Nigeria loses N490billion to production shut-in

•Earns N1.206trillion from oil, gas production in one year
Nigeria may have lost about N490.11billion to various production shut-ins due to pipeline leaks and vandalism in the Niger Delta between September and October 2017.

Regardless of the losses, the country earned in excess of $3.35billion (N1.206trillion) from oil and gas export from October 2016 to October 2017.

Data showed that the country lost 681,000 barrel per day (bpd) between September and Octobers 2017 to shutdowns in Bonny, Qua Iboe, Bonga, and Forcados terminals.

Based on current Brent crude oil price of $67.51 per barrel, Nigeria may have lost $45.381million per day (N16.337million) or N490.11 billion in a one month.

As a result, the Nigerian National Petroleum Corporation (NNPC), attributed the poor performance of the oil and gas sector during the period under review to these challenges.

The NNPC in its Financial Report for the month of October 2017, released on Wednesday, said the Bonny oil terminal was affected by the leaks on the Nembe Creek Trunk Line (NCTL).

It explained that a Force Majeure (arising from circumstances beyond control) was declared in September 2017, and remained in place until October 17th. About 120,000bopd was shut-in for 16 days while it lasted.

On the Qua Iboe terminal, NNPC said about 195,000bopd remained shut-in for the entire month of October, due to slow recoveries from some wells and repairs on the 42- inch export line and fuel gas line.

“The Bonga Terminal Production also dropped for eight days due to shut-in of some wells as a result of request from NLNG for Akpo to cut off gas export due to operational issues. The production shut-in was 61,000bopd. Another 83,000bbls of production was also shut-in for a day due to intervention and preventive maintenance.

“The Trans Forcados Pipeline was shut down for eight days from due to leaks in the Oteghele and Yeye axis with the loss of approximately 200,000bopd of production.”

The Corporation added that products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.

It disclosed that a total of 970 vandalised points were recorded between October 2016 and October 2017.

However, NNPC said contribution from crude oil amounted to $227.66million, while gas and miscellaneous receipt stood at $49.09million and $0.76million respectively.

It added that the export receipts of $121.75million was remitted to Federation Account, while $155.76 million was remitted to fund the Joint Venture cost recovery for October 2017, to guarantee current and future productions.

The Group Managing Director, NNPC, Dr. Maikanti Baru, had said an average of 700,000bpd of crude oil was deferred in 2016, due to pipeline sabotage, saying this brought Nigeria’s production down to as low as 1.3 million bpd from 2.2 million barrels targeted for the period.

He urged all key players to rally round pipeline professionals to proffer solutions to vandalism challenge, as it posed a great threat to the Nigerian economy in terms of revenue loss, and environmental degradation, even as the Corporation had deployed more complex technology to bury the pipelines deeper.