Nigeria loses 27.3mb in Feb valued at N417 billion to production disruption
A new report released by the Minister of State for Petroleum, Dr. Ibe Kachukwu has shown that the industry lost an accumulated 27.3 million barrels in the month of February to production disruptions arising from pipeline vandalism.
Calculations based on current Brent crude oil price at $50 per barrel, further indicated that crude lost amounted to about $1.3 billion (N417 billion) in revenue in the month under review.
Analysts say this is more that the $700 million (N213.5 billion), which Kachikwu, said is needed to revive the country’s ailing refineries.
On daily analysis, the country lost over 975,000 barrels per day throughout the month of February 2017, which amount to $48.7 million (N14.8 billion) daily to various production disruptions.
The report by the Nigerian National Petroleum Corporation (NNPC), noted that products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.
Within the period under review, a total of 2,269 vandalized points have been recorded from February 2016 to February 2017.
The Corporation has also hinted that Forcados Terminal production wells remained shut-in since 9th November 2016 as a result of sabotage on 48-inch crude export line Trans Forcados Pipeline (TFP), noting that about 325,000bpdwas shut in throughout the month of February 2017.
On Qua Iboe Terminal, NNPC averred that leakages and low wellhead pressure negatively affected production. “Also Production wells were shut-in at Ubit 131J for gas curtailment and shut-in of Usari FC wells for QIT Tank top management. An average of 165,000bopd was shut-in throughout the month of February, 2017”, it added.
NNPC disclosed also that production was still shut-in after repair works was completed on the Nembe Creek Trunk Line (NCTL). “About 60,000 bpd was shut-in from 1st to 9th February 2017.
