Monday, September 30, 2024

Nigeria Loses 362 Million Barrels of Crude Oil to Sabotage and Errors – NEITI

 



Nigeria lost 362.28 million barrels of crude oil between 2014 and 2023 due to sabotage, measurement errors, and production adjustments, according to a report from the Nigeria Extractive Industries Transparency Initiative (NEITI). This amounts to an average daily loss of about 992,547 barrels over the ten-year period.

The findings were detailed in NEITI's latest report titled Oil & Gas Industry Audit 2023, which provides an independent assessment of physical, financial, and operational activities within Nigeria’s oil and gas sector. The report highlights significant production deferments, with a total of 110.66 million barrels affected during the review period.

Production deferments, as defined by NEITI, occur when oil output is disrupted by factors such as pipeline leaks, equipment failures, and both scheduled and unscheduled maintenance.

The report also pointed to the use of outdated and corroded pipelines as a major factor contributing to Nigeria’s inability to fully harness its oil potential, further exacerbating the loss of crude.

A detailed breakdown revealed an alarming increase in losses over the years. In 2014, the country recorded a loss of 1 million barrels, which surged by over 2,600% to 27.12 million barrels in 2015. The highest crude loss occurred in 2016, with 101.6 million barrels stolen or sabotaged, equating to a daily loss of 278,356 barrels. In that year alone, Nigeria missed out on potential revenue of $4.6 billion, with crude oil prices averaging $46.07 per barrel.

Losses in subsequent years were also significant, with 36.46 million barrels lost in 2017, 53.28 million barrels in 2018, and 42.25 million barrels in 2019, resulting in billions of dollars in lost revenue due to theft and sabotage.

Despite being one of the world's largest oil producers, Nigeria continues to face challenges in securing its crude oil infrastructure and maximizing its oil revenue.

No comments:

Post a Comment

Opinion Poll: In your view, who would make a better President of the United States based on leadership qualities, policies, and vision for the country?

  By Nightengale Ben-Onyeukwu As Americans prepare for the 2024 presidential election, they face two very different visions for the countr...