With the divestment of Exxon Mobil from the Nigerian Downstream Oil and Gas Sector leaving only Total as the only Multinational player in the downstream sector and in the light of the Global oil economic dynamics coupled with Nigeria's 2017 National budget, what are the strategic operating imperatives for the sector in the next 4 years?

1. Sweat Your Asset ©2017 1
Nigeria's Downstream Oil and Gas
Industry CEO Strategic Brief
2017-2020

2. Sweat Your Asset ©2017 2
Strategic Growth Denominators
and Game Changing Levers for
the Nigerian Downstream Oil &
Gas (QAG) Sector
2017-2020

3. Sweat Your Asset ©2017
Content
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Macro Operating Overview of the Downstream OAG
sector
4
Strategic Growth Levers and Game Changers
The Chief Executive Strategic Execution Imperatives
8
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The Chief Executive Strategic Execution Imperatives 17

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Macro Operating Overview of
the Downstream OAG sector
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Overview of the Oil and Gas Value Chain
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Primary Macro Factors that influenced the operating
Outcomes of the Nigerian Downstream Oil and Gas
sector in the last 3 years
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Topsy-turvy nature of the deregulation of the downstream oil &gas sector
has critically shaped the operating outcomes of operators impacting on
subsidy regime implementation, local pump pricing regimes & exerting
significant topline/bottom line impacts on all operators.
The Global Oil Prices crash and the attendant effects on global crude oil
supply glut massively changed the profitability operating narratives of all
operators with concomitant recalibration of local petroleum products pricing
regimes
Triple whammy for Nigeria as the Global Oil prices crash also triggered an
intense economic recession cycle in Nigeria with attendant ripple effects on
the exchange rate regime, cost of funds and ops predictably eliciting
seismic macro and micro changes in the Downstream Oil & Gas sector

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LPG- Strategic Operating Denominators and
Imperatives (SODI’s) For Nigeria’s Downstream Oil
& Gas CEO’s in 2017-2020
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Strategic Growth Levers and
Game Changers
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Global Oil Price in 2017 will set the tone for the
downstream sector
*EIA warning: “The values of futures and options contracts indicate
significant uncertainty in the price outlook.
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Nigeria Downstream Oil & Gas Strategic Growth
Facilitating Levers and Game Changers in 2017-
2020
In addition to the unpredictability of global oil prices, the following are the strategic growth
levers and game changing factors that every downstream oil and gas sector CEO must
build capacity to take advantage of if they intend to stay in the game in the next 4 years.
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Dangote Refinery- The Big Game Changer
• 650,000 bpd capacity refinery planned for end 2018 will redefine the oil
and gas downstream sector in Nigeria
• Massive opportunities exist across the value chain of the refining activity
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LPG-Surging Demand Creates Strategic
Growth Opportunity
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Lubes- Offers Attractive curve for Strategic
Business and Market Share Growth
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Gas and Power- The Drivers of Nigeria’s
industrialization
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+ FGN Draft Document on Nigeria Power Sector Investment Opportunities and Guidelines 2016
The Gas and Power sub sector is the one with potentially the greatest growth Curve in the
Downstream Oil and Gas Value chain

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The Chief Executive Strategic
Execution Imperatives
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The 3 E’s representing the Critical Success
Factors For the Downstream Oil and Gas
Sector 2017-2020
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To achieve the 3 E’s every operator
requires a strong Corporate and
enterprise Performance;
•Culture
•Capability
•Systems
•M & E Mechanisms
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What Next For Your Downstream
Oil and Gas Organization in 2017?
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Nigeria’s Key 2016 Social Economic KPI’s
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OIL PRICE ($)
OIL OUTPUT
EXCHANGE RATE
INFLATION
GDP GROWTH
FISCAL DEFICIT -
GDP
2016 Budget
Dec 2016
Actual
2017 Budget
$38
2.2M/BPD
4.3%
2.14%
9.81%
$42.5
2.2M/BPD
2.5%
2.18%
15.74%
Nigeria 2016-2017 Key Budget Assumptions
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Some Key Takeaways from the 2017 Budget
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In the light of these and few more business landscaping factors
arising from the macro and micro operating environment, what
strategic positioning should your organization adopt to stay ahead
of the pack in 2017-2020?
Contact us for more Strategic Business support & SolutionsContact us for more Strategic Business support & Solutions
Dr. Olayiwola Oladapo
Managing Partner
Sweat Your Asset Derivative Limited
droladapo@assets.org.ng
www.sweatyourassets.com