The NNPC for the first time EVER or at least in a very long time, recently published a report of its activities. The report belongs to all Nigerians as this involves the bulk of Nigeria's money and source of income. To a large extent, how well the NNPC does determines how well Nigeria does, at least until we have a WELL diversified economy. Every Nigerian should be more interested in what is going on there in a sense, because it affects virtually EVERYTHING in a trickle down effect.
The NNPC is famed to be a cesspit of Nigeria's corruption, impunity and no accountability. They have always being found wanting inrecent probes and investigations. It therefore comes as a sort of fresh water to see them give a report of their activities to the public. The report is a 28 page report, and it has this to say in the 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 NNPC’s management commitment to keep our shareholders, and the general public informed about our activities. "
Evidently, they are at least making an attempt to give the general public information, i believe we should pay attention and review it together. Without wasting more time, i will be highlighting some of the things i noticed in the report. You are free to take note and of course, add yours constructively.

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In this part of the report attached, as well as in other parts, one cannot fail to notice the efficiency and the reality on ground as regards to national politics. Yes, i am referring to the past GEJadministration of January-May 2015, and the current PMB administration of June-August 2015. We can easily and clearly confirm from this report the works done and undone in the two era this year. From this report table, we see that "Delivery to Refineries" columns. It is clear that no crude oil was supplied to refineries from January to May except in the month of February where a paltry 265,000 barrels were supplied. Compare that to the months of June and July, in this months crude was supplied to the refineries to the tune of 979,000barrels in June, to over 3million barrels in July. Body language or body odour, crude was supplied to our refineries, efforts were made to make them work.
By some miracle too, our direct exports by NNPC were lower in June and July compared to other months January to May. The miracle is that we did not borrow to pay salaries in June and July 2015, where revenue was obviously lower in direct exports.

This third image shows us something on POWER i.e light/electricity. People have said that the improvement in power supply was due to rain, a very naive saying BTW. What has happened as being efficiency. There has not been much difference in the supply/commercialisation of gas. The difference has been efficiency, some call it body movement or whatever. We have used almost the same gas commercialisation, but the gas paid for simply got to where it was needed and was used for what it was initially paid for. Looking at the "domestic gas to power" table for instance, one cannot help but shake its head at the previous inefficiency and waste.

This fourth image is for those who think that the functioning of the refineries is mere propaganda or only on the pages of newspaper and twitter handles. The refineries indeed started to function and did produce in July and in August, howbeit with challenges. Many anti-PMBgovernment people have said that there is nothing going on there and that it is all a scam etc. The NNPC says production has started. Warri, Kaduna and Port-Harcourt refineries produced in July and August. The improvements are also visible and tangible from July to August as seen on the tables.

This image 5 is clear enough and succint enough. You can see the zero, zero, zero from January to May. This is for people who said that the refineries have been working this way all this while. Notice the note underneath "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"
There was LOW CRUDE SUPPLY, and money continually spent on TAM and rehab but no show.

In this image, what i noticed was the sharp drop in PMS for June. This is a reminder of the sorry state in which the GEJ government left the nation in May when they and the oil marketers held the nation to ransom. The oil marketers imported enough PMS(Petrol) in May but were not paid by the FG as the FG simply didn't care again. That PMS was howevwer sold in the following month of June, hence the sharp drop in import for that month. This again shows that what wounded us in May truly reflected in this report. Also, from this data we are barely consuming 30million litres of PMS daily, we should take note. The FG used to tell us that we consume around 42million litres daily anytime they are calculating and justifying their high subsidy payments. 30million is different from 42million, they are not the same at all, especially when it is daily and used to calculate annual budget.

This 7th image is on Domestic Gas Supply to the Power Sector & Generation. This confirms and explains what i said earlier on power generation. And for one to think that the GEJ administration put up its best performance in the preceding months to election i.e January February and March. You can easily see that even the best of that administration was simply not good enough in this area. The best they could manage was 672mmscfd and you can see that after they lost elections, they simply didn't care as it were. one can compare the % of Gas Fired Generation to Total Power Generation including Hyrdo, the efficiency difference is clear. Power generation improvement was no propaganda, it was something a majority felt and is reflected in the NNPC report.

This image is a summary of where the papers got their info earlier today. As can be seen, NNPC's major loss is from subsidy payments. This is not news, no point sensationalising the loss accrued from the refineries.

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

Nuff said.

In this table, PPMC Pipeline Breaks from January - August 2015, i find one or two things intriguing. One is the fact that pipeline vandalism has not been too different. The difference again has been efficiency. Some have come up with the ridiculous idea that APC were the ones vandalising pipelines to sabotage GEJ's government. Therefore since GEJ is out, vandalism has stopped. No, vandalism hasn't stopped though it evidently has improved in some areas and we hope for more improvement. Notice that it is same same in some areas. i find funny the increase in pipeline vandalism in the Port-Harcourt line. Their brother is no more there so they have upped the tempo as it were. Yet it the FG begins to deal with this people, they will shout witchhunt and cry foul play, they are arresting and killing our sons instead of fighting boko haram etc.
Portharcourt goes from around 10 line breaks in March 2015 to 48, 54, 71, 72 and 117 line breaks from April to August. The message is pretty clear. Kaduna is zig zag though appearing to favour the new government with a sharp drop to 5 line breaks in August. i'm hoping we can get to the point of zero line breaks, Amen.


Here is the report's 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 Corporation’s business units are not operating the most efficient business models that will position the company for profitability

-The Low capacity utilization of refineries is largely due to refinery asset integrity issues and lack of crude oil feed due to vandalized pipelines. Despite several expensive TAMs by the previous administration, we have issues with asset integrity, and sabotage of crude oil feed. Definitely, someone was a very poor manager of the NNPC for years. See also INEFFICIENT BUSINESS MODELS. The NNPC was not positioned for profitability, someone tampered with models, there was lack of best practices. These and many more are what i take from the just released report. How about you?

Low battery

Well DONE! See the Infograph by BudgIT

Full document can be publicly accessed here.
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Very good job image123....

I hope NNPC keeps up this new style of openness. Our oil industry has been operating under an opaque regime for too long.

Hope to hive it a proper look tommorow

theV0ice:
Very good job image123....

I hope NNPC keeps up this new style of openness. Our oil industry has been operating under an opaque regime for too long.

Hope to hive it a proper look tommorow

thanks bro.

Image123:

In this image, what i noticed was the sharp drop in PMS for June. This is a reminder of the sorry state in which the GEJ government left the nation in May when they and the oil marketers held the nation to ransom. The oil marketers imported enough PMS(Petrol) in May but were not paid by the FG as the FG simply didn't care again. That PMS was howevwer sold in the following month of June, hence the sharp drop in import for that month. This again shows that what wounded us in May truly reflected in this report. Also, from this data we are barely consuming 30million litres of PMS daily, we should take note. The FG used to tell us that we consume around 42million litres daily anytime they are calculating and justifying their high subsidy payments. 30million is different from 42million, they are not the same at all, especially when it is daily and used to calculate annual budget.

This point was made today at the Senate's ministerial screening of Ibe Kachukwu. The NNPC concerns all of us as it affects all of us.

Image123:


This point was made today at the Senate's ministerial screening of Ibe Kachukwu. The NNPC concerns all of us as it affects all of us.

Good job. Just saw this a moment ago. I have been on the move for about a week now, hence my less participation on this forum these days.

Indeed we have got changem

Cc: GenBuhari