36.5m bar­rels of oil stolen in 2017 –NEITI

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IT said Nige­ria lost about 36.5 mil­lion bar­rels of crude oil to theft and sab­o­tage in 2017, the Nige­rian Ex­trac­tive In­dus­try Trans­parency Ini­tia­tive has said.

An anal­y­sis of the lat­est an­nual oil and gas re­port of the Nige­ria Ex­trac­tive In­dus­tries Trans­parency Ini­tia­tive for the 2017 fis­cal said the coun­try wit­nessed a re­duc­tion in oil theft within the year.

The re­port also stated that 69 mil­lion bar­rels of crude was lost due to de­crease in pro­duc­tion vol­umes re­sult­ing from rou­tine main­te­nances or un­planned re­pairs of the pro­duc­tion fa­cil­i­ties.

“This was re­garded as a re­mark­able im­prove­ment, par­tic­u­larly when com­pared to the 2016 fig­ures of 101mil­lion bar­rels and 144 mil­lion bar­rels lost to theft and de­ferred pro­duc­tion re­spec­tively,” NEITI said.

Ac­cord­ing to the re­port, out of the 690,465 mil­lion bar­rels of crude oil pro­duced in 2017, a to­tal of 688, 291mil­lion bar­rels were lifted.

Though mar­ginal, this rep­re­sented an in­crease from the 668,147 mil­lion bar­rels lifted in 2016.

The re­port also showed that the Nige­rian Na­tional

Pe­tro­leum cor­po­ra­tion lifted a to­tal of 241 mil­lion bar­rels of crude oil on be­half of the fed­er­a­tion.

A break­down of the lift­ing showed that fed­er­a­tion ex­ports ac­counted for 135 mil­lion bar­rels, while the do­mes­tic crude lift­ing ac­counted for 106 mil­lion bar­rels.

The re­port dis­closed that the fed­er­a­tion ex­ports vol­ume went down by 36 per cent from 211 mil­lion bar­rels in 2016 to 135 mil­lion bar­rels in 2017.

While lift­ing by the com­pa­nies amounted to 447 mil­lion bar­rels, joint ven­ture op­er­a­tions, pro­duc­tion shar­ing con­tracts and sole risk op­er­a­tors ac­counted for 130 mil­lion bar­rels, 223 mil­lion bar­rels and 79 mil­lion bar­rels re­spec­tively.

“Mar­ginal field and ser­vice con­tract op­er­a­tors lifted 15 mil­lion bar­rels and one mil­lion bar­rels dur­ing the year un­der re­view,” the 2017 oil and gas re­port stated.

On crude al­lo­ca­tion for do­mes­tic use, the re­port in­di­cated that in 2017, the NNPC al­lo­cated 105.925 mil­lion bar­rels for do­mes­tic use.

It stated that while 25 per cent of this quan­tity was sup­plied to the re­finer­ies, 69 per cent was on the other hand utilised for the Di­rect Sale Di­rect Pur­chase ar­range­ment.

cases of pipe­line breaks on oil in­stal­la­tions across the coun­try wit­nessed a sig­nif­i­cant re­duc­tion be­tween 2013 and 2017, drop­ping from 3,571 to 924.

The re­port said the 2017 fis­cal year showed that pipe­line breaks re­duced by 2,647 within the four-year pe­riod.

Find­ings showed that af­ter the coun­try wit­nessed 3,571 pipe­line breaks in 2013, the cases moved up to 3,732 breaks in 2014.

It in­creased again in 2015 to 2,832 breaks and in 2016 Nige­ria recorded 2,589 pipe­line breaks across its oil in­stal­la­tions.

This dropped to 924 breaks in 2017, a de­vel­op­ment which in­dus­try op­er­a­tors de­scribed as sig­nif­i­cant.

“This de­cline sug­gests a pos­i­tive re­turn on the ac­tions taken to mit­i­gate van­dal­ism,” NEITI stated in its re­port.

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