REPOSITIONING NIGERIAS

DOWNSTREAM SECTOR

A Presentation by the Director of Petroleum Resources

Imperatives for Repositioning the Nigerian

Downstream Sector
Global
Dynamics
Energy Sufficiency
Geo-politics

Market Volatility

Sustainable Development

Technology

National
Aspiration

Energy Sufficiency

Petroleum Product Sufficiency

Regional Competitiveness

Gas Valorization
Stakeholder Value
Transparency & Efficiency

Industry Best
Practices &
Operational
Excellence

DEPARTMENT OF PETROLEUM RESOURCES

The Nigerian Downstream Sector Analysis

Strength

Opportunities

Extensive market opportunities

Rapid technology adaptation in Nigeria

Abundant natural resource base

Large regional market opportunities

Appreciable base sub-sector infrastructure

Government reforms- Downstream liberalization etc

Substantial Indigenous Participation

Weakness

Threat

Poor capacity utilization in the downstream sector

Vandalism and sabotage of pipeline systems

Investment Capital constraints

Increasing global / regional competitiveness

Business models are largely socio-politically oriented

Unstable macro-economic environment in Nigeria- Forex

Poor RAM index of critical infrastructure

DEPARTMENT OF PETROLEUM RESOURCES

Strategic Issues of the Nigerian Downstream

Sector

Grow the downstream sector in

Nigeria into reliable growth
enabler for national development

Improve the downstream sectoral

capacity to ensure stable
performance

Develop a robust downstream

sector promote guarantees
sustainable investment returns

DEPARTMENT OF PETROLEUM RESOURCES

Short-Medium Term Strategic Focus For

Repositioning the Downstream Sector
Secure energy availability for increasing national development
in Nigeria through an active downstream sector

Fully Liberalize the downstream sector for competitive and

more efficient business profitability driven model for
domestic self sufficiency
Export downstream products / services to neighboring
countries and transform to a regional hub for all
downstream related activities
DEPARTMENT OF PETROLEUM RESOURCES

Infrastructural Status of the Nigerian Downstream

Industry

PIPELINE
NETWORK
OF ABOUT
5,120
KILOMETRES

DEPOTS
(183)

PETROL
STATIONS
(27,238)

TERMINALS
(26)

DEPARTMENT OF PETROLEUM RESOURCES

REFINERIES
(5)

LUBE
BLENDING
PLANTS (46)

Downstream Depot Disposition - Global Overview

Depot Owners

No of Depot

NNPC/PPMC

22

Independent Marketers

133

Major Marketers

28

Total

183
7

DEPARTMENT OF PETROLEUM RESOURCES

Downstream Infrastructure
Depots
SUMMARY OF PETROLEUM PRODUCTS STORAGE IN NIGERIA
PMS

AGO

HHK

Capacity (M3)

No of Tanks

Capacity (M3)

No of Tanks

Capacity (M3)

No of
Tanks

Independent Marketers

2254489

277

1112512

191

5815016

159

Major Marketers

758062

52

713799

40

25335

NNPC/PPMC

1422699

109

755057

65

1240816

70

Total

4,435,250

438

2,581,368

296

7,081,167

238

ATK

BITUMEN

LPFO

Independent Marketers

172288

62

81397

26

64540

13

Major Marketers

128872

133

21646

7711

28378.63

301,160

195

103,043

34

100,629.63

26

NNPC/PPMC
Total

BASE OIL
Independent Marketers

90157

60

Major Marketers

51745

45

141,902

105

NNPC/PPMC
Total

DEPARTMENT OF PETROLEUM RESOURCES

Downstream Infrastructure
ROM

Petrol Stations
INDEPENDENT MARKETERS

NNPC RETAIL OUTLETS

MAJOR MARKETERS

24,773

36*

2,461

INDUSTRIAL CONSUMERS

KEROSENE IN SURFACE TANKS

1,584

10,034

Total Nos of Licensed Petrol Stations: 27,238

* THIS DOES NOT INCLUDE THE AFFILIATED STATIONS WHICH ARE ADDED IN THE
INDEPENDENT MARKETRS FIGURE

DEPARTMENT OF PETROLEUM RESOURCES

Downstream Infrastructure
Terminals
Western Zone
S/N

TERMINAL

TERRAIN

TYPE

PRODUCT

CAPACITY (BBLs)

UKPOKITI

Offshore

FPSO

Crude Oil

1,970,258

EXPRESS/SHEBA

EA (Sea Eagle)

Offshore

FPSO

Crude Oil

1,479,858

SPDC

TULJA

Offshore

FSO

Crude Oil

1,762,445

STERLING

ESCRAVOS

Onshore

Land

Crude Oil

2,223,754

CHEVRON

FORCADOS

Onshore

Land

Crude Oil

6,289,832

SHELL

PENINGTON

Offshore

FPSO

Crude Oil

2,224,132

CHEVRON

AJAPA

Offshore

FPSO

Crude Oil

80,000

TOTAL

OPERATOR

BRITTANIA-U

16,030,279
10

DEPARTMENT OF PETROLEUM RESOURCES

Downstream InfrastructuresTerminals Contd

Lagos Zone
S/N

TERMINAL

TERRAIN

TYPE

PRODUCT

CAPACITY (BBLS)

ERHA

Offshore

FPSO

Crude Oil

2,211,400

ESSO (MOBIL)

BONGA

Offshore

FPSO

Crude Oil

1,998,577

SNEPCO

OYO

Offshore

FPSO

Crude Oil

1,109,580

ALLIED

AGBAMI

Offshore

FPSO

Crude Oil

2,150,000

CHEVRON

AKPO

Offshore

FPSO

Crude Oil

1,999,788

TUPNI

ABO

Offshore

FPSO

Crude Oil

933,130

USAN

Offshore

FPSO

Crude Oil

NA

ESSO (MOBIL)

AJE

Offshore

FPSO

Crude Oil

NA

YINKA FOLAWIYO

TOTAL

OPERATOR

NAE

10,402,475
11

DEPARTMENT OF PETROLEUM RESOURCES

Downstream InfrastructureTerminals Contd

Eastern Zone
S/N

TERMINAL

TERRAIN

TYPE

PRODUCT

CAPACITY (BBLS)

ODUDU/AMENAM

Offshore

FSO

Crude Oil

2,198,000

TEPNG

OKWORI

Offshore

FPSO

Crude Oil

1,700,000

ADDAX

ANTAN

Offshore

FPSO

Crude Oil

1,036,750

ADDAX

OKONO

Offshore

FPSO

Crude Oil

949,000

NPDC

OKORO

Offshore

FPSO

Crude Oil

360,000

AMNI

IMA

Offshore

FSO

Crude Oil

994,989

AMNI

YOHO

Offshore

FSO

Crude Oil

2,192,653

MOBIL

EBOK

Offshore

FSO

Crude Oil

1,175,000

ORIENTAL

BONNY

Onshore

Land

Crude Oil

5,700,000

SHELL

10

BRASS

Onshore

Land

Crude Oil

3,271,000

AGIP

11

QUA IBOE

Onshore

Land

Crude Oil

8,520,000

MOBIL

TOTAL

28,097,392
12

DEPARTMENT OF PETROLEUM RESOURCES

OPERATOR

Capacity Utilization in Downstream Sector

Refineries &
Refining
Infrastructure

Few Specific
Contributory
Factors:

14

DEPARTMENT OF PETROLEUM RESOURCES

Market Model for Downstream Sector

Price Fixing /
Regulated
Market Model

Open Market
Model

Costly to
Government

Promotes
investors
confidence

Prone to
operational
frauds / market
abuses

Enhances
operational
efficiency

Limits investors
confidence

Reduces
government
interference in
the market

Weak / Inefficient
in ensuring stable
market conditions

Ensures
sufficiency in
Product
availability

DEPARTMENT OF PETROLEUM RESOURCES

Financing Options for Downstream Activities Must

Promote sustainable availability for funds

Ensure availability of funds that promotes regional
and global competitiveness

DEPARTMENT OF PETROLEUM RESOURCES

Repositioning Nigerians Downstream Sector Will Require

Implementation of robust policies and strategies that : Ensure high technical availability (reliability, availability & maintainability) index of all
critical infrastructures in the sector
Promote progressive improvement of the capacity utilization of all infrastructure in the
downstream sector

Sustain a vibrant market structure for the downstream sector

Guarantee availability of finance that supports growth in the sector

DEPARTMENT OF PETROLEUM RESOURCES

Thank You
DEPARTMENT OF PETROLEUM RESOURCES