Nigeria has missed an opportunity to manufacture and sell approximately 65,700,000 (sixty-five million and seven hundred thousand) barrels of oil in the last one year due to matters bothering on pipeline vandalism and the consequent oil theft.
This restates to about N2.3 trillion loss in oil revenue if the prevailing exchange rate and average oil price are used.
The Chairman of Shell Companies limited in Nigeria, Dr. Osagie Okubor, stated at the just concluded Nigerian International Energy Summit held in Abuja from the
The Chairman of Shell Companies limited in Nigeria, Dr. Osagie Okubor, stated at the just concluded Nigerian International Energy Summit held in Abuja from the
The Chairman of Shell Companies limited in Nigeria, Dr. Osagie Okubor, stated at the just concluded Nigerian International Energy Summit held in Abuja from the 16th -20th of April 2023, said the 180, 000 barrels per day Trans Niger Pipeline had remained shut for more than one year- March 2022 to March 2023.
The unavoidable loss from March last year to March this year brings a total shut in/loss to about 65, 700, 000 (sixty-five million and seven hundred thousand) barrels. Brent crude oil price reached about $83 per barrel from March 2022 to March 2023, meaning the country could have lost as much as N2.3trillion to the menace.
The TNP ( a subsidiary company of SPDC), a Joint Venture operated by SPDC is a major pipeline capable of transporting about 180,000 barrels of crude per day to the Bonny export terminal in southeast of Port Harcourt.
Speaking at the Nigerian International Energy Summit, Dr. Okunbor said the TNP remained shut for one year due to the massive crude oil theft happening on the pipeline.
The pipeline, according to Shell companies, is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation and liquefied gas exports.
He also noted, “What keeps me awake today as regards my onshore business in Shell company is the fact that we cannot operate a pipeline, and that’s what is responsible for the 60 percent capacity. I think today that is almost just how much gas we can supply in total,” he said.
“And this is because one of our key gas infrastructures — the TNP — was shut down for one year; we removed 460 illegal pipeline connections on that line. We just reopened that line. Today we are struggling to catch up with our first program.”
Dr. Okunbor said the loss was often viewed as affecting Nigeria’s oil production quota to the Organization of Petroleum Exporting Countries around the globe.
He emphasized that the situation was also having devastating effects on the supply of gas to the Nigeria Liquefied Natural Gas.
“So, if you ask me what the number one problem has to be for the incoming administration, it has to be the insecurity in the oil and gas infrastructure. If you don’t find a solution to it, then we have a big problem on our hands,” Dr. Okunbor said.
Dr. Okunbor advised the incoming administration to prioritize the security in the oil infrastructure sector.
There were reports that the Federal Government was planning to reopen the pipeline for operation last October 2022.
Nonetheless, talks with the Bodo community in the Gokana Local Government Area of Rivers State where most of pipelines are located appear to have broken down.
Dr. Okunbor however said Nigeria was not short of ideas and written documents on how to tackle the various challenges in the oil sector.
He said that the decade of gas document, for example, included steps to deepen gas use, but implementation remained a challenge.
On his part, Managing Director of Nigerian Liquefied Natural Gas Limited, Philip Mshelbila, pointed out that 40 per cent of globally renowned gas firms’ capacity had been lying fallow due to theft.
He added that the lack of power to execute the recommendations and policies in the various documents and laws of the oil sector remained a challenge to the industry.
Last year, the Nigerian National Petroleum Company said it detected an illegal connection on the Trans Escravos pipeline looped to the four-kilometre Afremo test line.
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