Nigeria
may have lost about N490.11billion to various production shut-ins due to
pipeline leaks and vandalism in the Niger Delta between September and October
2017.
Regardless
of the losses, the country earned in excess of $3.35billion (N1.206trillion) from
oil and gas export from October 2016 to October 2017. Data showed that the
country lost 681,000 barrel per day (bpd) between September and Octobers 2017
to shutdowns in Bonny, Qua Iboe, Bonga, and Forcados terminals.
Based
on current Brent crude oil price of $67.51 per barrel, Nigeria may have lost
$45.381million per day (N16.337million) or N490.11 billion in a one month. As a
result, the Nigerian National Petroleum
Corporation (NNPC), attributed the poor performance of the oil and gas
sector during the period under review to these challenges.
The
NNPC in its Financial Report for the month of October 2017, released on a few
days ago, said the Bonny oil terminal was affected by the leaks on the Nembe
Creek Trunk Line (NCTL). It explained that a Force Majeure (arising from
circumstances beyond control) was declared in September 2017, and remained in
place until October 17th. About 120,000bopd was shut-in for 16 days while it
lasted.
On the
Qua Iboe terminal, NNPC said about 195,000bopd remained shut-in for the entire
month of October, due to slow recoveries from some wells and repairs on the 42-
inch export line and fuel gas line.
According
to NNPC, “The Bonga Terminal Production also dropped
for eight days due to shut-in of some wells as a result of request from NLNG
for Akpo to cut off gas export due to operational issues. The production
shut-in was 61,000bopd. Another 83,000bbls of production was also shut-in for a
day due to intervention and preventive maintenance.
“The Trans Forcados Pipeline was shut down for eight days from due
to leaks in the Oteghele and Yeye axis with the loss of approximately
200,000bopd of production.”
The
Corporation added that products theft and vandalism have continued to destroy
value and put NNPC at disadvantaged competitive position. It disclosed that a
total of 970 vandalised points were recorded between October 2016 and October
2017.
However,
NNPC said contribution from crude oil amounted to $227.66million, while gas and
miscellaneous receipt stood at $49.09million and $0.76million respectively. It
added that the export receipts of $121.75million was remitted to Federation
Account, while $155.76 million was remitted to fund the Joint Venture cost
recovery for October 2017, to guarantee current and future productions.
The
Group Managing Director, NNPC, Dr.
Maikanti Baru, had said an average of 700,000bpd of crude oil was deferred
in 2016, due to pipeline sabotage, saying this brought Nigeria’s production
down to as low as 1.3 million bpd from 2.2 million barrels targeted for the
period.
He
urged all key players to rally round pipeline professionals to proffer
solutions to vandalism challenge, as it posed a great threat to the Nigerian
economy in terms of revenue loss, and environmental degradation, even as the
Corporation had deployed more complex technology to bury the pipelines deeper.
(Guardian)
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