Nigeria loses $4.2bn in 8 months from oil and gas

Nigeria has recorded more than $4.2 billion losses this year alone, resulting from a combination of factors plaguing the oil and gas sector.

Most of the losses were incurred from incessant pipelines vandalism, whose repair works are said to be taking a toll on the resources of the Corporation.

Other major means of loses were from reduction in crude oil export projection of 2.2 million barrels per day (bpd) , but which came down to 1.5 million bpd.

In its quarterly report, for the month of August 2016 released on Wednesday, NNPC said though the rate of pipeline vandalism in the country was reducing following government anticipatory income from NNPC, its impacts were still much felt.

“Through the ongoing peace, the month of August 2016, had about 28.94 per cent drop in the number of pipeline vandalised relative to the figure in July 2016 of 20.5 per cent.

“However, not less than 300 vandalised points were recorded in August 2016”, the report stated.

It further showed that from January to August, the NNPC recorded a total of about N14 billion negative-balance expenditure, from total revenue of N1.02 trillion it made for the period.

In July, crude oil production stood at 1.65 million bpd, the report added that this was a 6.47 per cent decrease relative to June, and 22.43 per cent lower than the July 2015 performance.

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It stated that the sharp drop in July production due to subsisting force majeure at the Forcados terminal, which accounts for 300,000 bpd, has increased the deficit incurred in the third quota of 2016.

Other factors that negatively impacted on production include the force majeure at the Qua Iboe terminal following sabotage on the export loading line 2, sabotage of the Trans Niger Pipeline, Claugh Creek-Tebidaba pipeline and Escravos terminal delivery pipelines,” the corporation said.

But just as the report was expressing hope that improved revenue could be achieved as it repaired and reopened the Forcados oil facilities in Delta State, the militants on Wednesday carried out destruction of the facility barely 48 hours after its re-commissioning.
By Emma Eke….

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