NNPC

Monthly Report

Financial and Operations Report

December 2016

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 100% 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.

Disclaimer

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Outline 1.0

Introduction

2.0

National Crude Oil & Natural Gas Production, Lifting and Utilization

3.0

Refinery Operations

4.0

Petroleum Product Supply & Distribution

5.0

Budget Performance Report

6.0

Federation Crude Oil & Gas Revenue

7.0

Key Determinants For Change

8.0

Glossary

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NNPC | Monthly Financial and Operations Report December 2016

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1

Introduction

Global Oil prices surged in early December 2016 and remain within a price band of $53-57/b. following OPEC & non-OPEC historic decision to end supply glut that brought the global oil market to its knees. The gain is the highest since March, 2016. Brent crude soared to $54.92/b adding $7.84 while WTI inched up to $52.17/b. The OPEC Reference Basket also jumped nearly 20% in December to $51.67/b, ending above $50/b for the first time in 18 months. Notwithstanding this late gain, the 2016 yearly average value is the lowest in more than 12 years amid the most significant deterioration in oil prices in more than a decade due to overwhelming crude oil oversupply. World economic growth has been revised up by 0.1 percentage point to stand at 3.0% for 2016 and 3.2% for 2017. However, OECD growth forecast was revised up from 1.7% and 1.8% for 2016 and 2017 in anticipation of strong growth in Japan, USA and Eurozone. Forecasts for China remain at 6.7% in 2016 and 6.2% in 2017. The World oil demand in 2016 is expected to increase by 1.25 mb/d to average 94.44 mb/d reflecting better than expected performance in OECD Asia Pacific and Europe. Going into 2017, world oil demand growth is forecasted at 1.16 mb/d to average 95.60 mb/d. The Global oil supply fell to 97.6 mb/d in December 2016 shedding more than 0.6 mb/d relative to previous month on the back of lower output following OPEC and non-OPEC production agreement. OPEC crude output fell by 320 kb/d to record 33.09 mb/d in December after lower Saudi Arabia output and production disruptions in Nigeria. In November, 2016, Crude Oil production in Nigeria inched up to 1.92mb/d which represents 7.77% increase relative to October 2016 production but still lagged behind November, 2015 performance by 12.04%. The month performance is attributed to Federal Government’s overtures to Niger Delta Militants towards providing a lasting peace to the crisis. However, some of the major drag to our performance includes the subsisting force majeure at Forcados terminal and Brass Terminal, and shutdown of two NCTL flow stations following pipeline leakages. Areas much affected by the Militant activities are the onshore and shallow water assets, where government take is high. Hence, securing Onshore & Shallow water locations remain a priority to restore production. National Gas production for the month stood at 219.2BCF or 7,071.11mmscfd.This represents 10% decrease relative to previous month. The Natural gas supply to Gas 4

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power plants also declined to 481 mmscfd or equivalent to power generation decline of 1,715 MW in December, 2016. This supply is also lower than the corresponding supply recorded in December, 2015 of 3,004MW. Pipeline sabotage in the country continues to reduce due to Federal Government and NNPC sustained engagements with the stakeholders. Only 18 downstream pipeline vandalized points were recorded in the month as against 43 in November 2016. This also represents 69.77% reduction relative to previous month. In the downstream sector, in spite of liberalization of Petroleum products and Government intervention to ease Marketers access to FOREX, NNPC remains the major importer of petroleum products, especially PMS. Also, the ongoing Turn around Maintenance (TAM) is promising to entirely change the anemic outlook of the country’s refineries. The Corporation has been operating in challenging situations which limits its aspiration to profitability. This 17th publication of NNPC Monthly Financial and Operations Report indicates a trading deficit of ₦17.01 Billion. This represents a decrease of ₦1.71Billion in trading deficit as against November, 2016. The marginal decrease is due to improved PPMC Coastal sales following completion of reconciliation with other marketers. Other factors that affected the overall NNPC’s performance include Force Majeure declared by SPDC as a result of the vandalized 48-inch Forcados export line after the restoration on 17th October, 2016 amongst others. Notwithstanding the reduction in downstream vandalism, NNPC undeniably needs the support of Nigerians especially in areas of security and infrastructural integrity. Favourable business environment will enable NPDC to reverse on average the over N20 billion monthly revenue currently being lost due to pipeline sabotage which would have created more profit and jobs. This report also highlighted our activities for the twelve-month period of January 2016 to December, 2016 to allow for trend recognition. NNPC has maintained 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, transparent and a FACTI based Organization. We will therefore, remain more focused, accountable and transparent.

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Activity update 

NNPC is currently exploring other petroleum acreages in Nigeria and the Gulf of Guinea to enhance oil reserve.



NNPC is exploring alternative crude oil supply to KRPC through piping crude oil (over 1, 000 kilometers) from Agadem, Niger Republic.



NNPC is intensifying efforts on Ajaokuta-Abuja-Kaduna-Kano (AKK) gas pipeline to ensure gas supply to power industries.



The Corporation has signed off agreements with JV partners to enable NNPC pay off the cash call arrears, exit Cashcall funding mechanism and transit into an Incorporated Joint Venture (IJV) within the next 3 years.



NNPC had imported about 38.7million litres of aviation fuel which represented about 26-day sufficiency. And secured the supply of additional 30,000MT vessel of ATK which represented about 36million litres.



NNPC has over 40-day sufficiency for PMS and adequate volumes of AGO and DPK to satisfy national demand throughout the yuletide period and beyond.



Review of the existing PSC arrangements is Ongoing with a view to improving Government share of revenue from the arrangement.



Various activities to re-kit NPDC for efficiency and profitability through cost optimization efforts and setting up Asset Management Teams with the intention of transiting to Incorporated Joint Venture Companies (IJVs) with the JV Partners.

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2

National Crude Oil & Natural Gas Production, Lifting and Utilization

2.1 National Crude Oil & Condensate Production A total of 57.56 million barrels of crude oil & condensate was produced in the month of November 2016 representing an average daily production of 1.92 million barrels. This represents an increase of 4.30% compared to October 2016 performance. Of the November 2016 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 31.94% and 47.34% respectively. While AF, NPDC and Independent accounted for 14.39%, 2.15% and 4.18% respectively. The tables and charts below provide details of the National Crude Oil Production for the period January to November 2016. Table 2.1.1: Fiscalised National Crude Oil & Condensate Production JVs

Month

PSC

AF

NPDC

Independent / Marginal Fields

Average Daily Production

Total

Barrels

Barrels

Barrels

Barrels

Barrels

Barrels

Barrels

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16

20,015,238 20,523,070 20,328,576 20,235,544 14,300,972 14,588,848 16,089,730 12,793,680 14,523,490 16,910,354 18,384,475

28,699,715 25,416,360 27,677,898 27,856,871 27,367,431 27,347,206 27,219,286 28,187,299 27,728,624 28,659,218 27,254,064

10,138,058 8,828,557 9,421,137 8,146,127 6,697,752 7,785,510 5,466,571 3,287,522 4,114,046 5,842,794 8,283,689

3,643,410 1,853,811 1,035,898 1,031,353 1,169,793 1,355,369 795,651 1,070,111 1,211,935 1,376,709 1,238,370

4,130,388 2,591,130 2,219,251 2,305,041 2,631,486 1,988,374 1,803,370 1,925,268 1,878,708 2,403,453 2,404,037

66,626,809 59,212,928 60,682,760 59,574,936 52,167,434 53,065,307 51,374,608 47,263,880 49,456,803 55,192,528 57,564,635

2,149,252 2,041,825 1,957,508 1,985,831 1,682,820 1,768,844 1,657,245 1,524,641 1,648,560 1,780,404 1,918,821

YTD Total

188,693,977

303,413,972

78,011,763

15,782,410

26,280,506

612,182,628

1,827,411

Note:  NPDC’s Crude production was based on NPDC’s wholly owned assets and percentage holding in JV assets.  JV and AF production figures are reconciled from January to September, 2016.  NPDC 60 Series production is included in JVs & MCA production, the volume included in November ‘16 was 1,757,109bbls.  For more details on production by company, streams and well-head productions (Non-Fiscalised) click on these links: company streams and well-head respectively.

Chart 2.1.1: Crude Oil & Condensate Production: January – November 2016

Millions Barrels

Total Monthly Crude Oil & Condensate Production 80 60 40 20 0

66.63

59.21

60.68

10.1

8.8

9.4

8.1

28.7

25.4

27.7

27.9

20.0

20.5

20.3

Jan-16

Feb-16

Mar-16 JVs

7

59.57

55.19

57.56

52.17

53.07

51.37

47.26

49.46

6.7

7.8

5.5

3.3

4.1

5.8

8.3 27.3

27.4

27.3

27.2

28.2

27.7

28.7

20.2

14.3

14.6

16.1

12.8

14.5

16.9

18.4

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

PSC

AF

NPDC

Independent / Marginal Fields

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Chart 2.1.2: Average Daily Crude Oil & Condensate Production & Percentage distribution YTD Percentage Distribution of Crude Oil Production by Commercial Arrangements

Average Daily Crude Oil & Condensate Production (Million Barrels/Days) 2.5 2.0

2.15 2.04 1.96 1.99

JVs 1.68 1.77 1.66

1.52

1.65

1.78

1.92

4% 3% 12.7%

1.5

PSC

30.8%

1.0

AF

0.5 0.0

NPDC 49.6%

Table 2.1.2: NPDC monthly Crude oil & Condensate Production Field/Company

Block NPDC Owned Direct Operated Assets Abura OML 65 Oredo OML 111

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

YTD

Barrels 84,543 103,625

Barrels 34,758 49,656

Barrels 0 312

Barrels 0 0

Barrels 62,551 0

Barrels 117,845 0

Barrels 12,799 27,158

Barrels 0 12,215

Barrels 97,665 3,336

Barrels 87,743 8,650

Barrels 8,155 20,673

Barrels 506,059 225,625

33,904

22,076

1,306

0

0

0

0

760

1,952

423

0

60,421

Oziengbe

OML 111

Okono_Okpoho SUB-TOTAL NPDC JV Direct Operated Assets

OML 119

Ogini_Isoko/FHN

OML 26

96,120

34,196

0

31,388

34,648

81,716

9,134

0

57,247

14,561

4,125

Opuama/Elcrest

OML 40

49,211

34,683

0

0

0

0

0

0

0

0

21,924

105,818

Batan_Odidi/Netconde

OML 42

649,201

251,782

0

0

0

76,048

117,015

43,695

27,631

91,804

87,816

1,344,992

Afiesere_Kokori/Shoreline

OML 30

536,287

159,249

0

5,181

0

95,978

14,049

0

8,444

32,408

33,648

885,244

Utorogu_Ughelli/NDW

OML 34

244,613

166,007

119,290

146,916

193,807

119,262

118,877

110,956

94,798

108,331

137,123

1,559,980

SUB-TOTAL NPDC JV Non-Operated Assets OBEN_Amukpe_Sapele/SEPLAT

738,751 665,544 878,036 796,160 738,182 756,858 173,051 588,002 742,023 762,535 696,675 7,535,817 960,823 772,034 879,654 796,160 800,733 874,703 213,008 600,977 844,976 859,351 725,503 8,327,922 363,135

1,575,432 645,917 119,290 183,485 228,455 373,004 259,075 154,651 188,120 247,104 284,636 4,259,169 OML 4,38&41 1,107,155 435,860

36,954

51,708

140,605

SUB-TOTAL

1,107,155 435,860

36,954

51,708

140,605 107,662 323,568 314,483 178,839 270,254 228,231 3,195,319

GRAND TOTAL

3,643,410 1,853,811 1,035,898 1,031,353 1,169,793 1,355,369 795,651 1,070,111 1,211,935 1,376,709 1,238,370 15,782,410

Average Daily Production

117,529

63,925

33,416

34,378

37,735

107,662

45,179

323,568

25,666

314,483

34,520

178,839

40,398

270,254

44,410

228,231

41,279

3,195,319

47,112

The NPDC YTD (January to November 2016) cumulative production from all fields amounted to 15,782,410 barrels of Crude oil which translated to an average daily production of 47,112 barrels. Comparing NPDC performance to National Production, the company production share amounted to 2.58%. NPDC production continued to be hampered by the incessant pipeline vandalism in the Niger-Delta. NPDC is projected to ramp-up production level to 250,000bp/d after the completion of the on-going NPDC re-kitting project and repairs of vandalized facilities. Production from NPDC wholly operated assets amounted to 8,327,922 barrels (or 52.77% of the total production) with Okono Okpoho (OML 119) alone producing 90.45% of the NPDC wholly owned operated Assets or 47.75% of the total NPDC total production. Also on the NPDC operated JV assets, in which NPDC own 55% controlling interest, Crude Oil production amounted to 4,259,169 barrel (or 27.00% of the NPDC total production). On the Non-operated assets, production level stood at 3,195,319 barrels or 20.25% of the company production. 8

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9,488

Chart 2.1.3 NPDC Monthly Crude Oil & Condensate Productions NPDC Crude Monthly Production (Thousand Barrels) 4,500 3,643

4,000 3,500 3,000 2,500

1,854

2,000

1,575

1,500

1,036

1,031

1,170

119

183

228

646

1,000 500

1,355 373

796

961

772

880

796

801

875

259 213

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

0 NPDC Owned Direct Operated Assets

1,070 155 601 Aug-16

NPDC JV Direct Operated Assets

1,377

1,238

188

247

285

845

859

726

Sep-16

Oct-16

Nov-16

1,212

NPDC JV Non-Operated Assets

Chart 2.1.4 NPDC Monthly Average Daily Crude Production by Field NPDC Average Daily Crude Oil Production (Thousand Barrels/Day)

NPDC 12 Mpnths Period Ranking by Field (Thousand Barrels)

140 120

OBEN_Amukpe_Sapele/ SEPLAT

118

7,536

Okono_Okpoho

100 80

3,195

Afiesere_Kokori/Shorel ine

1,560

Batan_Odidi/Netconde

1,345

Afiesere_Kokori/Shorel ine

885

Abura

506

Ogini_Isoko/FHN

363

20

Oredo

226

0

Opuama/Elcrest

106

64 60 33

40

34

38

45 35 26

40

44

41

Oziengbe

60 0

6,000 12,000 18,000

2.2. National Gas Production A total of 219.20 billion standard cubic feet (BCF) of natural gas were produced in the month of December, 2016 translating to an average daily production of 7,071.11 million standard cubic feet per day (mmscfd). For the period January 2016 to December 2016, a total of 2,617.67 Billion Cubic Feet (BCF) of gas was produced representing an average daily production of 7,155.54 mmscfd during the period. Production from Joint Ventures (JVs), Production Sharing Contracts (PSC) and NPDC contributed about 68.18%, 24.10% and 7.72% respectively to the total national gas production. The table and charts below provide details of the national gas production for the period January 2016 to December 2016. 9

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Table 2.2.1: 12 Months National Gas Production (Total and Daily Average) PERIOD Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total

JV

PSC

NPDC

TOTAL

BCF 173.76 151.53 154.87 162.40 158.60 148.70 139.58 98.90 132.60 144.80 158.66 160.23 1,784.63

BCF 49.79 48.22 52.71 54.30 53.50 53.90 54.64 57.94 54.90 56.50 52.89 41.55 630.85

BCF 24.37 18.99 13.09 11.70 14.80 14.00 17.70 17.06 17.40 18.30 17.35 17.42 202.19

BCF 247.93 218.74 220.67 228.40 226.90 216.60 211.93 173.90 204.90 219.60 228.90 219.20 2,617.67

PERIOD Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Average

JV mmscfd 5,605.28 5,225.09 4,995.80 5,414.30 5,116.00 4,956.70 4,502.56 3,190.21 4,418.40 4,671.90 5,288.53 5,168.80 4,879.46

PSC mmscfd 1,606.13 1,662.82 1,700.47 1,810.50 1,724.40 1,795.60 1,762.65 1,869.14 1,829.70 1,821.90 1,763.09 1,340.28 1,723.89

NPDC mmscfd 786.19 654.87 422.22 388.70 478.50 465.80 571.12 550.24 579.50 588.70 578.34 562.03 552.18

TOTAL mmscfd 7,997.60 7,542.77 7,118.48 7,613.50 7,318.90 7,218.10 6,836.33 5,609.58 6,827.60 7,082.50 7,629.97 7,071.11 7,155.54

Chart 2.2.1: 12 Months Average Daily National Gas Production Average Daily National Gas Production (mmscfd) 10,000.00 8,000.00 6,000.00

7,998 786 1,606

7,543 655 1,663

7,118 422 1,700

7,614

7,319

7,218

389 1,811

479 1,724

466 1,796

571 1,763

7,083

580

589

1,830

1,822

4,418

4,672

Aug-16 Sep-16

Oct-16

5,610 550

7,630 578

7,071

1,763

562 1,340

5,289

5,169

1,869

4,000.00 2,000.00

6,828

6,836

5,605

5,225

4,996

5,414

5,116

4,957

4,503

Feb-16 Mar-16 Apr-16 May-16 Jun-16

Jul-16

3,190

0.00 Jan-16

JV

PSC

Nov-16 Dec-16

NPDC

Chart 2.2.2: Monthly National Gas Production & Percentage Distribution Total Monthly Natural Gas Production (BCF)

Average Percentage Distribution of Upstream Gas Production in 2016

300 250

248

200

228 227 219 221 217 212

205

220

229

219

150

JV

7.7%

174 24.1%

PSC

100 50

68.2%

0

10

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NPDC

2.3 Crude Oil & Condensate Lifting & utilization A total volume of 65.50 million barrels of crude oil and condensate was lifted in the month of November 2016 by all parties. Out of this volume, 21.92 million barrels was lifted by NNPC on behalf of the Federation. This comprises of 15.83 million barrels lifted on the account of NNPC (Domestic and Federation Export) while 3.92 million and 2.17 million was superintended for FIRS and DPR respectively. Table 2.3.1: Crude Oil & Condensate Lifting and utilization

FIRS (PSC)

DPR (PSC)

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16

Barrels 6,102,912 5,327,773 4,223,368 2,822,524 2,045,570 3,737,956 3,925,838 5,130,420 4,209,286 4,016,873 3,921,311

Barrels 1,000,000 1,525,886 773,000 1,298,533 383,157 500,000 1,049,049 326,726 232,000 187,489 2,169,768

NIGERIAN GOVERNMENT NNPC FEDERATION DOMESTIC EXPORT Barrels Barrels 5,382,638 11,302,861 3,047,586 10,268,966 4,950,908 14,185,585 2,111,342 13,050,958 4,310,166 11,290,998 3,159,142 8,958,721 2,181,583 9,056,579 1,843,579 8,975,016 452,661 5,159,028 1,943,053 11,901,838 2,243,402 13,584,651

YTD TOTAL

45,463,831

9,445,608

31,626,060

LIFTING MONTH

117,735,201

SUB-TOTAL (NNPC) Barrels 16,685,499 13,316,552 19,136,493 15,162,300 15,601,164 12,117,863 11,238,162 10,818,595 5,611,689 13,844,891 15,828,053

IOCs & SUB-TOTAL INDEPENDENTS AF GOVERNMENT (INC. NPDC) LIFTING Barrels Barrels Barrels 23,788,411 41,756,177 2,046,234 20,170,211 40,084,870 988,000 24,132,861 34,443,416 1,093,000 19,283,357 39,211,187 972,000 18,029,891 36,661,725 243,000 16,355,819 31,737,847 1,385,000 16,213,049 28,851,582 977,000 16,275,741 37,144,381 190,000 10,052,975 37,279,027 1,436,055 18,049,253 35,207,694 128,000 21,919,132 42,390,053 1,194,000

149,361,261

204,270,700

404,767,959

10,652,289

GRAND TOTAL Barrels 67,590,822 61,243,081 59,669,277 59,466,544 54,934,616 49,478,666 46,041,631 53,610,122 48,768,057 53,384,947 65,503,185 619,690,948

Note:  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 15.83 million barrels lifted on the account of NNPC in November 2016, 13.58 million barrels and 2.24 million barrels were for domestic and export markets respectively. At an average oil price of $46.35/barrel and exchange rate of N304.00/$, the domestic crude oil lifted by NNPC is valued at $629,685,927.84 or a Naira equivalent of N191,476,032,524.39 for the period. The remaining crude oil lifted for export was valued at $100,367,748 at an average price of $44.74/barrel. The total value of crude oil lifted on the account of NNPC in November, 2016 was thus $730,053,676. From January to November 2016, a total volume of 619.69 million barrels of crude oil and condensate was lifted by all parties. The tables 2.3.1 above and charts 2.3.1 overleaf provide the details of crude oil and condensate lifting and their corresponding accrual values for the period January to November 2016. 11

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Chart 2.3.1: Crude Oil & Condensate Monthly Lifting Entitlements Monthly Lifting Entitlement (Million Barrels)

80

67.6

70

61.2

59.7

65.5

59.5

54.9

60 50

41.8

40

34.4

40.1

39.2

48.8

46.0

31.7

28.9

37.1

37.3

20

6.1

10

16.7

5.3 13.3

19.1

2.8 15.2

2.0 15.6

3.7 12.1

3.9 11.2

5.1 10.8

4.2 5.6

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

0

SUB-TOTAL (NNPC)

FIRS (PSC)

53.4 42.4

36.7

30 4.2

49.5

53.6

DPR (PSC)

35.2 3.9

4.0 13.8

15.8

Oct-16

Nov-16

IOCs & INDEPENDENTS (INC. NPDC)

AF

Table 2.3.2: Crude Oil Lifting Values NIGERIAN GOVERNMENT LIFTING MONTH

FIRS (PSC)

DPR (PSC)

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 YTD TOTAL

USD 183,355,870 172,391,830 164,249,331 114,378,293 98,215,758 178,115,347 183,977,928 231,990,027 203,610,332 203,824,153 177,943,887 1,912,052,756

USD 30,462,400 46,067,920 29,351,438 47,290,858 17,184,396 23,095,700 42,080,044 14,739,086 23,450,384 9,306,579 93,357,159 376,385,965

SUB-TOTAL SUB-TOTAL GOVERNMENT DOMESTIC LIFTING (NNPC) USD USD USD 320,723,228 476,912,614 690,730,884 338,336,363 436,641,854 655,101,604 549,095,159 740,397,951 933,998,720 547,801,087 636,930,038 798,599,190 533,866,083 732,392,638 847,792,791 432,568,909 585,580,395 786,791,442 409,294,174 510,837,014 736,894,986 421,098,417 507,898,793 754,627,906 245,813,790 267,215,149 494,275,865 593,575,938 689,887,127 903,017,859 629,685,928 730,053,676 1,001,354,722 5,021,859,077 6,314,747,247 8,603,185,968 NNPC

FEDERATION EXPORT USD 156,189,386 98,305,490 191,302,792 89,128,951 198,526,555 153,011,486 101,542,839 86,800,375 21,401,359 96,311,189 100,367,748 1,292,888,171

IOCs & INDEPENDENTS (INC. NPDC)

AF

GRAND TOTAL

USD 1,211,649,686 72,309,887 1,330,891,555 1,655,275,164 1,688,641,680 1,537,206,978 1,342,910,885 1,748,851,670 1,762,515,118 7,931,735,698 1,896,492,089 22,178,480,409

USD 58,012,943 32,389,893 43,470,295 42,890,542 11,360,670 68,364,520 47,106,581 9,113,601 67,814,400 6,441,196 57,884,752 444,849,393

USD 1,960,393,514 759,801,384 2,308,360,570 2,496,764,897 2,547,795,141 2,392,362,941 2,126,912,452 2,512,593,176 2,324,605,382 8,841,194,753 2,955,731,563 31,226,515,771

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

 For more information on crude oil lifting by Company and Crude Destination click the link. Chart 2.3.2 Government Crude Oil Lifting and utilization on Account of NNPC Government Crude Oil Lifting & Utilisation (Million Barrels)

25 20 15

19.14 16.69 13.32

5.4

15.16

15.60

2.1

4.3

3.0

10 5

5.0

11.3

10.3

Jan-16

Feb-16

14.2

13.1

11.3

Apr-16

May-16

13.84

15.83

12.12

11.24

10.82

3.2

2.2

1.8

9.1

9.0

0.5 5.2

11.9

13.6

9.0 Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

1.9 5.61

2.2

0 Mar-16

DOMESTIC

12

FEDERATION EXPORT

NNPC | Monthly Financial and Operations Report December 2016

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2.4

Utilization of Crude Oil for Domestic Product Supply

In November 2016, NNPC lifted 13,584,651.00 barrels of Crude Oil for domestic utilization translating to an average volume of 452,821.70 barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of November, 2016 about 9,493,640 barrels was processed under the Direct-Sales-Direct Purchase (DSDP) scheme while 3,142,176 barrels was delivered to the domestic refineries for processing and the balance of 948,835 barrels was exported as unutilized. Tables and charts below provide details of NNPC’s Utilization of Crude Oil for Domestic Product Supply for the period of January to November 2016. Table 2.4.1 Domestic Crude Purchased By NNPC in 2016 Volume

Ave. Price

Sales Value

Sales Value

Average Lifting

Barrels

$/bbl

USD

NGN

Barrels Per Day

11,302,861.00 10,268,966.00 14,185,585.00 13,050,958.00 11,290,998.00 8,958,721.00 9,056,579.00 8,975,016.00 5,159,028.00 11,901,838.00 13,584,651.00

28.38 32.95 38.71 41.97 47.28 48.28 45.19 46.92 47.65 49.87 46.35

320,723,227.98 338,336,363.49 549,095,159.11 547,801,087.04 533,866,082.89 432,568,909.21 409,294,174.11 421,098,417.22 245,813,789.66 593,575,938.03 629,685,927.84

62,861,752,684.08 66,313,927,244.43 107,622,651,185.95 107,369,013,058.86 104,637,752,245.66 84,783,506,205.75 114,173,876,974.85 131,382,706,171.70 74,973,205,846.30 180,622,099,676.12 191,476,032,524.39

364,608.42 354,102.28 457,599.52 435,031.93 364,225.74 298,624.03 292,147.71 289,516.65 171,967.60 383,930.26 452,821.70

117,735,201.00

42.65

5,021,859,076.57

1,226,216,523,818.09

351,448.36

Period Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Total/Ave

Chart 2.4.1: NNPC Crude Oil Utilization for Domestic Product Supply NNPC Crude Oil Utilisation For Domestic Product Supply (Million Barrels) 16.00

14.19

14.00 11.30

12.00

0.5

10.00

13.05

11.29

10.27

5.7

2.00 -

Jan-16

1.9

7.6

5.7

5.7

3.3 Aug-16

1.9

5.16 3.8

0.9

1.9

2.6

Feb-16

Mar-16

Apr-16

OPA

9.5 9.9

6.00

13.58

8.98

10.4

5.7

4.00

9.06

8.96

9.5

8.00

11.90

1.4

1.4

1.5 1.0

May-16

Jun-16

Jul-16

DIRECT EXPORT

REFINERY

8.6

2.4

3.1

Oct-16

Nov-16

1.3 Sep-16 DSDP

In November 2016 out of the 9.5 million barrels recorded under DSDP, about 0.95 million barrels of crude oil was for Products swaps.

13

NNPC | Monthly Financial and Operations Report December 2016

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Table 2.4.2 Breakdown of NNPC Utilization of Crude oil for Domestic Product Supply EXPORT

OFFSHORE PROCESSING

DELIVERIES TO REFINERIES

DIRECT SALES DIRECT PURCHASE

TOTAL

Month Qty ('000 Bbls) Value in US$'Mn

Naira'Mn

Qty ('000 Bbls) Value in US$'Mn

Naira'Mn

Qty ('000 Bbls) Value in US$'Mn

Naira'Mn

Qty ('000 Bbls) Value in US$'Mn

Naira'Mn

Qty ('000 Bbls) Value in US$'Mn

Naira'Mn

5,106.14 1,768.20 904.22 0.00 0.00 0.00 937.88 0.00 0.00 947.45 948.84

145.48 56.90 34.10 0.00 0.00 0.00 40.23 0.00 0.00 47.94 41.24

28,513.54 11,153.29 6,684.13 0.00 0.00 0.00 11,345.70 0.00 0.00 14,585.21 12,535.57

5,694.26 948.99 1,897.06 0.00 0.00 0.00 951.14 0.00 0.00 0.00 0.00

161.34 30.24 71.81 0.00 0.00 0.00 44.29 0.00 0.00 0.00 0.00

31,621.78 5,927.35 14,074.04 0.00 0.00 0.00 12,490.03 0.00 0.00 0.00 0.00

502.45 1,888.31 1,890.48 2,605.02 1,396.09 1,387.01 1,469.54 3,282.24 1,319.85 2,366.76 3,142.18

13.91 62.75 74.19 111.97 65.67 65.86 66.73 156.73 62.51 116.28 149.94

2,726.43 12,299.12 14,541.34 21,947.05 12,870.85 12,907.91 17,570.22 48,901.32 19,064.27 35,405.46 45,584.94

0.00 5,663.46 9,493.82 10,445.94 9,894.91 7,571.71 5,698.03 5,692.78 3,839.18 8,587.62 9,493.64

0.00 188.44 369.00 435.83 468.20 366.71 258.04 264.36 183.31 429.36 438.51

0.00 36,934.16 72,323.14 85,421.96 91,766.90 71,875.60 72,767.94 82,481.39 55,908.94 130,631.43 133,355.52

11,302.86 10,268.97 14,185.59 13,050.96 11,291.00 8,958.72 9,056.58 8,975.02 5,159.03 11,901.84 13,584.65

320.72 338.34 549.10 547.80 533.87 432.57 409.29 421.10 245.81 593.58 629.69

62,861.75 66,313.93 107,622.65 107,369.01 104,637.75 84,783.51 114,173.88 131,382.71 74,973.21 180,622.10 191,476.03

Grand Total 10,612.72

365.89

84,817.43

9,491.46

307.67

64,113.21

21,249.92

946.54

243,818.90

76,381.10

3,401.75

833,466.99

117,735.20

5,021.86

1,226,216.52

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16

In November 2016 out of the 9.5 million barrels recorded under DSDP, about 0.95 million barrels of crude oil was for Products swaps.

Chart 2.4.3: Percentage Distribution for November 2016 Domestic Crude Utilization November 2016 Crude Utilization For Domestic Product Consumption 7.0%

REFINERY 23.1%

January - November 2016 Crude Utilization For Domestic Product Consumption

18%

PRODUCT SWAPT 7.0%

62.9%

REFINERY

13.8%

OPA 19.1%

DSDP DIRECT EXPORT

DSDP

49.5%

DIRECT EXPORT

2.5 Natural Gas Off take, Commercialization & Utilization Out of the 214.33 BCF of gas supplied in December 2016, a total of 126.62 BCF of gas was commercialized comprising of 24.43 BCF and 102.19 BCF for the domestic and export market respectively as shown in Table 2.5.1. This translates to an average daily supply of 788.11 mmscfd of gas to the domestic market and 3,298.09 mmscfd of gas supplied to the export market as shown in Table 2.5.2. This implies that 58.08% of the total gas produced was commercialized while the balance of 40.92% was either re-injected, used as upstream fuel gas or flared. Gas flare rate was 9.87% for the month of December 2016 i.e. 682.28 mmscfd compared with average Gas flare rate of 9.48% i.e. 669.38 mmscfd for the period January 2016 to December 2016. 14

NNPC | Monthly Financial and Operations Report December 2016

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Table 2.5.1 Total Gas Commercialization and utilization Total gas supply for the period January 2016 to December 2016 stood at 2,581.42 BCF out of which 1,448.91 BCF (307.16 BCF and 1,141.75 BCF for the domestic and export market respectively) was Commercialized while Non-Commercialized stood at 1,132.52 BCF. The table 2.5.1 and chart 2.5.1 provides more details of the gas utilization and commercialization for the period January 2016 to December 2016. Table 2.5.1 Gas Commercialisation Domestic Gas Period

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

Total

Domestic Gas To Power

Domestic Gas to Industry

Non-Commercialized Gas Export Gas

Total Domestic Gas Supply

WAPG

EGTL

NGL/ LPG

NLNG

Total Export Gas

Re-Injection

Fuel Gas

Flare

Total NonCommerialized Gas

Grand Total

BCF

BCF

BCF

BCF

BCF

BCF

BCF

BCF

BCF

BCF

BCF

BCF

BCF

22.74 19.26 16.53 16.42 13.81 9.80 12.57 14.55 15.58 17.42 15.84 14.90 189.42

12.43 10.58 11.27 10.34 7.66 6.70 7.73 9.58 10.39 11.87 9.65 9.53 117.74

35.17 29.84 27.80 26.76 21.47 16.50 20.30 24.13 25.97 29.29 25.50 24.43 307.16

1.04 0.66 0.57 0.55 0.38 0.06 0.01 0.05 0.11 0.00 0.07 0.55 4.06

7.55 7.73 4.37 5.80 6.40 6.36 1.43 0.27 0.13 0.21 0.25 0.32 40.82

19.60 11.06 8.30 8.06 7.99 9.34 6.48 3.74 4.74 6.33 4.29 4.71 94.65

79.66 74.92 71.94 82.44 93.47 83.62 86.64 61.36 88.43 85.80 97.33 96.61 1,002.21

107.85 94.37 85.19 96.85 108.24 99.38 94.56 65.42 93.41 92.34 101.94 102.19 1,141.75

72.36 63.85 73.46 71.80 67.70 70.50 58.81 47.76 48.60 60.00 61.48 55.32 751.64

12.11 11.48 12.63 11.90 11.70 11.40 10.44 10.17 10.20 11.20 11.58 11.23 136.04

22.32 20.38 20.11 18.70 15.80 14.80 21.79 21.14 21.50 22.60 24.54 21.15 244.84

106.79 95.71 106.21 102.40 95.20 96.70 91.04 79.07 80.30 93.80 97.59 87.70 1,132.52

249.81 219.92 219.20 226.01 224.91 212.58 205.90 168.63 199.68 215.43 225.03 214.33 2,581.42

Note: For more details on Gas Liftings follow this link

Chart 2.5.1 12 Months Percentage Distribution of Gas Utilization 2016 Average Percentage Distribution of Gas Utilisation 12.4%

Total Gas To Domestic Total Gas To Export

43.6% 44.0%

December 2016 Percentage Distribution of Gas Utilisation

Total NonCommerialized Gas

15.3%

Total Gas To Domestic Total Gas To Export

39.1%

45.6%

Total NonCommerializ ed Gas

As shown in Table 2.5.2, out of the 788.11mmscfd of gas supplied to the domestic market in December 2016, about 480.64mmscfd of gas representing 60.99% was used for Gas-Fired power plants while the balance of 307.47mmscfd or 39.01% was supplied to other industries. Similarly, for the period of January 2016 to December 2016 an average of 839.70mscfd of gas was supplied to the domestic market comprising of an average of 517.92mmscfd or (65.72%) as gas supply to the power plants and 321.77mmscfd or (40.83%) as gas supply to industries.

15

NNPC | Monthly Financial and Operations Report December 2016

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Table 2.5.2 Total Gas Commercialization and utilization Gas Commercialisation

Non-Commercialized Gas

Domestic Gas Period

Domestic Gas to Total Gas To Domestic Industry

Domestic Gas To Power

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Average

Export Gas WAPG

EGTL

NGL/LPG

Total Gas To Export

NLNG

Re-Injection

Fuel Gas

Total NonCommerialized Gas

Flare

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

mmscfd

733.54 664.03 533.22 547.30 445.50 326.80 405.47 469.39 519.20 562.00 528.01 480.64 517.92

400.88 365.00 363.71 344.50 247.00 223.30 249.31 308.90 346.40 383.00 321.83 307.47 321.77

1,134.41 1,029.03 896.93 891.80 692.50 550.10 654.78 778.29 865.60 945.00 849.83 788.11 839.70

33.53 22.80 18.55 18.30 12.20 2.00 0.41 1.74 3.80 0.00 2.29 17.84 11.12

243.66 266.59 141.00 193.30 206.50 211.90 46.03 9.93 4.60 6.80 8.40 11.89 112.55

632.19 381.41 267.90 268.60 257.70 311.20 209.18 120.72 157.90 204.20 143.12 151.96 258.84

2,569.79 2,583.32 2,320.58 2,748.00 3,015.30 2,787.30 2,794.78 1,979.33 2,947.50 2,767.80 3,244.22 3,116.41 2,739.53

3,479.16 3,254.12 2,748.03 3,228.20 3,491.70 3,312.40 3,050.40 2,111.71 3,113.80 2,978.80 3,398.03 3,298.09 3,122.04

2,334.31 2,201.66 2,369.68 2,392.00 2,183.60 2,349.40 1,897.09 1,540.61 1,621.20 1,936.40 2,049.26 1,784.51 2,054.98

390.50 395.80 407.55 396.30 377.30 379.80 336.88 328.15 339.10 361.60 385.97 362.26 371.77

720.08 702.79 648.81 623.70 510.70 494.70 702.83 682.04 718.00 728.70 817.92 682.28 669.38

3,444.89 3,300.25 3,426.04 3,412.00 3,071.60 3,223.90 2,936.81 2,550.80 2,678.30 3,026.70 3,253.16 2,829.05 3,096.13

Grand Total

mmscfd

8,058.46 7,583.40 7,071.00 7,532.00 7,255.80 7,086.40 6,641.99 5,440.80 6,657.70 6,950.50 7,501.03 6,915.25 7,057.86

About 3,116.41mmscfd or 94.49% of the export gas was sent to Nigerian Liquefied Natural Gas Company (NLNG) for December 2016 compared with the year 2016 average of 2,739.53mmscfd. Chart 2.5.2 Average Daily National Gas to Domestic, Export & Gas Non-Commercialized Average Daily National Gas to Domestic, Export & Gas Non-Commericlized (mmscfd) 10,000 9,000

8,058

8,000

7,583

7,071

7,532

7,256

7,086

3,072

3,224

7,000 6,000

3,445

3,300

5,000

3,426

3,412

2,937

0

3,479

3,254

2,748

3,228

3,253

6,915

2,829

2,678

3,027

3,492

3,312

3,050

2,112

3,114

2,979

3,398

3,298

1,134

1,029

897

892

693

550

655

778

866

945

850

788

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

Total Gas To Domestic

16

7,501

2,551

2,000 1,000

6,951

5,441

4,000 3,000

6,658

6,642

Total Gas To Export

Total Non-Commerialized Gas

NNPC | Monthly Financial and Operations Report December 2016

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3 Refinery Operations 3.1 Capacity Utilization Total Crude processed by the three local Refineries (KRPC, PHRC & WRPC) for the month of December 2016 was 141,998MT (1,041,129 bbls) which translates to a combined yield efficiency of 82.44% compared to crude processed in November 2016 of 232,768MT (1,706,655 bbls) which translates to a combined yield efficiency of 87.08%. Table 3.1.1: Refineries Operations Consolidated (2016 Monthly Performance) Operational Parameters Opening Stock (A) Crude Received (B) Crude Transferred to KRPC (C) Total Crude Available (D=A+B-C) Closing Stock (E=D-F) Crude Processed (F) (i) Finished Products (ii) Intermediate Products (iii) Plant Consumption (iv) Losses Plant Capacity Capacity Utilization Losses Plant Consumption

Consolidated Refineries Operations

Units

Jan-16 MT 369,069 MT 16,391 0 MT 385,460 MT 128,707 MT 256,676 MT 216,141 MT 1,064 MT 32,015 MT 9,584 kpd 445 % 13.64% % 3.73% % 12.47%

Yields Efficiency based on CDU, CRU & FCC (%) %

83.79%

Feb-16 128,707 178,354 0 307,061 274,154 32,352 90,628 74,167 11,140 4,751 445 1.72% 14.69% 34.43%

Mar-16 274,154 322,480 -26,062 570,572 243,195 329,396 202,791 110,057 14,577 1,971 445 18.71% 0.60% 4.43%

Apr-16 243,195 569,113 -146,912 665,396 317,025 351,698 318,104 2,624 21,354 14,864 445 19.32% 4.23% 6.07%

May-16 325,666 303,988 -94,275 535,379 231,361 301,604 242,053 9,708 37,565 12,278 445 16.03% 4.07% 12.46%

Jun-16 244,493 382,108 -94,071 532,530 296,354 225,770 133,991 47,495 31,812 12,473 445 12.40% 5.52% 14.09%

Jul-16 296,354 432,903 -153,819 575,438 454,110 126,756 139,284 -40,640 21,612 6,500 445 6.74% 5.13% 17.05%

Aug-16 459,550 509,814 -85,669 883,695 516,329 359,081 328,314 -16,305 35,461 11,612 445 19.09% 3.23% 9.88%

Sep-16 516,329 460,246 -140,170 836,405 581,127 252,897 139,724 74,885 32,545 5,744 445 13.89% 2.27% 12.87%

Oct-16 581,127 366,376 -93,296 854,207 411,514 442,693 251,925 137,776 39,042 13,950 445 23.53% 3.15% 8.82%

Nov-16 431,036 551,838 -180,203 802,671 569,903 232,768 178,107 24,599 23,978 6,084 445 12.78% 2.61% 10.30%

Dec-16 569,903 327,946 -75,850 821,999 680,001 141,998 121,555 -4,491 22,288 2,647 445 7.55% 1.86% 15.70%

Total 4,439,583 4,421,557 -1,090,327 7,770,813 4,703,780 3,053,689 2,362,617 265,229 323,389 102,458 445 13.75% 3.36% 10.59%

50.88% 94.98% 89.70% 83.47%

80.39%

77.82%

86.89%

84.86%

88.03%

87.08%

82.44%

86.05%

For the month of December 2016, the three Refineries produced 121,555MT of finished Petroleum Products out of 141,998MT of Crude processed at a combined capacity utilization of 7.55% compared to 12.78% combined capacity utilization achieved in the month of November 2016. The adverse performance was due to crude pipeline vandalism in the Niger Delta region coupled with on-going Refineries revamp; however the three Refineries continue to operate at minimal capacity. However, only PHRC processed crude during the month. Chart 3.1.1: Refineries Consolidated Capacity Utilization 25%

23.53% 18.71%

20%

19.32%

19.09% 16.03%

15%

13.64%

13.89%

12.40%

10%

12.78% 7.55%

6.74%

5%

1.72%

0% Jan-16

17

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

NNPC | Monthly Financial and Operations Report December 2016

Oct-16

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Nov-16

Dec-16

Table 3.1.2 Refineries Monthly Operations Operational Parameters Opening Stock (A) Crude Received (B) Crude Transferred to KRPC (C) Total Crude Available (D=A+B-C) Closing Stock (E=D-F) Crude Processed (F) (i) Finished Products (ii) Intermediate Products (iii) Plant Consumption (iv) Losses Plant Capacity Capacity Utilization Losses Plant Consumption

Units

Jan-16

Feb-16 Mar-16 Apr-16 May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

Total

WRPC

%

60,292 0 0 60,292 60,292 0 44,810 60,083 9,158 6,115 125 0.00% 0.00% 0.00%

60,292 49,547 0 109,839 109,284 0 2,243 3,599 1,255 101 125 0.00% 0.00% 0.00%

109,284 194,252 -26,062 277,474 143,920 135,573 50,066 80,008 4,528 971 125 27.42% 0.72% 3.34%

151,748 124,643 -94,275 182,116 104,224 75,297 61,207 957 6,743 6,390 125 14.25% 8.49% 8.96%

117,356 171,433 -94,071 194,718 59,763 124,549 66,051 53,138 4,609 752 125 24.35% 0.60% 3.70%

59,763 179,086 -153,819 85,030 90,458 0 45,037 -55,413 7,065 3,311 125 0.00% 0.00% 0.00%

90,458 268,209 -85,669 272,998 166,251 98,462 90,852 -10,112 10,955 6,768 125 18.63% 6.87% 11.13%

166,251 257,387 -140,170 283,468 167,403 114,110 69,331 39,176 4,897 707 125 22.31% 0.62% 4.29%

167,403 227,242 -93,296 301,349 138,241 163,108 109,542 35,670 9,029 8,867 125 30.86% 5.44% 5.54%

158,048 216,482 -180,203 194,327 194,327 0 45,754 -57,065 8,282 3,029 125 0.00% 0.00% 0.00%

194,327 78,847 -75,850 197,324 197,324 0 27,965 -32,261 3,596 701 125 0.00% 0.00% 0.00%

1,479,142 1,954,396 -1,090,327 2,343,211 1,583,236 743,626 664,671 -45,655 77,050 47,564 125 11.92% 6.40% 10.36%

Yields Efficiency based on CDU, CRU & FCC (%) %

0.00%

0.00%

95.94% 48.40% 82.56%

95.70%

0.00%

82.00%

95.09%

89.03%

0.00%

0.00%

83.24%

Operational Parameters Opening Stock (A) Crude Received (B) Total Crude Available (C=A+B) Closing Stock (D=C-E) Crude Processed (E) (i) Finished Products (ii) Intermediate Products (iii) Plant Consumption (iv) Losses Plant Capacity Capacity Utilization Losses Plant Consumption

202,941 0 202,941 27,340 175,601 122,375 38,367 12,334 2,525 210 19.78% 1.44% 7.02%

27,340 128,807 156,147 123,795 32,352 77,475 56,935 7,162 4,650 210 3.64% 14.37% 22.14%

123,795 128,228 252,023 58,200 193,823 150,565 35,766 6,492 1,000 210 23.34% 0.52% 3.35%

77,609 134,358 211,967 74,111 137,856 153,640 31,898 11,346 4,768 210 15.53% 3.46% 8.23%

74,111 156,644 230,755 129,534 101,221 46,648 46,468 4,945 3,160 210 11.78% 3.12% 4.89%

PHRC 129,534 173,282 170,504 207,990 300,038 381,272 173,282 207,990 126,756 173,282 76,420 203,665 37,728 -46,476 9,608 12,393 3,000 3,700 210 210 14.28% 19.52% 2.37% 2.14% 7.58% 7.15%

207,990 97,750 305,740 305,740 0 -5,678 -8,873 11,443 3,108 210 0.00% 0.00% 0.00%

305,740 73,694 379,434 159,733 219,701 100,835 104,633 9,929 4,304 210 24.74% 1.96% 4.52%

160,204 208,597 368,801 136,033 232,768 121,267 101,327 7,131 3,043 210 27.09% 1.31% 3.06%

136,033 249,099 385,132 243,134 141,998 93,196 36,889 9,967 1,946 210 15.99% 1.37% 7.02%

1,676,779 1,834,968 3,511,747 1,708,461 1,806,613 1,386,780 264,367 115,582 39,884 210 17.23% 2.21% 6.40%

91.54% 63.49% 96.13% 93.54% 88.31%

91.99%

90.05%

90.71%

0.00%

93.52%

95.63%

91.61%

91.39%

KRPC 107,057 195,810 83,313 33,615 190,370 229,425 190,370 142,088 0 87,337 17,827 33,797 22,955 40,283 4,939 12,113 189 1,144 110 110 0.00% 18.78% 0.00% 1.31% 0.00% 13.87%

142,088 105,109 247,197 107,984 138,787 76,071 44,582 16,205 1,929 110 30.84% 1.39% 11.68%

107,984 65,440 173,424 113,540 59,884 41,548 2,527 20,084 779 110 12.88% 1.30% 33.54%

112,784 126,759 239,543 239,543 0 11,086 19,663 8,565 12 110 0.00% 0.00% 0.00%

239,543 0 239,543 239,543 0 394 9,119 8,725 0 110 0.00% 0.00% 0.00%

1,283,662 632,193 1,915,855 1,412,083 503,450 311,166 46,517 130,757 15,010 110 9.17% 2.98% 25.97%

0.00%

86.93%

65.16%

0.00%

0.00%

71.05%

MT MT MT MT MT MT MT MT MT kpd % %

Units MT MT MT MT MT MT MT MT MT kpd % % %

Yields Efficiency based on CDU, CRU & FCC (%) % Operational Parameters Opening Stock (A) Crude Received (B) Total Crude Available (C=A+B) Closing Stock (D=C-E) Crude Processed (E) (i) Finished Products (ii) Intermediate Products (iii) Plant Consumption (iv) Losses Plant Capacity Capacity Utilization Losses Plant Consumption

143,920 187,268 -146,912 184,276 151,749 32,527 51,813 -36,071 6,933 9,852 125 6.36% 30.29% 21.31%

58,200 279,297 337,497 69,569 271,255 246,372 7,371 12,832 4,680 210 31.57% 1.73% 4.73%

Units

%

105,836 16,391 122,227 41,075 81,075 48,956 20,652 10,523 944 110 17.43% 1.16% 12.98%

41,075 0 41,075 41,075 0 10,910 13,633 2,723 0 110 0.00% 0.00% 0.00%

41,075 0 41,075 41,075 0 2,160 5,717 3,557 0 110 0.00% 0.00% 0.00%

Yields Efficiency based on CDU, CRU & FCC (%) %

85.86%

0.00%

0.00% 95.99% 76.71%

MT MT MT MT MT MT MT MT MT kpd % %

41,075 102,548 143,623 95,707 47,916 19,919 26,076 1,589 332 110 10.65% 0.69% 3.32%

96,309 53,026 44,987 54,031 141,296 107,057 53,026 107,057 88,451 0 27,206 21,292 40,649 52,111 19,476 22,258 1,120 8,561 110 110 19.02% 0.00% 1.27% 0.00% 22.02% 0.00% 0.00%

84.82%

Note: For more details on breakdown for Refineries Crude grade received follow this link.

18

NNPC | Monthly Financial and Operations Report December 2016

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0.0%

0.0%

0.0%

16.0%

27.1%

30.8% 18.6% 19.5% 18.8%

24.4%

14.3%

12.9% 0.0%

Mar-16

0.0%

Feb-16

0.0%

0.0%

Jan-16

0.0%

0.0% 3.6% 0.0%

5%

0.0%

10%

6.4%

15%

0.0%

20%

11.8%

25%

14.2% 15.5% 19.0%

19.8% 17.4%

30%

10.6%

27.4% 23.3%

35%

31.6%

40%

30.9% 24.7%

Chart 3.1.2: Refineries Capacity Utilization

0% Apr-16 May-16

WRPC

Jun-16

Jul-16

Aug-16

Sep-16

PHRC

Oct-16

Nov-16

Dec-16

KRPC

4 Petroleum Product Supply & Distribution 4.1 Petroleum Product Supply from Off-shore Processing Agreements (OPA) In December 2016, 722.94 million litres of white products was supplied into the country through the DSDP arrangements while 1,003.28 million litres was supplied in the month of November 2016; 683.15 million litres of PMS and 39.79 million litres of DPK were supplied through DSDP in December 2016. The table and chart below provide more details of the total petroleum product supply from DSDP. Table 4.1.1: 12 Months Imported Petroleum Products via OPA & DSDP in litres Period Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 TOTAL

19

PMS Litres 1,024,766,825.60 838,987,566.07 873,819,205.62 909,039,798.21 873,819,205.62 1,183,781,446.97 798,334,880.18 901,353,953.26 426,971,393.48 802,752,757.75 1,003,280,716.53 683,146,088.76 10,320,053,838.04

DPK Litres 30,858,996.78 137,102,061.71 81,475,081.07 49,306,066.66 81,475,081.07 33,662,899.42 39,792,448.08 453,672,634.80

NNPC | Monthly Financial and Operations Report December 2016

TOTAL Litres 1,055,625,822.38 976,089,627.78 955,294,286.70 958,345,864.86 955,294,286.70 1,183,781,446.97 798,334,880.18 901,353,953.26 460,634,292.90 802,752,757.75 1,003,280,716.53 722,938,536.84 10,773,726,472.84

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Chart 4.1.1: Petroleum Products Supply from OPA/DSDP Petroleum Products from Direct Sales Direct Purchase (Million Litres)

1,400 1,200

1,056

1,000

31

976 137

800 600

958

955

81

49

81

1,003 901

798

839

909

874

874

723

803

40

461

1,184

1,025

400

1,184 955

901

798

34

1,003

803

683

427

200 0 Jan-16

Feb-16 Mar-16 Apr-16 May-16

Jun-16

PMS

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

DPK

4.2 Petroleum Products Supply from Domestic Refineries The petroleum products (PMS & DPK Only) production by the domestic refineries in December 2016 amounted to 123.18 million litres compared to 191.75 million litres in November 2016 as shown in Table 4.2.1. Table 4.2.1: 12 Monthly Refined Petroleum Products from Local Refineries PMS

DPK

Litres

Litres

Litres

Jan-16

133,272,603

28,747,488

162,020,091

Feb-16

82,378,971

18,142,432

100,521,403

Mar-16

54,236,640

56,277,891

110,514,531

Apr-16

170,779,032

62,764,240

233,543,272

May-16

126,060,705

38,874,528

164,935,233

Jun-16

211,562,865

119,582,848

331,145,713

Jul-16

43,743,273

22,953,014

66,696,287

156,137,832

63,469,000

219,606,832

Sep-16

67,903,173

39,690,112

107,593,285

Oct-16

125,845,811

84,153,826

209,999,637

Nov-16

149,434,866

42,313,316

191,748,182

Dec-16

99,588,576

23,590,566

123,179,142

1,420,944,347

600,559,261

2,021,503,608

Period

Aug-16

Total

Total (PMS+DPK)

Chart 4.2.1 Total White Petroleum Product Supply from NNPC (OPA, DSDP + Refineries)

1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

Total Petroleum Products Supply From NNPC from OPA, DSDP + Refineries (Million Litres) 1,218 60

1,158

Jan-16

1,077

1,066

1,069

1,120

155

138

106

120

921

928

963

1,000

Feb-16 Mar-16 Apr-16 May-16 Jun-16

1,195

1,121 865

1,395

PMS

20

1,515 120

63

23 842

Jul-16

1,013

42

84

63

568 1,057

73

929

495 Aug-16 Sep-16

Oct-16

DPK

NNPC | Monthly Financial and Operations Report December 2016

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846

1,153 783

Nov-16 Dec-16

Table 4.2.2 Total White Petroleum Product Supply from NNPC (OPA, DSDP+ Refineries) Total Product Supply (OPA, DSDP+Refineries)

Period

Average Daily Supply

PMS

DPK

Total

PMS

DPK

Total

Litres

Litres

Litres

Litres/Day

Litres/Day

Litres/Day

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

1,158,039,428.60 921,366,537.07 928,055,845.62 963,276,438.21 999,879,910.62 1,395,344,311.97 842,078,153.18 1,057,491,785.26 494,874,566.48 928,598,568.75 1,152,715,582.53 782,734,664.76

59,606,484.78 155,244,493.71 137,752,972.07 105,583,957.66 120,349,609.07 119,582,848.00 22,953,014.00 63,469,000.00 73,353,011.42 84,153,826.00 42,313,316.00 63,383,014.08

1,217,645,913.38 1,076,611,030.78 1,065,808,817.70 1,068,860,395.86 1,120,229,519.70 1,514,927,159.97 865,031,167.18 1,120,960,785.26 568,227,577.90 1,012,752,394.75 1,195,028,898.53 846,117,678.84

37,356,110.60 31,771,259.90 29,937,285.34 32,109,214.61 32,254,190.67 46,511,477.07 27,163,811.39 34,112,638.23 16,495,818.88 29,954,792.54 38,423,852.75 25,249,505.31

1,922,789.83 5,353,258.40 4,443,644.26 3,519,465.26 3,882,245.45 3,986,094.93 740,419.81 2,047,387.10 2,445,100.38 2,714,639.55 1,410,443.87 2,044,613.36

39,278,900.43 37,124,518.30 34,380,929.60 35,628,679.86 36,136,436.12 50,497,572.00 27,904,231.20 36,160,025.33 18,940,919.26 32,669,432.09 39,834,296.62 27,294,118.67

Total

11,624,455,793.04

1,047,745,546.80

12,672,201,339.84

31,760,808.18

2,862,692.75

34,623,500.93

Millions Litres

Chart 4.2.2 Average Daily Petroleum Product Supply from NNPC 60.00

Daily Average Petroleum Products Supply From NNPC (OPA , DSDP & Refineries) 50.50 4.0

50.00 39.28 40.00

1.9

30.00 20.00

37.4

37.12 5.4

34.38

35.63

36.14

4.4

3.5

3.9

29.9

32.1

32.3

10.00

32.67

2.0

27.90 46.5

31.8

39.83

36.16 0.7

1.4 27.29

2.7

2.0

18.94 34.1

27.2

2.4

30.0

16.5

38.4 25.2

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 PMS

Jul-16

Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

DPK

4.3 Downstream Petroleum Product Distributions A total of 1,392.15 million litres of white products were distributed and sold by PPMC in the month of December 2016 compared with 1,248.83 million litres in the month of November 2016. This comprised of 1,263.51 million litres of PMS, 43.20 million litres of Kerosene and 85.45 million litres of Diesel. Total sale of white products for the period January 2016 to December 2016 stands at 12.67 billion litres, PMS (11.16 billion litres) accounts for 88.07%. The Tables and Charts below provide more details of white products sold by NNPC/PPMC for the period January 2016 to December 2016. While total special products for the period under review was 45.72 million litres comprising of 26.08 million litres of LPFO and 19.64 million litres of other special products. 21

NNPC | Monthly Financial and Operations Report December 2016

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Table 4.3.1 Downstream Petroleum product sales by PPMC PMS

AGO

DPK

Total White Products

LPFO

Other Special Products

Total Special Products

Litres 855,330,491 919,196,392 1,026,663,152 934,485,589 1,087,649,884 761,042,513 821,065,813 945,930,636 659,313,132 798,184,115 1,084,717,529 1,263,508,809

Litres 29,106,663 35,867,295 42,312,332 58,272,675 80,846,652 66,311,458 15,939,082 76,056,449 65,797,168 83,724,006 97,276,333 85,448,841

Litres 63,157,945 172,299,779 46,630,153 51,518,084 87,575,829 33,112,161 39,174,543 72,386,635 57,959,306 40,164,387 66,838,120 43,196,836

Litres 947,595,099 1,127,363,466 1,115,605,637 1,044,276,348 1,256,072,365 860,466,132 876,179,438 1,094,373,720 783,069,606 922,072,508 1,248,831,982 1,392,154,486

Litres 5,620,630 2,184,880 8,340,138 5,516,627 10,762,910 2,443,313 15,672,770 17,124,987 46,140,296 11,646,151 14,253,104 26,082,310

Litres 1,155,460 2,894,000 1,679,600 1,890,000 2,012,423 1,081,407 1,476,000 3,549,050 57,234,026 120,000 843,000 19,640,500

Litres 6,776,090 5,078,880 10,019,738 7,406,627 12,775,333 3,524,720 17,148,770 20,674,037 103,374,322 11,766,151 15,096,104 45,722,810

11,157,088,054

736,958,954

774,013,778

12,668,060,787

165,788,116

93,575,466

259,363,582

Period Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total

Note:  PPMC Petroleum Products Coastal Sales of 373,146,442 Litres equivalent to N41,687,920,500.24 of PMS for the period July 2016 was reported in December 2016 sales due to late documentations from field offices around the country.  For more details on downstream petroleum products sales please click here.

Chart 4.3.1 Monthly White Product sales by PPMC Total Montly PPMC Product Distribution Sales Volume (Million Litres) 1,392.15

1,400

1,127.36 1,115.61

1,200 947.60

1,000

172

1,256.07 1,044.28

47

63

800

860.47

855

919

Jan-16

Feb-16

1,027

934

876.18

72

39

33

600 400

88

52

1,248.83

1,094.37 922.07 783.07

67

40

58

1,088 761

821

Jun-16

Jul-16

43

1,264

1,085

946

798

659

200 0 Mar-16

Apr-16

May-16

PMS

DPK

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

AGO

Table 4.3.2 Average Daily Petroleum Product Sales by PPMC Period

PMS

AGO

DPK

Total White Products

LPFO

Other Special Products

Total Special Products

Litres/Day

Litres/Day

Litres/Day

Litres/Day

Litres/Day

Litres/Day

Litres/Day

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

27,591,306 31,696,427 33,118,166 31,149,520 35,085,480 25,368,084 26,485,994 30,513,891 21,977,104 25,747,875 36,157,251 40,758,349

938,925 1,236,803 1,364,914 1,942,423 2,607,957 2,210,382 514,164 2,453,434 2,193,239 2,700,774 3,242,544 2,756,414

2,037,353 5,941,372 1,504,198 1,717,269 2,825,027 1,103,739 1,263,695 2,335,053 1,931,977 1,295,625 2,227,937 1,393,446

30,567,584 38,874,602 35,987,279 34,809,212 40,518,463 28,682,204 28,263,853 35,302,378 26,102,320 29,744,274 41,627,733 44,908,209

181,311 75,341 269,037 183,888 347,191 81,444 505,573 552,419 1,538,010 375,682 475,103 841,365

37,273 99,793 54,181 63,000 64,917 36,047 47,613 114,485 1,907,801 3,871 28,100 633,565

218,584 175,134 323,217 246,888 412,108 117,491 553,186 666,904 3,445,811 379,553 503,203 1,474,929

Average

30,483,847

2,013,549

2,114,792

34,612,188

452,973

255,671

708,644

 For more details on average daily PPMC downstream petroleum products sales please click here.

22

NNPC | Monthly Financial and Operations Report December 2016

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Chart 4.3.2 Average Daily White Products Distribution by PPMC Average Daily PPMC Product Distribution Sales Volume (Million Litres)

50

38.87

40

30.57

30

6

2

20

40.52

35.99

34.81

2

2

28

32

33

Jan-16

Feb-16

Mar-16

10

3

28.68

28.26

1

1

25

26

Jun-16 DPK

Jul-16

35

31

44.91 1

41.63

35.30 1

2 31

2

29.74

26.10

2

22

41

36

26

0 Apr-16 PMS

May-16

Aug-16 Sep-16 AGO

Oct-16

Nov-16

Dec-16

A total value of ₦160.76 billion was collected as sales revenue for white products sold by PPMC in the month of December 2016 compared with ₦145.47 billion collected in the prior month of November 2016. Total revenues generated from the sales of white products for the period January 2016 to December 2016 stands at ₦1,287.57 billion where PMS contributed about 87.67% of the revenues collected with a value of ₦1,128.84 billion. Table and chart below provide details accordingly Table 4.3.3 Revenue from Sales of White Product AGO

PMS

Period Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total

DPK

Total White Products Revenue

Other Special Products

LPFO

Total Special Products Revenue

Naira

Naira

Naira

Naira

Naira

Naira

Naira

65,042,846,723 69,951,542,913 78,356,352,199 70,396,954,576 102,431,624,423 92,416,814,771 97,038,812,467 111,551,883,881 78,788,023,845 94,060,844,488 124,145,954,267 144,657,075,560

2,788,418,315 3,436,086,861 4,053,521,406 5,406,073,935 7,200,709,202 7,126,910,489 3,260,762,595 10,527,563,779 9,507,786,865 12,037,566,582 14,228,867,427 11,802,546,020

4,364,284,005 11,842,847,137 3,251,184,486 3,699,849,897 6,028,065,485 2,417,187,753 3,413,927,018 7,761,204,481 7,762,074,909 5,422,192,245 7,093,912,695 4,297,229,264

72,195,549,043 85,230,476,911 85,661,058,090 79,502,878,409 115,660,399,110 101,960,913,013 103,713,502,080 129,840,652,141 96,057,885,620 111,520,603,315 145,468,734,388 160,756,850,844

295,271,509 112,259,134 428,516,290 284,311,535 552,998,316 125,537,422 773,640,828 1,248,411,552 3,088,137,487 849,004,408 1,039,051,281 2,368,391,877

125,300,710 161,137,920 93,520,128 105,235,200 346,825,583 216,202,811 117,607,680 282,788,304 6,813,104,419 9,561,600 67,170,240 2,036,609,745

420,572,220 273,397,054 522,036,418 389,546,735 899,823,898 341,740,233 891,248,508 1,531,199,856 9,901,241,906 858,566,008 1,106,221,521 4,405,001,622

1,128,838,730,111

91,376,813,477

67,353,959,374

1,287,569,502,963

11,165,531,641

10,375,064,340

21,540,595,981

Note:  For more details on downstream petroleum products sales please click here.

Chart 4.3.3 Monthly Sales Revenue from Petroleum Product Distribution Sales Revenue From PPMC Product Distribution (Billion Naira)

200

115.66 100

85.23

85.66

79.50

4

12

3

4

65

70

78

70

Jan-16

Feb-16

72.20

6

145.47

129.84 101.96

103.71

2

3

102

92

97

May-16

Jun-16 DPK

Jul-16

8

96.06

111.52 5

8 112

7

94

79

160.76 4

124

145

Nov-16

Dec-16

0

23

Mar-16 Apr-16 PMS

Aug-16 Sep-16 AGO

NNPC | Monthly Financial and Operations Report December 2016

Oct-16

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4.4 Domestic Gas Supply to the Power Sector A total of 481 mmscfd was delivered to the gas fired power plants in the month of December 2016 to generate an average power of about 1,715 MW compared with year 2016 average gas supply of 518 mmscfd and power generation of 2,302 MW. The table 4.4.1 and chart 4.4.1 provide more details. Table 4.4.1 Domestic Gas Supply to the Power Sector & Generation

Period

Gas Supply To GasFired Power Plants (mmscfd)

Power Generated from Gas-Fired Power Plants (MW)

% of Total Generation including Hyrdo

mmscfd 734 664 533 547 446 327 405 469 519 562 528 481

MW 3,237 MW 3,065 MW 2,558 MW 2,466 MW 2,017 MW 1,483 MW 1,911 MW 2,083 MW 2,293 MW 2,452 MW 2,344 MW 1,715 MW

% 78.6% 77.5% 73.6% 78.1% 76.8% 67.6% 67.3% 63.9% 67.3% 69.9% 68.6% 66.8%

518

2,302 MW

71.3%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Average

Chart 4.4.1 Domestic Gas Supply to the Power Sector & Generation Gas Supply to Thermal Power plants vs Generation from Thermal Power Plants 1,000 900

3,500 MW

3,237 MW 3,065 MW

3,000 MW 2,452 MW 2,344 MW 2,293 MW 2,500 MW 2,083 MW 2,017 MW 1,911 MW 1,715 MW 2,000 MW 1,483 MW 1,500 MW

2,558 MW 2,466 MW

800

mmscfd

700 600 500 400

734

300 200 100

664

533

547

446

327

405

469

519

562

528

481

1,000 MW 500 MW

0

0 MW

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Gas Supply To Gas-Fired Power Plants (mmscfd)

Power Generated from Gas-Fired Power Plants (MW)

5.1 Summary of Group Operating Revenue and Expenditure for December 2016 Group operating revenue for the months of November and December 2016 were ₦187.750billion and ₦206.40billion respectively. This represents 79.04% and 86.89% respectively of monthly budget. Similarly, operating expenditure for the same periods were ₦206.47billion and ₦223.40 billion respectively, which also represents 98.46% and 106.54% of budget for the months respectively. 24

NNPC | Monthly Financial and Operations Report December 2016

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NNPC has been operating in a challenging environment which limits its aspiration to profitability. Overall, a trading deficit of ₦17.01 Billion was recorded for the month under review as against the reported November, 2016 trading deficit of ₦18.72billion. This represents a decrease of ₦1.71Billion in trading deficit as against November, 2016. The marginal decrease is due to improved PPMC Coastal sales following completion of reconciliation with other marketers. Other factors that affected the overall NNPC’s performance include Force Majeure declared by SPDC as a result of the vandalized 48inch Forcados export line after the restoration on 17th October, 2016 amongst others. Table 5.1.0: Group Financial Performance 2016 YEAR TO DATE (=N= MILLION)

MONTHLY BUDGET (=N= MILLION) Surplus/ Revenue Expense (Deficit)

NOVEMBER, 2016 Surplus/ Revenue Expense (Deficit)

DECEMBER, 2016 Surplus/ Revenue Expense (Deficit)

NPDC

25,410

8,679

16,731

12,568

21,685

(9,117)

11,688

23,857

IDSL

1,084

866

218

895

1,807

(912)

1,108

1,513

898

818

80

615

452

163

1,217

NGC

16,517

8,895

7,622

23,016

18,990

4,026

Sub-Total

SBU/CSU

NETCO

BUDGET

ACTUAL

Revenue

Expense

Surplus/ (Deficit)

Revenue

Expense

Surplus/ (Deficit)

(12,169)

304,914

104,145

200,769

165,662

182,504

(16,842)

(405)

13,007

10,394

2,613

5,340

9,515

(4,175)

487

729

10,780

9,819

961

8,093

6,082

2,011

21,442

17,305

4,137

198,203

106,734

91,469

203,165

158,551

44,615

43,909

19,258

24,651

37,094

42,934

(5,840)

35,455

43,162

(7,707)

526,904

231,092

295,812

382,260

356,652

25,608

KRPC

5,101

6,134

(1,033)

18.86

2,770

(2,751)

6.48

3,344

(3,338)

61,214

73,607

(12,393)

209

31,925

(31,716)

PHRC

21,452

16,045

5,407

33.69

3,316

(3,282)

31.07

2,550

(2,519)

257,425

192,540

64,885

808

28,233

(27,426)

WRPC

10,860

8,626

2,235

0.16

2,182

(2,181)

23.82

1,864

(1,840)

130,325

103,509

26,816

90

18,789

(18,699)

Sub-Total

37,414

30,805

6,609

53

8,268

(8,215)

61

7,758

(7,697)

448,964

369,656

79,309

1,107

78,947

(77,840) 7,479

RETAIL

23,037

18,710

4,327

1,424

865

558

1,547

825

722

276,444

224,522

51,922

19,987

12,508

PPMC

132,188

125,532

6,656

149,172

135,083

14,089

169,286

156,011

13,275

1,586,253

1,506,386

79,867

1,322,777

1,323,461

(683)

Sub-Total

155,225

144,242

10,982

150,596

135,948

14,648

170,833

156,836

13,997

1,862,698

1,730,909

131,789

1,342,764

1,335,969

6,796

CHQ

912

12,910

(11,997)

1.39

17,308

(17,306)

35.07

12,181

(12,146)

10,949

154,916

(143,967)

135

134,089

(133,954)

CSU

78

2,486

(2,408)

5.06

2,010

(2,005)

11.84

3,468

(3,456)

934

29,826

(28,893)

86

18,186

(18,100)

Sub-Total

990

15,395

(14,405)

6.4

19,318

(19,311)

46.9

15,648

(15,602)

11,882

184,742

(172,860)

221

152,275

(152,055)

237,537

209,700

27,837

187,749

206,467

(18,718)

206,396

223,404

(17,008)

2,850,448

2,516,398

334,050

1,726,351

1,923,843

(197,492)

Grand Total

Note: • Refineries’ revenue does not include petroleum product sales and the expenses exclude crude cost processed. • SBUs/CSUs retained the excess revenue generated but share Head Office Cost through Corporate Overhead Cost Allocation.  PPMC Petroleum Products Coastal Sales of 373,146,442 Litres equivalent to N41,687,920,500.24 of PMS for the period

July 2016 was reported in December 2016 sales due to late documentations from field offices around the country.  PPMC December, 2016 Crude Cost average of N149.02bn was used.

Billion Naira

Chart 5.1.1: NNPC Group Operating Revenue: January - December 2016 250 225 200 175 150 125 100 75 50 25 0

NNPC Group Revenue: January - December 2016 (Billion Naira) 181.53 130.86

142.53 104.80 107.83 102.45

118.39 128.43

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 NPDC

25

IDSL

NETCO

NGC

RETAIL

Jul-16 Refineries

157.89 157.50

187.75 206.40

Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 PPMC

NNPC | Monthly Financial and Operations Report December 2016

CHQ/CSU

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TOTAL

Chart 5.1.2: NNPC Group Operating Expenditure: January - December 2016

Billion Naira

NNPC Group Expenses: January - December 2016 (Billion Naira) 250 200 150

192.75

175.07 174.35

152.61 134.41 129.03 126.72 121.87 142.26 144.89

206.47

223.40

100 50 0 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 NPDC

IDSL

NETCO

NGC

RETAIL

Refineries

PPMC

CHQ/CSU

Chart 5.1.3: Monthly NNPC Group Surplus/Deficit: January - December 2016

Billion Naira

Monthly NNPC Group Surplus/Deficit: January - December 2016 (Billion Naira) 10 0 (10) (20) (30) (40) (50) (60)

0.27 (3.55) (24.23)

(11.22)

(18.89) (19.43)

(26.50) (24.18)

(17.18) (16.85) (18.72) (17.01)

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Suplus/ (Deficit)

Chart 5.1.4: NNPC Group Surplus/Deficit: January - December 2016 70,000

NNPC Group Surplus/Deficit in 2016 (Million Naira) 44,615

7,479

2,011

RETAIL

NETCO

683

4,175

16,842

18,100

20,000 30,000 80,000 130,000 180,000 133,954 197,492

230,000 NGC

26

PPMC

IDSL

NPDC

CSU

WRPC

PHRC

NNPC | Monthly Financial and Operations Report December 2016

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KRPC

CHQ

Total

6 Federation Crude Oil & Gas Revenue Federation Crude Oil and Gas lifting 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. Equity Export receipts, after adjusting for Joint Venture (JV) Cash Calls, are paid directly into JP Morgan Account operated by Central Bank of Nigeria (CBN). Domestic Crude Oil of 445,000bopd 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 lift 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 from fields that are financed using alternative finance/loan facility which require the servicing of debt obligations before remitting the balance to Federation Account as Price Balance as shown below: Oil Field

IOC Partners & PSC Contractor Liftings

Terminals

3rd Party Finance Liftings

Equity Crude Export

Other Liftings

Domestic Crude (445kbpd)

Price Balance CBN/NNPC JP Morgan USD Crude Oil Accounts

Local Refining Debt Service Royalty to DPR

PPT/CIT to FIRS

Direct Sales Direct Purchase

Direct Export Payment to CBN/NNPC JVCC Account

CBN/DPR JP Morgan USD Crude Oil Account

CBN/FIRS JP Morgan USD Crude Oil Account

Adjustment for Subsidy, Losses & Pipeline Mgt. Costs

CBN/NNPC Naira Crude Oil Account

Federation Account

27

NNPC | Monthly Financial and Operations Report December 2016

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6.2 Accounting for Federation Crude Oil & Gas The summary of Oil & Gas Sales and inflow to Federation Account can be depicted as follows:

6.3 Dollar Payments to Federation Account A total export sale of $195.40 million was recorded in December, 2016. This is $20.22 million higher than the preceding month’s performance. Crude oil export sales contributed $100.37million (or 51.36%) of the dollar transactions compared with $96.31Million contribution in the previous month. Also the export Gas sales amounted to $ 95.04 million in the month. January – December 2016 Crude Oil and Gas transactions indicate that Crude Oil & Gas worth $2,445,451.64Million was exported. See Table & Chart 6.3.1 for details. 28

NNPC | Monthly Financial and Operations Report December 2016

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Table 6.3.1 NNPC/FGN Export Crude Oil & Gas Dollar Accruals, Receipts & Payments NNPC/FGN Export Lifting Only Export Sales Proceed Value Due Payment Month

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total

Allocation of Proceeds to Federation

Export Sales Proceed Reciepts

Crude Oil Sales Proceed

Gas Sales Proceed

Total Oil & Gas Sales Proceed

USD

USD

Crude Oil Proceed Gas Proceed Reciepts Receipts (NLNG,EGTL,NGLs,N-GAS) USD

**Other Receipts

Total Sales Proceed Balance Remitance JV Cash Call Funding Receipts to FAAC

USD

USD

USD

USD

202,093,977

80,740,055

282,834,032

201,916,074

135,891,015

USD 70,050,482

407,857,571

407,857,571

USD 0

156,189,386

91,263,968

247,453,354

153,630,938

72,525,245

10,544,130

236,700,314

236,700,314

0

98,305,490

72,571,896

170,877,386

88,363,958

2,275,746

51,228,943

141,868,647

141,868,647

0

191,302,792

98,062,195

289,364,987

164,398,704

131,174,922

5,016,650

300,590,276

300,590,276

0

89,128,951

66,558,537

155,687,488

86,628,833

60,245,532

3,002,440

149,876,805

149,876,805

0

198,526,555

89,644,254

288,170,809

163,589,045

49,124,829

6,551,005

219,264,879

214,398,900

4,865,979

153,011,486

73,459,665

226,471,151

145,511,441

64,212,838

2,529,900

212,254,179

168,129,620

44,124,559

101,542,839

84,220,874

185,763,713

120,841,617

60,088,669

935

180,931,221

157,046,660

23,884,561

86,800,375

44,700,250

131,500,625

73,714,609

40,813,107

1,040,067

115,567,783

115,567,783

0

21,401,359

84,339,597

105,740,956

18,901,409

78,137,458

251,548

97,290,416

97,290,416

0

96,311,189

69,873,068

166,184,257

96,311,162

66,086,347

708

162,398,217

162,398,217

0

100,367,748

95,035,130

195,402,878

97,867,748

77,159,275

14,681

175,041,705

175,041,705

1,494,982,148

950,469,488

2,445,451,636

1,411,675,539

837,734,985

150,231,489

2,399,642,013

2,326,766,914

0 72,875,099

Note:  Export Crude Oil Sales proceeds are received 30 days after bill of lading date.  In December 2016 Naira portion of N25 866,371,877.21 equivalent to a functional Dollar of $306,343,084.69 at a budgeted exchange rate of N197/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $175,041,704.60.

Chart 6.3.1 Monthly dollar receipts from NNPC/Federation Oil & Gas Exports Monthly Dollar Reciepts from NNPC/Federation Oil & Gas Exports (Million US$) 450 400

407.86

350 300 250

300.59 135.89

236.70 131.17

200

72.53

150 100

201.92

50

153.63

141.87 2.28 88.36

164.40

149.88 60.25

219.26

212.25

49.12

64.21

163.59

86.63

145.51

180.93 60.09 120.84

Jan-16

Feb-16 Mar-16 Apr-16 May-16

Crude Oil Proceed Receipts

Jun-16

Jul-16

Aug-16

115.57 40.81 73.71 Sep-16

162.40

175.04

97.29

66.09

77.16

78.14

96.31

97.87

18.90 Oct-16

Gas Proceed Reciepts (NLNG,EGTL,NGLs,N-GAS)

Nov-16 Dec-16

**Other Receipts

6.3.2 Dollar Payments to JV Cash Call & Federation Account Total export proceeds of $175.04 million were recorded in December 2016 as receipt against $162.40 Million in November 2016. Contribution from Crude oil amounted to $97.87 Million while Gas and miscellaneous receipt stood at $77.16 Million and $0.015 Million. The total export proceeds was remitted to fund the JV cash Call for the month of December 2016 to guarantee current and future production. 29

NNPC | Monthly Financial and Operations Report December 2016

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Total export crude Oil & Gas receipt for the period of January, 2016 – December, 2016 stood at $2.40 Billion. Out of which the sum of $ 2.33 Billion was transferred to JV Cash Call in line with 2016 Approved Budget (See Table & Chart 6.3.1) and the balance of $0.073Billion was paid to Federation Account. However, this JVCC amount falls short of the 2016 Appropriated amount of $.8.55Billion (See Table & Chart 6.3.1). This is due to twin effect of production disruption in Niger-Delta and low Crude Oil prices during the year. Chart 6.3.2.1 Monthly dollar receipts from NNPC/Federation Oil & Gas Exports Monthly Allocation of Dollar Proceeds from NNPC/Federation Oil & Gas Exports (Million US$)

500 400

407.86 300.59

300 200

236.70 407.9

219.26 141.87 300.6

236.7

100

212.25

149.88 149.9

141.9

214.4

180.93

168.1

157.0

Jul-16

Aug-16

115.57

97.29

115.6

97.3

Sep-16

Oct-16

Jan-16

Feb-16

Mar-16

Apr-16 May-16

Jun-16

JV Cash Call Funding

162.40

175.04

162.4

175.0

Nov-16

Dec-16

Balance Remitance to FAAC

 In December 2016 Naira portion of N25,866,371,877.21 equivalent to a functional Dollar of $306,343,084.69 at a budgeted exchange rate of N197/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $175,041,704.60.

45 40 35 30 25 20 15 10 5 0

NNPC/Federation Lifted Volumes and Crude Prices

80 70

28.58

32.79

38.69

42.01

46.94

48.32

45.46

46.95

47.62

49.83

46.12

60 50 40 30

16.69 Jan-16

13.32 Feb-16

19.14

Mar-16

15.16

15.60

Apr-16

May-16

12.12

11.24

10.82

5.61

Jun-16

Jul-16

Aug-16

Sep-16

NNPC Lifted Volumes

13.84

15.83

Oct-16

Nov-16

$/bbl

Millions Barrels

Chart 6.3.2.2 NNPC Federation Lifted Volumes vs. Crude Oil Prices

20 10 0

Crude Price

6.4 Naira Payments to Federation Account The Domestic Crude Oil and Gas receipt during the month amounted to N58.21 Billion, consisting of N5.11Billion from Domestic Gas and the sum of N53.10 Billion from Domestic Crude Oil. Out of the Naira receipt, the sum of N25.86 Billion (N18.16 Billion out of N53.10 Billion and NNPC augmentation of N7.70Billion) was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account. 30

NNPC | Monthly Financial and Operations Report December 2016

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

Domestic Sales Proceed Recipets

Total Domestic Sales Proceed due

Domestic Crude Proceed Receipts

Gas Proceed Receipts

Other Receipts

Total Sales Proceed Receipts

NGN

NGN

NGN

NGN

NGN

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

112,278,942,793 93,341,700,093 87,043,513,817 62,861,752,684 66,313,927,244 107,622,651,186 107,369,013,059 104,637,752,246 84,783,506,206 114,173,876,975 131,382,706,172 74,973,205,846

85,077,843,432 75,669,493,242 67,009,042,386 52,557,101,459 63,547,266,205 102,677,588,055 102,677,588,055 88,011,699,935 73,603,750,476 101,440,041,481 118,628,215,639 53,095,493,642

880,313,926 944,399,579 2,534,736,166 3,657,505,286 2,446,509,598 3,064,092,344 1,025,243,409 1,804,203,024 1,262,684,823 3,236,910,288 2,433,087,039 5,110,493,960

0 0 0 0 0 0 0 0 0 0 0 0

85,958,157,358 76,613,892,821 69,543,778,552 56,214,606,745 65,993,775,802 105,741,680,399 103,702,831,464 89,815,902,959 74,866,435,299 104,676,951,769 121,061,302,678 58,205,987,602

TOTAL

1,146,782,548,321

983,995,124,007

28,400,179,443

0

1,012,395,303,450

Chart: 6.4.1 Monthly Naira Payments to FAAC Total Remittances To FAAC From Domestic Crude Oil & Gas Sales & Other Reciepts (Billion Naira) 140 120 100

112.07 6.33

92.29 6.33

80

82.94 6.33

75.87 6.33

60 40

85.08

75.67

67.01

98.17 6.33

111.01 96.15 6.33

72.32 62.55 6.33

52.56

6.33 102.68

102.68

88.01

63.55

127.39 6.33

6.33 81.20 6.33

72.24 101.44

118.63

73.60

6.33

53.10

20 0

0.88 Jan-16

0.94 Feb-16

3.66 2.53 2.45 Mar-16 Apr-16 May-16

Gas Proceed Receipts

3.06 Jun-16

Domestic Crude Proceed Receipts

1.03 Jul-16

1.80 Aug-16

Other Receipts

1.26 Sep-16

3.24 Oct-16

2.43 Nov-16

5.11 Dec-16

Debt Repayemt To FG (N450bn)

NNPC transferred the sum of N34.93 Billion into Federation Account during the month under review from the net domestic crude oil receipt and N5.11Billion from Gas receipts. Also, the 29th installment of the refund to FG of N6.33Billion was transferred. In 2016, Federation, JV, and FG received the sum N653.06Billion, N355.17 Billion and N75.96 Billion respectively. The tables below show the Naira proceeds from the Sale of Domestic Crude Oil as well as Gas and the corresponding Naira remittances to Federation Account. 31

NNPC | Monthly Financial and Operations Report December 2016

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Table 6.4.2: Allocation of Naira Proceeds from Sale of Domestic Crude Oil: Payment to FAAC Allocation of Domestic Sales Proceeds

Proceed Value Due Receipt/ Payment Domestic Crude Cost Month

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 TOTAL

Domestic Crude Payments

Subsidy

Crude Losses

Product Losses

Tramsfers To JV Cash Call, FG & Federation Account Pipeline Repairs & Managmet Cost

Gas & Other Receipts

Total Remittances

JV Cash Call (Naira Transfer to Debt Repayemt To Total Payment Only) Federation Account FG (N450bn) To FAAC

=N=

=N=

=N=

=N=

=N=

=N=

=N=

=N=

=N=

=N=

=N=

=N=

112,278,942,793 93,341,700,093 87,043,513,817 62,861,752,684 66,313,927,244 107,622,651,186 107,369,013,059 104,637,752,246 84,783,506,206 114,173,876,975 131,382,706,172 74,973,205,846

85,077,843,432 75,669,493,242 67,009,042,386 52,557,101,459 63,547,266,205 102,677,588,055 90,815,444,663 88,011,699,935 73,603,750,476 101,440,041,481 118,628,215,639 53,095,493,642

0 0 0 0 0 0 0 0 0 0 0 0

558,564,000 558,564,000 5,939,792,329 3,277,860,605 347,231,838 736,487,849 1,685,900,590 1,635,484,664 1,223,607,311 395,333,760 923,263,975 0

1,788,760,568 1,240,487,347 1,757,101,224 2,273,338,772 2,221,443,968 323,922,508 0 0 0 0 45,315,200 0

5,594,075,917 14,022,897,218 4,870,082,287 9,506,903,694 2,964,646,274 3,884,652,774 14,867,667,806 14,990,567,646 9,956,148,418 12,338,501,734 11,785,911,358 7,702,120,147

880,313,926 944,399,579 2,534,736,166 3,657,505,286 2,446,509,598 3,064,092,344 1,025,243,409 1,804,203,024 1,262,684,823 3,236,910,288 2,433,087,039 5,110,493,960

92,288,550,907 82,944,286,370 75,874,172,102 62,545,000,294 72,324,169,352 112,072,073,948 98,171,081,621 96,146,296,509 81,196,828,849 111,007,345,318 127,391,696,227 72,238,501,299

0 0 0 0 0 49,784,217,180 61,615,100,170 52,959,007,240 30,150,652,200 59,498,978,610 75,298,978,610 25,866,371,877

85,958,157,358 76,613,892,821 69,543,778,552 56,214,606,745 65,993,775,802 55,957,463,219 30,225,587,902 36,856,895,719 44,715,783,099 45,177,973,159 45,762,324,068 40,041,735,872

6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549 6,330,393,549

92,288,550,907 82,944,286,370 75,874,172,102 62,545,000,294 72,324,169,352 62,287,856,768 36,555,981,451 43,187,289,269 51,046,176,649 51,508,366,708 52,092,717,617 46,372,129,422

1,146,782,548,321

972,132,980,614

0

17,282,090,921

9,650,369,587

112,484,175,272 28,400,179,443 1,084,200,002,797

355,173,305,887

653,061,974,317 75,964,722,593 729,026,696,910

Chart: 6.4.2 Monthly Naira Payments to FAAC Tranfers to JV Cash Call and FG & Federation Account (Billion Naira) 140 120 100 80

112.07 6.33 92.29 6.33

82.94 6.33

75.87 6.33

60 40

72.32 6.33

55.96

30.23

96.15 6.33 36.86

6.33 85.96

76.61

69.54

20 0

62.55

98.17 6.33

56.21

111.01 6.33

127.39 6.33 45.76

81.20 6.33

45.18

72.24 6.33

44.72 65.99

50

62

59

53

75

30 0 Jan-16

0 Feb-16

0 0 0 Mar-16 Apr-16 May-16

JV Cash Call (Naira Only)

Jun-16

Jul-16

Transfer to Federation Account

Aug-16

Sep-16

40.04

25.87 Oct-16

Nov-16

Dec-16

Debt Repayemt To FG (N450bn)

Note:  In December 2016 Naira portion of N25 866,371,877.21 equivalent to a functional Dollar of $306,343,084.69 at a budgeted exchange rate of N197/$ was transferred to JVCC from Domestic Crude Oil receipts in addition to the $175,041,704.60.

32

NNPC | Monthly Financial and Operations Report December 2016

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7.0 Key Determinants for Change 7.1 Key events and activities during the period  DSDP Crude Oil Allocation 

In November, 2016, NNPC allocated 60.10% of domestic crude oil to Direct SaleDirect 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 Other key achievements during the month under review include the following:  

As part of 12 Business Focus Areas, NNPC is exploring opportunities in other petroleum acreages in Nigeria and with particular interest in the Gulf of Guinea to boost NPDC reserves portfolio. NNPC is exploring alternative crude oil supply to KRPC through piping crude oil (over 1, 000 kilometers) from Agadem, Niger Republic. Nigeria is already engaging the Chinese company that is operating the field.



NNPC is intensifying effort to drive the energy supply project to power industries by ensuring the completion of the Ajaokuta-Abuja-Kaduna-Kano (AKK) gas pipeline.



NNPC is also collaborating with the Republic of Niger in the area of sharing of geological data to further boost the ongoing exploratory activities in the Chad Basin and Benue Trough The Corporation has signed off agreements with JV partners to enable NNPC transit into an Incorporated Joint Venture (IJV) business model for all the current Joint Ventures. Also NNPC has completed negotiations with NNPC JV partners towards the resolution of cash call funding challenges through payments of arrears that were owed the partners.





 

NNPC had imported about 38.7million litres of aviation fuel which represented about 26-day sufficiency to ensure smooth flights during the yuletide period. Also the Corporation had also secured the supply of additional 30,000MT vessel of ATK which represented about 36million litres expected to berth Nigerian shores before the end of the year. NNPC has over 40-day sufficiency for PMS and adequate volumes of AGO and DPK to satisfy national demand throughout the yuletide period and beyond. Ongoing review of the existing PSC arrangements with a view to improve Government share of revenue from the arrangement. 33

NNPC | Monthly Financial and Operations Report December 2016

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7.2 Key challenges The following are the key inhibiting factors that drag performance: i.

FORCADOS TERMINAL The Trans Forcados Pipeline (TFP) was re-opened on 28th Oct. 2016 after repair works was completed. However, Production wells were shut down again due to shut down of the Trans Forcados Pipeline (TFP) on 9th November, 2016 as a result of sabotage on 48-inch crude export line. The Force Majeure declared since February, 2016 was still in place in November 2016. About 330,000bopd was shut in throughout the month of November 2016.

ii.

QUA IBOE TERMINAL Production dropped due to various reasons (mechanical, corroded piping, etc.) at Ubit platform. Also, the Asabo production platform was shut down due to pinhole leak on the 10" pipeline on the flare gas header. About 140,000bopd was shut-in from 28th to 30th November, 2016

iii.

BONNY TERMINAL Production dropped as a result of shutdown of Trans Niger Pipeline (TNP) from 12th -16th November, 2016. About 140,000bopd was shut in due to leakages on the line. Production also dropped due to shut down of the Nambe Creek Trunk Line (NCTL) from 21st to 23rd November, 2016 as a result leakages in BODOKIRI axis. About 180,000bopd was shut-in.

iv.

BRASS TERMINAL The Force Majeure declared on 22nd May, 2016 was still in place in November 2016 as a result of the sabotage on the 14-inch Ogbainbir – Tebidaba pipeline. A total of about 60,000bopd was shut in throughout the month of November 2016

7.2.2 Funding of Projects Federation funding has been inadequate over the years. This is as a result of the current wave of sabotage orchestrated by Militant and low oil prices further worsen the situation.

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 2,560 vandalized points have been recorded between January 2016 and December 2016 (see chart 7.1). 34

NNPC | Monthly Financial and Operations Report December 2016

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Chart 7.2.3 PPMC Pipeline Breaks January 2016 – December 2016 PPMC Pipeline Breaks January2016 - December 2016 450 400

400 32

350 300 250

13 145

150

50 0

59 Jan-16

112

214

50

261

83 28

27

145 11 52

Mosimi

59

Kaduna

221 12

187

179

228

10 168

52 14 Feb-16 Mar-16 Apr-16 May-16 Jun-16 60

16

5

39

23 59

260

259 17

247

200

100

311

293

45 21 Jul-16

Port Harcourt

101 139

6 71

33 8 Aug-16

16 14 Sep-16

Warri

19 0 Oct-16

43

18 5 21 6 1 17 9 0 0 Nov-16 Dec-16

Gombe

7.3 Average Daily Crude Oil Production Lifting & Utilization and Distribution

35

NNPC | Monthly Financial and Operations Report December 2016

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8

Glossary and Definition of Terms

AF AGO B/L BBLS CA CBN DPK DPR DSDP EGTL EX. FAAC FACTI FGN FIRS IOCs JV(s) JVCC LPG MCA MMBTU MT NGL NLNG NNPC NPDC OECD OPA PMS PPMC PPPRA PPT PSC PTD QIT QTY RDP SC SOF TM TMP YTD 36

Alternative Funding (Financing) Automotive Gas Oil Bill of Lading Barrels Carry Agreement Central Bank of Nigeria Dual Purpose Kerosene Department of Petroleum Resources Direct Sales Direct Purchase Escravos Gas to Liquid Exchange Federation Account Allocation Committee Focused, Accountable, Competitive & Transparent with Integrity Federal Government of Nigeria Federal Inland Revenue Service International Oil Companies Joint Ventures Joint Venture Cash Call Liquefied Petroleum Gas Modified Carry Agreement Million British Thermal Unit Metric Tons Natural Gas Liquid Nigeria Liquified Natural Gas Nigerian National Petroleum Corporation Nigerian Petroleum Development Company Organization for Economic Co-operation and Development Offshore Processing Agreement Premium Motor Spirit Pipelines and Products Marketing Company Petroleum Products Pricing Regulatory Agency Petroleum Profit Tax Production Sharing Contract Period To Date Qua Iboe Terminal Quantity Reserve Development Project Service Contract Satellite Oil Field Project Trial Marketing Trial Marketing Period Year To Date NNPC | Monthly Financial and Operations Report December 2016

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Explanatory Notes `  Federation Equity Crude Oil & Gas Export Sales  

 

Domestic Crude Oil Costs  





445,000 barrels/day of crude oil is allocated to NNPC for the purpose of supplying refined products for domestic consumption. NNPC purchases its allocated crude oil from the Federation at the prevailing International market price per barrel and payment is due 90 days after the B/L date. NNPC obligations are paid in Naira based on CBN determined exchange rate in the month of lifting..

Remittances To FAAC  



Export sales proceeds are receivable 30 days after B/L date. About 61% of the NGL sales are dedicated for servicing the NGL II Project debt’s obligations. The balance is transferred into the Federation Account as price balance. NLNG feedstock: Gas supplied by NNPC/JV partners to NLNG.

Domestic Gas: Revenues received from NNPC Joint Ventures for Gas sales in Domestic market e.g - Gas sales to Indorama, IPPs, and NGC. etc Miscellaneous Income consists of the following: (a) Assets disposal income (b) Ullage fees (c) Osubi air strip (d) JP Morgan Bank Account interest (e) Price balance from Third Pary financing e.g RDP, SOF, NGLII (f) Revenue from Afam-Power (g) Insurance Claims settlement etc.

FIRS PPT And DPR Royalty Remittances 

Receipts from PPT and Royalty crude liftings are paid directly into FIRS/CBN JP Morgan Accounts and DPR/CBN JP Morgan Accounts respectively without involvement of NNPC in the collection process.

37

NNPC | Monthly Financial and Operations Report December 2016

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