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FG battles oil theft, subsidy into New Year

Since the beginning of this year, the Federal Government has been battling fuel shortages and the vandalization of Nigeria’s crude oil. Okechukwu Nnodim writes.

Theft of crude oil, pipeline vandalism, and the continuous scarcity of Premium Motor Spirit, commonly referred to as gasoline, were the most significant difficulties facing Nigeria’s oil and gas sector in 2022.Information Guide Nigeria

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Despite some good developments in Nigeria’s crude oil output over the past two months, the country’s oil production plummeted between January and September of this year due to widespread oil theft in the Niger Delta region.

In September, oil production plummeted to 937,780 barrels per day, the lowest level in previous years. The nation routinely fell short of the Organisation of Petroleum Exporting Countries-approved monthly oil production quota of 1,8 million barrels per day.

Nigeria has been a member of OPEC for many years, but the country’s low oil production prevented it from receiving millions of dollars per month. Despite the rise in global crude oil prices following Russia’s armed invasion of Ukraine in February, this was the case.

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Between January and September, the Nigerian Upstream Petroleum Regulatory Commission’s data revealed a monthly reduction in crude oil production.

In January 2022, Nigeria pumped 1.39 million barrels per day, but this decreased to 1.26mbpd in February and 1.24mbpd in March.

In April, the nation’s oil production continued its downward trend, falling to 1.22 million barrels per day. In May, it fell to 1.02mbpd, before rising significantly to 1.16mbpd in June.

In July, oil production plummeted to 1.08 million barrels per day (mbpd); in August, it fell to 0.97 million barrels per day (mbpd); and in September, it reached a record low of 0.94 million barrels per day (mbpd).

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In October, the nation’s oil output increased modestly to 1.01 million barrels per day. Last month, crude oil production grew to 1.18 million barrels per day (mbpd), sustaining the growth.

The two successive increases in oil output were the result of heightened law enforcement actions and the deployment of a private pipelines surveillance business by the Nigerian National Petroleum Company Limited.

“Our security agencies should pay great attention to the country’s oil production,” the President, Petroleum Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, stated in his reaction to the development.

He told our correspondent that pipelines were national assets, adding that “our economy depends on the production of crude oil, regardless of what anybody is saying with respect to earnings from solid minerals, agriculture and other sectors.”

Gillis-Harry noted that “the size of dependence of our daily economic activities is almost equal to the petro-dollars which are produced from the Niger Delta.”

Bala Wunti, Chief Upstream Investment Officer of NNPC Upstream Management Services, stated in a television interview at the beginning of this month that Nigeria was losing an estimated 700,000 barrels of crude oil per day prior to the recent recovery, which began approximately two months ago.NYSC portal

He said, “From our records, before we recovered, we were losing 700,000bpd translating to 21 million barrels per month, and if you consider an average price (of crude oil) this year at $90/barrel, that will translate to somewhere around $1.8bn or $1.9bn losses that we suffered.”

He explained that oil theft due to vandalism stalled production and the delivery of crude oil from many terminals in the Niger Delta region.

“I think the key question to ask is where were Forcados, Brass Terminal, and where was Bonny in the Force Majeure? The reason is simply that we were unable to deliver crude to those terminals,” Wunti stated.JAMB portal

He added, “And why were we not able to deliver crude to those terminals? It is simply because of the security vulnerability. As I speak to you, Brass is in Force Majeure, Bonny is in Force Majeure. That is about 300,000 barrels deferred already.

“We have been working hard with the private security contractor to return the Trans-Niger Pipeline, we have succeeded to some extent but not where we want to be. We are hoping we will open Bonny very soon.

“The security situation is now restored together with certain activities that have been carried out to revamp what we see in Forcados. Forcados is back producing, Bonny will soon be back.

“Yes, indeed we are back, but up till today, one of our major trunk lines we can’t use because of security. Trans Forcados is back, Trans Escrarvos is back, Trans Remos is back. Even as I speak to you today, we are still having some of those volumes.”JAMB Result

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Emediong Silver

Emediong Ekpe is a graduate of English. A professional Sports journalist/analyst, and a spoken word artist. He is passionate about decimating information and putting smiles on people's faces via news writing. Whatapp: 08088735884

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