Nigeria will lose another N83bn between May and June to the crude theft.
A drop in crude oil production in the first quarter of 2013, January to March, caused Nigeria a loss of crude revenue of about $1.23 billion (N190 billion), the Nigeria National Petroleum Corporation, NNPC, has said.
The corporation said in Abuja on Wednesday that the drop was caused by the incessant theft of Nigeria’s crude oil.
In a statement issued by the corporation’s acting Group General Manager, Public Affairs, Tumini Green, the corporation attributed the drop to incessant crude oil theft and vandalism along the major pipelines within the Niger Delta.
The statement said that on a daily basis, crude oil production during the period fluctuated between 2.1 and 2.3 million barrels per day (mbpd) compared with the projected 2.48mbpd.
“Expectedly, this fall between actual production and forecast in first quarter 2013 has resulted in a drop in crude oil revenue of about 1.23 billion dollars ,’’ which should have accrued to the Federation Account, it said.
The Corporation explained that the NNPC/SPDC JV (Shell Petroleum Development Company Joint Venture), recently declared a force majeure on Bonny Crude, due to incessant crude oil theft.
It said the development resulted to the shutting in of 150,000 bpd.
To lose another N83 billion in May/June
The NNPC said its “investigations showed that 53 break points were discovered along the 97km Nembe Creek Trunkline, repair work is expected to last about six weeks.
“This will further reduce our April and May monthly average to about 2.2mbpd and further decrease crude oil revenue by about 554 million dollars (N83 billion) that should have accrued to the Federation Account, “the corporation said.
It, however, gave an assurance that the maintenance work would have minimal effect on gas supply to domestic market.
“We shall continue to work with relevant government agencies both at the federal and state levels; to end this incessant crude oil theft and pipeline vandalism.
“We have the potential to meet the national target of 2.48mbpd if this menace is eliminated,” it added.
The corporation decried the menace of crude theft and its negative effect on the environment, operational costs and image of the country and economy of the nation.
It called for the partnership of the stakeholders in tackling the menace.
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