Community And Technical Problems  Caused Government $212.5 Million in oil revenue

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CBN

Report Predicts $17bn Decline in Nigerian Oil RevenueTHISDAYLIVE
Olusola Bello

Community and technical problems have caused the country to lose over 3,678,000 barrels of crude oil from shut –in from oil facilities, which resulted in a revenue loss amounting to about $212.5million in January 2021

The figure regarding the revenue loss was arrived at, taking cognizance of the fact that daily average price of crude oil during the period under review was $57 per barrel.
This has also impacted negatively on the total revenue that should  have accrued  to the  federation account for the benefits of  the  citizens of this  country.

According to the Nigerian National Petroleum Corporation record for the period under review, the highest volume of shut -in happened at Qua Iboe Terminal with about 2,100,000 millions barrels for the 10 days period in which the terminal experienced the shut –in.
This was followed by 589,000 barrels recorded for Yoho oil field through what was described as process shut down because of leak on its HP.
The force majeure placed on Forcado terminal following the shutting down of Trans forcado Pipeline over community issues led to shut in of 240,000 barrel of crude from
A report to Federation Account Allocation Committee  (FAAC) also cited by Businessstandardsng.com showed that Abo field suffered a shut in of about 398,000 barrels between January1st and 19, 2021.
At the pennington Terminal, it was alleged that because Conoil could not carry out some necessary processes, about 200,000 barrels was shut in for eight days.
Agbami deep water recorded 50,000 barrels shut in, just as Ugo Ocha Terminal had it own share of shut in with just about 70,000 barrels. The least of the incident happened at IMA Terminal where a controlled shut down resulted in 31,000 barrels.
The Monthly Financial and Operations Report (MFOR) of the Nigerian National Petroleum Corporation (NNPC) has revealed decrease in activities of oil pipeline vandals in January this year.
Pipeline vandalism has been a major act of sabotage in the nation’s oil industry. From January 2019 to September 2020, as much as 1,161 pipeline points across the country were vandalised. Repairing and maintain the vandalised points costs the country about N60 billion yearly.
NNPC had earlier said that an average of 200,000 barrels per day of crude oil were usually lost to vandals.
The Monthly Financial and Operations Report (MFOR) of the Nigerian National Petroleum Corporation (NNPC) revealed decrease in activities of oil pipeline vandals in January this year.
According to the report, a total of 27 pipeline points were vandalised in January 2021 down from the 43 points recorded in December 2020.
NNPC, which said it was working in collaboration with local communities and other stakeholders to reduce and eventually eliminate the menace, revealed that Mosimi Area accounted for 74 per cent of the vandalised points while Kaduna Area and Port Harcourt Area accounted for the remaining 22per cent and four per cent.
The report also revealed that the corporation supplied a total of 1.44billion litres of Premium Motor Spirit (petrol), translating to 46.30 million litres per day, across the country in the period under review.
In terms of gas, a total of 223.55 billion cubic feet were produced, translating to an average daily production of 7,220.22 million standard cubic feet per day. The production represents a 4.79 per cent increase over the output in December 2020. The daily average gas supply to power plants during the month increased by 2.38 per cent.
The period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20per cent, 19.97per cent and 14.83 per cent to the total national gas production.
Out of the total gas output in January 2021, a total of 149.2cubic feet were commercialized, consisting of 44.29 cubic feet and 104.95 cubic feet for domestic and export markets.
Pipeline vandalism has been a major act of sabotage in the nation’s oil industry. From January 2019 to September 2020, as much as 1,161 pipeline points across the country were vandalised. Repairing and maintain the vandalised points costs the country about N60 billion yearly.
NNPC had earlier said that an average of 200,000 barrels per day of crude oil were usually lost to vandals.

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