NNPC

Monthly Report

Financial and Operations

Report

August 2015

Outline

1.0

Introduction

2.0

National Crude Oil & Natural Gas Production, Lifting and Utilization

3.0

Plants Operations

4.0

Petroleum Product Supply & Distribution

5.0

Budget Performance Report

6.0

Federation Crude Oil & Gas Revenue

7.0

Summary of Challenges and Way forward

Monthly Financial and Operations Report August 2015| NNPC

1 Introduction
This publication of Nigerian National Petroleum Corporation (NNPC) monthly operational
report is one of the initiatives of the Corporation in its ongoing restructuring efforts to
ensure probity, transparency and accountability in the conduct of its business. The Report is
being published as part of NNPCs management commitment to keep our shareholders, and
the general public informed about our activities.
The report provide the general public with reliable information, giving an overview of
NNPCs operations across the oil and gas value chain (Upstream, Midstream & Downstream)
as well as NNPCs agency function on behalf of Government of the Federation.

National Crude Oil & Natural Gas Production, Lifting and Utilization
2.1 National Crude Oil & Condensate Production
A total of 67.49 million barrels of crude oil and condensate was produced for the month of
July 2015 translating to an average daily production of 2.177 million barrels. A total of 445
million barrels was produced from January to July 2015 representing an average daily
production of 2.099 million barrels for the same period. Production from Joint Ventures (JVs)
and Production sharing contracts (PSC) contributed about 31.5% and 42% respectively to
the total production. The tables and charts below provide details of the national Crude Oil &
Condensate Production for the period January to July 2015.
Table 2.1: National Crude Oil & Condensate Production

Month
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Total

JVs
Barrels
22,221,832
19,631,486
18,780,222
19,568,055
19,579,478
18,334,670
21,940,240
140,055,983

PSC
Barrels
28,141,885
25,112,636
26,845,229
26,008,972
27,197,671
25,593,567
27,858,467
186,758,427

Af/MCA
Barrels
11,055,401
9,800,902
9,614,364
10,799,392
11,166,850
9,704,798
9,850,062
71,991,769

NPDC
Barrels
2,923,580
4,003,182
4,511,165
1,889,398
2,573,919
2,667,540
4,448,460
23,017,244

Independent /
Marginal
Fields
Barrels
3,723,813
3,312,717
4,405,169
2,575,459
2,971,181
2,786,281
3,402,327
23,176,947

Total
Barrels
68,066,511
61,860,923
64,156,149
60,841,276
63,489,099
59,086,856
67,499,556
445,000,370

Average Daily
Production
Barrels
2,195,694
2,209,319
2,069,553
2,028,043
2,048,035
1,969,562
2,177,405
2,099,659

Figures above are the gross national production including equity interest of international oil
companies and other independent producers.
AF-Alternative financing; MCA-Modified Carry Agreement

Monthly Financial and Operations Report August 2015| NNPC

Chart 2.1: Monthly Crude Oil & Condensate Production

Millions Barrels

Total Monthly Crude Oil & Condensate Production

80

68.1

70
60

40

9.8

67.5

63.5

9.6

10.8

11.2

25.1

26.8

26.0

27.2

25.6

22.2

19.6

18.8

19.6

19.6

18.3

21.9

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

28.1

30

64.2

60.8

11.1

50

61.9

59.1
9.9

9.7

27.9

20
10
0
JVs

PSC

Af/MCA

NPDC

Independent / Marginal Fields

Millions Barrels

Chart 2.2: Average Daily Crude Oil & Condensate Production & Percentage distribution
Percentage Distribution of Crude Oil
Production by Commercial Arrangements

Average Daily Crude Oil & Condensate

Production

3.0
2.5

2.20

2.21

2.07

2.03

2.05

2.0

1.97

2.18

31.5%

16.2%

1.5

JVs

5%5%

PSC
Af/MCA

1.0
NPDC

0.5

42.0%

0.0
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

Independent /
Marginal Fields

2.2. National Gas Production

A total amount of 225 billion standard cubic feet (BCF) of natural gas was produced for the
month of July 2015 translating to an average daily production of 8,233 million standard cubic
feet per day (mmscfd). For the period January to July 2015, a total of 1,677 BCF of gas was
produced representing an average daily production of 7,908 mmscfd for the same period.
Production from Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed
about 69.6% and 22% respectively to the total national gas production. The tables and charts
below provide details of the national gas production for the period January to July 2015.

Monthly Financial and Operations Report August 2015| NNPC

Table 2.2.1: National Gas Production (Total and Daily Average)

PERIOD
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
YTD Total

JV
BCF
179
146
157
168
175
164
178
1,168

PSC
BCF
58
52
53
54
54
53
55
379

NPDC
BCF
18
17
21
17
16
19
23
131

TOTAL
BCF
255
215
231
239
245
236
255
1,677

PERIOD
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Average

JV
PSC
NPDC
mmscfd mmscfd mmscfd
5,775
1,869
570
5,222
1,857
613
5,080
1,724
663
5,599
1,811
558
5,648
1,729
531
5,477
1,766
635
5,729
1,765
739
5,504
1,788
616

TOTAL
mmscfd
8,214
7,692
7,466
7,968
7,908
7,878
8,233
7,908

Chart 2.2.1: Average Daily National Gas Production

Average Daily National Gas Production (mmscfd)

10,000
8,000
6,000

8,214

7,968

7,908

7,878

8,233

558

531

635

739

1,811

1,729

1,766

1,765

5,080

5,599

5,648

5,477

5,729

Mar-15

Apr-15

May-15

Jun-15

Jul-15

7,692

7,466

613

663

1,857

1,724

5,775

5,222

Jan-15

Feb-15

570
1,869

4,000
2,000
0
JV

PSC

NPDC

Chart 2.2.1: Monthly National Gas Production & Percentage Distribution

Percentage Distribution of
Upstream Gas Production

Total Monthly Natural Gas Production (BCF)

300

255

250

215

231

239 245 236

255

7.8%

JV

200

22.6%

150

PSC

100

69.6%

50
0
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15

Jul-15

Monthly Financial and Operations Report August 2015| NNPC

NPDC

2.3 Crude Oil & Condensate Lifting & utilization

A total volume of 63.7 million barrels of crude oil and condensate was lifted in the month of
July 2015 by all parties. Out of this volume, 25.2 million barrels was lifted for and on behalf of
the Federal government of Nigeria comprising of 17.4 million barrels lifted on the account of
NNPC and 7.8 million barrels lifted on the account of FIRS.
The 17.4 million barrels lifted on the account of NNPC in July comprises of 15.4 and 1.9
million barrels for the domestic and export markets respectively. At an average oil price of
$51.97/bbl and exchange rate of N195.95/$, the domestic crude oil lifted by NNPC is valued
at $805,220,701 or a naira equivalent of N157, 782,872,917 for the period. The remaining
crude oil lifted for export was valued at $108,916,802.23 at an average price of
$56.76/barrel. The total value of crude oil lifted on the account of NNPC in July was thus
$914,136,873.
For the period from January to July 2015, a total volume of 439 million barrels of crude oil
and condensate was lifted by all parties.
The tables and charts below provide the details of crude oil and condensate lifting and their
corresponding accrual values for the period January to July 2015.
Table 2.3.1: Crude Oil & Condensate Lifting and utilization
NIGERIAN GOVERNMENT
NNPC
LIFTING
MONTH

FIRS (PSC)
Barrels
6,599,431
4,995,452
2,295,064
4,754,914
4,862,603
3,268,292
7,809,563
34,585,319

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
TOTAL

DPR (PSC)
Barrels
410,000
260,000
1,296,138
51,400
1,447,689
550,300
0
4,015,527

EXPORT
Barrels
6,647,330
6,539,228
6,071,583
5,119,906
3,940,965
5,022,429
1,918,716
35,260,157

DOMESTIC
Barrels
13,564,197
14,608,257
14,062,453
11,173,963
12,287,020
11,193,080
15,493,685
92,382,655

SUB-TOTAL
(NNPC)
Barrels
20,211,527
21,147,485
20,134,036
16,293,869
16,227,985
16,215,509
17,412,401
127,642,812

IOCs &
SUB-TOTAL INDEPENDENTS
AF
GOVERNMENT
(INC. NPDC)
(MCA/RDP)
Barrels
Barrels
Barrels
27,220,958
38,250,075
1,291,873
26,402,937
36,991,819
1,054,215
23,725,238
35,552,081
1,210,000
21,100,183
40,410,853
2,297,199
22,538,277
36,123,485
2,388,624
20,034,101
37,004,226
1,775,030
25,221,964
37,243,405
1,263,140
166,243,658
261,575,944
11,280,081

GRAND TOTAL
Barrels
66,762,906
64,448,971
60,487,319
63,808,235
61,050,386
58,813,357
63,728,509
439,099,683

Note: Crude oil liftings are reported one month in arrears

Table 2.3.2: Crude Oil Lifting Values

NIGERIAN GOVERNMENT
NNPC
LIFTING
MONTH

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
TOTAL

FIRS (PSC)
USD

DPR (PSC)
USD

310,266,556
292,117,092
126,351,941
285,992,512
306,629,363
201,845,553
443,053,618
1,966,256,635

19,539,530
15,672,480
69,709,608
2,942,441
88,010,118
33,793,993
0
229,668,170

IOCs &
INDEPENDENTS
(INC. NPDC)
USD

AF (MCA/RDP)
USD

GRAND TOTAL
USD

323,425,507
643,398,273
966,823,780
1,296,629,866
1,861,055,489
361,897,548
824,796,241
1,186,693,789 1,494,483,361
2,047,221,568
340,227,160
761,340,884
1,101,568,044 1,297,629,593
1,992,196,044
306,598,470
659,356,404
965,954,873
1,254,889,826
2,419,947,884
259,160,157
777,315,998
1,036,476,155 1,431,115,636
2,375,501,442
307,749,640
676,152,346
983,901,986
1,219,541,532
2,267,436,179
108,916,802
805,220,071
914,136,873
1,357,190,491
2,114,139,131
2,007,975,285 5,147,580,217 7,155,555,501 9,351,480,306 15,077,497,737

61,313,050
62,951,971
67,563,676
144,145,396
157,165,605
109,159,403
73,988,173
676,287,274

3,218,998,405
3,604,656,901
3,357,389,313
3,818,983,106
3,963,782,684
3,596,137,115
3,545,317,795
25,105,265,317

EXPORT
USD

DOMESTIC
USD

SUB-TOTAL
(NNPC)
USD

SUB-TOTAL
GOVERNMENT
USD

IOCs, Independents, & AF values include government taxes and royalties superintended by FIRS and DPR respectively.

Monthly Financial and Operations Report August 2015| NNPC

Million Barrels

Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements

Monthly Lifting Entitlement

80

66.76

70

64.45

63.81

61.05

58.81

35.55

40.41

36.12

37.00

60.49

60
50

38.25

40

36.99

63.73

37.24

30
20
10

6.60

5.00

2.30

4.75

4.86

3.27

20.21

21.15

20.13

16.29

16.23

16.22

17.41

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

7.81

0
SUB-TOTAL (NNPC)

FIRS (PSC)

DPR (PSC)

IOCs & INDEPENDENTS (INC. NPDC)

AF (MCA/RDP)

Chart 2.3.2 Government Crude Oil Lifting and utilization on Account of NNPC

Million Barrels

Government Crude Oil Lifting & Utilisation: NNPC Account

25

20.2

21.1

20
15

6.6

6.5

DOMESTIC

20.1
6.1

EXPORT

16.3

16.2

16.2

5.1

3.9

5.0

11.2

12.3

11.2

Apr-15

May-15

Jun-15

17.4
1.9

10
5

13.6

14.6

14.1

Jan-15

Feb-15

Mar-15

15.5

0
Jul-15

2.3.1 Utilization of Crude Oil for Domestic Product Supply

In July 2015, NNPC lifted 15,493,685 barrels of Crude Oil for domestic utilization translating
to an average volume of 499,767 barrels of oil per day. In order to meet domestic product
supply requirement for the month of July 2015, 8,731,917 barrels of crude oil was processed
through Offshore Processing Agreements (OPA), 3,345,992 barrels was processed in the
domestic refineries and the balance of 3,415,776 barrels was sold in the export market.
Tables and charts below provide details of NNPCs Utilization of Crude Oil For Domestic
Product Supply for the period of January to July 2015.

Monthly Financial and Operations Report August 2015| NNPC

Table 2.3.1.1Domestic Crude Purchased By NNPC In 2015

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Total

Volume
Barrels
13,564,207
14,608,257
14,062,453
11,173,963
12,287,020
11,193,080
15,493,685
92,382,665

Average Price
$/bbl
47.43
56.46
54.14
59.01
63.26
60.41
51.97
56.10

Sales Value
USD
643,398,273
824,796,241
761,340,884
659,356,404
777,315,998
676,152,346
805,220,071
5,147,580,217

Sales Value
NGN
107,447,511,536
161,316,709,514
149,222,813,261
129,233,855,135
152,353,935,610
132,525,859,854
157,782,872,917
989,883,557,826

Average Lifting
Barrels per day
437,555
521,723
453,628
372,465
396,355
373,103
499,796
436,375

Table 2.3.1.2 Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply
UTILIZATION OF CRUDE OIL PURCHASED BY NNPC FOR THE YEAR 2015
EXPORT
Month

Qty
('000
Bbls)

DELIVERIES TO
REFINERIES
Value
Qty
in
('000
US$'M Naira'Mn
Bbls)
n
-

OFFSHORE PROCESSING
Qty
('000
Bbls)

Value in
Naira'Mn
US$'Mn

Value
in
US$'Mn

Naira'Mn

TOTAL
Qty
('000
Bbls)

Value
in
US$'Mn

Naira'Mn

13,564

643

107,448

4,276

14,608

825

161,317

January

6,994

331

55,262

6,571

312

52,186

February

6,409

356

70,134

7,934

441

86,907

265

March

5,389

294

57,592

8,673

468

91,631

14,062

761

149,223

April

5,220

306

59,975

5,954

353

69,259

11,174

659

129,234

May

3,735

239

46,907

8,552

538

105,447

12,287

777

152,354

June

2,761

167

32,636

7,483

452

88,558

949

58

11,331

11,193

676

132,526

July

3,416

190

37,145

8,732

441

86,448

3,346

174

34,190

15,494

805

157,783

33,924

1,882

359,651

53,899

3,006

580,435

4,560

260

49,797

92,383

5,148

989,884

Grand
Total

28

Chart 2.3.1.1: NNPC Crude Oil Utilization For Domestic Product Supply

Million Barrels

NNPC Crude Oil Utilisation For Domestic Product Supply

18
16
14

13.6

12
10

7.0

14.6
0.3
6.4

15.5

14.1
12.3

11.2

5.4

3.3

3.7

0.9
2.8

3.4

8.6

7.5

8.7

May-15

Jun-15

5.2

11.2

6
4
2

6.6

7.9

8.7

Feb-15

Mar-15

6.0

0
Jan-15

OPA

Apr-15

DIRECT EXPORT

REFINERY(IES)

Monthly Financial and Operations Report August 2015| NNPC

Jul-15

Chart 2.3.1.2: Percentage Distribution for July 2015 Domestic Crude Utilization
July 2015 Crude Utilization For
Domestic Product Consumption

2015 YTD Crude Utilization For

Domestic Product Consumption

4.9%
22%

22%

36.7%

Export
56%

58.3%

Refinery

OPA

OPA

Refineries

Export

2.4 Natural Gas Off take, Commercialization & Utilization

Out of the 255 BCF of gas produced in July 2015, a total of 145 BCF of gas was
commercialized comprising of 35.4 and 110.1 BCF for the domestic and export market
respectively. This translates to an average daily supply of 1,141 mmscfd of gas to the
domestic market and 3,552 mmscfd of gas supplied to the export market. This implies that
57% of the total gas produced was commercialized while the balance if 43% was either reinjected, used as upstream fuel gas or flared. Gas flare rate was 7.3% for the month of July
2015 ie 607mmscfd compared with the 2015 YTD average flare rate of 9.3% ie 759 mmscfd.
From the 1,141 mmscfd of gas supplied to the domestic market in July, about 786 mmscfd of
gas representing 68.9% was used for Gas-Fired power plants while the balance of 355
mmscfd or 32.1% was supplied to other industries. Similarly, for the period of January July
an average of 991 mmscfd of gas was supplied to the domestic market comprising of an
average of 656mmscfd or (66.2 %) as gas supply to the power plants and 335 mmscfd or
(34.8%) as gas supply to industries.
About 3,122 mmscfd or 87.9% of the export gas was sent to Nigerian Liquefied Natural Gas
Company (NLNG). for July 2015 compared with a 2015 YTD average of 2,965mmscfd.
Total gas supply for the period January to July 2015 stands at 210 BCF and 724 BCF for the
domestic and export market respectively. The tables and chart below provides more details
of the gas utilization and commercialization for the period January to July 2015

Monthly Financial and Operations Report August 2015| NNPC

Table 2.4.1 Total Gas Commercialization and utilization

Gas Commercialisation
Domestic Gas
Domestic
Gas To
Power
BCF

Period

20.8
18.1
20.8
18.2
16.5
20.4
24.4
139

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Total

Total
Domestic Gas Domestic Gas
to Industry
Supply
BCF
BCF

9.5
9.3
11.2
10.1
9.9
10.0
11.0
71

Non-Commercialized Gas
Export Gas

30.3
27.4
32.0
28.3
26.4
30.4
35.4
210

WAPG
BCF

EGTL
BCF

NGL/
LPG
BCF

1.6
1.4
1.9
1.7
1.8
1.3
2.1
12

4.7
3.4
4.9
5.4
6.4
4.1
4.0
33

8.3
6.1
5.6
7.4
7.6
7.8
7.3
50

NLNG
BCF

97.8
76.4
86.2
89.6
93.0
89.6
96.8
629

Total Export Gas

BCF

ReInjection
BCF

Fuel Gas
BCF

Flare
BCF

Total NonCommerial
Gas
BCF

112.5
87.2
98.6
104.1
108.8
102.7
110.1
724

69.1
59.8
57.6
67.6
74.6
70.3
76.3
475

12.2
11.5
11.6
13.5
13.5
12.3
12.4
87

26.7
26.2
28.5
22.7
19.1
18.7
18.8
161

108.0
97.5
97.7
103.7
107.2
101.3
107.5
723

Table 2.4.1 Daily Average Gas Commercialization and utilization

Domestic
Gas To
Power

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Average

Gas Commercialisation

Domestic Gas

Non-Commercialized Gas

Export Gas

Domestic Gas
to Industry

Total Gas To
Domestic

WAPG

EGTL

NGL/LPG

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

672
646
672
605
533
679
786
656

306
333
362
337
320
333
355
335

978
978
1,033
942
853
1,012
1,141
991

53
51
60
57
61
45
68
56

151
120
159
180
207
136
129
154

269
216
182
247
245
259
234
236

NLNG

Total Gas To
Export

ReInjection

Fuel Gas

Flare

Total NonCommerial
Gas

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

3,156
2,728
2,780
2,986
3,000
2,985
3,122
2,965

3,629
3,114
3,182
3,470
3,509
3,424
3,552
3,412

2,230
2,135
1,858
2,252
2,407
2,345
2,462
2,241

394
410
375
451
436
411
399
411

861
936
919
755
615
622
607
759

3,485
3,481
3,151
3,458
3,458
3,378
3,468
3,411

Chart 2.4.1 Percentage Distribution of Gas Utilization

2015 YTD Percentage Distribution of
Gas Utilisation

12.7%

43.7%

Total Gas
To
Domestic
Total Gas
To Export

43.7%

July 2015 Percentage Distribution

of Gas Utilisation

14.0%
42.5%

Total Noncommercia
lised Gas

Monthly Financial and Operations Report August 2015| NNPC

Total Gas
To
Domestic
Total Gas
To Export

43.5%

Total Noncommercia
lised Gas

3 Plants Operations
3.1 Capacity Utilization
3.1.1 Refineries Operations
Total Crude processed by the three Refineries, for the month of August was 3,322,510 bbls
(453,152 MT) which translates to a combined average capacity utilization of 10.04 %.
During the period under review, the three Refineries produced 219,538million MT of
Petroleum Products out of 453,152 MT (3,322,510 bbls) of crude processed. The Capacity
utilization of the refineries during the period was as follows:
Table 3.1: Refineries Capacity Utlisation
WRPC
Jul
Aug

Operational Parameter
Crude Processed (M/tons)
Crude Loss/Consumed (M/tons)
Product Yields(M/tons)

PHRC

KRPC

Jul

Aug

Jul

Aug

YTD
2015

122,118

140,778

122,141

263,537

12,058

48,837

919,889

6,997

10,726

6,119

10,069

3,232

19,341

79,658

115,121

130,052

116,022

253,468

8,826

29,496

840,231

Capacity Utilization

23.11%

26.64%

13.76%

29.68%

2.59%

10.50%

10.04%

Planned Yield (M/tons)

528,505

528,505

887,889

887,889

887,889

887,889

14,247,818

% Loss/Consumption

5.73%

7.62%

5.01%

3.82%

26.80%

39.60%

8.66%

Yields Efficiency (%)

94.27%

92.38%

94.99%

96.18%

73.20%

60.40%

91.34%

Chart 3.1: Refineries Capacity Utilization

Refineries Capacity Utilization

40%
30%

23.1%

29.7%

26.6%

20%

13.8%

10%

10.5%
2.6%

0%
WRPC

PHRC
July
August

KRPC

3.2 Crude Processed and Production for August 2015

The combined value of output by the three refineries (at import parity price) for the month
of August 2015 amounted to N 47.26billion while the associated Crude plus freight cost was
N 35.1billion, giving a surplus of N 4.97billion after considering overhead of N 7.18billion as
shown in Table 3.2 below:
10

Monthly Financial and Operations Report August 2015| NNPC

Table 3.2: Refinery Financial Performance January August 2015

Refinery Financial
Performance 2015

Jan-15
NGN
Million

Feb-15

Mar-15

NGN Million NGN Million

Apr-15

May-15

Jun-15

Jul-15

Aug-15

NGN
Million

NGN Million

NGN
Million

NGN
Million

NGN Million

WRPC
Revenue

18,368

12

26

12

14

19

13,218

12,836

Crude + Frieght (COGS)

(12,080)

(11,464)

(11,709)

Opex

(1,620)

(1,401)

(1,364)

(1,766)

(1,302)

(1,551)

(1,675)

(2,322)

Operating Profit/Loss

4,668

(1,390)

(1,338)

(1,753)

(1,288)

(1,532)

79

(1,195)

378

397

982

179

58

445

212

2,649

Crude + Frieght (COGS)

(2,252)

(1,206)

(3,340)

Opex

(3,238)

(3,071)

(3,242)

(3,223)

(2,653)

(3,107)

(2,853)

(3,300)

Operating Profit/Loss

(5,111)

(2,673)

(2,260)

(3,045)

(2,595)

(2,662)

(3,847)

(3,990)

432

27

2,480

455

27

37

13,662

29,708

(11,347)

(22,757)

Opex

(1,929)

(1,733)

(1,775)

(1,892)

(1,740)

(1,742)

(1,758)

(1,905)

Net Cash Flow

(1,497)

(1,705)

705

(1,437)

(1,713)

(1,705)

557

5,045

Revenue

19,178

436

3,487

647

99

501

27,091

45,194

Crude + Frieght (COGS)

(14,331)

(24,017)

(37,806)

Opex

(6,787)

(6,205)

(6,381)

(6,881)

(5,695)

(6,401)

(6,286)

(7,527)

Operating Profit/Loss

(1,940)

(5,768)

(2,894)

(6,235)

(5,596)

(5,899)

(3,211)

(139)

Total Operating Profit

(1,940)

(5,768)

(2,894)

(6,235)

(5,596)

(5,899)

(3,211)

(139)

KRPC
Revenue

PHRC
Revenue
Crude + Frieght (COGS)

Consolidated

The combined factors of Low Crude Supply due to vandalized pipelines, Plant preservation cost to
maintain plant integrity, Rehab/TAM work are key factors responsible for deficit months prior to August
2015

11

Monthly Financial and Operations Report August 2015| NNPC

4 Petroleum Product Supply & Distribution

4.1

Petroleum Product Supply from Off-shore Processing Agreements (OPA)

In August 2015, 701 million litres of white products was supplied into country through the
OPA arrangements compared with a volume of 810 million litres achieved in the prior month
of July 2015. There was however no DPK receipts in August compared with 36.9 million litres
imported in the prior month of July. The tables and charts below provide more details of the
total petroleum product supply from OPAs.
Table 4.1.1: Imported Petroleum Products from OPA in litres 2015
Period

PMS (Litres)

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
TOTAL

518,772,436
472,805,827
928,342,422
575,901,484
700,039,658
295,642,465
773,679,148
701,294,114
4,966,477,554

DPK (Litres)
328,471,904
84,308,867
84,985,825
171,709,078
349,630,514
67,562,200
36,968,789
0
1,123,637,178

TOTAL
847,244,339
557,114,694
1,013,328,247
747,610,563
1,049,670,172
363,204,665
810,647,937
701,294,114
6,090,114,732

There was no DPK supply in August 2015 compared to July 2015 supply of 36.9 million litres.
Chart 4.1: Petroleum Products Supply from Offshore Processing Arrangement

Millions Litres

Petroleum Products from Offshore Processing Arrangement

1,200
1,000

85

847

800
600

328

557
84

400
200

1,050

1,013

519

748

811

350

37

701

774

701

Jul-15

Aug-15

172

363

928
576

473

700

68
296

0
Jan-15

Feb-15

Mar-15

Apr-15

PMS (Litres)

12

May-15
DPK (Litres)

Monthly Financial and Operations Report August 2015| NNPC

Jun-15

4.2 Petroleum Products Supply from Domestic Refineries

The petroleum products production by the domestic refineries in August 2015 amounted to
200 million litres compared to 83 million litres in July 2015 as shown in Table 4.3 below.
Table 4.2.1: Refined Petroleum Products in Litres
PMS
Litres
180,510,669
60,764,733
55,103,031
58,084,074
28,980,351
57,822,579
53,394,597
116,464,509
611,124,543

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Total

DPK (Litres)
Litres
63,937,104
0
0
0
0
0
29,859,984
83,780,928
177,578,016

Total (PMS+DPK)
Litres
244,447,773
60,764,733
55,103,031
58,084,074
28,980,351
57,822,579
83,254,581
200,245,437
788,702,559

Table 4.2.1 Total Petroleum White Product Supply from NNPC (OPA+ Refineries)
Total Product Supply (OPA+Refineries)

Period

PMS
Litres
699,283,105
533,570,560
983,445,453
633,985,558
729,020,009
353,465,044
827,073,745
817,758,623
5,577,602,097

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Total

DPK
Litres
392,409,008
84,308,867
84,985,825
171,709,078
349,630,514
67,562,200
66,828,773
83,780,928
1,301,215,194

Average Daily Supply

Total
Litres
1,091,692,112
617,879,427
1,068,431,278
805,694,637
1,078,650,523
421,027,244
893,902,518
901,539,551
6,878,817,291

PMS
Litres/Day
22,557,520
19,056,091
31,724,047
21,132,852
23,516,774
11,782,168
26,679,798
26,379,310
22,853,570

DPK
Litres/Day
12,658,355
3,011,031
2,741,478
5,723,636
11,278,404
2,252,073
2,155,767
2,702,611
5,315,419

Millions Litres

Chart 4.2.1 Total Petroleum White Product Supply From NNPC (OPA+ Refineries)

1,500

Total Petroleum Products Supply From NNPC (OPA + Refineries)

1,092
1,000
500

392
699

1,068
85
618
84

1,079
806

350

172
983

534

634

729

0
Jan-15

13

Feb-15

Mar-15

Apr-15
PMS (Litres)

421
68
353

May-15
Jun-15
DPK (Litres)

Monthly Financial and Operations Report August 2015| NNPC

894
67

902
84

827

818

Jul-15

Aug-15

Millions Litres

Table 4.2.2 Daily Average Petroleum Product Supply From NNPC (OPA+ Refineries)

40
30

Daily Average Petroleum Products Supply From NNPC (OPA + Refineries)

35
35
34
2.7
12.7

27

22

5.7

3.0

20

22.6

29

29

2.2

2.7

26.7

26.4

Jul-15

Aug-15

14

31.7
10

11.3

21.1

19.1

2.3

23.5

11.8

0
Jan-15

Feb-15

Mar-15

Apr-15

PMS (Litres)

May-15

Jun-15

DPK (Litres)

4.3 Downstream Petroleum Product Distributions

A total of 606 million litres of white product was distributed and sold by PPMC in the month
of August 2015 compared with 613 million litres in the prior month of July. This is comprised
of 516.7 million litres of PMS, 83.5 million litres of Kerosene and 6 million litres of Diesel.
Total sale of white products for the period January to August 2015 stands at 5.898 billion
litres, 78% of which comprises of PMS ie 4.6 billion litres. The Tables and Charts below
provide more details of white products sold by NNPC PPMC for the period January August
2015.
Table 4.3.1 Downstream Petroleum product sales by PPMC

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Total

14

PMS
Litres

512,396,097
499,945,695
795,149,204
582,586,368
566,290,963
582,416,290
570,023,134
516,699,923
4,625,507,674

Litres

DPK
Litres

Total White
Products
Litres

20,966,547
19,004,650
31,644,056
17,227,372
13,988,465
11,601,322
3,292,716
6,562,586
124,287,714

303,183,934
93,309,212
124,187,347
191,077,678
271,031,091
42,022,793
40,506,046
83,581,196
1,148,899,297

836,546,578
612,259,557
950,980,607
790,891,418
851,310,519
636,040,405
613,821,896
606,843,705
5,898,694,685

AGO

Monthly Financial and Operations Report August 2015| NNPC

Table 4.3.2 Daily Average Petroleum White Product Sales By PPMC

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Total

PMS
Liters/Day

16,528,906
17,855,203
25,649,974
19,419,546
18,267,450
19,413,876
18,387,843
16,667,739
19,023,817

Liters/Day

DPK
Liters/Day

Total White
Products
Liters/Day

676,340
678,738
1,020,776
574,246
451,241
386,711
106,217
211,696
513,245

9,780,127
3,332,472
4,006,043
6,369,256
8,742,938
1,400,760
1,306,647
2,696,168
4,704,301

26,985,373
21,866,413
30,676,794
26,363,047
27,461,630
21,201,347
19,800,706
19,575,603
24,241,364

AGO

Chart 4.3.1 Monthly Petroleum White Product sales by PPMC

Millions Liters

Total Monthly PPMC Product Distribution Sales Volume

1,200
1,000
800
600

951.0

836.5
612.3

303

851.3
636.0

613.8

42

41

566

582

570

May-15

Jun-15

Jul-15

191

271

583
Apr-15

93

795

400
200

124

790.9

512

500

Jan-15

Feb-15

0
Mar-15
PMS

DPK

AGO

Millions Liters Per Day

Chart 4.3.2 Average Daily White Products Distribution sales by NNPC PPMC
35
30

27.0

25
20

10

Average Daily PPMC Product Distribution Sales Volume

30.7
27.5
26.4
4
21.9
21.2
9
6
1
3

15
10
5

26
17

18

Jan-15

Feb-15

19.8
1

19

18

19

18

Apr-15
DPK AGO

May-15

Jun-15

Jul-15

15

Mar-15
PMS

Monthly Financial and Operations Report August 2015| NNPC

A total value of 44.2 billion naira was collected as sales revenue for white products sold by
PPMC in the month of August 2015 compared with 46.3 billion naira collected in the prior
month of July 2015. Total sales revenues for white products sold for the period January to
August stands at 422 billion naira where PMS contributed over 85% of the revenues
collected with a value of 360 billion naira. Table and chart below provide details accordingly.
Table 4.3.3 Sales Revenue for Petroleum Product White Product Distribution

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Total

PMS
Naira

Naira

DPK
Naira

Total White Products

Naira

41,039,382,833
38,731,828,782
61,718,451,733
45,243,657,319
43,937,131,621
45,230,449,083
44,235,234,795
40,075,798,540
360,211,934,706

2,892,544,824
2,211,571,121
3,686,952,718
1,974,058,858
1,612,590,245
1,441,464,259
395,718,609
741,703,470
14,956,604,104

12,400,222,901
3,816,346,771
5,079,262,492
7,815,077,030
11,085,171,622
2,084,424,706
1,656,697,281
3,418,470,916
47,355,673,720

56,332,150,558
44,759,746,673
70,484,666,943
55,032,793,208
56,634,893,488
48,756,338,048
46,287,650,685
44,235,972,926
422,524,212,529

AGO

Chart 4.3.3 Monthly Sales Revenue for Petroleum Product White Product Distribution

Billions Naira

Sales Revenue From PPMC Product Distribution Sales Volume

80
70
60
50
40
30
20
10
0

70.5
4

56.3
3

12

55.0

56.6

48.8

11

46.3

1
2

0
2

45

44

45

44

Apr-15

May-15

Jun-15

Jul-15

44.8

62
41

39

Jan-15

Feb-15

Mar-15
PMS

DPK

AGO

4.4 Domestic Gas Supply to the Power Sector

An average of 786mmscfd was delivered to the gas fired power plants in the month of July to
generate an average power of about 3,489MW compared with a 2015 YTD average gas
supply 656mmscfd and power generation of 2,843MW. The table and chart below provides
details.

16

Monthly Financial and Operations Report August 2015| NNPC

Table 4.4.1 Domestic Gas Supply to the Power Sector & Generation

Period
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Average

Gas Supply To GasFired Power Plants

mmscfd
672
646
672
605
533
679
786
656

Average Power Generated

from Gas-Fired Power
Plants
MW
2,846 MW
2,781 MW
2,885 MW
2,675 MW
2,219 MW
3,002 MW
3,489 MW
2,843 MW

% of Gas Fired Generation

to Total Power Generation
including Hyrdo
%
80.2%
80.0%
84.6%
84.1%
86.2%
87.3%
91.1%
84.8%

Chart 4.4.1 Domestic Gas Supply to the Power Sector & Generation
Gas Supply to Power plants & Generation

800

3,489 MW
2,846 MW

2,781 MW

2,885 MW

3,500 MW

3,002 MW

2,675 MW

3,000 MW

2,219 MW

600

4,000 MW

Power Generation

Gas Supply (mmscfd)

1,000

2,500 MW
2,000 MW

400

672

672

646

605

200

533

679

786

1,500 MW
1,000 MW
500 MW

0 MW

Jan-15

Feb-15

Mar-15

Apr-15

Gas Supply To Gas-Fired Power Plants (mmscfd)

May-15

Jun-15

Jul-15

Power Generated from Gas-Fired Power Plants (MW)

5 Budget Performance Report

5.1 Summary of Group Operating Expenditure and Revenue for August 2015
Group operating revenue before subsidy for the months of July and August 2015 were
N149.2billion and N146.6 billion respectively. This represents 48.75% and 47.91%
respectively of monthly budget.
Similarly, operating expenditure for the same periods were N200.12billion and
N207.28billion respectively, which also represents 74.92% and 77.6% respectively of budget
for the months.

17

Monthly Financial and Operations Report August 2015| NNPC

Operating deficits of N51.71billion and N60.67 for July and August 2015 respectively was
attained as against monthly budgeted surplus of N38.91billion. The table and charts below
provides details.
Table 5.1: Group Financial Performance

SBU/CSU

ACTUAL (=N= MILLION)

YEAR TO DATE (=N= MILLION)
MONTHLY BUDGET
(=N= MILLION)
JULY
AUGUST
2015 BUDGET
2015 ACTUAL
Profit/
Profit/
Profit/
Profit/
Profit/
Revenue Expense (Loss) Revenue Expense (Loss) Revenue Expense (Loss) Revenue Expense (Loss) Revenue Expense (Loss)

NPDC

54,969

IDSL

1,970

1,279

604
8,574

NETCO
NGC

17,308 37,660

20,192 37,004 16,812

439,748

138,466 301,282

174,129 * 123,134

34,431

19,311

15,120

50,995

692

1,562

792

771

302

691

389

15,764

10,228

5,536

8,923

5,988

2,934

460

143

386

921

1,307

582

546

36

4,831

3,683

1,148

5,880

5,336

544

5,158

3,416

11,586

8,715

2,870

13,621

9,258

4,362

68,594

41,266

27,328

89,134

69,896

19,239

27,111

278,066 204,354

73,712

Sub-Total

66,117

24,205 41,912 47,965

KRPC

22,142

22,478

336

2,696

2,690

2,388

2,386

177,132

179,821

2,689

56

21,246

21,190

PHRC

35,345

36,296

952

34

2,048

2,014

15

2,024

2,009

282,758

290,371

7,613

371

15,474

15,103

WRPC

41,469

37,673

3,796

1,675

1,670

24

2,204

2,180

331,750

301,385

30,365

108

12,732

12,624

Sub-Total

98,955

96,447

2,508

46

6,420

6,374

41

6,616

6,575 791,640 771,577 20,063

535

49,453

48,917

2,878

1,787

1,091

1,451

970

481

1,730

1,150

12,023

8,344

3,679

125,389 11,348

99,486

147,434

RETAIL
PPMC before
Subsidy
Sub-Total

136,737

139,616 127,177 12,439 100,937 148,404

CHQ

1,187

CSU

143

Sub-Total
Grand Total

1,330

16,525 15,338

20,068 34,697 47,500 12,803 528,937 193,643 335,294

580

23,025

14,297

8,728

47,947 109,910 144,765 34,855 1,093,899 1,003,116

90,784

879,283 1,158,121 ***278,837

47,467 111,640 145,915 34,275 1,116,924 1,017,413 99,512

891,306 1,166,465 275,159

243

16,584

16,341

233

6,234

6,001

9,499

2,609

1,607

1,600

1,023

1,017

1,143

19,277 17,947

250

18,191

17,940

239

7,256

7,017

2,752

306,018 267,106 38,912 149,198 200,126

132,202 122,703
22,014

20,871

10,642 154,216 143,574

1,312

116,019

114,707

166

13,586

13,420

1,479 129,606 128,127

51,714 146,617 207,287 60,669 2,448,144 2,136,849 311,295 1,171,386 1,549,877 ** 378,491

*NPDC Expense does not include royalty obligations

**73% of YTD NNPC deficit of N378Bn is accounted for by PPMC deficit of N278.8Bn.
***The N278Bn deficit attributable to PPMC mainly comprises of claimable subsidy of N231 Bn ie 82% of PPMC deficit.
Other causes of PPMC deficit include claimable PPMC Pipeline repairs/management cost of N69bn and Crude/ Product
losses of N45Bn due to vandalized pipelines
Values in the table are provisional unaudited numbers.

18

Monthly Financial and Operations Report August 2015| NNPC

Billion Naira

Chart 5.1.1: NNPC Group Operating Revenue January August 2015

NNPC Group Revenue 2015

200

153.5

157.3

163.2

150

141.3

148.8

149.2

146.6

Jun-15

Jul-15

Aug-15

111.4

100
50
0
Jan-15
NPDC

IDSL

Feb-15
NETCO

Mar-15
NGC

Apr-15

RETAIL

May-15

Refineries

PPMC before Subsidy

CHQ/CSU

Billion Naira

Chart 5.1.2: NNPC Group Operating Expenditure January August 2015

NNPC Group Expenses 2015

250
200

200.9

200.8

Feb-15

Mar-15

187.9

193.8

200.9

200.9

207.3

Apr-15

May-15

Jun-15

Jul-15

Aug-15

157.5

150
100
50
0
Jan-15
NPDC

IDSL

NETCO

NGC

RETAIL

Refineries

PPMC before Subsidy

Chart 5.1.3: NNPC Group Surplus/Deficit January August 2015

19

Monthly Financial and Operations Report August 2015| NNPC

CHQ/CSU

5.2 FGN Projects Status Report

A total of 85 on-going projects valued at $754million and N71billion are being handled by
NNPC. Out of these the sum of $533million and N57billion have been paid as at 31st August
2015. The FGN funded projects relate to Engineering, Procurement and Construction (EPC)
contracts in respect of Gas pipeline for PHCN power plants at various locations.

6 Federation Crude Oil & Gas Revenue

Federation Crude Oil and Gas liftings are broadly classified into Equity Export Crude
and Domestic Crude. Both categories are lifted and marketed by NNPC and the proceeds
remitted to the Federation Account. Monthly export receipts are paid directly into JP Morgan
Account operated by Central Bank of Nigeria (CBN), after adjusting for calenderized Joint
Venture (JV) Cash Calls, being a first line charge as provided in the Appropriation Bill; the
balance is transferred to the Federation Account.
Domestic Crude Oil of 445,000bopd is allocated for Refining to meet domestic products
supply. This volume is utilized through various arrangements such as domestic refining,
offshore refining (Offshore Processing Arrangement: OPA), Crude for Product Exchange and
Direct Export. The net proceeds after adjusting for Fuel Subsidy, Crude & Product Losses and
Pipeline Repairs & Management Cost are remitted to the Federation Account.

20

Monthly Financial and Operations Report August 2015| NNPC

6.1 Main Sources of Federation Revenue

Figure 6.1: Sources of Oil & Gas Revenue

21

Monthly Financial and Operations Report August 2015| NNPC

6.2 Accounting for Federation Crude Oil & Gas

The summary of Oil & Gas Sales and inflow to Federation Account can be depicted as follows:
Figure 6.1

6.3 Dollar Payments to Federation Account

Total US dollar payment to the Federation from sales of export Crude Oil, Gas and NLNG
Feedstock for the month of August 2015 was $225.7 million. Crude oil export sales
contributed $108.9million ie 48% of the dollar payment compared with 76% contribution in
previous month of July 2015 while export Gas sales and NLNG feedstock accounted for
$99.65million ie 44% contribution compared with 23.7% contribution in the prior month of
July 2015. The remaining $16.8milion was attributable to other dollar denominated receipts
22

Monthly Financial and Operations Report August 2015| NNPC

by the Corporation. A total of $607.8 million has been paid so far to FAAC in the year 2015
from sales of export Oil and Gas. Table & Chart 6.3.1 provides the details of the dollar
payments due, receipt of proceeds and allocation of proceeds.
Table 6.3.1 NNPC/FGN Export Crude Oil & Gas Dollar Accruals, Receipts & Payments
Export Sales Proceed Value Due
Receipt/ Export Crude
Lifting Payment Oil Sales
Month Month Proceed due
Units
USD
Dec-14 Jan-15
212,838,844
Jan-15 Feb-15
323,425,507
Feb-15 Mar-15
361,897,548
Mar-15 Apr-15
340,227,160
Apr-15 May-15
306,598,470
May-15 Jun-15
259,160,157
Jun-15 Jul-15
307,749,640
Jul-15 Aug-15
108,916,802
Total
2,220,814,129

*Export Gas Total Oil & Gas

Sales Proceed Sales Proceed
due
due

NNPC/FGN Export Lifting Only

Export Sales Proceed Reciepts

Allocation of Proceeds

Crude Oil
Proceed
Reciepts

Gas Proceed
Reciepts
(NLNG,EGTL,NG
Ls,NGAS)

**Other
Reciepts

Total Sales
Proceed
Reciepts

JV Cash Call
Funding

Balance
Remitance to
FAAC

USD

USD

USD

USD

USD

USD

USD

USD

173,184,756

386,023,600

206,629,106

169,728,467

284,105

376,641,677

300,000,000 76,641,677

151,597,792

475,023,299

307,360,109

163,060,514

196,582,834

667,003,457

320,796,841 346,206,616

113,344,504

475,242,053

400,294,202

105,295,932

185,061

505,775,195

320,796,841 184,978,354

123,190,134

463,417,295

335,023,929

167,104,408

257,969

502,386,306

502,386,306

110,115,836

416,714,305

240,269,115

96,422,239

1,411,600

338,102,954

338,102,954

101,347,202

360,507,359

299,413,261

85,599,747

2,912,709

387,925,718

387,925,718

126,633,631

434,383,271

320,122,055

99,230,169

58,921

419,411,144

419,411,144

108,916,802

108,916,734

99,965,193

16,860,637

225,742,564

225,742,564

899,413,855 3,120,227,984 2,218,028,512

986,406,669 218,553,835 3,422,989,016 2,815,162,368 607,826,648

Chart 6.3.1 Monthly dollar receipts from NNPC/Federation Oil & Gas Exports

Million Dollars

Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports

800

667.00

700
600
500
400
300

505.78
376.64
163.06

167.10

169.73

200
100

105.30

502.39

206.63

338.10
96.42

307.36

400.29

335.02

240.27

387.93
85.60

299.41

419.41
99.23

225.74
320.12

108.92

Jan-15

99.97

Feb-15

Crude Oil Proceed Reciepts

Mar-15

Apr-15

May-15

Jun-15

Gas Proceed Reciepts (NLNG,EGTL,NGLs,NGAS)

Jul-15

Aug-15

**Other Reciepts

6.3.2 Dollar Payments to JV Cash Call & Federation Account

The total export crude Oil & Gas receipt for the period of January August 2015 is
$3.420billion. Of the total receipts, the sum of $0.61billion was remitted to Federation
Account while the balance of $2.815billion was used to fund the JV Cash Call for the period.
The dwindling oil price has negatively affected the NNPC Dollar contribution to the
Federation Account. The receipts witnessed a sharp decline of more than 67% from
23

Monthly Financial and Operations Report August 2015| NNPC

September, 2014, when the receipt was at its peak, to July, 2015 with dire consequences to
the Federation. This continued decline in oil price led to insufficient cash available to meet
monthly JV Cash Calls obligations of about $615.8m as appropriated by the National
Assembly. To mitigate this effect, NNPC was compelled to sweep all the export receipt to JV
Cash Call funding implying a zero remittance to Federation Account since the month of April
2015 indicated in the chart 6.3.2.1 below:
Chart 6.3.2.1 Allocation of Dollar proceed from NNPC/FGN export oil and Gas: JV Cash Call

Million Dollars

Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports
800
700
600
500
400
300
200
100
-

667.00
505.78
376.64

502.39

346.21

338.10

184.98

387.93

419.41

76.64

225.74

502.39
300.00

320.80

320.80

Jan-15

Feb-15

Mar-15

JV Cash Call Funding

Apr-15

338.10

387.93

May-15

Jun-15

419.41
225.74
Jul-15

Aug-15

Balance Remitance to FAAC

Chart 6.3.2.1 NNPC Federation Lifted Volumes vs. Crude Oil Prices

35
30
25
20
15
10
5
0

47.84

56.12

54.71

59.28

63.87

60.68

80
52.50

60
40

20.21

21.15

20.13

Jan-15

Feb-15

Mar-15

16.29

16.23

16.22

17.41

Apr-15

May-15

Jun-15

Jul-15

$/bbl

Millions Barrels

NNPC/Federation Lifted Volumes and Crude Prices

20
0

NNPC Lifted Volumes

Crude Price

6.4 Naira Payments to Federation Account

The sum of N723.82billion for Domestic Crude Oil and Gas Sales proceeds has been paid to
the Federation Account from January to August 2015. The tables below show the Naira
proceed from the Sale of Domestic Crude Oil and Gas and the corresponding naira
remittances to Federation Account.
24

Monthly Financial and Operations Report August 2015| NNPC

Table 6.4.1: Naira Proceed from Sale of Domestic Crude Oil & Gas
Domestic Sales
Proceed Value Due
Receipt/
Payment
Month

Lifting Month
Uints

Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15

TOTAL

Domestic Sales Proceed Recipets

Domestic Crude Sales

Proceed due
NGN

Oil Proceed Reciepts

(M)
NGN

Gas Proceed
Reciepts (M)
NGN

Other Reciepts
NGN

Total Sales Proceed

Reciepts (m)
NGN

193,396,589,831
140,359,919,841
130,786,721,631
107,447,511,536
161,316,709,514
149,222,813,261
129,233,855,135
152,353,935,610

130,258,254,777
72,127,787,317
94,109,331,892
81,021,606,452
95,693,106,452
93,539,606,452
68,983,606,452
67,339,606,452

1,199,275,878
5,068,536,722
3,121,971,726
2,741,653,924
962,282,254
2,091,998,862
2,083,680,988
138,157,794

410,190
967,206,524
0
0
6,020,506
0
0
2,370,034,843

131,457,940,845
78,163,530,562
97,231,303,617
83,763,260,375
96,661,409,211
95,631,605,314
71,067,287,439
69,847,799,089

1,164,118,056,359

703,072,906,243

17,407,558,146

3,343,672,063

723,824,136,453

Table 6.4.2: Allocation

of Naira
Proceeds
from Sale of Domestic Crude Oil & Gas: Payment to FAAC
Domestic Sales
Domestic
Sales
Proceed Value Due Proceed Recipets
Allocation of Domestic Sales Proceeds
Total Sales
Receipt/
Repairs &
Debt Repayemt
Total Naira
Lifting Payment Domestic Crude Proceed Reciepts
(m)
Subsidy
Crude Losses Product Losses Managmet Cost
To FG
Payment To FAAC
Month Month Sales Proceed due
Uints
NGN
NGN
NGN
NGN
NGN
NGN
NGN
NGN

Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15

Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15

TOTAL

193,396,589,831 131,457,940,845 15,351,177,597

0
4,179,073,288 7,797,441,420
140,359,919,841 78,163,530,562 11,175,067,731
0
3,610,801,700 7,863,634,588
130,786,721,631 97,231,303,617 31,062,399,328
5,378,809,260 17,188,809,171
107,447,511,536 83,763,260,375 30,008,360,677 1,807,936,000 6,060,119,430 10,976,056,674
161,316,709,514 96,661,409,211 53,049,002,640 364,989,456 6,338,126,300 6,804,615,602
149,222,813,261 95,631,605,314 18,928,215,273 189,483,278 6,024,148,888 5,697,988,516
129,233,855,135 71,067,287,439 35,954,234,278 1,807,943,717 4,886,682,912 9,202,611,479
152,353,935,610 69,847,799,089 35,510,220,672
5,176,627,751 3,874,456,877

6,330,393,548
6,330,393,548
6,330,393,548
6,330,393,548
6,330,393,548
6,330,393,548
6,330,393,548
6,330,393,548

137,788,334,393
84,493,924,111
103,561,697,166
90,093,653,924
102,991,802,760
101,961,998,862
77,397,680,988
76,178,192,637

1,164,118,056,359

50,643,148,387

774,467,284,840

723,824,136,453

231,038,678,194

4,170,352,451 41,654,389,529

69,405,614,326

Chart 6.4.1 PPMC Pipeline Breaks January August 2015

PPMC Pipeline Breaks from January - August 2015
350

288

300

23
25

250
200

78

150
100

158

50

23
15
43

145

15
48

16

60

55
103

Feb-15

Mosimi

25

231

198

Jan-15

287

YTD Line Breaks of 1,824

60

Mar-15

Kaduna

101

Apr-15

250

10
71

18
54
26

225

27

20

72

117

47

36

151

146

May-15

Port Harcourt

218

Jun-15

Warri

Monthly Financial and Operations Report August 2015| NNPC

78

79

Jul-15

Aug-15

Gombe

Chart: 6.4.1 Monthly Naira Payments to FAAC

Billion Naira

Monthly Naira Payments To FAAC (Domestic Crude Oil & Gas Sales,Debt & Other Reciepts)
160
140

137.788
6.330

120

103.562

100

6.330

84.494

60

102.992

101.962

6.330

6.330

6.330

6.330

80

90.094

130.258
72.128

40

94.109

81.022

95.693

93.540

77.398

76.178

6.330

6.330

68.984

67.340

20
-

1.20

5.07

3.12

2.74

0.96

2.09

2.08

0.14

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Gas Proceed Reciepts (M)

Oil Proceed Reciepts (M)

Other Reciepts

Debt Repayemt To FG

Summary of Challenges and Way Forward

Key Challenges facing the Corporation which adversely impacts its profitability include:
Asset Integrity Issues: Incessant pipelines breakages nationwide has led to massive
leakages and huge accounting losses to NNPC; Pipeline repairs and other associated cost
accounted for about N69.4Bn in YTD 2015 alone.
Crude Oil and Product theft/losses: About N45.8Bn recorded as crude oil and product
theft/losses for 2015 YTD resulting from vandalized pipelines. About 1,824 pipeline breaks
recorded by PPMC in 2015 so far.
Sub-commercial Contracts: Poorly negotiated legacy contracts have contributed adversely
to the profitability of the corporation.
Low capacity utilization of refineries: Largely due to refinery asset integrity issues and
lack of crude oil feed due to vandalized pipelines.
Subsidy management: Unrealized subsidy claims of about N231Bn for 2015 alone
responsible for over 61% of the deficit recorded by the Corporation.
Inefficient Business Models: Some of the Corporations business units are not operating the
most efficient business models that will position the company for profitability.
Consequently, NNPC is embarking on a Change agenda termed the 20 Fixes which identifies 20
critical issues that need to be addressed in order to re-position the Corporation on the path of
profitability.

26

Monthly Financial and Operations Report August 2015| NNPC

7.1Way Forward - 20 Fixes

27

Monthly Financial and Operations Report August 2015| NNPC