PPMC BRIEF TO HONOURABLE
MINISTER OF PETROLEUM
RESOURCES
PPMC
(A Subsidiary of NNPC)
INCORPORATED IN MARCH 1988
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.
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.
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)
PETROLEUM PRODUCTS SUPPLY & DISTRIBUTION
NETWORK
Lake
Chad
N
Gusau
Maiduguri
Kano
Biu
[6”]
Zaria
Kaduna
Minna
10”
12”
168
km
8”
72
km
6”
Jos
8”
765 km
Gomb
e Yola
Suleja
12”
299 km
Ilorin
Ibadan
Mosimi
Apapa/satelite
Atlas
Cove
LEGEND
Auchi
[6”]
12”
169 km
Ore Benin
City 12”
8”
180 km
107 km
Warri
Enugu
12
”
Aba
Bight of
Benin
8”
170 km
[12”]
156k
m
Calabar
Port Harcourt
Makurdi
Destination depots-bridging
Source depots- bridging
Refinery and Depot
Distribution Depot
Booster
Pipeline
Pipelines prone to vandalism
New Tankage Location
PPMC ORGANOGRAM
PPMC BOARD
MANAGING
DIRECTOR
EXEC. DIRECTOR
OPERATIONS
EXEC. DIRECTOR
SERVICES
EXEC. DIRECTOR
FIN. & ACCOUNTS
EXEC. DIRECTOR
COMMERCIAL
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
ESCRAVOS – WARRI PIPELINE PERFORMANCE
DECEMBER 2008
35,500
MEETING BETWEEN MGT & COMMANDER JTF TO
REGISTER PPMC CONCERN IN
RESPECT OF MASSIVE CRUDE LOSSES --DEC 12TH 2008
30,500
QUANTITY (m3)
25,500
20,500
15,500
10,500
5,500
DATES
.
PUMPED (m3)
RECEIVED (m3)
1-Jan
31-Dec
30-Dec
29-Dec
28-Dec
27-Dec
26-Dec
25-Dec
24-Dec
23-Dec
22-Dec
21-Dec
20-Dec
19-Dec
18-Dec
17-Dec
16-Dec
15-Dec
14-Dec
13-Dec
12-Dec
11-Dec
10-Dec
9-Dec
8-Dec
7-Dec
6-Dec
5-Dec
4-Dec
3-Dec
2-Dec
500
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 VANDALPRONE 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)
ATLAS COVE
70,292
41,747
MOSIMI
163,653
23,710
SATELLITE
12,009
12,009
REMARKS
Currently using the
ethanol dedicated tanks
(57,000m3)
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