NNPC. Monthly Report. Financial and Operations Report

Transcription

1 NNPC Monthly Report Financial and Operations Report November 217

2 Disclaimer This publication presents information on the Nigerian oil and gas industry. Its content reflects individual as well as general analysis and trend of activities that characterized the industry within the country. Although NNPC endeavors to ensure accuracy of information in this unaudited report, it cannot guarantee 1% accuracy nor can it be held liable for errors that may be contained therein. Users are to note that use of any information herein is purely at their own discretion. 2 NNPC Monthly Financial and Operations Report November 217

3 Outline 1. Introduction 2. National Crude Oil & Natural Gas Production, Lifting and Utilization 3. Refinery Operations 4. Petroleum Product Supply & Distribution 5. Budget Performance Report 6. Federation Crude Oil & Gas Revenue 7. Key Determinants For Change 8. Glossary 3 NNPC Monthly Financial and Operations Report November 217

4 1 Introduction The international oil price improved to an average of $64.36/b in November, 217, sustained by the rising global oil demand and the near absolute market confidence that OPEC and Non-OPEC would extend the 1.8mb/d production adjustment to ensure market stability. The US inventories draw of over 5mb during the last two weeks also lent support to the recent market rebalancing. Brent Crude Oil Spot Price surged to $62.87/b, a gain of $5.22 relative to previous month of October 217. NYMEX WTI also recorded $56.66/b, adding $5.7 relative to the preceding month performance, while the OPEC Reference Basket (ORB) averaged $6.74/b in November, 217, a feat not seen since June, 215. The OPEC Report indicated that the World economic growth forecast remains stable at 3.7%. The healthy growth momentum is driven by the major economies, Euro-Zone, Japan and, OECD driven by potential upside in US tax reform. India growth decelerates to 6.5%, and Euro-Zone remains at 2.3% while China s growth is forecasted to grow by 6.8%. In Nigeria, the GDP posted relatively strong growth rate in 3Q17 at 1.4% year-on-year being the fastest pace of growth since 4Q15 according to the National Bureau of Statistics (NBS). Global oil demand growth in 217 is projected at 1.53mb/d with total global demand to average 96.94mb/d. OECD Europe contributed to most of the upward revision following solid industrial and transportation demand. China s transport and petrochemical sector has continued to support a healthy oil demand growth. World oil supply increased by.84 mb/d in November 217 relative to previous month to average 97.44mb/d. OPEC oil production averaged 32.45mb/d a slight reduction relative to previous month. Non-OPEC oil supply is estimated to average mb/d being an upward revision of.15mb/d relative to last month. In October, 217, Crude Oil production in Nigeria averaged 1.95mbl/d which represents a slight increase relative to September 217 production but up by 9.86% relative to October 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. Some of the major negative impact to production includes shut-in of over 2,bopd at Qua Iboe, Bonny and Akpo Terminals. The November 217 National Gas production stood at BCF translating to an average daily production of 7,899.1 mmscfd representing.3% decrease compared to the previous month of October 217. While the daily average natural gas supply to gas power plants amounted to mmscfd (or equivalent to power generation of 3,115 MW) and is 7.98% higher than the previous month and 32.92% higher than the corresponding supply recorded in November NNPC Monthly Financial and Operations Report November 217

5 In the downstream sector, NNPC has continued to ensure adequate petroleum products availability in all parts of the Country despite challenges in the downstream petroleum sector. To ensure unimpeded supply of petroleum products and safeguard the environment through reduction of carbon emission, the Nigerian National Petroleum Corporation (NNPC) has signed a Memorandum of Understanding (MoU) with the Ondo State Government to establish a 65, million litres per annum biofuel plant in Okeluse, Ondo State. The project is expected to deliver at least 65 million litres per annum of fuel ethanol that could be blended into Premium Motor Spirit (PMS) and for export. In November 217, a total 9 pipeline points were vandalized, 41 pipeline points failed to be welded while 6 pipeline points were either ruptured or clamped. Thus, 136 pipeline points were destroyed for the month under review. PHC-ABA and ABA-ENUGU pipeline segment accounted for almost 67% of the affected pipeline points. The report indicated a trading deficit of 6.79Billion which is comparatively higher than the previous month s deficit of.41billion. This represents 6.39Billion increased in trading deficit compared to the October 217 performance. The drop in the performance is attributable to the increased cost in upstream activities as well as the reduced revenue in the downstream value chain occasioned by high crude oil inventory in refineries due to unplanned operational shutdown of KRPC and PHRC which led to increase loss from the Refineries in November 217. This is despite improved operational efficiency in PPMC. This 28th edition of the report also highlighted NNPC s activities for the period of November, 216 to November, 217. The Corporation has sustained effective communication with stakeholders through this report via publications on its website and in national dailies. This is in line with the Corporation s commitment to becoming more accountable, responsive, and transparent and a FACTI based Organization. NNPC in return demands continued support from Nigerians especially in areas of security to achieve zero vandalism of the Nation oil & gas infrastructure. Activity update The IDSL, a subsidiary of NNPC and Bureau of Geophysical Prospecting (BGP), a subsidiary of Chinese National Petroleum Corporation (CNPC) agreed to a Joint Venture agreement to acquire 3D marine seismic data using streamer cables, covering a total of 91sq. km within 74-day time schedule. The Nigerian National Petroleum Corporation (NNPC) and the Nigerian Agip Oil Company (NAOC) Joint Venture are to embark on Okpai Phase II Independent 5 NNPC Monthly Financial and Operations Report November 217

6 Power Project (IPP) which is expected to generate additional 48 megawatts (MW) to national grid. The Corporation has also stepped up the resuscitation of some of its critical pipelines and depots. NNPC is exploring possible partnership with Unibio A/S Limited, Danish Company, in the production of animal feeds through conversion of methane gas into protein. 6 NNPC Monthly Financial and Operations Report November 217

7 2 National Crude Oil & Natural Gas Production, Lifting and Utilization 2.1 National Crude Oil & Condensate Production A total of 6.34 million barrels of crude oil & condensate was produced in the month of October 217 representing an average daily production of 1.95million barrels. This represents a decrease of 4.18% compared to September 217 performance. Of the October 217 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 31.25% and 42.91% respectively. While AF, NPDC and Independents accounted for 4.14%, 4% and 6.16% respectively. The tables and charts below provide details of the National Crude Oil Production for the period October 216 to October 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 Oct-16 16,62,683 28,654,62 6,426,155 1,376,79 2,43,453 54,923,62 1,771,73 Nov-16 18,776,344 27,253,176 8,146,24 1,238,37 2,44,686 57,854,6 1,928,487 Dec-16 18,48,538 21,985,5 4,936,297 1,235,48 2,676,594 48,881,977 1,576,838 Jan-17 16,23,623 28,22,745 8,57,624 1,179,155 2,77,951 56,954,98 1,837,229 Feb-17 14,435,492 25,71,2 6,92,45 1,122,621 2,739,528 5,91,246 1,817,92 Mar-17 14,913,967 22,622,74 7,76,966 1,95,16 3,229,166 49,567,855 1,598,963 Apr-17 16,764,871 24,739,716 8,222,131 1,83,758 2,983,645 53,794,121 1,793,137 May-17 19,815,838 27,237,239 6,869,7 1,555,621 2,746,34 58,224,738 1,878,217 Jun-17 17,316,961 25,283,637 7,764,397 3,536,242 4,71,828 58,63,65 1,953,436 Jul-17 18,454,17 27,124,92 8,278,33 3,956,272 4,65,824 62,463,625 2,14,956 Aug-17 2,1,666 25,837,13 6,498,88 4,342,668 5,44,442 61,823,669 1,994,312 Sep-17 17,48,213 25,55,812 7,654,19 4,631,183 3,53,782 57,92,99 1,93,67 Oct-17 18,855,5 25,893,649 7,939,815 3,934,522 3,717,99 6,34,9 1,946,481 PTD 226,823,38 335,591,139 95,915,833 3,287,185 43,636, ,253,613 1,849,125 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 October 17 was 1,947,18bbls. 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: November 16 November Total Monthly Crude Oil & Condensate Production (Million Barrels) Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 JVs PSC AF NPDC Independent / Marginal Fields 7 NNPC Monthly Financial and Operations Report November 217

8 Chart 2.1.2: Average Daily Crude Oil & Condensate Production & Percentage distribution Average Daily Crude Oil & Condensate Production (Million Barrels/Day) PTD Percentage Distribution of Crude Oil Production by Commercial Arrangements 4% 13.1% 6% 31.% JVs PSC AF % NPDC Independent / Marginal Fields Table 2.1.2: NPDC monthly Crude oil & Condensate Production Field/Company Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 PTD Block NPDC Owned Direct Operated Assets Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Abura OML 65 87,743 8,155 7, , , , ,35 196,167 1,19,411 Oredo OML 111 8,65 2,673 4,472 6,84 155, ,412 29,384 35,182 42,92 71,577 Oziengbe OML ,544 1,471 23,268 15,39 56,96 Okono_Okpoho OML , , , ,98 635, , , , , , , , ,895 8,789,277 SUB-TOTAL 859, ,53 731, ,98 646, , ,832 76, ,358 1,79,85 1,18, ,33 879,544 1,656,361 NPDC JV Direct Operated Assets Ogini_Isoko/FHN OML 26 14,561 4,125 7,263 12,641 9,649 9,993 36,936 69,896 79,123 82,192 63,499 86, ,616 Opuama/Elcrest OML 4 21, ,412 57,456 22, ,72 191,9 21,75 29,14 2, ,896 1,31,791 Batan_Odidi/Neconde OML 42 91,84 87, , ,237 22,53 157,54 31, , ,536 64,27 857,44 744, ,681 4,727,716 Afiesere_Kokori/Shoreline OML 3 32,48 33,648 7, , , ,924 87, , , ,84 4,175,912 Utorogu_Ughelli/NDW OML 34 18, ,123 1,348 69,416 71,95 62,381 69,56 125,8 167, , ,825 1,33,75 218,517 3,16,38 SUB-TOTAL 247,14 284, , ,377 44,21 286,54 255, ,4 1,66,543 2,,614 2,25,293 2,995,977 2,149,636 13,698,74 NPDC JV Non-Operated Assets OBEN_Amukpe_Sapele/SEPLAT OML 4,38&41 27, , , ,798 71,53 14, , , , ,853 1,28,53 761,173 95,342 5,932,75 SUB-TOTAL 27, , , ,798 71,53 14, , , , ,853 1,28,53 761,173 95,342 5,932,75 GRAND TOTAL 1,376,79 1,238,37 1,235,48 1,179,155 1,122,621 1,95,16 1,83,758 1,555,621 3,536,242 3,956,272 4,342,668 4,631,183 3,934,522 3,287,185 Average Daily Production 44,41 41,279 39,84 38,37 4,94 35,323 36,125 5, , ,622 14,86 154, ,92 76,483 The NPDC October 216 to October 217 cumulative production from all fields amounted to 3,287,185 barrels of Crude oil which translated to an average daily production of 76,483 barrels per day. Comparing PTD NPDC performance to National Production, the company s production share amounted to 4.14%. NPDC production continued to improve as a result of success recorded in repairs of vandalized pipeline in the Niger-Delta and resumption of Crude Oil lifting activities at Forcados Terminal. NPDC is projected to ramp-up production level to 25,bp/d in the near future. Production from NPDC wholly operated assets amounted to 1,656,361 barrels (or 35.18% of the total NPDC production) with Okono Okpoho (OML 119) alone producing 82.5% of the NPDC wholly owned operated Assets or 29.2% of the total NPDC production. Also on the NPDC operated JV assets, in which NPDC owns 55% controlling interest, Crude Oil production amounted to 13,698,74 barrel (or 45.23% of the NPDC total production). On the Non-operated assets, production level stood at 5,932,75 barrels or 19.59% of the company s production. 8 NNPC Monthly Financial and Operations Report November 217

9 Chart NPDC Monthly Crude Oil & Condensate Productions 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 1, NPDC Crude Monthly Production (Thousand Barrels) 1,238 1,235 1,179 1,123 1,95 1, , , ,67 3, ,1 4,343 1,29 2, ,8 1,19 4, ,996 3, , Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 NPDC Owned Direct Operated Assets NPDC JV Direct Operated Assets NPDC JV Non-Operated Assets Chart NPDC Monthly Average Daily Crude Production by Field NPDC Average Daily Crude Oil Production (Thousand Barrels/Day) Okono_Okpoho OBEN_Amukpe_Sapele Batan_Odidi/Neconde Afiesere_Kokori/Shore NPDC PTD Ranking by Field (Thousand Barrels) 4,176 5,933 4,728 8,789 1 Utorogu_Ughelli/NDW 3,16 8 Opuama/Elcrest 1, Abura Oredo 1, Ogini_Isoko/FHN 477 Oziengbe 56 4, 8, 12, 2.2. National Gas Production A total of Billion Cubic Feet (BCF) of natural gas was produced in the month of November 217 translating to an average daily production of 7,899 Million Standard Cubic Feet Per Day (mmscfd). For the period November 216 to November 217, a total of 3,2.5 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 69.44%, 22.61% and 7.96% respectively to the total national gas production. The table and charts overleaf provide details of the national gas production for the period November 216 to November NNPC Monthly Financial and Operations Report November 217

10 Table 2.2.1: National Gas Production by Regime Total Monthly Production Daily Average Production PERIOD JV PSC NPDC TOTAL BCF BCF BCF BCF Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total 2, ,2.5 PERIOD JV PSC NPDC TOTAL mmscfd mmscfd mmscfd mmscfd Nov-16 5, , , Dec-16 5, , ,1.9 Jan-17 5, , ,46.2 Feb-17 4, , , Mar-17 5, , , Apr-17 5,826. 1, ,77.19 May-17 5, , , Jun-17 5, , ,571.5 Jul-17 5,3.78 1, , Aug-17 5, , ,71.79 Sep-17 5, , ,431.6 Oct-17 5, , , Nov-17 5, , ,899.1 Average 5,38.4 1, , 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 7,63 7,829 7,925 7,46 7,11 7,255 7,32 7,571 7,711 7, ,758 1,763 1,752 1,474 1,8 1,764 1,666 1,792 1,829 1,718 1,697 8,174 7, ,771 1,682 5,289 5,65 5,149 4,951 5,162 5,826 5,556 5,82 5,31 5,278 5,112 5,763 5,476 JV PSC NPDC Chart 2.2.2: Monthly National Gas Production & Percentage Distribution Total Monthly Natural Gas Production (BCF) Percentage Distribution of Upstream Gas Production- November November 217 Average 8.% JV % PSC % NPDC 1 NNPC Monthly Financial and Operations Report November 217

11 2.3 Crude Oil & Condensate Lifting & utilization A total volume of million barrels of crude oil and condensate was lifted in the month of October 217 by all parties. Out of this volume, 19.1 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 1.72 million barrels and 5.77 million was superintended for FIRS and DPR respectively. Of the FIRS liftings 2.87 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 Oct-16 4,16, ,489 1,943,53 11,91,838 13,844,891 18,49,253 35,27, , 53,384,947 Nov-16 3,921,311 2,169,768 2,243,42 13,584,651 15,828,53 21,919,132 42,39,53 1,194, 65,53,185 Dec-16 4,494,376 77, 1,777,48 9,422,823 11,2,33 16,464,679 32,159,329 28, 48,94,8 Jan-17 3,532, , 2,846,59 8,993,48 11,839,638 15,953,96 36,399,715 1,8, 53,361,675 Feb-17 5,988,451 1,69, 4,63,126 5,693,92 1,324,28 18,2,479 3,948,39 159, 49,19,518 Mar-17 3,21, ,2 1,428,49 1,927,538 12,355,947 15,518,582 33,735, , 49,812,525 Apr-17 4,546,69 1,414,539 2,62,933 1,297,662 12,918,595 18,879,23 31,43,855 1,268,126 51,191,184 May-17 4,842,786 14, 3,478,582 12,67,544 16,86,126 21,68,912 39,84, , 61,7,287 Jun-17 3,87,267 19, 7,61,969 9,53,59 17,15,559 21,165,826 34,876,868 26, 56,68,694 Jul-17 7,746, ,7 6,349,55 7,26,34 13,555,854 21,564,788 4,43,794 1,86,79 63,775,372 Aug-17 2,448,119 1,267,54 4,599,572 9,76,674 14,36,246 18,21,419 41,79,311 1,4, 6,5,73 Sep-17 4,32, ,519 4,8,861 6,452,172 1,461,33 15,432,2 45,698,16 3,559,312 64,689,492 Oct-17 5,773,143 1,72,36 2,561,37 9,2,59 11,563,546 19,56,995 33,911,195 2,183,483 55,151,673 TOTAL 58,53,854 11,23,575 46,89, ,3, ,389, ,97, ,694,331 14,361, ,153,29 Note: FIRS (PSC) DPR (PSC) NIGERIAN GOVERNMENT FEDERATION EXPORT DOMESTIC SUB-TOTAL (NNPC) SUB-TOTAL GOVERNMENT LIFTING IOCs & INDEPENDENTS (INC. NPDC) 11 NNPC Monthly Financial and Operations Report November 217 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 October 217, 9 million barrels and 2.56 million barrels were for domestic and export markets respectively. At an average oil price of $58.92/barrel and exchange rate of N34.75/$, the domestic crude oil lifted by NNPC is valued at $53,416,321 or a Naira equivalent of N161,645,129,794 in September 217. The remaining crude oil lifted for export was valued at $147,799,226 at an average price of $57.71/barrel. The total value of crude oil lifted on the account of NNPC in October 217 was thus $678,215,547. From October 216 to October 217, a total volume of million barrels of crude oil and condensate was lifted by all parties. The tables above and charts overleaf provide the details of crude oil and condensate lifting and their corresponding accrual values for the period October 216 to October 217.

12 Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements Monthly Lifting Entitlement (Million Barrels) Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-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 Oct-16 23,824,153 9,36,579 96,311, ,575, ,887,127 93,17,859 1,847,87,246 6,441,196 2,757,266,31 Nov ,943,887 93,357,159 1,367, ,685,928 73,53,676 1,1,354,722 1,896,492,89 57,884,752 2,955,731,563 Dec-16 24,11,215 41,15,57 93,965,963 59,663,435 63,629, ,746,182 1,7,93,566 15,267,92 2,6,17,668 Jan ,919,32 32,21, ,651, 498,3,69 655,654,69 884,594,73 2,15,93,749 55,211,751 2,955,71,24 Feb ,632,888 92,396,38 255,498,86 311,957, ,456, ,485,419 1,77,769,296 8,769,164 2,75,23,879 Mar ,659,432 6,735,341 71,814,31 566,554, ,368, ,763,238 1,696,99,267 27,917,668 2,523,78,173 Apr ,97,527 69,623,49 133,81, ,63, ,414,42 977,134,617 1,584,928,361 66,976,14 2,629,39,82 May ,548,132 6,75,58 175,461, ,112,18 814,573,835 1,64,827,547 2,9,572,8 4,549,37 3,114,948,862 Jun ,786,949 1,23,28 351,93, ,22,67 795,15, ,96,17 1,614,49,268 1,23,28 2,588,789,717 Jul ,531,65 12,5,149 38,964,95 349,549, ,514,667 1,44,51,421 1,966,21,91 9,364,828 3,1,438,149 Aug ,587,422 67,677, ,479,415 52,248, ,727, ,992,535 2,138,818,432 7,45,72 3,146,261,687 Sep ,498,741 37,598, ,828, ,823,11 597,651, ,748,16 2,597,78,97 27,616,29 3,684,443,276 Oct ,994,35 1,575, ,799,226 53,416, ,215,547 1,115,785,776 1,957,38, ,625,38 3,24,449,452 TOTAL 3,39,125,575 57,22,729 2,36,856,748 6,483,395,298 8,844,252,46 12,453,598,35 24,732,113,725 78,277,937 37,965,99,12 AF GRAND TOTAL Note: IOCs, Independents, & AF values include government taxes and royalties superintended by FIRS and DPR respectively. For more information on crude oil lifting by Company and Crude Destination click the link. Chart Government Crude Oil Lifting and utilization on Account of NNPC Government Crude Oil Lifting & Utilisation (Million Barrels) Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 DOMESTIC FEDERATION EXPORT 12 NNPC Monthly Financial and Operations Report November 217

13 2.4 Utilization of Crude Oil for Domestic Product Supply In October 217, NNPC lifted 9,2,59 barrels of Crude Oil for domestic utilization translating to an average volume of 29,43.52 barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of October 217 about 5,693,877 barrels was processed under the Direct-Sales-Direct Purchase (DSDP) scheme and the balance of 2,359,74. 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 October 216 to October 217. Table Domestic Crude Purchased By NNPC Period Volume Ave. Price Sales Value Sales Value Average Lifting Barrels $/bbl USD NGN Barrels Per Day Oct-16 11,91, ,575, ,622,99, ,93.26 Nov-16 13,584, ,685, ,476,32, ,821.7 Dec-16 9,422, ,663, ,937,684, ,962.3 Jan-17 8,993, ,3, ,392,933, ,98.32 Feb-17 5,693, ,957, ,913,22, , Mar-17 1,927, ,554, ,515,74, ,51.23 Apr-17 1,297, ,63, ,767,968, ,255.4 May-17 12,67, ,112, ,833,326, , Jun-17 9,53, ,22, ,956,666, , Jul-17 7,26, ,549, ,577,722, , Aug-17 9,76, ,248, ,1,14, , Sep-17 6,452, ,823, ,74,544, ,72.4 Oct-17 9,2, ,416, ,645,129, ,43.52 Total/Ave 125,3, ,483,395, ,974,388,884, , Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels) Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 OPA DIRECT EXPORT REFINERY DSDP 13 NNPC Monthly Financial and Operations Report November 217

14 Table Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply Month EXPORT OFFSHORE PROCESSING DELIVERIES TO REFINERIES DIRECT SALES DIRECT PURCHASE TOTAL Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Qty (' Bbls) Value in US$'Mn Naira'Mn Oct , , , , , , ,622.1 Nov , , , , , , ,476.3 Dec , , , , , , , Jan , , , ,7.4 8, , Feb , , , , , ,913.2 Mar , , , , , , , Apr , , , , , , , May , , , , , , Jun , , , , , , Jul , , , ,62.3 7, , Aug , , , , , ,1.1 Sep , , , , ,74.54 Oct , , , , , , , PTD 4, , , , , , , , ,414, ,3.26 6, ,974, Chart 2.4.3: Percentage Distribution for October 217 Domestic Crude Utilization October 217 Crude Oil Utilization For Domestic Product Consumption PTD Crude Oil Utilization For Domestic Product Consumption REFINERY 3.8% REFINERY 26.21% 23.7% OPA OPA.8% DSDP DSDP 63.25% DIRECT EXPORT 71.8% DIRECT EXPORT 2.5 Natural Gas Off take, Commercialization & Utilization Out of the BCF of gas supplied in November 217, a total of BCF of gas was commercialized comprising of BCF and BCF for the domestic and export market respectively as shown in Table This translates to an average daily supply of 1, mmscfd of gas to the domestic market and 3, mmscfd of gas supplied to the export market as shown in Table This implies that 57.71% of the average daily gas produced was commercialized while the balance of 42.49% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 11.8% for the month of November 217 i.e mmscfd compared with average Gas flare rate of 1.9% i.e mmscfd for the period November 216 to November NNPC Monthly Financial and Operations Report November 217

15 Table Total Gas Commercialization and utilization Period Domestic Gas To Power Domestic Gas Domestic Gas to Industry Total Domestic Gas Supply Gas Commercialisation Export Gas WAPG EGTL NGL/ LPG NLNG Total Export Gas Non-Commercialized Gas Re-Injection Fuel Gas Flare Total Non- Commerialized Gas Grand Total BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total , , , , Note: For more details on Gas Liftings follow this link Total gas supply for the period November 216 to November 217 stood at 2, BCF out of which 42.43BCF and 1, BCF were for the domestic and export market respectively and Commercialized while Gas Injected, Fuel gas and Gas flared stood at 1, BCF. The table and chart provides more details of the gas utilization and commercialization for the period November 216 to November 217. Chart November 16 November 17 Percent Distribution of Gas Utilization PTD Year Average Percentage Distribution of Gas Utilisation November 217 Percentage Distribution of Gas Utilisation 13.4% Total Gas To Domestic 14.9% Total Gas To Domestic 42.1% Total Gas To Export 42.3% Total Gas To Export 44.5% Gas - Injected/Fuel Gas/Gas Flared 42.8% Gas - Injected/Fuel Gas/Gas Flared As shown in Table overleaf, out of the 1, mmscfd of gas supplied to the domestic market in November 217, about mmscfd of gas representing 63.11% was supplied to Gas-Fired power plants while the balance of mmscfd or 36.89% was supplied to other industries. Similarly, for the period of November 216 to November 217 an average of 1,21.64 mmscfd of gas was supplied to the domestic market comprising of an average of mmscfd or (61.74%) as gas supply to the power plants and mmscfd or (38.26%) as gas supply to industries. 15 NNPC Monthly Financial and Operations Report November 217

16 Table Total Average Daily Gas Commercialization and utilization Period Domestic Gas To Power Domestic Gas Domestic Gas to Industry Total Gas To Domestic Gas Commercialisation Export Gas WAPG EGTL NGL/LPG NLNG Total Gas To Export Non-Commercialized Gas Re-Injection Fuel Gas Flare Total Non- Commerialized Gas Grand Total mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd Nov , , , , ,51.3 Dec , , , , , Jan , , , , ,245.4 Feb , , , , ,124.4 Mar , , , , , ,298.9 Apr , , , , , ,75.53 May , , , , , ,87.94 Jun , , , , , , Jul , , , , , ,91.59 Aug , , , , , , Sep , , , , , , Oct , , , , , ,155.9 Nov , , , , , , Average , ,86.3 3, , , , About 3,24.46 mmscfd or 89.55% of the export gas was sent to Nigerian Liquefied Natural Gas Company (NLNG) Bonny for November 217 compared with the period (November 216 to November 217) average of 3,86.3 mmscfd or 91.65% 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, 7,51 3,253 6,921 7,245 7,124 7,298 2,868 3,198 3,118 2,928 8,76 7,88 3,358 3,11 7,557 3,134 7,92 3,26 7,666 3,235 7,375 3,189 8,156 3,478 7,893 3,339 4, 3, 2, 3,398 3,263 3,339 3,58 3,26 3,616 3,553 3,279 3,527 3,48 3,16 3,536 3,377 1, ,19 1,11 1,146 1,145 1,115 1,23 1,26 1,142 1,177 Total Gas To Domestic Total Gas To Export Total Non-Commerialized Gas 16 NNPC Monthly Financial and Operations Report November 217

17 3 Refinery Operations 3.1 Capacity Utilization Total Crude processed by WRPC out of the three domestic Refineries (KRPC, PHRC & WRPC) for the month of November 217 was 17,748 MT which translates to a combined yield efficiency of 87.94% compared to crude processed in October 217 of 331,75 MT which translates to a combined yield efficiency of 9.48%. Table 3.1.1: Monthly Consolidated Refineries Operational Performance Operational Parameters Units Consolidated Refineries Operations Total Opening Stock (A) MT 431,36 569,93 679,5 447,15 414, ,56 442,939 57, , ,257 51, , ,774 6,641,353 Crude Received (B) MT 551, , ,47 567, , , ,2 331, ,24 21, ,126 37,644 18,697 5,212,528 Crude Transferred to KRPC (C) MT -18,23-75,85-45,55-1,3-181,124-19, ,55-85,473-3,16-9,654-19, ,112,574 Total Crude Available (D=A+B-C) MT 82, ,999 1,129, , ,85 92,94 935,94 753, , ,524 73, , ,76 1,741,37 Closing Stock (E=D-F) MT 569,93 68,1 438,73 42, , ,22 51, , ,47 59, ,42 564,64 637,328 6,856,27 Crude Processed (F) MT 232, , , , ,18 447, , , , , , ,75 17,748 3,885,1 (i) Finished Products MT 178,17 121, , , ,164 37,946 35,76 222,585 16,642 95, , ,222 55,187 2,866,455 (ii) Intermediate Products MT 24,599-4, , ,983-59,791 95,42 22,79-21,731 39,492 53,496-47,837 71,919 39, ,762 (iii) Plant Consumption MT 23,978 22,288 3,915 41,729 24,241 37,884 52,3 25,315 18,639 21,418 19,851 25,356 9, ,873 (iv) Losses MT 6,84 2,647 5,96 5,825 6,566 6,866 8,894 5,666 5,811 8,325 5,443 6,28 3,77 78,11 Plant Capacity kpd Capacity Utilization % 12.78% 7.55% 36.73% 29.6% 13.46% 24.59% 23.9% 12.73% 11.94% 9.5% 6.34% 17.63% 5.92% 16.21% Losses % 2.61% 1.86%.85% 1.18% 2.59% 1.53% 2.5% 2.44% 2.59% 4.66% 4.71% 1.87% 3.5% 2.1% Plant Consumption % 1.3% 15.7% 4.47% 8.45% 9.57% 8.46% 11.98% 1.92% 8.3% 11.98% 17.2% 7.64% 8.57% 9.8% Yields Efficiency based on CDU, CRU & FCC (%) % 87.8% 82.44% 94.67% 9.37% 87.83% 9.1% 85.98% 86.64% 89.11% 83.36% 78.9% 9.48% 87.94% 88.91% Note: KRPC received their crude via WRPC. For the month of November 217, the three Refineries produced 55,187 MT of finished Petroleum Products and 39,562 MT of intermediate products out of 17,748 MT of Crude processed at a combined capacity utilization of 5.92% compared to 17.63% combined capacity utilization achieved in the month of October 217. The decrease in operational performance recorded was attributed to decline in crude processed by WRPC while PHRC & KRPC remains shut down during the month under review. The ongoing revamping of the Refineries will enhance capacity utilization once completed. Chart 3.1.1: Monthly Refineries Consolidated Capacity Utilization 4% 35% 36.73% 3% 25% 29.6% 24.59% 23.9% 2% 17.63% 15% 1% 5% 12.78% 7.55% 13.46% 12.73% 11.94% 9.5% 6.34% 5.92% % 17 NNPC Monthly Financial and Operations Report November 217

18 Table Refineries Monthly Operations Operational Parameters Units Total WRPC Opening Stock (A) MT 158,48 194, , ,11 2,825 23, ,75 163, , ,69 61, ,62 173,873 2,181,89 Crude Received (B) MT 216,482 78, ,19 177,463 18, ,233 25,774 92,3 5,554 69,946 14,42 44,748 14,12 1,81,749 Crude Transferred to KRPC (C) MT -18,23-75,85-45,55-1,3-181,124-19, ,55-85,473-3,16-9,654-19, ,112,574 Total Crude Available (D=A+B-C) MT 194, , , ,543 2,562 28, ,424 17,16 189, , , , ,58 2,879,264 Closing Stock (E=D-F) MT 194, , ,177 27,125 2, , ,424 17,16 179,386 63, , ,163 25,832 2,231,53 Crude Processed (F) MT 224,958 22,418 5,753 9, ,788 53,25 17, ,761 (i) Finished Products MT 45,754 27,965 79,91 15,545 23,857 4,439-3, ,11 68,717 28,481 27,38 55, ,326 (ii) Intermediate Products MT -57,65-32, ,536 2,93-32,878 2,654 1, ,563 1,721-37,525 17,451 41, ,328 (iii) Plant Consumption MT 8,282 3,596 5,637 3,74 6,267 6,398 1,945 3,61 6,391 4,899 5,39 7,366 61,955 (iv) Losses MT 3, ,754 1, ,958 4,145 3,47 3,77 24,153 Plant Capacity kpd Capacity Utilization %.%.% 42.56% 4.7%.% 9.92%.%.% 1.87% 33.83%.% 1.7% 21.7% 9.62% Losses %.%.%.39% 3.88%.% 2.49%.%.% 3.86% 1.65%.% 6.4% 3.5% 3.73% Plant Consumption %.%.% 2.51% 13.71%.% 12.61%.%.% 3.95% 3.57%.% 9.47% 6.84% 9.56% Yields Efficiency based on CDU, CRU & FCC (%) %.%.% 97.11% 82.41%.% 84.91%.%.% 65.19% 94.77%.% 84.13% 89.66% 86.71% Operational Parameters Units PHRC Opening Stock (A) MT 16,24 136,33 243, , , , , , ,412 81,236 24,445 17,71 155,16 2,115,444 Crude Received (B) MT 28, ,99 261,61 39,371 14,81 269,53 296,5 178, , ,588 81,76 262,896 4,595 2,61,13 Total Crude Available (C=A+B) MT 368,81 385,132 54, , ,383 44,976 48,86 355, ,929 21, , ,66 195,71 4,716,574 Closing Stock (D=C-E) MT 136,33 243, , , , , , ,412 81,236 21,824 17,71 155,16 195,71 2,157,32 Crude Processed (E) MT 232, , , , ,91 256,121 34, , , , ,5 2,559,254 (i) Finished Products MT 121,267 93, , ,22 143, , , ,77 135,762 22,314 19,53 2,914 1,939,938 (ii) Intermediate Products MT 11,327 36,889 77,716 85,636-42,69 53,74 17,77 12,961 63,387-34,194-4,36 63, ,192 (iii) Plant Consumption MT 7,131 9,967 9,467 12,811 12,11 11,972 28,94 15,439 1,575 6,744 8,676 11,37 144,356 (iv) Losses MT 3,43 1,946 3,3 2,997 1,925 3,686 7,1 5,666 4,969 5,136 1,298 2,81 43,768 Plant Capacity kpd Capacity Utilization % 27.9% 15.99% 38.51% 4.73% 12.94% 29.81% 34.29% 26.98% 24.18%.% 13.44% 31.37%.% 22.62% Losses % 1.31% 1.37%.97%.92% 1.68% 1.44% 2.3% 2.44% 2.31%.% 1.12% 1.1%.% 1.71% Plant Consumption % 3.6% 7.2% 2.77% 3.92% 1.54% 4.67% 9.23% 6.66% 4.93%.% 7.52% 4.8%.% 5.64% Yields Efficiency based on CDU, CRU & FCC (%) % 95.63% 91.61% 96.27% 95.16% 87.79% 93.89% 88.47% 9.9% 92.76%.% 91.36% 94.91%.% 92.65% Operational Parameters Units KRPC Opening Stock (A) MT 112, ,543 24, ,192 67,896 13,59 112, , , , , , ,795 2,344,82 Crude Received (B) MT 126,759 16,778 8, , , ,241 6,51 4,953 2,387 8,649 Total Crude Available (C=A+B) MT 239, , , ,65 241,86 253, ,62 228, , , , , ,795 3,145,469 Closing Stock (D=C-E) MT 239, , ,75 67,896 13,59 112, , , , , , , ,795 2,467,384 Crude Processed (E) MT 124, ,79 138,27 14, , ,85 (i) Finished Products MT 11, ,25 9, ,742 8,748 12,331 25, , ,191 (ii) Intermediate Products MT 19,663 9,119 43,477 26,417 15,777 38,684 3,759 35,641 6,332 13,31 6,276 8,947 1,863 27,242 (iii) Plant Consumption MT 8,565 8,725 15,811 25,844 5,864 19,514 21,991 9,876 5,3 8,283 6,276 8,947 1, ,562 (iv) Losses MT 12 1,73 1,959 1,887 1,918 1, ,9 Plant Capacity kpd Capacity Utilization %.%.% 26.72% 34.45% 29.73% 31.3% 27.95%.%.%.%.%.%.% 11.44% Losses %.%.% 1.39% 1.35% 1.36% 1.36% 1.46%.%.%.%.%.%.% 1.49% Plant Consumption %.%.% 12.72% 17.86% 4.24% 13.85% 16.92%.%.%.%.%.%.% 21.61% Yields Efficiency based on CDU, CRU & FCC (%) %.%.% 85.88% 8.79% 94.39% 84.79% 81.62%.%.%.%.%.%.% 76.9% Note: For more details on breakdown for Refineries Crude grade received follow this link. 18 NNPC Monthly Financial and Operations Report November 217

19 .%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.% 4.7% 9.9% 1.1% 16.% 12.9% 13.4% 21.1% 27.1% 26.7% 29.7% 42.6% 38.5% 4.7% 34.4% 29.8% 31.3% 34.3% 27.9% 27.% 24.2% 33.8% 31.4% Chart 3.1.2: Refineries Capacity Utilization 6% 5% 4% 3% 2% 1% % WRPC PHRC KRPC 3.2 Refineries Economics for period of November 217 The Corporation has been adopting a Merchant Plant Refineries Business Model since January 217. The model takes cognizance of the Products Worth and Crude Costs. The combined value of output by the three refineries (at import parity price) for the month of November 217 amounted to 13.8billion while the associated Crude plus freight costs and operational expenses were 15.21billion and 9.2billion respectively. This resulted to an operating deficit of 11.15billion by the refineries as shown in Table 3.2. Also, during the period under review, refineries combined capacity utilization was 5.92%. Table 3.2 Refinery Financial Performance November November 217 Description NGN NGN NGN NGN NGN NGN NGN NGN NGN NGN NGN Million NGN Million Million Million Million Million Million Million Million Million Million Million NGN Million WRPC Revenue 6, , , , , , , , , , 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 (2,181.65) (1,863.77) (1,783.51) (1,678.11) (1,764.16) (1,684.22) (1,944.8) (1,745.24) (2,3.9) (2,573.21) (2,73.46) (2,118.68) (3,85.78) Operating Surplus/Deficit 4, , (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) KRPC Revenue 2, , , , , , (588.35) (663.52) (676.26) (627.31) (854.47) (165.5) Crude + Frieght (COGS) (2,32.6) (1,99.37) (16,116.74) (18,16.79) (22,65.54) (16,1.37) (14,96.53) Opex (2,77.33) (3,344.5) (3,21.32) (4,135.13) (2,455.81) (2,354.16) (3,65.65) (2,872.94) (2,937.79) (2,914.37) (3,152.21) (3,84.74) (2,9.74) Operating Surplus/Deficit (2,697.15) (4,362.9) (2,163.23) (1,12.25) (1,173.13) (2,335.7) (3,461.29) (3,61.32) (3,59.63) (3,779.52) (3,939.21) (3,65.79) PHRC Revenue 31, , , , , , , , , , , , Crude + Frieght (COGS) (26,958.2) (17,652.1) (42,972.13) (42,63.28) (13,526.84) (29,18.94) (35,18.7) (24,737.1) (22,927.21). (12,781.5) (34,697.93). Opex (4,39.8) (3,456.75) (2,521.62) (2,691.87) (3,732.7) (3,562.35) (3,756.71) (4,469.86) (4,242.44) (2,925.97) (3,392.) (3,742.13) (3,34.14) Operating Surplus/Deficit , , , , , , , (2,634.61) , (9.35) (3,32.19) Consolidated Revenue 4, , , , , , , , , , , , ,84.12 Crude + Frieght (COGS) (28,99.8) (18,751.38) (88,242.32) (62,989.66) (39,86.98) (51,498.99) (5,14.6) (24,737.1) (24,131.97) (21,324.45) (13,38.51) (42,84.39) (15,28.27) Opex (8,991.78) (8,664.57) (7,515.45) (8,55.1) (7,952.4) (7,6.73) (9,36.43) (9,88.4) (9,211.14) (8,413.55) (8,617.67) (8,945.55) (9,2.66) Operating Surplus/Deficit 2, , (522.82) 3, , , , (8,517.78) (4,636.29) (3,518.6) (7,762.25) (11,144.81) 19 NNPC Monthly Financial and Operations Report November 217

20 4 Petroleum Product Supply & Distribution 4.1 Petroleum Product Supply from Direct sales Direct Purchase (DSDP) In November 217, million litres of PMS was supplied into the country through the DSDP arrangements as against the 1,512.2million litres supplied in the month of October 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 Nov-16 1,3,28, ,3,28, Dec ,146, ,792, ,938, Jan ,156, ,156, Feb-17 1,21,291, * 1,21,291, Mar-17 1,491,29, ,491,29, Apr-17 1,29,442, ,29,442, May-17 1,6,163, ,6,163, Jun ,84, ,84, Jul-17 1,173,27, ,173,27, Aug ,981, ,442, ,424,912.4 Sep ,458, ,458, Oct-17 1,478,736, ,287, ,512,23, Nov ,99, ,99, TOTAL 13,513,77, ,522, ,419,352, * 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) Petroleum Products from Offshore Processing Arrangement (Million Litres) 1,7 1,5 1,3 1, ,3 1, ,21 1,21 1,491 1,491 1,29 1,29 1,6 1, ,173 1, ,512 1, PMS DPK 4.2 Petroleum Products Supply from Domestic Refineries The petroleum products (PMS & DPK Only) production by the domestic refineries in November 217 amounted to million litres compared to 24.31million litres in October 217 as shown in Table NNPC Monthly Financial and Operations Report November 217

21 Table 4.2.1: Monthly Refined White Petroleum Products from Local Refineries Period PMS DPK Total (PMS+DPK) Litres Litres Litres Nov ,434,866 42,313, ,748,182 Dec-16 99,588,576 23,59, ,179,142 Jan ,555,227 92,111, ,666,883 Feb ,728,62 77,83,46 263,559,8 Mar ,363,242 39,814, ,178,166 Apr-17 17,32,248 62,46, ,79,26 May ,69,176 65,949,68 222,18,856 Jun-17 14,71,716 45,553, ,264,235 Jul-17 47,97,146 32,213,822 8,183,968 Aug-17 46,2,251 32,436,576 78,438,827 Sep-17 59,874,21 27,591,74 87,465,95 Oct ,376,158 61,933,95 24,31,63 Nov-17 24,454,672 19,977,39 44,432,62 Total 1,6,43,99 77,878,122 2,434,154,32 Table Total White Petroleum Product Supply from NNPC (OPA, DSDP+ Refineries) Period Total Product Supply (OPA, DSDP+Refineries) Average Daily Supply PMS DPK Total PMS DPK Total Litres Litres Litres Litres/Day Litres/Day Litres/Day Nov-16 1,152,715, ,313,316. 1,195,28, ,423, ,41, ,834, Dec ,734, ,383, ,117, ,249, ,44, ,294, Jan ,711, ,111, ,823, ,313, ,971, ,284, Feb-17 1,396,19, ,91, ,6,921, ,857, ,317, ,175,77.2 Mar-17 1,633,572, ,814,924. 1,673,387, ,695, ,284, ,98, Apr-17 1,46,744, ,46,778. 1,523,151, ,691, ,8, ,771,713.3 May-17 1,216,232, ,949,68. 1,282,182, ,233, ,127, ,36, Jun-17 1,,551, ,553,519. 1,46,15, ,351, ,518, ,87,17.16 Jul-17 1,221,24, ,213,822. 1,253,454, ,394, ,39, ,434,7.13 Aug ,984, ,879, ,61,863, ,225, ,28, ,253,669.1 Sep ,332, ,591, ,924, ,544, , ,464, Oct-17 1,621,112, ,221, ,716,333, ,293, ,71, ,365, Nov-17 85,554, ,977, ,531, ,851, , ,517, Total 15,113,57, ,318, ,967,825, ,127, ,479, ,66,83.66 Chart Total White Petroleum Product Supply from NNPC (OPA, DSDP + Refineries) 1,9 1,7 1,5 1,3 1, Total Petroleum Products Supply From NNPC Via OPA, DSDP + Refineries (Million Litres) 1,61 1,673 1, , ,195 1,282 1, ,46 1, ,634 1,621 1,396 1, ,153 1,216 1,221 1, PMS DPK 21 NNPC Monthly Financial and Operations Report November 217

22 Chart Average Daily Petroleum Product Supply from NNPC 7. Daily Average Petroleum Products Supply From NNPC Via OPA, DSDP & Refineries (Million Litres) PMS DPK 4.3 Downstream Petroleum Product Distributions A total of million litres of white products were distributed and sold by PPMC in the month of November 217 compared with 1, million litres in the month of October 217. This comprised of million litres of PMS, million litres of Kerosene and 9.34 million litres of Diesel. Total sale of white products for the period November 216 to November 217 stood at billion litres, PMS amounted to billion litres and accounts for 87.3%. The Tables and Charts below provide more details of white products sold by NNPC/PPMC for the period November 216 to November 217. While total special products for the month of November 217 was 4.76 million litres comprising of 9.8 million litres of LPFO and other special products of million litres. Table Downstream Petroleum product sales by PPMC Period PMS AGO DPK Total White Products LPFO Other Special Products Total Special Products Litres Litres Litres Litres Litres Litres Litres Nov-16 1,84,717,529 97,276,333 66,838,12 1,248,831,982 14,253,14 843, 15,96,14 Dec-16 1,263,58,89 85,448,841 43,196,836 1,392,154,486 26,82,31 19,64,5 45,722,81 Jan ,427,348 14,36,894 62,561, ,349,737 14,652,788 4,49,5 18,72,288 Feb-17 1,56,893, ,137,771 79,334,183 1,387,365,565 11,788,439 1,595,6 13,384,39 Mar-17 1,535,621,24 17,8,26 49,786,68 1,692,487,118 28,333,126 4,193,176 32,526,32 Apr-17 1,531,23,213 78,995,881 53,152,835 1,663,351,929 7,493,277 6,289,138 13,782,415 May-17 1,71,762,21 82,828,617 49,76,28 1,24,297,35 27,723,62 6,512,672 34,236,292 Jun-17 1,83,911,294 81,817,714 4,237,256 1,25,966,264 33,325,76 96,159, ,485,228 Jul-17 1,3,8,655 77,239,65 41,668,59 1,121,916,364 9,766,117 9,766,117 Aug ,24,549 76,733,33 59,916,387 95,674,239 1,131, ,1 11,89,214 Sep-17 1,16,729,279 86,32,344 35,577,171 1,282,68,794 21,776,494 58,563,349 8,339,843 Oct-17 1,119,79, ,344,135 95,724,568 1,352,858,93 63,819,329 5,667, ,486,948 Nov ,965,84 9,339,64 29,666,19 996,97,797 9,76,7 31,68,73 4,756,143 Total 14,187,562,831 1,356,95,113 77,365,295 16,251,833,24 278,221, ,152,25 559,373,744 For more details on downstream petroleum products sales please click here. 22 NNPC Monthly Financial and Operations Report November 217

23 Chart Monthly White Product sales by PPMC 2, 1,8 1,6 1,4 1,2 1, , , ,85 Total Montly PPMC Product Distribution Sales Volume (Million Litres) 1,264 1, , , , ,24.3 1, , , ,536 1, ,57 1,72 1,84 1,161 1,3 1, PMS DPK AGO Table Average Daily Petroleum Product Sales by PPMC Period PMS AGO DPK Total White Products LPFO Other Special Products Total Special Products Litres/Day Litres/Day Litres/Day Litres/Day Litres/Day Litres/Day Litres/Day Nov-16 36,157,251 3,242,544 2,227,937 41,627, ,13 28,1 1,474,929 Dec-16 4,758,349 2,756,414 1,393,446 44,98,29 841, ,565 63,3 Jan-17 18,884,753 3,366,48 2,18,113 24,269, ,671 13, ,1 Feb-17 37,746,2 8,969,26 2,833,364 49,548,77 421,16 56,986 1,49,236 Mar-17 49,536,162 3,454,194 1,66,2 54,596, , ,264 1,49,236 Apr-17 51,4,17 2,633,196 1,771,761 55,445,64 249,776 29, ,414 May-17 34,572,975 2,671,891 1,63,426 38,848, ,31 21,86 1,14,397 Jun-17 36,13,376 2,727,257 1,341,242 4,198,875 1,11,857 3,25,317 4,316,174 Jul-17 32,355,118 2,491,62 1,344,131 36,19,85 315,36 315,36 Aug-17 26,258,856 2,475,268 1,932,787 3,666, ,81 3,96 357,717 Sep-17 38,69,976 2,876,745 1,185,96 42,753, ,883 1,952,112 2,677,995 Oct-17 36,122,265 4,43,456 3,87,889 43,64,611 2,58,688 1,634,439 3,693,127 Nov-17 29,232,169 3,11,32 988,87 33,232,36 32,536 1,56,2 1,358,538 Average 35,917,881 3,435,23 1,79,798 41,143,882 74, ,778 1,416,136 For more details on average daily PPMC downstream petroleum products sales please click here. Chart Average Daily White Products Distribution by PPMC Average Daily PPMC Product Distribution Sales Volume (Million Litres) PMS DPK AGO 23 NNPC Monthly Financial and Operations Report November 217

24 A total sale of billion was made on the petroleum products for white products by PPMC in the month of November 217 compared with of billion sold in the prior month of October 217. Total revenues generated from the sales of white products for the period November 216 to November 217 stands at 1, billion, where PMS contributed about 84.91% of the total sales with a value of 1, billion. Table and chart below provide details accordingly. Table Revenue from Sales of White Product Period PMS AGO DPK Total White Products Revenue LPFO Other Special Products Total Special Products Revenue Naira Naira Naira Naira Naira Naira Naira Nov ,145,954,267 14,228,867,427 7,93,912, ,468,734,388 1,39,51,281 67,17,24 1,16,221,521 Dec ,657,75,56 11,82,546,2 4,297,229,264 16,756,85,844 2,368,391,877 2,36,69,745 4,45,1,622 Jan-17 69,19,342,697 17,81,429,769 8,445,81,825 94,717,574,291 1,68,188, ,664,16 1,39,852,45 Feb ,497,446,724 42,61,792,187 1,71,114,75 179,89,353, ,377,23 127,137,48 986,514,611 Mar ,64,612,96 18,155,253,526 6,658,216,119 26,418,82,552 2,65,484, ,976,354 2,694,461,239 Apr ,792,456,262 12,26,421,32 7,112,875,22 199,111,752, ,64, ,37,753 1,591,975,86 May ,611,96,58 12,459,772,361 6,71,338,8 145,782,7,949 2,392,493, ,9,865 3,369,394,599 Jun ,84,493,969 11,137,755,162 5,432,29,56 142,654,278,691 2,938,596,757 18,292,585,38 21,231,182,137 Jul ,953,485,44 9,524,3,7 5,563,518, ,41,33,72 79,469,51 79,469,51 Aug-17 93,69,51,167 9,666,286,234 8,88,712, ,364,58,645 82,12,367 9,779,975 91,792,342 Sep ,985,226,142 11,613,643,947 4,821,867, ,42,737,747 1,754,71,62 5,327,542,745 7,82,244,347 Oct ,366,813,41 19,854,34,35 13,342,911, ,563,758,717 5,397,532,767 7,74,734,939 13,138,267,76 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 Total 1,667,574,533,975 23,685,55,987 92,579,112,693 1,963,838,72,656 22,992,515,476 41,884,644,845 64,877,16,321 Note: For more details on downstream petroleum products sales please click here. Chart Monthly Sales Revenue from Petroleum Product Distribution Sales Revenue From PPMC Product Distribution (Billion Naira) PMS DPK AGO 24 NNPC Monthly Financial and Operations Report November 217

25 mmscfd 4.4 Domestic Gas Supply to the Power Sector A total of 743 mmscfd was delivered to the gas fired power plants in the month of November 217 to generate an average power of about 3,115MW compared with the October 217, where an average of 716 mmscfd was supplied to generate 2,885 MW. The table and chart in the next page 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 % Nov ,344 MW 68.6% Dec ,214 MW 67.3% Jan ,47 MW 68.2% Feb ,761 MW 74.3% Mar ,56 MW 75.1% Apr ,787 MW 76.9% May ,95 MW 82.1% Jun ,969 MW 83.8% Jul ,655 MW 77.% Aug ,37 MW 71.% Sep ,465 MW 7.1% Oct ,885 MW 74.4% Nov ,115 MW 76.3% Average 631 2,669 MW 74% Chart Domestic Gas Supply to the Power Sector & Generation 1, Gas Supply to Thermal Power plants vs Generation from Thermal Power Plants 2,344 MW 2,214 MW ,47 MW 387 3,56 MW 3,95 MW 2,761 MW 2,969 MW 2,787 MW 2,655 MW ,37 MW 3,115 MW 2,885 MW 2,465 MW Gas Supply To Gas-Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW) 3,5 MW 3, MW 2,5 MW 2, MW 1,5 MW 1, MW 5 MW MW 5.1 Summary of Group Operating Revenue and Expenditure for November 217 Group operating revenue for the months of October 217 and November 217 were 354.8Billion and 27.8Billion respectively. These represent 96.29% and 73.64% respectively of monthly budget. Similarly, operating expenditure for the same periods were Billion and Billion respectively, which also represents 111.6% and 87.39% of budget for the months respectively. The 28 th publication recorded a trading deficit of 6.79Billion which is comparatively higher than the previous month s deficit of.41billion. This represents 6.39Billion increased in trading deficit compared to the October 217 performance. 25 NNPC Monthly Financial and Operations Report November 217

26 The drop in the performance is attributable to the increased cost in upstream activities as well as the reduced revenue in the downstream value chain occasioned by high crude oil inventory in refineries due to unplanned operational shutdown of KRPC and PHRC which led to increase loss from the Refineries in November 217. Also, IDSL s coincidental winding up of two (2) Seismic Data Crews Party 5 in Elele, Rivers state and JV 29 in Alkaleri, Bauchi state on 31 st October 217contributed to this situation. However, IDSL have since mobilized for operations in Lafia, Nasarawa state and Kuzari, Gombe state respectively in order to turn back to regime of positive performance, as year 218 looks bright for business in IDSL. Table 5.1.: Group Financial Performance by Entity SBU/CSU Revenue MONTHLY BUDGET (=N= MILLION) Expense Surplus/ (Deficit) ACTUAL (=N= MILLION) Revenue OCTOBER, 217 Expense Surplus/ (Deficit) Revenue NOVEMBER, 217 Expense Surplus/ (Deficit) Revenue Expense Surplus/ (Deficit) NPDC 71,46 24,255 47,151 87,375 8,143 7,232 85,131 78,59 6, , ,85 518, , ,268 88,497 IDSL 2,45 1, , (459) 26,45 16,916 9,534 17,95 9,632 7,463 NETCO 1,25 1, ,73 2, ,759 1, ,748 12,499 1,249 16,367 11,23 5,164 NGPTC/NGMC/GPIC 24,852 15,61 9,242 24,733 16,37 8,425 24,693 16,474 8,22 273, ,714 11,658 25, ,334 65,45 Sub-Total 99,913 42,539 57, ,153 99,227 16, ,16 97,559 14,547 1,99,41 467, ,17 871,11 74, ,574 KRPC 8,924 9,37 (384) (854) 3,85 (3,939) (165) 2,91 (3,66) 98,159 12,382 (4,223) 94,47 121,415 (27,368) PHRC 37,83 3,685 7,145 37,54 38,44 (9) 2 3,34 (3,32) 416, ,535 78,6 321, ,66 25,618 WRPC 26,245 22,98 4,147 6,582 9,55 (2,923) 13,247 18,294 (5,47) 288, ,82 45,613 89,325 19,323 (19,998) Sub-Total 72,999 62,91 1,98 43,268 51,3 (7,762) 13,84 24,229 (11,145) 82, , ,99 55,56 526,84 (21,748) RETAIL 26,52 25,115 1,387 14,812 14,84 (28) 16,6 16,446 (44) 291, ,262 15, , ,82 2,564 PPMC/NPSC/ML 166, ,89 (2,512) 179, ,261 (1,522) 129, ,151 2,393 1,83,156 1,857,788 (27,632) 1,756,41 1,847,868 (91,467) Sub-Total 192,88 194,5 (1,125) 194, ,1 (1,55) 145,55 143,597 1,954 2,121,679 2,134,5 (12,371) 1,944,47 2,32,95 (88,93) Revenue Expense Surplus/ (Deficit) CHQ ,165 (15,689) 6.9 6,886 (6,826) ,342 (1,34) 5, ,813 (172,581) ,743 (118,7) VENTURES 1,467 2,839 (1,371) ,246 (1,195) ,866 (1,844) 16,14 31,226 (15,86) ,683 (13,483) Sub-Total 1,943 19,4 (17,61) 111 8,132 (8,21) 6 12,28 (12,148) 21,372 29,4 (187,668) ,426 (131,554) Grand Total 367, ,638 5,96 354,82 354,49 (47) 27,81 277,594 (6,792) 4,45,81 3,494,22 551,59 3,32,986 3,396,617 (75,631) Note: BUDGET 217 YTD (=N= MILLION) From January 217 Refineries figures in the above table are in line with the Newly adopted Refineries Business Model SBUs/CSUs retained the excess revenue generated but share Head Office Cost through Corporate Overhead Cost Allocation. Chart 5.1.1: Group Operating Revenue: November 216 November 217 ACTUAL NNPC Group Revenue: November November 217 (Billion Naira) NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES 26 NNPC Monthly Financial and Operations Report November 217

27 Chart 5.1.2: Group Operating Expenditure: November 216 November NNPC Group Expenses: November November 217 (Billion Naira) NPDC IDSL NETCO NGPTC... RETAIL REFINERIES PPMC/NPSC/ML CHQ/VENTURES Chart 5.1.3: Monthly Group Surplus/Deficit: November 216 November 217 (5) (1) (15) (2) (25) (3) (35) (4) Monthly NNPC Group Surplus/Deficit: November November 217 (Billion Naira) (.41) (3.55) (2.81) (5.62) (5.27) (5.19) (5.74) (6.79) (11.87) (14.25) (14.12) (17.1) (18.72) Suplus/ (Deficit) Chart 5.1.4: NNPC Group Surplus/Deficit for the period January November 217 NNPC Group Surplus/Deficit in YTD 217 (Million Naira) 23, 18, 13, 8, 3, 88,497 65,45 25,618 7,463 5,164 2,564 13,483 19,998 27,368 91, ,7 2, 7, 12, 75,631 Surplus Deficit 27 NNPC Monthly Financial and Operations Report November 217

28 6 Federation Crude Oil & Gas Revenue Federation Crude Oil and Gas lifting are broadly classified into Equity Export and Domestic. Both categories are lifted and marketed by NNPC and the proceeds remitted into the Federation Account. Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into Federation Account domiciled in Central Bank of Nigeria (CBN). Domestic Crude Oil of 445,bopd is allocated for Refining to meet domestic products supply. Payments are effected to Federation Account by NNPC after adjusting crude & product losses and pipeline repairs & management cost incurred during the period. 6.1 Flow of Oil Revenue into Federation Account. NNPC also 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 November 217

29 6.2 Accounting for Federation Crude Oil & Gas The summary of Oil & Gas Sales and inflow into Federation Account can be depicted as follows: 6.3 Dollar Payments to Federation Account A total export sale of $239.1Million was recorded in November, 217. This performance is 25.68% lower than the previous month. Crude oil export sales contributed $ Million (or 47.7%) of the dollar transactions compared with $ Million contribution in the previous month. Also the export Gas sales amounted to $ Million in the month. The November 216 November 217 Crude Oil and Gas transactions indicate that Crude Oil & Gas worth $3.73 Billion was exported. See Table & Chart overleaf for details. 29 NNPC Monthly Financial and Operations Report November 217

30 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 Cash Call Funding Balance Remitance to FAAC USD USD USD USD USD USD USD USD USD Nov-16 96,311,189 69,873,68 166,184,257 96,311,162 66,86, ,398, ,398,217 Dec-16 1,367,748 95,35,13 195,42,878 97,867,748 77,159,275 14, ,41,75 175,41,75 Jan-17 93,965,963 18,197,224 22,163,187 93,965,963 69,76,562 7,39, ,117, ,117,193 Feb ,651, 15,46, ,111, ,65,932 1,536,651 1, ,189,53 168,189,53 Mar ,498,86 16,45, ,949, ,998, ,526,572 24,262 44,549, ,114, ,435,566 Apr-17 71,814,31 86,21, ,25,224 71,814,31 7,294,124 12,52 142,12, ,12,936 May ,81, ,929, ,74, ,237,787 13,831,444 2,754, ,823, ,269,25 59,554,69 Jun ,13,326 96,98, ,11, ,461,727 78,831,78 6,711, ,4, ,61, ,43,28 Jul ,93,874 96,575,23 448,478,897 35,526,699 64,718,2 14,983,922 43,228,64 363,86,227 66,422,414 Aug-17 38,964,95 124,421, ,386,477 31,342,5 116,561,955 15,569, ,473, ,68,4 154,865,848 Sep ,479, ,69, ,548,6 239,479,415 1,275,556 27,316, ,71, ,596, ,474,998 Oct ,828,174 93,861, ,689, ,657,1 49,9,87 756,82 277,54,7 155,758,25 121,745,83 Nov ,966, ,129, ,95,48 147,387,149 5,171,85 3,55,583 21,18, ,549,376 56,559,442 Total 2,368,692,268 1,36,194,253 3,728,886,521 2,344,7,849 1,8,843,457 97,87,754 3,45,632,61 2,596,17, ,461,77 Note: Export Crude Oil Sales proceeds are received 3 days after bill of lading date. In November 217 Naira portion of N54,16,871,333.4 equivalent to a functional Dollar of $177,576, at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $144,549, Chart Monthly dollar receipts from NNPC/Federation Oil & Gas Exports Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports (Million Dollars) Crude Oil Proceed Receipts Gas Proceed Reciepts (NLNG,EGTL,NGLs,N-GAS) Other Receipts Dollar Payments to JV Cost Recovery & Federation Account Total export receipt of $21.11 Million was recorded in November 217 as receipt against $277.5 Million in October, 217. Contribution from Crude oil amounted to $ Million while Gas and miscellaneous receipt stood at $ 5.17 Million and $3.55 Million respectively. Of the export receipts, $ Million was remitted to Federation Account while $56.56 Million was remitted to fund the JV cost recovery for the month of November, 217 to guarantee current and future production. 3 NNPC Monthly Financial and Operations Report November 217

31 $/bbl Millions Barrels Total export crude Oil & Gas receipt for the period of November, 216 to November, 217 stood at $3.73 Billion. Out of which the sum of $2.6Billion was transferred to JV Cash Call as first line charge and the balance of $.85Billion was paid into Federation Account (See Table & Chart 6.3.1). Chart Monthly Dollar Allocation to JV Cost Recovery & Federation Account Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports (Million Dollar) JV Cash Call Funding Balance Remitance to FAAC In November 217 Naira portion of N54,16,871,333.4 equivalent to a functional Dollar of $177,576, at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $144,549, Chart NNPC Federation Lifted Volumes vs. Crude Oil Prices 45 NNPC/Federation Lifted Volumes and Crude Prices Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 NNPC Lifted Volumes Crude Price 6.4 Naira Payments to Federation Account The Domestic Crude Oil and Gas receipt during the month amounted to N Billion, consisting of N127.93Billion from Domestic Crude Oil, the sum of N7.21Billion from Domestic Gas. Out of the Naira receipt, the sum of N54.16 Billion was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account. 31 NNPC Monthly Financial and Operations Report November 217

32 Table 6.4.1: Naira Proceed from Sale of Domestic Crude Oil & Gas Receipt/ Payment Month Proceed Value Due Total Domestic Sales Proceed due Domestic Crude Proceed Receipts Domestic Sales Proceed Recipets Gas Proceed Receipts Other Receipts Total Sales Proceed Receipts NGN NGN NGN NGN NGN Nov ,382,76, ,628,215,639 2,433,87,39 121,61,32,678 Dec-16 74,973,25,846 53,95,493,642 5,11,493,96 58,25,987,62 Jan-17 18,622,99, ,17,97,437 1,184,769, ,21,866,91 Feb ,476,32, ,85,923,222 3,979,142, ,785,65,444 Mar ,937,684,9 132,495,629,389 2,283,428,75 181,242, ,96,299,82 Apr ,392,933, ,864,134,236 2,23,212, ,94,346,613 May-17 94,913,22,316 73,932,647,393 2,551,435,748 76,484,83,141 Jun ,515,74, ,583,154,592 5,379,58,823 15,962,735,416 Jul ,767,968,118 14,274,4,12 5,56,852, ,834,892,629 Aug ,833,326,77 166,9,419,827 13,65,752,73 26,635,321 18,757,87,878 Sep ,956,666, ,256,551,636 5,527,49,56 3,, 126,786,61,196 Oct-17 16,577,722,516 88,354,855,533 6,164,54,985 94,518,91,517 Nov ,1,14, ,926,248,911 7,214,825,59 135,141,74,51 TOTAL 1,96,359,121,684 1,67,134,411,468 63,269,685,19 39,877,678 1,67,794,974,336 Chart: Monthly Naira Crude Oil, Gas and other Receipts Domestic Crude Oil, Gas Sales & Other Reciepts (Billion Naira ) Gas Proceed Receipts Domestic Crude Proceed Receipts Other Receipts 32 NNPC Monthly Financial and Operations Report November 217

33 Table 6.4.2: Allocation of Naira Proceeds from Sale of Domestic Crude Oil: Payment to FAAC Proceed Value Due Allocation of Domestic Sales Proceeds Tramsfers To JV Cash Call, FG & Federation Account Receipt/ Payment Month Domestic Crude Cost Domestic Crude Payments Under Recovery Crude Losses Product Losses Pipeline Repairs & Managmet Cost Gas & Other Receipts Total Remittances JV Cash Call (Naira Only) Transfer to Debt Repayemt To Federation Account FG (N45bn) Total Payment To FAAC =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= =N= Nov ,382,76, ,628,215, ,263,975 45,315,2 11,785,911,358 2,433,87,39 127,391,696,227 75,298,978,61 45,762,324,68 6,33,393,549 52,92,717,617 Dec-16 74,973,25,846 6,797,613,789 7,72,12,147 5,11,493,96 79,94,621,446 25,866,371,877 4,41,735,872 6,33,393,549 46,372,129,422 Jan-17 18,622,99, ,17,97,437 37,263,846,591 1,117,572,295 11,223,583,353 1,184,769, ,755,843,83 49,172,34,67 83,29,526,231 6,33,393,549 89,359,919,781 Feb ,476,32, ,85,923,222 6,297,594,169 1,569,328,834 15,83,186,3 3,979,142, ,918,645,293 61,287,96,28 11,497,159,164 6,33,393, ,827,552,713 Mar ,937,684,9 132,495,629,389 8,26,727,836 2,24,222,976 68,54,246 11,53,599,643 2,464,67, ,821,293,13 46,461,38,9 88,499,26,92 6,33,393,549 94,829,654,47 Apr ,392,933, ,864,134,236 8,26,727,836 2,388,28,668 1,245,73,21 8,571,81,55 2,23,212,377 15,666,157,163 46,536,29,14 95,558,317,473 95,558,317,473 May-17 94,913,22,316 73,932,647,393 7,743,923,2 4,121,733,826 1,328,119,1 7,786,598,978 2,551,435,748 84,27,682,118 56,971,25,97 19,512,832,171 19,512,832,171 Jun ,515,74, ,583,154,592 11,792,197,288 4,591,38,868 1,73,988,377 11,792,197,288 5,379,58, ,754,932,74 9,577,641,249 6,385,94,166 6,385,94,166 Jul ,767,968,118 14,274,4,12 1,25,12, ,385,2 46,298,676 13,494,231,481 5,56,852, ,329,124,19 56,32,478,63 89,532,413,999 89,532,413,999 Aug ,833,326,77 115,,, 7,938,985,582 1,137,12,392 16,485,861 18,84,422,416 13,857,388,51 147,697,81,467 83,757,32,233 45,1,85,818 45,1,85,818 Sep ,956,666,418 86,357,978,999 7,521,59,52 17,76, ,97,386 4,545,139,142 5,53,49,56 96,433,167,71 49,727,218,563 42,16,89,996 42,16,89,996 Oct-17 16,577,722,516 88,354,855,533 6,848,622, ,945,671 14,74,815 1,824,223,972 6,164,54,985 15,343,134,489 29,985,641,128 64,533,269,39 64,533,269,39 Nov ,1,14, ,926,248,911 16,785,193,827 1,191,496,759 11,9,84 7,5,984,54 7,214,825,59 142,147,58,554 54,16,871,333 8,98,23,167 8,98,23,167 TOTAL 1,96,359,121,684 1,528,37,539, ,855,421,672 19,96,285,46 5,925,55,711 14,96,8,68 63,66,562,868 1,752,47,167,89 726,15,69, ,593,32,436 31,651,967, ,245,,183 On the receipt from net domestic crude oil and gas, NNPC transferred the sum of N54.16 Billion into Federation Account and N8.98 Billion to JV cash Call for the month under review. From November 216 to November 217, Federation, JV, and FG for debt repayment received the sum N865.59Billion, N726.11Billion and N31.65 Billion respectively. The table above shows the Naira proceeds from the Sale of Domestic Crude Oil as well as Gas and the corresponding Naira remittances to Federation Account. Chart: Monthly Naira Payments to JV Cash Call, FG and Federation Account Tranfers to JV Cash Call and FG & Federation Account (Billion Naira) JV Cash Call (Naira Only) Transfer to Federation Account Debt Repayemt To FG (N45bn) Note: In November 217 Naira portion of N54,16,871,333.4 equivalent to a functional Dollar of $177,576, at a budgeted exchange rate of N35/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $144,549, NNPC Monthly Financial and Operations Report November 217

34 7. Key Determinants for Change 7.1 Key events and activities during the period DSDP Crude Oil Allocation In October 217, NNPC allocated 63.25% of domestic crude oil to Direct Sale- Direct Purchase (DSDP) arrangement to ensure petroleum products availability. So far the arrangement guarantees products stability and creates room for savings. The DSDP arrangement is constantly being reviewed to ensure value is delivered to the Corporation and Nigeria as envisaged/promised. Other Achievements The IDSL, a subsidiary of NNPC and Bureau of Geophysical Prospecting (BGP), a subsidiary of Chinese National Petroleum Corporation (CNPC) agreed to a Joint Venture agreement to acquire 3D marine seismic data using streamer cables, covering a total of 91sq. km within 74-day time schedule. This is part of NNPC s commitment to growing the nation s reserves and increase production, as enshrined in NNPC s corporate vision of 12 Business Focus Areas (12 BUFA). NNPC is exploring possible partnership with Unibio A/S Limited, Danish Company, in the production of animal feeds from Nigeria s abundant natural gas resources through conversion of methane gas into protein and has no negative impact for human consumption. The Nigerian National Petroleum Corporation (NNPC) and the Nigerian Agip Oil Company (NAOC) Joint Venture are to embark on Okpai Phase II Independent Power Project (IPP) which is expected to generate additional 48 megawatts (MW) to national grid. The corporation has also stepped up the resuscitation of some of its critical pipelines and depots such as the Atlas Cove - Mosimi Depot Pipeline, Port- Harcourt Refinery Aba Depot Pipeline, Kaduna Kano Pipeline and the Kano Depot which have enhanced efficiency in products distribution. 34 NNPC Monthly Financial and Operations Report November 217

35 7.2 Key challenges The following are the key inhibiting factors that dragged the industry performance: i. BONNY TERMINAL As a result of leaks on the Nembe Creek Trunk Line (NCTL) a Force Majeure was declared in September 217 and remained in place until 17 th October, 217. About 12,bopd was shut-in for sixteen (16) days in October 217. ii. QUA IBOE TERMINAL About 195,bopd remained shut-in for the entire month of October 217 due to slow recoveries from some wells and repairs on the 42- inch export line and fuel gas line. iii. iv. FORCADOS TERMINAL The TFP was shut down for eight (8) days from 1-3/1/17 and 17-21/1/17 due to leaks in the Oteghele and Yeye axis with the loss of approximately 2,bopd of production. AKPO TERMINAL A plant trip a result of gas detected caused a drop in production for a day on 2/1/17. The production shut-in was 22, bbls. Production also dropped for eight (8) days from 9-16/1/17due to shut-in of some wells as a result of request from NLNG for Akpo to cut off gas export due to operational issues. The production shut-in was 61,bopd. 83,bbls of production was also shut-in for a day due to intervention and preventive maintenance activities on 3/1/ 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. 35 NNPC Monthly Financial and Operations Report November 217

36 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 15 vandalized points have been recorded between November 216 to November 217 (see chart 7.1). Chart PPMC Pipeline Breaks November 216 November 217 PPMC Pipeline Breaks November November Mosimi Kaduna Port Harcourt Warri Gombe 7.3 NNPC s Season Greetings 36 NNPC Monthly Financial and Operations Report November 217