Business
NNPC, partners lose $1bn oil revenue in one month
The Nigerian National Petroleum Company (NNPC) Limited and its other major partners lost 9.4 million barrels of crude oil in the month of May, arising from production challenges.
NNPC disclosed this in its latest presentation to Federation Accounts Allocation Committee (FAAC) report.
According to the report, the Production shutdowns were caused by force majeure, fire outbreak, industrial strike actions, and repairs at various crude oil terminals scattered across Nigeria.
The 9.4 million barrels of crude oil is worth about $1.068 billion, based on May’s average Brent price of $113.34.
For instance, the report noted that the Trans Ramos pipeline, which feeds into Nigeria’s Forcados oil export terminal, and the Trans-Niger Pipeline, capable of hauling 180,000 barrels a day across Nigeria, ceased transporting crude in the month of June.
“Crude oil production at Bonny Terminal has dropped significantly to an average of about 3MBD since the 21st of March 2022 till date. The terminal operator has declared force majeure on all outstanding Bonny programs,” NNPC said concerning Nigeria’s Bonny terminal.
On Jones Creek terminal, NNPC Limited said the Batan Station came down due to malfunctioning Tricon Ex failure and protesting OML 42 workforce.
Read also: NNPC settles multi-billion dollar oil disputes with four IOCs
More losses
On August 9, Mele Kyari, the group chief executive officer (GCEO), NNPC Limited, said Nigeria loses $1.9 billion monthly to crude oil theft.
“This has done extensive damage to the environment, and losing $1.9 billion every month is colossal, considering the nature of the global economy at the moment,” Kyari said.
Kyari emphasised that the team needed the support and buy-in of the Delta state government “because stopping this oil theft requires the concerted efforts of the federal, state governments, oil companies, and security agencies”.
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