19 March 2014

Nigeria: Nation Lost N1.72 Trillion to Oil Theft in 2013 - NNPC

Photo: Premium Times
A man carries oil canisters at an illegal refinery site in Nigeria's oil state of Bayelsa.

The Nigerian National Petroleum Corporation (NNPC) has disclosed that the federal government lost over $11billion (about N1.72trillion) worth of oil revenue in 2013.

The group managing director of the corporation, Andrew Yakubu, who gave the figure attributed the loss to incessant attacks on major pipelines and crude oil theft in the Niger Delta.

Speaking at the ongoing Nigerian Oil and Gas conference (NOG 2014) in Abuja on Tuesday, Yakubu stated that, in 2013 alone, the country lost 300,000 barrels of crude oil per day (bpd). By implication, computing these figures at an average price of $100 per barrel, it would result in a total loss of $10,950,000,000 (300,000 x $100 per barrel x 365 days= $10,950,000,000) in 2013 alone.

"Nigeria has faced unprecedented challenges with regards to losses in production occasioned by incessant vandalism of crude oil export pipelines and domestic crude oil and petroleum product pipelines.

"In 2013, Nigeria suffered severe attacks on its critical export pipeline system leading to the loss and or deferment of about 300,000 bpd. This deferred production or loss is equivalent to the total production of Equatorial Guinea and larger than the entire production of Ghana, Congo Brazzaville, Cameroun and Gabon," he stated.

Expressing concern over this loss, Yakubu stated that the federal government has taken steps to curb the menace.

He said, "The government has set aside N15billion for the purchase of security equipment approved by the National Economic Council (NEC) to checkmate the scourge of oil theft in the Niger Delta."

Nigeria's crude oil production is dependent on key arteries which include: Trans Forcados, Trans Niger, Nembe Creek line and Temidaba-Brass pipelines.

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