The Nigeria oil enterprise lost 773,100 barrels per day to production shut-in due to product theft and pipeline vandalism in the month of May, 2017.
At the international Brent fee of $52 per barrel, the country lost about $40.20million (N12.30billion) per day.
This has however, resulted to the Nigerian National Petroleum Corporation (NNPC) having a trading deficit of N5.23billion, representing an make bigger of N3.55billion in contrast to the preceding month’s.
According to the NNPC in its June monthly file launched at the weekend, these losses have been recorded in Yoho, Forcados, Qua Iboe, Bonga, and Akpo Terminals.
NNPC defined in the document that Force Majeure, or shut in due to circumstances past the producers control, which used to be declared in Forcados Terminal on February 21, 2016 was nevertheless in place in May 2017. About 280,000bopd was shut-in in May due to the persisted shutdown of the Forcados 48-inch crude export line. In addition, line flush used to be carried out on May 20th, whilst export things to do have re-opened at the Terminal in the final week of the month.
It delivered that some production wells in Qua Iboe Terminal were additionally shut-in at some point of the period due to some Well integrity issues, and high water production, all through which an common of 180,000bopd was once shut-in all through the month in review.
NNPC disclosed that manufacturing used to be on whole shut down on May fifteenth due to crude oil leakage, main to production shut-in of about 190,000bopd.
For the Yoho Terminal, the Corporation stated some production wells have been shut-in from May 15th –18th. “About 48,100bopd of manufacturing was once shut-in.”
In view of the shut-ins and attendant revenue losses, NNPC decried that federation funding has been inadequate over the years as a result of the modern wave of sabotage orchestrated through militant activities, and low oil fees which further compounded the situation.
Furthermore, products theft and vandalism persevered to destroy value and put NNPC at a disadvantaged aggressive position. “A whole of 1,820 vandalised points have been recorded between June 2016 and June 2017,” it added.
On revenue flow, the Corporation said: “Group operating revenue for the months of May and June 2017 have been ₦308.87 billion and ₦295.75 billion respectively. These characterize 84.43 per cent and 79.54 per cent respectively of the month-to-month budget.
“Similarly, running expenditure for the identical periods were ₦311.42 billion and ₦300.98 billion respectively, which additionally characterize 97.88 per cent and 94.74 per cent of price range for the months respectively.”
But speaking lately at the African Modular Refinery forum, Minister of State for Petroleum Resources, Ibe Kachikwu, stated Nigeria lost about $6billion to vandalism of oil and fuel infrastructure in the last 5 years.
The minister said the losses to pipeline vandalism may want to be used to actualise the Vision 2020 goal of attaining home refining capacity, stimulate employment and economic growth.
He said the country had been plagued with non-stop import cycle of 92 per cent of its day by day gas consumption. “Despite these challenges, we are targeted on the objective of making sure the nation attained a home refining potential by way of 2019.”