Nigeria's oil sector is estimated to have lost over 754,000 barrels per day (bpd) in February, to production shut-in occasioned by pipeline vandalism, according to the latest monthly financial report of the Nigerian National Petroleum Corporation (NNPC).
This translates to revenue loss of about $49.010million (N17.643billion) at an average price of $75 per barrel if the quantities were sold.According to the report, about 160,000bpd were shut-in throughout February due to the ageing facilities/integrity issues at the Qua Iboe Terminal.
The Trans-Nigeria Pipeline at the Bonny Terminal was also shut down from 13th to 16th February, due to a leak in the Bodo area with production loss of approximately 120,000bpd.
About 180,000bpd was deferred due to shut down of the Trans Forcados Pipeline as a result of leakage of hot taps in the Oteghele axis for five days in the month in review.
About 55,000bpd was shut in due to plant shutdown for water flood gray lock leak repairs from February 04 to 15, 2018 at the Bonga Terminal. In addition a shut-in of 215,000bpd was experienced as a result of complete shut down for water flood gray lock leak repairs for five days.Production was shut-in for seven days to mitigate the impact of wind direction on flare that set off smoke/thermal alarms resulting in the shut-in of about 24,000bpd at the Agbami Terminal.
According to NNPC integrity issues persisted during the month in review, as pipeline vandalism remained a challenge to the industry operations.It stated: "In March 2018, pipeline break stood at 224, of which 25 pipeline points either failed to be welded or ruptured/clamped. Thus 199 pipeline points were vandalised as against 125 recorded last month. PHC-ABA and ABA-ENUGU pipeline segment accounted for 177 points or 88.94 per cent of the affected pipeline points.
The Corporation therefore solicited continued support from Nigerians especially in areas with security challenges to achieve zero vandalism of the nation's oil and gas infrastructure.It noted that products theft and vandalism have continued to deprive value addition and put NNPC at disadvantaged competitive position given that "A total of 1599 vandalised points have been recorded between March 2017 and March 2018."
As a result, the Group Managing Director, NNPC, Dr. Maikanti Baru, had decried pipeline vandalism, crude oil theft and sabotage, which he noted had resulted in huge loss of revenue, lives and property as well as damage to the environment.He called on security agencies and other stakeholders nationwide, to collaborate with the corporation in its on-going campaign against the sabotage of petroleum facilities.
On the other hand, NNPC also disclosed that a total of 56.24 million barrels of crude oil & condensate was produced in February, representing an average daily production of two million barrels.This, it said, represented an increase of 0.59 per cent in average daily production compared to January average daily performance."Of the February 2018 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 33.44 per cent and 38.14 per cent respectively.