PPMC BRIEF TO HONOURABLE MINISTER OF PETROLEUM

RESOURCES

PPMC (A Subsidiary of NNPC)

INCORPORATED IN MARCH 1988

MISSION TO SUPPLY PETROLEUM PRODUCTS TO THE DOMESTIC MARKET

AT A MINIMUM OPERATING COSTS.

TO PROVIDE EXCELLENT CUSTOMER SERVICE BY EFFICIENTLY TRANSPORTING CRUDE OIL TO THE REFINERIES AND MOVING PETROLEUM PRODUCTS TO THE MARKET.

TO MARKET SPECIAL PRODUCTS COMPETITIVELY IN THE DOMESTIC AND INTERNATIONAL MARKETS.

VISION

PPMC WILL BE THE DOMINANT SUPPLIER OF REFINED PETROLEUM

PRODUCTS TO THE EXISTING DOMESTIC AND GROWING EXPORT

MARKETS WITHIN THE WEST AFRICAN SUB-REGION.

PPMC’s RESPONSIBILITIES

TRANSPORTATION OF CRUDE OIL TO THE REFINERIES

EVACUATION OF PRODUCTS FROM THE REFINERIES

DISTRIBUTION OF PETROLEUM PRODUCTS NATIONWIDE

PRODUCT QUALITY ASSURANCE

SAFE OPERATIONS AND MAINTENANCE OF THE 5,120KM PIPELINE NETWORK

MARKETING OF SPECIAL PRODUCTS

OPERATION OF PRODUCTS IMPORT TERMINAL AT ATLAS COVE

OPERATION OF CRUDE OIL TERMINAL AT ESCRAVOS

PPMC INFRASTRUCTURE

5,120 km PIPELINE NETWORK

22 STORAGE DEPOTS

14 PUMP STATIONS

9 LPG DEPOTS

4 JETTIES - APAPA, WARRI, OKIRIKA AND CALABAR

IMPORT TERMINAL AT ATLAS COVE

CRUDE OIL TERMINAL AT ESCRAVOS

OPERATION OF AN IMPORT BERTH PLATFORM FOR IMPORTED CRUDE OIL (OFFSHORE ESCRAVOS)

8”

170 km

8”

765 km

8”

180 km

8”

72 km

Kano Gusau

Kaduna Gomb

e

Ilorin

Ibadan Mosimi

Auchi

12”

299 km

12”

169 km

12”

107 km

Makurdi

Enugu

Suleja

Benin City

Aba Warri

Maiduguri

Biu

Zaria

Minna

[6”]

6” 10”

12”

168 km

12”

[12”]

156km

[6”]

New Tankage Location

Refinery and Depot Distribution Depot Booster Pipeline

Port Harcourt

Calabar Bight of

Benin

N

Yola

LEGEND

Lake

Chad

Ore

Atlas

Cove

Apapa/satelite

Source depots- bridging

Jos

Destination depots-bridging

Pipelines prone to vandalism

PETROLEUM PRODUCTS SUPPLY & DISTRIBUTION

NETWORK

PPMC BOARD

MANAGING

DIRECTOR

EXEC. DIRECTOR

OPERATIONS

EXEC. DIRECTOR

SERVICES

EXEC. DIRECTOR

FIN. & ACCOUNTS

EXEC. DIRECTOR

COMMERCIAL

PPMC ORGANOGRAM

PPMC AREA OFFICES

PPMC COMPRISES OF FIVE (5) AREA OFFICES VIZ.

MOSIMI

KADUNA

WARRI

PORT HARCOURT

GOMBE

MANPOWER

STAFF STRENGTH OF PPMC IS 1,785

106 MANAGEMENT STAFF

1,231 MIDDLE LEVEL MANAGEMENT

448 JUNIOR STAFF

CURRENT STATUS OF OPERATION

CRUDE OIL

IMPROVEMENT IN CRUDE OIL SUPPLY FROM CNL TO ESCRAVOS PPMC TERMINAL.

ESCRAVOS-WARRI REFINERY CRUDE PIPELINE RUNS AT 80%

CAPACITY UTILISATION.

SECTIONAL REPLACEMENT CONCLUDED AT ZAGAZAGA, KAZAI & KUNAI ON THE WARRI – KADUNA CRUDE OIL PIPELINE.

SECTIONAL REPLACEMENT IN PROGRESS AT OVIRI-OKPE IN DELTA STATE ON THE WARRI – KADUNA CRUDE OIL PIPELINE.

CURRENT STATUS OF OPERATION

PRODUCTS

PRODUCT LOADING IN MOSIMI, SATELLITE, IBADAN, ILORIN, ORE, PORT HARCOURT, CALABAR, WARRI, KADUNA AND KANO DEPOTS IS ON-GOING.

GOMBE AREA IS FULLY SUPPORTED BY BRIDGING FROM OTHER PPMC OPERATIONAL LOCATIONS.

RECENT ACHIEVEMENTS

PPMC RECENT ACHIEVEMENTS CAN BE SUMMARIZED AS FOLLOWS:

CRUDE SUSTAINED DELIVERY OF CRUDE OIL ON SYSTEM 2C

(ESCRAVOS-WARRI AND WARRI-KADUNA).

SUSTAINED DELIVERY OF IMPORTED CRUDE TO KADUNA FOR THE LUBES PLANT.

SUSTAINED CRUDE DELIVERY TO PHRC FROM BONNY TERMINAL

RECENT ACHIEVEMENTS

PRODUCT

ROBUST SUPPLY OF PETROLEUM PRODUCTS NATIONWIDE.

PUMPING OF PRODUCTS THROUGH SYSTEM 2E TO ABA AFTER 18MTHS OF PIPELINE INACTIVITY.

PUMPING OF PETROLEUM PRODUCTS TO KANO DEPOT AFTER TWO AND HALF YEARS.

RECENT ACHIEVEMENTS

PRODUCT

PUMPING OF PRODUCTS TO BENIN DEPOT.

REDUCTION IN DEMURRAGE COST ON VESSELS AWAITING TO DISCHARGE.

REPAIR AND SUSTENANCE OF ATLAS COVE – MOSIMI PIPELINE AND OTHER PIPELINES WITHIN MOSIMI AREA.

RECENT ACHIEVEMENTS

OTHERS

HARMONIOUS WORKING RELATIONSHIP WITH THE IN-HOUSE UNIONS (NUPENG & PENGASSAN).

ISSUES AND CHALLENGES

PIPELINES

WILLFUL DAMAGE TO PIPELINE

PRODUCT THEFT THROUGH PIPELINE VANDALISM

LACK OF OPERATIONAL/PIPELINE FLEXIBILITY

INCREASING COST OF PIPELINE REPAIRS

MANAGEMENT OF PIPELINE NETWORK WITH DOUBTFUL INTEGRITY

CRUDE OIL THEFT THROUGH BUNKERING

500

5,500

10,500

15,500

20,500

25,500

30,500

35,500

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1-Ja

n

DATES

QU

AN

TITY

(m3 )

PUMPED (m3)

RECEIVED (m3)

.

MEETING BETWEEN MGT & COMMANDER JTF TO REGISTER PPMC CONCERN IN

RESPECT OF MASSIVE CRUDE LOSSES --- DEC 12TH 2008

ESCRAVOS – WARRI PIPELINE PERFORMANCE DECEMBER 2008

ISSUES AND CHALLENGES

FACILITIES

AGED EQUIPMENT/FACILITIES, (MOST ARE OVER 28 YEARS)

INADEQUATE STORAGE AT ATLAS COVE LEADING TO HIGH DEMURRAGE COST.

INADEQUATE STORAGE AT ESCRAVOS CRUDE TERMINAL

LACK OF FISCALISATION EQUIPMENT

LONG LEAD TIME IN EQUIPMENT AND SPARE PARTS PROCUREMENT

ISSUES AND CHALLENGES

OTHERS

INADEQUATE FUNDING AND FUND RELEASE FOR ASSET REPLACEMENT AND MAINTENANCE

LONG AND CUMBERSOME APPROVAL CYCLE

SUGGESTED WAYS FORWARD

IMPROVED AND SUSTAINED FUNDING FOR PIPELINE SECURITY/COMMUNITY POLICING.

STRENGTHENING VANDALS PROSECUTION PROCESS WITH THE DIRECTOR OF PUBLIC PROSECUTION AND THE POLICE HQ.

PHASED REPLACEMENT OF FAILED AND OR VANDAL-PRONE PIPELINE SEGMENTS NATIONWIDE USING HORIZONTAL DIRECTIONAL DRILLING (HDD) METHOD

SUGGESTED WAYS FORWARD

COMPLETION OF 3NOs “ABANDONED STORAGE TANKS AT ATLAS COVE TERMINAL (IPCO PROJECT).

REVAMPING OF ATLAS COVE TERMINAL FACILITIES.

REVAMPING OF ESCRAVOS CRUDE TERMINAL FACILITIES INCLUDING IMPORT BERTH PLATFORM.

PHASED ASSET REPLACEMENT (PUMPS, POWER PLANTS ETC)

SUGGESTED WAYS FORWARD

REHABILITATION OF FAILED TANKER LOADING AREAS

REHABILITATION OF FAILED/COLLAPSED TANKS AT VARIOUS LOCATIONS

PROVISION OF FIRE FIGHTING FACILITIES IN THE DEPOTS.

PROVISION OF PHCN POWER SUPPLY TO ATLAS COVE.

PROVISION OF 3.3KV POWER PLANT AT IBADAN TO ENHANCE PRODUCT SUPPLY TO ILORIN

EXPANSION OF CALABAR LOADING GANTRY TO IMPROVE LOAD-OUT RATE TO THE NORTH EAST

REHABILITATION OF PHC & WARRI DEPOT ACCESS ROAD TO IMPROVE LOADING TURN-AROUND TIME

PPMC REQUIRES MASSIVE CAPITAL INJECTION FOR ASSET

REPLACEMENT

VISUALS

STORAGE TANKS

LOCATION

INSTALLED CAPACITY

(M3)

AVAILABLE CAPACITY

(M3) REMARKS

ATLAS COVE 70,292 41,747

MOSIMI 163,653 23,710

Currently using the ethanol dedicated tanks

(57,000m3)

SATELLITE 12,009 12,009 Grossly inadequate

ASSET DETERIORATION

ASSET DETERIORATION

ASSET DETERIORATION ESCRAVOS CRUDE TANK

ASSET DETERIORATION ESCRAVOS CRUDE TANK

ASSET DETERIORATION ESCRAVOS CRUDE TANK

WILLFUL DAMAGE

PRODUCT THEFT THROUGH VANDALISM

CRUDE OIL BUNKERING

INTEGRITY ISSUES WITH PIPELINES

PIPELINE INTEGRITY

ON-GOING PIPELINE SECTIONAL REPLACEMENT – OVIRI-OKPE

PIPELINE ROW & EROSION

PIPELINE ROW ENCROACHMENT

THANK YOU FOR LISTENING