Nigeria records N858b loss to vandalism, oil theft
AT an average price of $97.59 per barrel, Nigeria lost $3.9 billion (N858 billion) between January 2013 to April 2015 to the activities of pipeline vandals and crude oil theft, the Nigerian National Petroleum Corporation (NNPC), has said.
However, industry sources said that the unsavoury trend has significantly reduced since May, with the corporation hinging halt in the economic retarding practices to the setting up of a critical infrastructure force with direct line of sight and accountability matrix and a combination of enlightenment, empowerment and enforcement of anti-sabotage laws.
Already, the nation’s crude oil export has declined by 30,000 barrels per day due to stoppage of production through the Obagi-Rumuekpe 12” Oil Export Pipeline in Rivers State by Total Exploration and Production Limited.
Speaking last week in Lagos, the Group Managing Director of NNPC, Dr. Emmanuel Kachikwu, put the country’s proven reserves at 37.4 billion barrels of crude oil and condensates and over 180 trillion cubic feet of natural gas as at January 2015.
According to Kachikwu, Nigeria’s export business is the mainstay of the economy, accounting for over 90 per cent earnings and about 80 per cent of the Federal Government’s revenue.
He disclosed that the country’s existing gas pipeline infrastructure was inadequate in capacity and reach for the current and project demand growth.
He noted that lack of connectivity between East and West pipelines, coupled with limited throughput capacity has severely constrained supplies.
“Likewise, scope existed to further leverage synergies in the development of upstream gas processing plants and attracts third party investment. Most of the domestic midstream gas treatment facilities often had no provision for full liquids extraction”.
Kachikwu believed that the provision of gas infrastructure will enable increased supply of gas to the domestic economy through the commodity’s utilisation in power and other industrial establishments.
This, he said, will have a huge impact on the domestic economy through improved Gross Domestic Product, import substitution and employment generation.
He added that given the potentials and opportunities that abound in the global energy market, the country is poised to play a greater role in the global oil and gas sector.
“Nigerian oil and gas industry will be transformed rapidly for greater efficiency and sustainable growth through market reforms, diversification of the revenue base and monetisation of vast natural resources”, he added.