation Committee FACTI Focused, Accountable, Competitive & Transparent with Integrity FGN Federal Government of Nigeria FIRS Federal Inland Revenue Service IOCs International Oil Companies JV(s) Joint Ventures JVCC Joint Venture Cash Call LPG Liquefied Petroleum Gas MCA Modified Carry Agreement MMBTU Million British Thermal Unit MT Metric Tons NGL Natural Gas Liquid NLNG Nigeria Liquified Natural Gas NNPC Nigerian National Petroleum Corporation NPDC Nigerian Petroleum Development Company OECD Organization for Economic Co-operation and Development OPA Offshore Processing Agreement PMS Premium Motor Spirit PPMC Pipelines and Products Marketing Company PPPRA Petroleum Products Pricing Regulatory Agency PPT Petroleum Profit Tax PSC Production Sharing Contract PTD Period To Date QIT Qua Iboe Terminal QTY Quantity RDP Reserve Development Project SC Service Contract SOF Satellite Oil Field Project TM Trial Marketing TMP Trial Marketing Period WTI West Texas Intermediate YTD Year To Date 36 NNPC Monthly Financial and Operations Report July 218