• Privacy Policy
  • Terms
  • About us
  • Contact Us
Sunday, June 4, 2023
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

Nigeria moves to tackle crude oil theft

Oil

The Matters Press by The Matters Press
June 30, 2022
Reading Time: 3 mins read
0
Group bemoans level of crude oil theft

The Federal Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has developed key initiatives aimed at reducing to the barest minimum activities of crude oil theft and illegal artisanal refining.

RELATED POSTS

Avoid adverse effects of protectionism, IMF warns

NLC orders nationwide strike over fuel subsidy removal

We won’t fix petrol prices again – NMDPRA

Engr Gbenga Komolafe, Chief Executive Officer, NUPRC, made this known at the Lagos Chamber of Commerce and Industry (LCCI) Public Private – Dialogue on Crude Oil Theft and Artisanal Modular Refineries on Thursday in Lagos.

Komolafe said that an unprecedented level of theft estimated at a daily average of 103,000 barrels which was recorded in 2021 had grown to 120,000 barrels in first quarter of 2022.

He added that daily average production in 2021stood at 1.5 million barrels while the national production advised by the commission was 2.2 million barrels.

“Consequently, only 58 per cent of the technical rate was achieved in 2021 and similar performance has continued in 2022 hence the need for more concerted efforts across all quarters to stem the tide.

“Unfortunately, the amount of oil received at the terminals indicates that over nine million barrels of oil is lost to crude oil theft amounting to a loss of one billion dollars in first quarter of 2022,” he said.

ALSO READ  Anambra earns N268m from oil derivation

Komolafe said that the effect from this level of theft had resulted in the declaration of force majeure, shortage of wealth, a hostile, unsafe environment and was a disincentive to investors in the Nigerian upstream sector.

He added that many operators had deliberately shut down facilities and pipelines which had further aggravated the low oil production also impacting gas production both for domestic utilisation and exports.

He said that in view of the development and the ongoing government’s efforts to enable the industry deliver production target of three million barrels daily in three years, the commission has developed some key initiatives.

Komofale said that the initiatives were aimed at mitigating oil theft and creating enabling regulatory environment for local refining in Nigeria.

He said they include: a roadmap for tackling the insecurity challenges in the industry, identifying and implementing areas of collaboration between government and operators in ensuring that operators realise their full production potentials.

Others, he said were massive collaboration with the top civil echelon of the Nigerian security forces for a robust security for both operators and host communities.

ALSO READ  Mini oil bid round will boost energy sufficiency – FG

“The commission is also promoting the implementation of modern security technology for real time loss detection that would enable swift and more proactive responses.

“We also advocate a refinery regulation in terms of establishment of more modular refineries to curb activities of artesians from refining crude which is outside the ambit of the law and absolutely below acceptable minimum standards of technology in the 21st century,” he said.

Dr Michael Olawale-Cole, President, LCCI, expressed concerns over Nigeria’s battle in recent years with dwindling revenue, security challenges, weak infrastructure, rising inflation, high cost of production, and a burdening and unsustainable fuel subsidy.

Olawale-Cole said that crude oil theft had taken a worrisome dimension spiking production costs to $32 a barrel with losses from pipeline vandalisation and theft overwhelming the International Oil Companies (IOCs).

He added that the development had led to several indigenous oil firms contending with rising operational expenses driven mostly by personnel, maintenance, and security costs.

Olawale-Cole said that there were also concerns about the culpability of the nation’s security agencies, noting that barges of oil could not be stolen and moved on the coastal waters without the collaboration of some powerful stakeholders.

ALSO READ  Oil, gas firms owe Nigeria N1.32trn

“The menace of oil theft has become a national disaster and a critical threat to our revenue base as Nigeria is losing crude oil at the level of about 91 per cent of output.

“Nigeria lost $3.2 billion to crude oil theft between January 2021 and February 2022, as revealed by the NUPRC, the LCCI Oil Producers Trade Section, and the Independent Petroleum Producers Group (IPPG).

“This menace has prevented Nigeria from meeting its crude oil output capacity,” he said.

The LCCI President reiterated the chamber’s position in favour of the removal of fuel subsidies and full deregulation of the petroleum downstream sector to attract required investments into the sector.

He said that the twin factor of fuel subsidy payments and crude oil theft have combined to deny Nigeria the gains of the high crude oil price on the international market.

“No investor wants to invest in an industry where they cannot even recover their cost of production.

“While we expect some respite from the commencement of commercial private sector refining and modular refineries, we call on the regulators to ensure a conducive business environment that supports these investments coming on stream soon,” he said.

Tags: Oil
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Economy/Technology

Avoid adverse effects of protectionism, IMF warns

June 3, 2023
Unions celebrate Workers Day in Nigeria
Economy/Technology

NLC orders nationwide strike over fuel subsidy removal

June 3, 2023
July petrol pump price ranges between N140.80 and N143.80
Economy/Technology

We won’t fix petrol prices again – NMDPRA

June 3, 2023
Blackout hits Nigeria as grid collapses again
Economy/Technology

Tanzania to end frequent power blackouts in two years

June 2, 2023
FIRS deploys tech platform for tax collection
Economy/Technology

ECA calls for inclusive tax system to secure SDGs

June 2, 2023
Nigeria has not taken decision yet on fuel subsidy
Economy/Technology

PANDEF backs fuel subsidy removal

June 2, 2023
Next Post
Nigeria disburses N56bn to MSMEs

Bank pledges to support MSMEs

Trading in Nigerian stock market dips further N83bn

Stock market gains N8.15bn in bullish trading

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended Stories

Fraud in banking sector, mostly insider instigated

Banks to work on Saturdays for old notes collection — CBN

January 20, 2023
Consumer commission, CBN, EFCC investigate violations in money lending

Why CBN Intervenes in critical sectors

March 29, 2022
FEC approves 2019 budget

Buhari, Atiku lock-horns in 2019 presidential election

November 19, 2018

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • Avoid adverse effects of protectionism, IMF warns
  • NLC orders nationwide strike over fuel subsidy removal
  • We won’t fix petrol prices again – NMDPRA

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2022 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2022 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?