Jan 07, 2016
August 2015
Monthly Report
Financial and Operations
Report
NNPC
1 Monthly Financial and Operations Report August 2015| NNPC
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
2 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.
2 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 JVs PSC Af/MCA NPDC
Independent /
Marginal
Fields Total
Average Daily
Production
Barrels Barrels Barrels Barrels Barrels Barrels Barrels
Jan-15 22,221,832 28,141,885 11,055,401 2,923,580 3,723,813 68,066,511 2,195,694
Feb-15 19,631,486 25,112,636 9,800,902 4,003,182 3,312,717 61,860,923 2,209,319
Mar-15 18,780,222 26,845,229 9,614,364 4,511,165 4,405,169 64,156,149 2,069,553
Apr-15 19,568,055 26,008,972 10,799,392 1,889,398 2,575,459 60,841,276 2,028,043
May-15 19,579,478 27,197,671 11,166,850 2,573,919 2,971,181 63,489,099 2,048,035
Jun-15 18,334,670 25,593,567 9,704,798 2,667,540 2,786,281 59,086,856 1,969,562
Jul-15 21,940,240 27,858,467 9,850,062 4,448,460 3,402,327 67,499,556 2,177,405
Total 140,055,983 186,758,427 71,991,769 23,017,244 23,176,947 445,000,370 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
3 Monthly Financial and Operations Report August 2015| NNPC
Chart 2.1: Monthly Crude Oil & Condensate Production
Chart 2.2: Average Daily Crude Oil & Condensate Production & Percentage distribution
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.
22.2 19.6 18.8 19.6 19.6 18.3 21.9
28.1 25.1 26.8 26.0 27.2 25.6
27.9
11.1 9.8 9.6 10.8 11.2 9.7
9.9
68.1 61.9 64.2 60.8 63.5 59.1
67.5
0
10
20
30
40
50
60
70
80
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
ns
Ba
rre
ls
Total Monthly Crude Oil & Condensate Production
JVs PSC Af/MCA NPDC Independent / Marginal Fields
2.20 2.21 2.07 2.03 2.05 1.97
2.18
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
ns
Ba
rre
ls
Average Daily Crude Oil & Condensate Production
31.5%
42.0%
16.2%
5% 5%
Percentage Distribution of Crude Oil Production by Commercial Arrangements
JVs
PSC
Af/MCA
NPDC
Independent /Marginal Fields
4 Monthly Financial and Operations Report August 2015| NNPC
Table 2.2.1: National Gas Production (Total and Daily Average)
Chart 2.2.1: Average Daily National Gas Production
Chart 2.2.1: Monthly National Gas Production & Percentage Distribution
PERIOD JV PSC NPDC TOTAL
BCF BCF BCF BCF
Jan-15 179 58 18 255
Feb-15 146 52 17 215
Mar-15 157 53 21 231
Apr-15 168 54 17 239
May-15 175 54 16 245
Jun-15 164 53 19 236
Jul-15 178 55 23 255
YTD Total 1,168 379 131 1,677
PERIOD JV PSC NPDC TOTAL
mmscfd mmscfd mmscfd mmscfd
Jan-15 5,775 1,869 570 8,214
Feb-15 5,222 1,857 613 7,692
Mar-15 5,080 1,724 663 7,466
Apr-15 5,599 1,811 558 7,968
May-15 5,648 1,729 531 7,908
Jun-15 5,477 1,766 635 7,878
Jul-15 5,729 1,765 739 8,233
Average 5,504 1,788 616 7,908
5,775 5,222 5,080 5,599 5,648 5,477 5,729
1,869 1,857 1,724
1,811 1,729 1,766 1,765
570 613 663
558 531 635 739
8,214 7,692 7,466
7,968 7,908 7,878 8,233
0
2,000
4,000
6,000
8,000
10,000
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Average Daily National Gas Production (mmscfd)
JV PSC NPDC
255
215 231 239
245 236 255
0
50
100
150
200
250
300
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Total Monthly Natural Gas Production (BCF)
69.6%
22.6%
7.8%
Percentage Distribution of Upstream Gas Production
JV
PSC
NPDC
5 Monthly Financial and Operations Report August 2015| NNPC
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
Note: Crude oil liftings are reported one month in arrears
Table 2.3.2: Crude Oil Lifting Values
IOCs, Independents, & AF values include government taxes and royalties superintended by FIRS and DPR respectively.
Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels Barrels
Jan-15 6,599,431 410,000 6,647,330 13,564,197 20,211,527 27,220,958 38,250,075 1,291,873 66,762,906
Feb-15 4,995,452 260,000 6,539,228 14,608,257 21,147,485 26,402,937 36,991,819 1,054,215 64,448,971
Mar-15 2,295,064 1,296,138 6,071,583 14,062,453 20,134,036 23,725,238 35,552,081 1,210,000 60,487,319
Apr-15 4,754,914 51,400 5,119,906 11,173,963 16,293,869 21,100,183 40,410,853 2,297,199 63,808,235
May-15 4,862,603 1,447,689 3,940,965 12,287,020 16,227,985 22,538,277 36,123,485 2,388,624 61,050,386
Jun-15 3,268,292 550,300 5,022,429 11,193,080 16,215,509 20,034,101 37,004,226 1,775,030 58,813,357
Jul-15 7,809,563 0 1,918,716 15,493,685 17,412,401 25,221,964 37,243,405 1,263,140 63,728,509
TOTAL 34,585,319 4,015,527 35,260,157 92,382,655 127,642,812 166,243,658 261,575,944 11,280,081 439,099,683
SUB-TOTAL
(NNPC)DOMESTIC
LIFTING
MONTH
NIGERIAN GOVERNMENT
IOCs &
INDEPENDENTS
(INC. NPDC)
AF
(MCA/RDP) GRAND TOTALFIRS (PSC) DPR (PSC)
NNPC
SUB-TOTAL
GOVERNMENTEXPORT
USD USD USD USD USD USD USD USD USD
Jan-15 310,266,556 19,539,530 323,425,507 643,398,273 966,823,780 1,296,629,866 1,861,055,489 61,313,050 3,218,998,405
Feb-15 292,117,092 15,672,480 361,897,548 824,796,241 1,186,693,789 1,494,483,361 2,047,221,568 62,951,971 3,604,656,901
Mar-15 126,351,941 69,709,608 340,227,160 761,340,884 1,101,568,044 1,297,629,593 1,992,196,044 67,563,676 3,357,389,313
Apr-15 285,992,512 2,942,441 306,598,470 659,356,404 965,954,873 1,254,889,826 2,419,947,884 144,145,396 3,818,983,106
May-15 306,629,363 88,010,118 259,160,157 777,315,998 1,036,476,155 1,431,115,636 2,375,501,442 157,165,605 3,963,782,684
Jun-15 201,845,553 33,793,993 307,749,640 676,152,346 983,901,986 1,219,541,532 2,267,436,179 109,159,403 3,596,137,115
Jul-15 443,053,618 0 108,916,802 805,220,071 914,136,873 1,357,190,491 2,114,139,131 73,988,173 3,545,317,795
TOTAL 1,966,256,635 229,668,170 2,007,975,285 5,147,580,217 7,155,555,501 9,351,480,306 15,077,497,737 676,287,274 25,105,265,317
LIFTING
MONTH
NIGERIAN GOVERNMENT
IOCs &
INDEPENDENTS
(INC. NPDC) AF (MCA/RDP) GRAND TOTALFIRS (PSC) DPR (PSC)
NNPC
SUB-TOTAL
GOVERNMENTEXPORT DOMESTIC
SUB-TOTAL
(NNPC)
6 Monthly Financial and Operations Report August 2015| NNPC
Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements
Chart 2.3.2 Government Crude Oil Lifting and utilization on Account of NNPC
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.
20.21 21.15 20.13 16.29 16.23 16.22 17.41
6.60 5.00 2.30 4.75 4.86 3.27 7.81
38.25 36.99 35.55 40.41 36.12 37.00
37.24
66.76 64.45 60.49
63.81 61.05 58.81 63.73
0
10
20
30
40
50
60
70
80
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
n B
arr
els
Monthly Lifting Entitlement
SUB-TOTAL (NNPC) FIRS (PSC) DPR (PSC) IOCs & INDEPENDENTS (INC. NPDC) AF (MCA/RDP)
13.6 14.6 14.1 11.2 12.3 11.2
15.5
6.6 6.5 6.1
5.1 3.9 5.0
1.9
20.2 21.1
20.1
16.3 16.2 16.2 17.4
0
5
10
15
20
25
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
n B
arr
els
Government Crude Oil Lifting & Utilisation: NNPC Account
DOMESTIC EXPORT
7 Monthly Financial and Operations Report August 2015| NNPC
Table 2.3.1.1Domestic Crude Purchased By NNPC In 2015
Table 2.3.1.2 Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply
Qty
('000
Bbls)
Value in
US$'Mn Naira'Mn
Qty
('000
Bbls)
Value
in
US$'Mn
Naira'Mn
Qty
('000
Bbls)
Value
in
US$'M
n
Naira'Mn
Qty
('000
Bbls)
Value
in
US$'Mn
Naira'Mn
January 6,994 331 55,262 6,571 312 52,186 - - - 13,564 643 107,448
February 6,409 356 70,134 7,934 441 86,907 265 28 4,276 14,608 825 161,317
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
Grand
Total33,924 1,882 359,651 53,899 3,006 580,435 4,560 260 49,797 92,383 5,148 989,884
UTILIZATION OF CRUDE OIL PURCHASED BY NNPC FOR THE YEAR 2015
Month
EXPORT OFFSHORE PROCESSING DELIVERIES TO
REFINERIES TOTAL
Chart 2.3.1.1: NNPC Crude Oil Utilization For Domestic Product Supply
Volume Average Price Sales Value Sales Value Average Lifting
Barrels $/bbl USD NGN Barrels per day
Jan-15 13,564,207 47.43 643,398,273 107,447,511,536 437,555
Feb-15 14,608,257 56.46 824,796,241 161,316,709,514 521,723
Mar-15 14,062,453 54.14 761,340,884 149,222,813,261 453,628
Apr-15 11,173,963 59.01 659,356,404 129,233,855,135 372,465
May-15 12,287,020 63.26 777,315,998 152,353,935,610 396,355
Jun-15 11,193,080 60.41 676,152,346 132,525,859,854 373,103
Jul-15 15,493,685 51.97 805,220,071 157,782,872,917 499,796
Total 92,382,665 56.10 5,147,580,217 989,883,557,826 436,375
Period
6.6 7.9 8.7
6.0 8.6 7.5 8.7
7.0 6.4 5.4
5.2
3.7 2.8
3.4
0.3
0.9
3.3 13.6
14.6 14.1
11.2 12.3
11.2
15.5
0
2
4
6
8
10
12
14
16
18
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
n B
arr
els
NNPC Crude Oil Utilisation For Domestic Product Supply
OPA DIRECT EXPORT REFINERY(IES)
8 Monthly Financial and Operations Report August 2015| NNPC
Chart 2.3.1.2: Percentage Distribution for July 2015 Domestic Crude Utilization
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 re-
injected, 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
22%
56%
22%
July 2015 Crude Utilization For Domestic Product Consumption
Export
OPA
Refineries
4.9%
58.3%
36.7%
2015 YTD Crude Utilization For Domestic Product Consumption
Refinery
OPA
Export
9 Monthly Financial and Operations Report August 2015| NNPC
Table 2.4.1 Total Gas Commercialization and utilization
Table 2.4.1 Daily Average Gas Commercialization and utilization
Chart 2.4.1 Percentage Distribution of Gas Utilization
Domestic
Gas To
Power
Domestic Gas
to Industry
Total
Domestic Gas
Supply WAPG EGTL
NGL/
LPG NLNG Total Export Gas
BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF BCF
Jan-15 20.8 9.5 30.3 1.6 4.7 8.3 97.8 112.5 69.1 12.2 26.7 108.0
Feb-15 18.1 9.3 27.4 1.4 3.4 6.1 76.4 87.2 59.8 11.5 26.2 97.5
Mar-15 20.8 11.2 32.0 1.9 4.9 5.6 86.2 98.6 57.6 11.6 28.5 97.7
Apr-15 18.2 10.1 28.3 1.7 5.4 7.4 89.6 104.1 67.6 13.5 22.7 103.7
May-15 16.5 9.9 26.4 1.8 6.4 7.6 93.0 108.8 74.6 13.5 19.1 107.2
Jun-15 20.4 10.0 30.4 1.3 4.1 7.8 89.6 102.7 70.3 12.3 18.7 101.3
Jul-15 24.4 11.0 35.4 2.1 4.0 7.3 96.8 110.1 76.3 12.4 18.8 107.5
Total 139 71 210 12 33 50 629 724 475 87 161 723
Period
Re-
Injection Fuel Gas Flare
Non-Commercialized Gas
Total Non-
Commerial
Gas
Domestic Gas Export Gas
Gas Commercialisation
Domestic
Gas To
Power
Domestic Gas
to Industry
Total Gas To
Domestic WAPG EGTL NGL/LPG NLNG
Total Gas To
Export
mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd mmscfd
Jan-15 672 306 978 53 151 269 3,156 3,629 2,230 394 861 3,485
Feb-15 646 333 978 51 120 216 2,728 3,114 2,135 410 936 3,481
Mar-15 672 362 1,033 60 159 182 2,780 3,182 1,858 375 919 3,151
Apr-15 605 337 942 57 180 247 2,986 3,470 2,252 451 755 3,458
May-15 533 320 853 61 207 245 3,000 3,509 2,407 436 615 3,458
Jun-15 679 333 1,012 45 136 259 2,985 3,424 2,345 411 622 3,378
Jul-15 786 355 1,141 68 129 234 3,122 3,552 2,462 399 607 3,468
Average 656 335 991 56 154 236 2,965 3,412 2,241 411 759 3,411
Non-Commercialized Gas
Re-
Injection Fuel Gas Flare
Total Non-
Commerial
GasPeriod
Gas CommercialisationDomestic Gas Export Gas
12.7%
43.7%
43.7%
2015 YTD Percentage Distribution of Gas Utilisation
Total GasToDomestic
Total GasTo Export
Total Non-commercialised Gas
14.0%
43.5%
42.5%
July 2015 Percentage Distribution of Gas Utilisation
Total GasToDomestic
Total GasTo Export
Total Non-commercialised Gas
10 Monthly Financial and Operations Report August 2015| NNPC
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
YTD
Operational Parameter Jul Aug Jul Aug Jul Aug 2015
Crude Processed (M/tons) 122,118 140,778 122,141 263,537 12,058 48,837 919,889
Crude Loss/Consumed (M/tons) 6,997 10,726 6,119 10,069 3,232 19,341 79,658
Product Yields(M/tons) 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%
WRPC PHRC KRPC
Chart 3.1: Refineries Capacity Utilization
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:
23.1%
13.8%
2.6%
26.6% 29.7%
10.5%
0%
10%
20%
30%
40%
WRPC PHRC KRPC
Refineries Capacity Utilization
July August
11 Monthly Financial and Operations Report August 2015| NNPC
Table 3.2: Refinery Financial Performance January August 2015
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
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
NGN
Million NGN Million NGN Million
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) 0 0 0 0 0 (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)
KRPC
Revenue 378 397 982 179 58 445 212 2,649
Crude + Frieght (COGS) (2,252) 0 0 0 0 0 (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)
PHRC
Revenue 432 27 2,480 455 27 37 13,662 29,708
Crude + Frieght (COGS) 0 0 0 0 0 0 (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
Consolidated
Revenue 19,178 436 3,487 647 99 501 27,091 45,194
Crude + Frieght (COGS) (14,331) 0 0 0 0 0 (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)
Refinery Financial
Performance 2015
12 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) DPK (Litres) TOTAL
Jan-15 518,772,436 328,471,904 847,244,339
Feb-15 472,805,827 84,308,867 557,114,694
Mar-15 928,342,422 84,985,825 1,013,328,247
Apr-15 575,901,484 171,709,078 747,610,563
May-15 700,039,658 349,630,514 1,049,670,172
Jun-15 295,642,465 67,562,200 363,204,665
Jul-15 773,679,148 36,968,789 810,647,937
Aug-15 701,294,114 0 701,294,114
TOTAL 4,966,477,554 1,123,637,178 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
519 473
928
576 700
296
774 701
328
84
85
172
350
68
37
847
557
1,013
748
1,050
363
811 701
0
200
400
600
800
1,000
1,200
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Mil
lio
ns
Lit
res
Petroleum Products from Offshore Processing Arrangement
PMS (Litres) DPK (Litres)
13 Monthly Financial and Operations Report August 2015| NNPC
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
Table 4.2.1 Total Petroleum White Product Supply from NNPC (OPA+ Refineries)
Chart 4.2.1 Total Petroleum White Product Supply From NNPC (OPA+ Refineries)
PMS DPK (Litres) Total (PMS+DPK)
Litres Litres Litres
Jan-15 180,510,669 63,937,104 244,447,773
Feb-15 60,764,733 0 60,764,733
Mar-15 55,103,031 0 55,103,031
Apr-15 58,084,074 0 58,084,074
May-15 28,980,351 0 28,980,351
Jun-15 57,822,579 0 57,822,579
Jul-15 53,394,597 29,859,984 83,254,581
Aug-15 116,464,509 83,780,928 200,245,437
Total 611,124,543 177,578,016 788,702,559
Period
PMS DPK Total PMS DPK
Litres Litres Litres Litres/Day Litres/Day
Jan-15 699,283,105 392,409,008 1,091,692,112 22,557,520 12,658,355
Feb-15 533,570,560 84,308,867 617,879,427 19,056,091 3,011,031
Mar-15 983,445,453 84,985,825 1,068,431,278 31,724,047 2,741,478
Apr-15 633,985,558 171,709,078 805,694,637 21,132,852 5,723,636
May-15 729,020,009 349,630,514 1,078,650,523 23,516,774 11,278,404
Jun-15 353,465,044 67,562,200 421,027,244 11,782,168 2,252,073
Jul-15 827,073,745 66,828,773 893,902,518 26,679,798 2,155,767
Aug-15 817,758,623 83,780,928 901,539,551 26,379,310 2,702,611
Total 5,577,602,097 1,301,215,194 6,878,817,291 22,853,570 5,315,419
PeriodTotal Product Supply (OPA+Refineries) Average Daily Supply
699 534
983 634 729
353
827 818
392
84
85
172 350
68
67 84
1,092
618
1,068
806
1,079
421
894 902
0
500
1,000
1,500
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Mil
lio
ns
Lit
res
Total Petroleum Products Supply From NNPC (OPA + Refineries)
PMS (Litres) DPK (Litres)
14 Monthly Financial and Operations Report August 2015| NNPC
Table 4.2.2 Daily Average Petroleum Product Supply From NNPC (OPA+ Refineries)
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
22.6 19.1
31.7
21.1 23.5
11.8
26.7 26.4
12.7
3.0
2.7
5.7
11.3
2.3
2.2 2.7
35
22
34
27
35
14
29 29
0
10
20
30
40
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Mil
lio
ns
Lit
res
Daily Average Petroleum Products Supply From NNPC (OPA + Refineries)
PMS (Litres) DPK (Litres)
PMS AGO DPK Total White
Products
Period Litres Litres Litres Litres
Jan-15 512,396,097 20,966,547 303,183,934 836,546,578
Feb-15 499,945,695 19,004,650 93,309,212 612,259,557
Mar-15 795,149,204 31,644,056 124,187,347 950,980,607
Apr-15 582,586,368 17,227,372 191,077,678 790,891,418
May-15 566,290,963 13,988,465 271,031,091 851,310,519
Jun-15 582,416,290 11,601,322 42,022,793 636,040,405
Jul-15 570,023,134 3,292,716 40,506,046 613,821,896
Aug-15 516,699,923 6,562,586 83,581,196 606,843,705
Total 4,625,507,674 124,287,714 1,148,899,297 5,898,694,685
15 Monthly Financial and Operations Report August 2015| NNPC
Table 4.3.2 Daily Average Petroleum White Product Sales By PPMC
Chart 4.3.1 Monthly Petroleum White Product sales by PPMC
Chart 4.3.2 Average Daily White Products Distribution sales by NNPC PPMC
PMS AGO DPK Total White
Products
Period Liters/Day Liters/Day Liters/Day Liters/Day
Jan-15 16,528,906 676,340 9,780,127 26,985,373
Feb-15 17,855,203 678,738 3,332,472 21,866,413
Mar-15 25,649,974 1,020,776 4,006,043 30,676,794
Apr-15 19,419,546 574,246 6,369,256 26,363,047
May-15 18,267,450 451,241 8,742,938 27,461,630
Jun-15 19,413,876 386,711 1,400,760 21,201,347
Jul-15 18,387,843 106,217 1,306,647 19,800,706
Aug-15 16,667,739 211,696 2,696,168 19,575,603
Total 19,023,817 513,245 4,704,301 24,241,364
512 500
795 583 566 582 570
303 93
124
191 271 42 41
836.5
612.3
951.0
790.9 851.3
636.0 613.8
0
200
400
600
800
1,000
1,200
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
ns
Lit
ers
Total Monthly PPMC Product Distribution Sales Volume
PMS DPK AGO
17 18 26
19 18 19 18
10 3
4
6 9 1 1
27.0
21.9
30.7
26.4 27.5
21.2 19.8
0
5
10
15
20
25
30
35
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Mil
lio
ns
Lit
ers
Pe
r D
ay
Average Daily PPMC Product Distribution Sales Volume
PMS DPK AGO
16 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
Chart 4.3.3 Monthly Sales Revenue for Petroleum Product White Product Distribution
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.
PMS AGO DPK Total White Products
Period Naira Naira Naira Naira
Jan-15 41,039,382,833 2,892,544,824 12,400,222,901 56,332,150,558
Feb-15 38,731,828,782 2,211,571,121 3,816,346,771 44,759,746,673
Mar-15 61,718,451,733 3,686,952,718 5,079,262,492 70,484,666,943
Apr-15 45,243,657,319 1,974,058,858 7,815,077,030 55,032,793,208
May-15 43,937,131,621 1,612,590,245 11,085,171,622 56,634,893,488
Jun-15 45,230,449,083 1,441,464,259 2,084,424,706 48,756,338,048
Jul-15 44,235,234,795 395,718,609 1,656,697,281 46,287,650,685
Aug-15 40,075,798,540 741,703,470 3,418,470,916 44,235,972,926
Total 360,211,934,706 14,956,604,104 47,355,673,720 422,524,212,529
41 39
62 45 44 45 44
12 4
5
8 11 2 2
3
2
4
2 2
1 0
56.3
44.8
70.5
55.0 56.6 48.8 46.3
0
10
20
30
40
50
60
70
80
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Bil
lio
ns
Na
ira
Sales Revenue From PPMC Product Distribution Sales Volume
PMS DPK AGO
17 Monthly Financial and Operations Report August 2015| NNPC
Table 4.4.1 Domestic Gas Supply to the Power Sector & Generation
Chart 4.4.1 Domestic Gas Supply to the Power Sector & Generation
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.
Period
Gas Supply To Gas-Fired Power Plants
Average Power Generated from Gas-Fired Power
Plants
% of Gas Fired Generation to Total Power Generation
including Hyrdo
mmscfd MW %
Jan-15 672 2,846 MW 80.2%
Feb-15 646 2,781 MW 80.0%
Mar-15 672 2,885 MW 84.6%
Apr-15 605 2,675 MW 84.1%
May-15 533 2,219 MW 86.2%
Jun-15 679 3,002 MW 87.3%
Jul-15 786 3,489 MW 91.1% Average 656 2,843 MW 84.8%
672 646 672 605 533 679
786
2,846 MW 2,781 MW 2,885 MW 2,675 MW
2,219 MW
3,002 MW
3,489 MW
0 MW
500 MW
1,000 MW
1,500 MW
2,000 MW
2,500 MW
3,000 MW
3,500 MW
4,000 MW
0
200
400
600
800
1,000
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
Po
we
r G
en
era
tio
n
Ga
s S
up
ply
(m
msc
fd)
Gas Supply to Power plants & Generation
Gas Supply To Gas-Fired Power Plants (mmscfd) Power Generated from Gas-Fired Power Plants (MW)
18 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
*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.
Revenue Expense
Profit/
(Loss) Revenue Expense
Profit/
(Loss) Revenue Expense
Profit/
(Loss) Revenue Expense
Profit/
(Loss) Revenue Expense
Profit/
(Loss)
NPDC 54,969 17,308 37,660 34,431 19,311 15,120 20,192 37,004 16,812 439,748 138,466 301,282 174,129 123,134 50,995
IDSL 1,970 1,279 692 1,562 792 771 302 691 389 15,764 10,228 5,536 8,923 5,988 2,934
NETCO 604 460 143 386 921 1,307 582 546 36 4,831 3,683 1,148 5,880 5,336 544
NGC 8,574 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
Sub-Total 66,117 24,205 41,912 47,965 27,111 20,068 34,697 47,500 12,803 528,937 193,643 335,294 278,066 204,354 73,712
KRPC 22,142 22,478 336 6 2,696 2,690 2 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 5 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
RETAIL 2,878 1,787 1,091 1,451 970 481 1,730 1,150 580 23,025 14,297 8,728 12,023 8,344 3,679
PPMC before
Subsidy136,737 125,389 11,348 99,486 147,434 47,947 109,910 144,765 34,855 1,093,899 1,003,116 90,784 879,283 1,158,121 278,837
Sub-Total 139,616 127,177 12,439 100,937 148,404 47,467 111,640 145,915 34,275 1,116,924 1,017,413 99,512 891,306 1,166,465 275,159
CHQ 1,187 16,525 15,338 243 16,584 16,341 233 6,234 6,001 9,499 132,202 122,703 1,312 116,019 114,707
CSU 143 2,752 2,609 7 1,607 1,600 6 1,023 1,017 1,143 22,014 20,871 166 13,586 13,420
Sub-Total 1,330 19,277 17,947 250 18,191 17,940 239 7,256 7,017 10,642 154,216 143,574 1,479 129,606 128,127
Grand Total 306,018 267,106 38,912 149,198 200,126 51,714 146,617 207,287 60,669 2,448,144 2,136,849 311,295 1,171,386 1,549,877 378,491
JULY AUGUSTSBU/CSU
2015 BUDGET 2015 ACTUAL
MONTHLY BUDGET
(=N= MILLION)
ACTUAL (=N= MILLION) YEAR TO DATE (=N= MILLION)
**
***
*
19 Monthly Financial and Operations Report August 2015| NNPC
Chart 5.1.1: NNPC Group Operating Revenue January August 2015
Chart 5.1.2: NNPC Group Operating Expenditure January August 2015
Chart 5.1.3: NNPC Group Surplus/Deficit January August 2015
153.5 157.3 163.2 141.3
111.4
148.8 149.2 146.6
0
50
100
150
200
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Bil
lio
n N
air
a NNPC Group Revenue 2015
NPDC IDSL NETCO NGC RETAIL Refineries PPMC before Subsidy CHQ/CSU
157.5
200.9 200.8 187.9 193.8
200.9 200.9 207.3
0
50
100
150
200
250
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Bil
lio
n N
air
a
NNPC Group Expenses 2015
NPDC IDSL NETCO NGC RETAIL Refineries PPMC before Subsidy CHQ/CSU
20 Monthly Financial and Operations Report August 2015| NNPC
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.
21 Monthly Financial and Operations Report August 2015| NNPC
6.1 Main Sources of Federation Revenue
Figure 6.1: Sources of Oil & Gas Revenue
22 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
23 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
Chart 6.3.1 Monthly dollar receipts from NNPC/Federation Oil & Gas Exports
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
Export Crude
Oil Sales
Proceed due
*Export Gas
Sales Proceed
due
Total Oil & Gas
Sales Proceed
due
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
Units USD USD USD USD USD USD USD USD USD
Dec-14 Jan-15 212,838,844 173,184,756 386,023,600 206,629,106 169,728,467 284,105 376,641,677 300,000,000 76,641,677
Jan-15 Feb-15 323,425,507 151,597,792 475,023,299 307,360,109 163,060,514 196,582,834 667,003,457 320,796,841 346,206,616
Feb-15 Mar-15 361,897,548 113,344,504 475,242,053 400,294,202 105,295,932 185,061 505,775,195 320,796,841 184,978,354
Mar-15 Apr-15 340,227,160 123,190,134 463,417,295 335,023,929 167,104,408 257,969 502,386,306 502,386,306 0
Apr-15 May-15 306,598,470 110,115,836 416,714,305 240,269,115 96,422,239 1,411,600 338,102,954 338,102,954 0
May-15 Jun-15 259,160,157 101,347,202 360,507,359 299,413,261 85,599,747 2,912,709 387,925,718 387,925,718 0
Jun-15 Jul-15 307,749,640 126,633,631 434,383,271 320,122,055 99,230,169 58,921 419,411,144 419,411,144 0
Jul-15 Aug-15 108,916,802 108,916,802 108,916,734 99,965,193 16,860,637 225,742,564 225,742,564 0
2,220,814,129 899,413,855 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
Receipt/
Payment
Month
Lifting
Month
NNPC/FGN Export Lifting Only
Total
Export Sales Proceed RecieptsExport Sales Proceed Value Due Allocation of Proceeds
206.63 307.36
400.29 335.02
240.27 299.41 320.12
108.92
169.73
163.06
105.30 167.10
96.42 85.60
99.23
99.97
376.64
667.00
505.78 502.39
338.10 387.93
419.41
225.74
-
100
200
300
400
500
600
700
800
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Mil
lio
n D
oll
ars
Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports
Crude Oil Proceed Reciepts Gas Proceed Reciepts (NLNG,EGTL,NGLs,NGAS) **Other Reciepts
24 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
Chart 6.3.2.1 NNPC Federation Lifted Volumes vs. Crude Oil Prices
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.
300.00 320.80 320.80
502.39 338.10 387.93
419.41
225.74
76.64
346.21
184.98 376.64
667.00
505.78 502.39
338.10 387.93 419.41
225.74
-
100
200
300
400
500
600
700
800
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Mil
lio
n D
oll
ars
Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports
JV Cash Call Funding Balance Remitance to FAAC
20.21 21.15 20.13 16.29 16.23 16.22 17.41
47.84 56.12 54.71
59.28 63.87 60.68
52.50 47.84
0
20
40
60
80
0
5
10
15
20
25
30
35
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
$/
bb
l
Mil
lio
ns
Ba
rre
ls
NNPC/Federation Lifted Volumes and Crude Prices
NNPC Lifted Volumes Crude Price
25 Monthly Financial and Operations Report August 2015| NNPC
Table 6.4.1: Naira Proceed from Sale of Domestic Crude Oil & Gas
Table 6.4.2: Allocation of Naira Proceeds from Sale of Domestic Crude Oil & Gas: Payment to FAAC
Chart 6.4.1 PPMC Pipeline Breaks January August 2015
Domestic Crude Sales
Proceed due
Oil Proceed Reciepts
(M)
Gas Proceed
Reciepts (M) Other Reciepts
Total Sales Proceed
Reciepts (m)
Uints NGN NGN NGN NGN NGN
Oct-14 Jan-15 193,396,589,831 130,258,254,777 1,199,275,878 410,190 131,457,940,845
Nov-14 Feb-15 140,359,919,841 72,127,787,317 5,068,536,722 967,206,524 78,163,530,562
Dec-14 Mar-15 130,786,721,631 94,109,331,892 3,121,971,726 0 97,231,303,617
Jan-15 Apr-15 107,447,511,536 81,021,606,452 2,741,653,924 0 83,763,260,375
Feb-15 May-15 161,316,709,514 95,693,106,452 962,282,254 6,020,506 96,661,409,211
Mar-15 Jun-15 149,222,813,261 93,539,606,452 2,091,998,862 0 95,631,605,314
Apr-15 Jul-15 129,233,855,135 68,983,606,452 2,083,680,988 0 71,067,287,439
May-15 Aug-15 152,353,935,610 67,339,606,452 138,157,794 2,370,034,843 69,847,799,089
1,164,118,056,359 703,072,906,243 17,407,558,146 3,343,672,063 723,824,136,453TOTAL
Receipt/
Payment
MonthLifting Month
Domestic Sales Proceed Recipets
Domestic Sales
Proceed Value Due
Domestic Crude
Sales Proceed due
Total Sales
Proceed Reciepts
(m) Subsidy Crude Losses Product Losses
Repairs &
Managmet Cost
Debt Repayemt
To FG
Total Naira
Payment To FAAC
Uints NGN NGN NGN NGN NGN NGN NGN NGN
Oct-14 Jan-15 193,396,589,831 131,457,940,845 15,351,177,597 0 4,179,073,288 7,797,441,420 6,330,393,548 137,788,334,393
Nov-14 Feb-15 140,359,919,841 78,163,530,562 11,175,067,731 0 3,610,801,700 7,863,634,588 6,330,393,548 84,493,924,111
Dec-14 Mar-15 130,786,721,631 97,231,303,617 31,062,399,328 5,378,809,260 17,188,809,171 6,330,393,548 103,561,697,166
Jan-15 Apr-15 107,447,511,536 83,763,260,375 30,008,360,677 1,807,936,000 6,060,119,430 10,976,056,674 6,330,393,548 90,093,653,924
Feb-15 May-15 161,316,709,514 96,661,409,211 53,049,002,640 364,989,456 6,338,126,300 6,804,615,602 6,330,393,548 102,991,802,760
Mar-15 Jun-15 149,222,813,261 95,631,605,314 18,928,215,273 189,483,278 6,024,148,888 5,697,988,516 6,330,393,548 101,961,998,862
Apr-15 Jul-15 129,233,855,135 71,067,287,439 35,954,234,278 1,807,943,717 4,886,682,912 9,202,611,479 6,330,393,548 77,397,680,988
May-15 Aug-15 152,353,935,610 69,847,799,089 35,510,220,672 5,176,627,751 3,874,456,877 6,330,393,548 76,178,192,6371,164,118,056,359 723,824,136,453 231,038,678,194 4,170,352,451 41,654,389,529 69,405,614,326 50,643,148,387 774,467,284,840
Allocation of Domestic Sales Proceeds
TOTAL
Receipt/
Payment
Month
Lifting
Month
Domestic Sales
Proceed Recipets
Domestic Sales
Proceed Value Due
158 103
60 101
146 151
78 79
78
43
55
60 26
47
36 5
25
15 48
54
71
72 117
23
23
16
15 18
10
27 20
288
198
145
231 250
287
218 225
0
50
100
150
200
250
300
350
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
PPMC Pipeline Breaks from January - August 2015
Mosimi Kaduna Port Harcourt Warri Gombe
YTD Line Breaks of 1,824
26 Monthly Financial and Operations Report August 2015| NNPC
Chart: 6.4.1 Monthly Naira Payments to FAAC
7 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.
1.20 5.07 3.12 2.74 0.96 2.09 2.08 0.14
130.258
72.128 94.109
81.022 95.693 93.540
68.984 67.340
6.330
6.330
6.330
6.330
6.330 6.330
6.330 6.330
137.788
84.494
103.562 90.094
102.992 101.962
77.398 76.178
-
20
40
60
80
100
120
140
160
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15
Bil
lio
n N
air
a
Monthly Naira Payments To FAAC (Domestic Crude Oil & Gas Sales,Debt & Other Reciepts)
Gas Proceed Reciepts (M) Oil Proceed Reciepts (M) Other Reciepts Debt Repayemt To FG
27 Monthly Financial and Operations Report August 2015| NNPC
7.1Way Forward - 20 Fixes