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S a p i a A n n u a l R e p o r t 2 0 0 2
APPENDIX 4 – MARKETING OF PETROLEUM ACTIVITIES RETURN (MPAR)
  1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
MPAR return (%) (1,6) 3,4 8,7 13,9 12,0 9,2 6,8 8,8 9,7 7,3 4,0 3,8 -
Indicated margin
increase (c/l)		 4,0 4,0 2,3 0,0 0,0 2,7 4,9 3,6 2,5 3,81 6,75 6,93 -
Increase granted
(in succeeding year)		 - 4,0 4,0 0,5 0,0 0,0 0,0 2,0 1,0 0,5 1,23 2,58 6,93+
Margin at year end (c/l) 5,6 9,6 13,6 14,1 14,1 14,1 14,1 16,1 17,1 17,6 18,8 21,4 28,3**

On page 39 of this report Sapia explains how the MPAR formula works. Here the returns since the inception of the formula are disclosed.

Sapia believes that this information will be of value to those interested in the industry.

The indicated margin increases, based on each year's return, are applied for in the succeeding year.

The shortfalls are not cumulative - but do represent a loss of income to the industry in the years in which increases are due but not granted.

Sapia points out the MPAR Return has since 1994 been consistently below the lower end of the 10-20% band referred to on page 39.

** As at December 2002
 
+ 2,94c/l granted on 2 January 2002
1,9c/l granted on 6 November 2002
2.09c/l granted on 4 December 2002