Due to production issues, the Nigerian National Petroleum Company (NNPC) Limited and its other significant partners lost 9.4 million barrels of crude oil in the month of May.
This information was provided by NNPC in its most recent submission to the Federation Accounts Allocation Committee (FAAC).
Force majeure, fire outbreaks, industrial strike activities, and maintenance at several crude oil terminals dispersed throughout Nigeria, according to the study, were the causes of the production shutdowns.
Based on the average Brent price of $113.34 for May, the 9.4 million barrels of crude oil are worth around $1.068 billion.
For instance, the report noted that the Trans Ramos pipeline, which feeds into Nigeria’s Forcados oil export terminal, and the Trans-Niger Pipeline, capable of hauling 180,000 barrels a day across Nigeria, ceased transporting crude in the month of June.
On August 9, Mele Kyari, the group chief executive officer (GCEO), NNPC Limited, said Nigeria loses $1.9 billion monthly to crude oil theft.
“This has done extensive damage to the environment, and losing $1.9 billion every month is colossal, considering the nature of the global economy at the moment,” Kyari said.
Kyari emphasised that the team needed the support and buy-in of the Delta state government “because stopping this oil theft requires the concerted efforts of the federal, state governments, oil companies, and security agencies”.