{"id":215961,"date":"2022-09-12T08:22:58","date_gmt":"2022-09-12T07:22:58","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=215961"},"modified":"2022-09-12T08:22:58","modified_gmt":"2022-09-12T07:22:58","slug":"oil-theft-nigeria-loses-700-million-monthly-official","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/09\/12\/oil-theft-nigeria-loses-700-million-monthly-official\/","title":{"rendered":"Oil Theft: Nigeria loses $700 million monthly \u2013 Official"},"content":{"rendered":"

The Nigerian National Petroleum Company Limited (NNPCL) on Sunday said it losses 470,000 bpd of crude oil amounting to $700 million monthly due to oil theft.<\/p>\n

A statement by the NNPCL said that Bala Wunti, the Group General Manager, National Petroleum Investment Management Services (NAPMS), made this disclosure while speaking during a tour of the facilities of the NNPCL.<\/p>\n

Mr Wunti said the pipelines particularly those around Bonny terminal cannot function due to the activities of criminals.<\/p>\n

He also argued that the number of barrels stolen daily is very huge, adding that about 270 barrels per day that were supposed to be loaded in Bonny are no longer going to be loaded because of theft.<\/p>\n

\u201cIf you\u2019re producing 30,000 barrels a day, every month, you get 1,940 barrels. So what it means is that you can take it to 270 every four days, calculate it in a month; you will have seven cargos on a million barrels, that\u2019s seven million barrels,\u201d he said.<\/p>\n

\u201cWhen you multiply seven million barrels by $100 that is $700 million lost per month, and about 150,000 barrels expected are differed; we are not producing due to security challenges.\u201d<\/p>\n

The official noted that \u201cthe Shell Petroleum Company (SPDC) trunk line, TNP transnational pipeline cannot be operated and this has been like this since March the 3rd that we put in this. Just take your calculator, 150,000, it means if you want to arrive at 1 million barrels per day, it means every week as a minimum, basically for one week alone, it\u2019s four cargo and four cargo is four million barrels. Four million barrels formula bar or $100 is $400 million. So you can do your calculations by yourself, take whatever price you want, take this to multiply by the number of days that have been shortened since March 3rd.\u201d<\/p>\n

The NNPCL<\/a> official said Forcados is not completely secure due to some challenges, but assured that they were addressing it, and in two weeks it may be fixed.<\/p>\n

\u201cBut we also have Brass about 100,000 barrels, which is operated by Agip and is also facing insecurity and vandalism,\u201d he said.<\/p>\n

He lamented that siphoning of crude oil from oil facilities by criminal individuals and groups impacts negatively on revenue to all stakeholders.<\/p>\n

He explained that the quantity of oil delivered into these federal oil terminals in the country has been limited by the activities of those he described as pipeline vandals and organised crooks.<\/p>\n

He said the impact of vandal activities caused low crude oil production, interrupted gas supply, countrywide interruption of distribution of petroleum products, refineries\u2019 downtimes, increasing instability in the oil and gas market.<\/p>\n

He said: \u201cI will tell you the major thing that affects us. Nigeria will suffer for it; the revenues are impacted, so we can only appeal to them to rein in themselves, the oil theft situation is regrettable. It\u2019s not going on across the whole of the Niger Delta, there are trunk lines that are more impacted on, I think the Bonny trunk line ranks highest.<\/p>\n

\u201cOur major challenge as a country is our capability to respond and that is as a result of several factors, the terrain as well as some incapacity that we have.\u201d<\/p>\n

On the support of technology in monitoring the illegal activities around the oil facilities in the creeks, he said, \u201cI was in the Saudi Arabia infrastructure twice, and I know what they have. It\u2019s a digital control system; it\u2019s different from our own. Digital control system, it\u2019s like you have the control system of all your assets in one place.<\/p>\n

\u201cThis is beyond the digital control system; it\u2019s also a security system and we are doing it and to tell you that this was built-in by our in-house software engineers because of the security sensitivities to it because they are customized, the moment you give to somebody who creates that. So we use a combination of technology to integrate and synchronize and create what we are now confident and comfortable with.\u201d<\/p>\n

Speaking on the synergy with other government agencies, Mr Wunti explained that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the regulatory commission, issues what a Bill of Quantity and they also handle vessel clearance and export permits while the Federal Ministry of Trade and Industry, handles the issuance of export permits.<\/p>\n

\u201cWe also relate with the Nigerian Customs Service which also helps with the export permit and to also clear all the vessels; and the Central Bank of Nigeria, processes all Nigerian Export Proceeds forms, Nigerian export supervision scheme. So, these are all the agencies we deal with, it\u2019s not an NNPC thing, we have to work through all these agencies before a ship can come in and sail,\u201d Mr Wunti added.<\/p>\n

The GGM NAPMS mentioned some of the government agencies at the terminals to include: Nigerian Midstream and Downstream Petroleum Regulatory Authority, former DPR and then the Regulatory Commission; the Nigerian Customs at the terminal, NNPC terminal representatives, pre-shipment inspection agents, the Nigerian Immigration officials, Nigerian Ports Authority and the Nigerian Port Health Authority.<\/p>\n

\u201dThen recently, the Navy wanted to be at the terminal. In fact, we are trying to deploy them anytime from now. They also want to be at the terminals to see what is going on, because a lot of back and forth has been going on in the recent past, blaming the Navy. So, they now said they want to be there to participate physically in what\u2019s going on.<\/p>\n

\u201dYou can see what is happening, that it\u2019s not just an NNPC thing, it is all government agencies working together to make sure that each ship that comes at any point in time has all the clearances,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Nigerian National Petroleum Company Limited (NNPCL) on Sunday said it losses 470,000 bpd of crude oil amounting to $700 million monthly due to oil theft. A statement by the NNPCL said that Bala Wunti, the Group General Manager, National Petroleum Investment Management Services (NAPMS), made this disclosure while speaking during a tour of the […]<\/p>\n","protected":false},"author":13,"featured_media":215869,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"custom","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"single-left","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"floatbottom","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored 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