NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE



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in association with NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE REPORT ON THE PROCESS AUDIT 1999-2004 REFINERIES AND PRODUCT IMPORTATION APPENDIX D: VARIOUS PPMC DATA SUBMITTED Presented to The National Stakeholder Working Group by Hart Resources Ltd in association with SS Afemikhe Consulting Ltd and CMA Ltd Final Submission November 2006 Information as at 11 th April 2006

The report and all appendices relating to the report are intended for the use of the National Stakeholder Working Group of the NEITI for the purpose of that initiative and are not to be relied upon by other parties.

CONTENTS Appendix C Example of Supply Demand Balance for 4 th Quarter 2004 Example of Tender Advert Example of Letter of Award Decision Flow Diagram Example Inspector s Report Payment Procedure Process Flow Diagram Hart Group, Final Report Page 2 of 22

APPENDIX D_1 EXAMPLE: SUPPLY DEMAND BALANCE FOR FOURTH QUARTER 2004 A copy of the fourth quarter 2004 Supply Demand Balance showing basis for determining the quantity of products to be imported for the quarter. Hart hart Group, group Final Report Appendix Page 3 of D_1 22

Hart hart Group, group Final Report Appendix Page 4 of D_1 22

Hart hart Group, group Final Report Appendix Page 5 of D_1 22

Hart hart Group, group Final Report Appendix Page 6 of D_1 22

Hart hart Group, group Final Report Appendix Page 7 of D_1 22

APPENDIX D_2 EXAMPLE: TENDER ADVERT Sample of Publication inviting people to participate in competitive tendering process for the importation of petroleum products. Hart hart Group, group Final Report Appendix Page 8 of D_2 22

Hart hart Group, group Final Report Appendix Page 9 of D_2 22

APPENDIX D_3 EXAMPLE: LETTER OF AWARD Sample of letter given to successful bidders. Hart hart Group, group Final Report Page Appendix 10 of D_3 22

Hart hart Group, group Final Report Page Appendix 11 of D_3 22

Hart hart Group, group Final Report Page Appendix 12 of D_3 22

APPENDIX D_4 DECISION PROCESS FLOW DIAGRAM IMPORTATION OF PRODUCT Description Commercial (S&D) PPMC Minister of MD PPMC GMD NNPC Jetty PPMC Finance CBN Petroleum Prepare demand forecast Product requirement - first approval MD Product requirement final approval GMD Public Tender Prepare and issue tender Corporate Dept Tender Committee analyses tenders & propose vendor GM signs MD signs GMD signs Approve letting of contract Suppliers Define Lacan & schedule ship movement DPR tests conformity with spec & authorises discharge NNPC inspection Ship arrives and prepares to discharge Discharge & fiscalisation Process payment Settle payment Hart hart Group, group Final Report Page Appendix 13 of D_4 22

APPENDIX D_6 EXAMPLE: INSPECTOR S REPORT A copy of a report by cargo inspector as it relates to each cargo on arrival before and after discharge. Hart hart Group, group Final Report Page Appendix 14 of D_6 22

Hart hart Group, group Final Report Page Appendix 15 of D_6 22

Hart hart Group, group Final Report Page Appendix 16 of D_6 22

Hart hart Group, group Final Report Page Appendix 17 of D_6 22

Hart hart Group, group Final Report Page Appendix 18 of D_6 22

Hart hart Group, group Final Report Page Appendix 19 of D_6 22

Hart hart Group, group Final Report Page Appendix 20 of D_6 22

APPENDIX D_7 PAYMENT PROCEDURE PROCESS FLOW DIAGRAM Hart hart Group, group Final Report Page Appendix 21 of D_7 22

Hart hart Group, group Final Report Page Appendix 22 of D_7 22