By Farid Suleiman
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has revealed that from January to date, Nigeria has lost a total of N623BN worth of crude oil to the activities of oil vandals and operators of illegal refineries.
Reports indicate that the GMD made the revelation when he appeared before the House of Representative committee on petroleum (upstream) that invited him to ascertain the cause of Nigeria’s low crude oil output.
Kyari said oil thieves steal an average of 250,000 barrels per day. This situation has limited Nigeria’s crude oil output to only 1.49 million barrels per day, against its OPEC quota of 1.753 million barrels per day.
“What is going on has nothing to do with the PIA. It is purely an act of thieves; acts of vandals which have rendered the industry unworkable and taken us to the level where today, our production is around 1.49 million barrels per day.”
“When you lose about 200,000 barrels per day, even at an average price of 65 dollars per barrel, we lost close to 1 billion dollars between January and March.
“From January to date, we lost an average of 250,000 barrels per day, and at the current price of about 100 dollars to the barrel, even within this short period, we have lost close to 1.5 billion dollars.
“This situation deteriorated to the extent that by March 7, 2022, it came to zero, and so, we shut down the line and declared force majeure. Even on our most reliable pipeline, which is the Forcados pipeline, we still lose about 7000 barrels per day. Needless to say that this is all coming as a result of the acts of vandals and oil thieves,” he said.
However, the GMB assured the lawmakers that massive joint security operations among agencies were ongoing to address the situation.