The Nigerian oil industry lost 773,100 barrels per day to production shut-in due to product theft and pipeline vandalism in the month of May, 2017, The Guardian reports.
At the international Brent price of $52 per barrel, the country lost about $40.20million (N12.30billion) per day. This has however, resulted to the Nigerian National Petroleum Corporation (NNPC) having a trading deficit of N5.23billion, representing an increase of N3.55billion compared to the previous month’s.
According to the NNPC in its June monthly report released at the weekend, these losses were recorded in Yoho, Forcados, Qua Iboe, Bonga, and Akpo Terminals. In view of the shut-ins and attendant revenue losses, NNPC decried that federation funding has been inadequate over the years as a result of the current wave of sabotage orchestrated by militant activities, and low oil prices which further compounded the situation.
Furthermore, products theft and vandalism continued to destroy value and put NNPC at a disadvantaged competitive position. “A total of 1,820 vandalised points were recorded between June 2016 and June 2017,” it added.