Lawmakers probe $2.4b loss from illegal sale of 48m barrels

• As FG optimistic on full oil output amid drop in rigs
House of Representatives is to commence investigations into alleged loss of over $2.4 billion revenue from illegal sale of 48 million barrels of crude oil exported in 2015 and external sale of commodity exports from 2014 to date.

This followed lawmakers’ resolution to constitute an ad hoc committee to specifically, probe allegations of illegal sale of 48 million barrels of Nigeria’s Bonny Light crude in China, in 2015, and the insurance status of the cargo.

The committee is expected to examine all crude oil exports and sales by Nigeria from 2014 to date, with regards to quantity, insurance, revenue generated, remittances into the federation account or other accounts, as well as utilisation of the revenue for the period under review.

The resolutions followed unanimous adoption of a motion moved by Isiaka Ibrahim (Ogun State) at yesterday’s plenary.

Meanwhile, Federal Government, in Abuja, yesterday, was optimistic about pumping over 1.8 million barrels of crude, even as the Organisation of Petroleum Exporting Countries (OPEC) said the country’s active oilrigs dropped by 50 per cent.

Minister of State for Petroleum Resources, Chief Timipre Sylva, said government would work to ensure all local and international oil companies return to full capacity production of crude oil in the country.

While the active rigs describe the volume of exploration, development and production activity in the sector, rising theft, vandalism, divestment and the push away from fossil fuels have combined to drop the country’s rig count from 16 in 2019 to 11 in 2022.

Speaking while receiving the new Managing Director of Eni SpA in his office, Sylva restated Federal Government’s readiness to continue to improve security along the tracks of major crude oil pipelines and block every leakage through which crude is stolen by oil thieves and pipeline vandals.

He said: “I am happy to hear from you (Eni) that you have increased your crude oil production to 15,000 barrels per day, as a result of the efforts of the government in protecting pipelines in the region. I assure you that this trend will continue.

“We want to see all the oil majors in the country return to their full production capacity to boost revenue for the government. We will continue to work to bring stability and build confidence for everyone to return to the field to produce at their maximum capacity.”

Head of sub-Saharan Africa Region of Eni SpA, Mr. Mario Bello, in his brief remarks during the visit, said the renewed confidence in the Federal Government’s efforts in restoring sanity along major crude oil pipelines in the Niger Delta has enabled the company increase crude oil production from a near zero production level to about 15,000 barrels per day in the last one month.

He said: “We are happy that the security situation is improving and we will be willing to be back fully.”