Nigeria loses more than 362 million barrels of oil in ten years

heraldtoday


Nigeria lost 362 million barrels (mbbl) of crude oil between 2014 and 2023 due to measurement errors, sabotage and production adjustments, a new report has revealed.  

The research from the Nigeria Extractive Industries Transparency Initiative, which aims to foster transparency and accountability in the country’s oil, gas and mining revenue management, revealed that the African nation’s daily crude oil losses were around 992,000 barrels. 

The agency also highlighted that the total crude oil production deferment during the assessment period was 110.66mbbl. 

The report on crude oil losses was compiled by examining various sources, including submissions from the Nigerian Upstream Petroleum Regulatory Commission during the NEITI audit period and reports endorsed by companies such as the Nigerian National Petroleum Company (NNPC). 

NEITI defines deferment as a stoppage in production due to planned and unplanned repairs and maintenance, pipeline breaks/leaks, or inadequate equipment performance. 

The losses were attributed to a 2.91mbbl measurement error (1.3%), 5.25mbbl of theft and sabotage (2.3%) and 486,000 barrels of production/terminal adjustment (0.21%).  

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The crude oil lost in 2023 was 7.68mbbl, a significant decrease from the 36.69mbbl lost in 2022, representing a 79% reduction (29.02mbbl). This reduction highlights the positive impact of government initiatives to minimise crude oil losses, improve operational efficiency and enhance accountability within the sector. 

However, given the country’s proven crude oil reserves, production capacity must increase to reach the 2013 annual average of 800mbbl. A forensic audit of the wellheads and production platforms can achieve this. 

Nigeria has been grappling with persistent management challenges in fully harnessing its oil and gas potential as an oil-producing nation, a problem that has existed for several decades. 

Sections of Nigeria’s military have intercepted and disrupted a significant illegal oil bunkering operation in the southern region of the country as the African nation contends with ongoing threats to energy infrastructure and theft. 

Last month, several local news outlets reported that the 6 Division of the Nigerian Army discovered more than 198,000 litres of stolen crude oil in a barge from the NNPC flow station in Rivers State. 

Earlier this year, Mele Kyari, the chief executive of NNPC, highlighted the company’s efforts to eradicate corruption from its operations, stop crude oil theft and prevent pipeline vandalism.  

He stated that crude oil theft is the most serious and widespread economic crime in Nigeria, considering the amount of oil stolen daily and “the brazenness with which the perpetrators operate”. 




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