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$5.6bn recorded as oil and gas firms count losses in militants’ attacks



$5.6bn recorded as oil and gas firms count losses in militants' attacks

Following signs that peace will soon return to the Niger Delta region, major oil and gas companies in Nigeria with operations in downstream and upstream activities have begun assessment of the actual cost of the crisis on their damaged faculties, according to an investigation.


So far, an estimated $5.6 billion collateral damage has been computed by five of the majors, including the state owned firm, Nigerian National Petroleum Corporation (NNPC).


Mostly affected include Shell and Chevron, which are estimated to have borne more than 45 per cent of the total damage, NNPC suffered 30 per cent, while the rest lost 25 per cent of the total cost.


The operators said they were computing the figure as part of their preparedness to resume full production as soon as peace returns to the region.

Read also: Nigeria has lost 1m barrels of crude per day for 6 months –Osinbajo


Confirming this, chief executive officer, Seven Energy, Mr. Phillip Ihenacho, described 2016 as very challenging for the business community, especially those in the oil sector.


Another affected firm, Energy Finance Limited, with services in the downstream, said it had so far recorded a loss valued at $42 million in first half of 2016 resulting from the crisis


Its annual output in production also dropped by half against $83 million in the corresponding period of 2015.


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