Latest News Revenue

Nigeria Loses $1.45bn To Oil Thefts In 2015 – NEITI

….urges FG on improved security, efficient metering system

Nigeria Extractive Industries Transparency Initiative (NEITI) has reported that Nigeria lost about $1.45 billion to crude oil theft and other insecurity-induced abuses in the nation’s hydrocarbon resources industry in 2015.

The agency in its 2015 Oil and Gas Industry Audit Report released on Friday stated that the amount of loss comprised 27.1 million barrels of crude oil as well as the $25 million worth of crude that the Pipelines and Product Management Company (PPMC) reported as lost during the year.

The Executive Secretary of NEITI, Mr. Waziri Adio, specifically attributed the losses to attacks by militant among other similar cases, including theft.

NEITI clarified further: “The volume of crude oil declared lost to theft by 18 operators in 2015 was 27.1 million barrels. Though this amounted to only 3.5% of total oil production, the loss was valued at $1.4 billion. PPMC also declared loss of crude worth $25 million, bringing the total declared losses to $1.45 billion.

“Also, PPMC declared losing products worth N56.4 billion, broken down as follows: N52 billion for losses on petrol, N3.8 billion for losses on diesel, and N123 million for losses on kerosene. Deferred production on account of sabotage or repairs came to 57 million barrels,” the report added.

According to the agency, in the year under review Nigeria’s oil and gas earnings dropped from $54.5 billion in 2014 to $24.8 billion in 2015 just as the oil production reduced from 798 million barrels in 2014 to 776 million barrels in 2015.

NEITI noted in the report that while $3.7 billion and N80 billion were the total outstanding revenue from the sector as at 2015,  losses of $2.2 billion and N60 billion were also recorded. Similarly, it reported that un-reconciled revenues amounted to N317 billion.

The report also indicated that Nigeria suffered 54.6% decline in oil revenues compared with the 2.7% fall in oil production.

NEITI also linked the ugly development in the nation’s hydrocarbon resources industry to the drastic reduction in the unit price of crude oil in the global market.

To tackle the insecurity and other problems, NEITI canvassed the need for the Federal Government to provide effective and adequate metering infrastructure and enhanced security of the industry.

 

Spread the love

Leave a Reply

Your email address will not be published.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