… Oil sector earns N817.5bn in Q1’17

By Prince Okafor

The Nigerian National Petroleum Corporation, NNPC, has stated that the vandalism of crude oil pipelines dropped by 32.93 per cent, from 82 cases in April 2017 to 55 cases in May, 2017.

This came as the Central Bank of Nigeria stated that the nation’s oil sector earned N817.5 billion in the first quarter of 2017.

The NNPC, in its Monthly Financial and Operations Report for May 2017, stated that the decline in pipeline vandalism was as a result of extensive engagement with oil and gas community stakeholders embarked upon by the Federal Government and the NNPC, which had continued to yield positive results.

The report explained that the May 2017 statistics also indicated substantial improvement compared to corresponding period of May 2016 which recorded 260 incidents.

“Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position. A total of 1,734 vandalized points have been recorded between May 2016 to May 2017.

“Pipeline sabotage in the country since April has been dipping, following the increase it experienced in March 2017 when it increased from 49 in downstream pipeline vandalized points in February 2017 to 94 in March 2017.

“Federation funding has been inadequate over the years. This is as a result of the current wave of sabotage orchestrated by militants and low oil prices further worsened the situation.

“Also, in its quest to enhance efficient distribution of AGO, the Corporation was able to resuscitate its critical pipelines and depots in places such as Atlas Cove, Mosimi, Port-Harcourt Refinery-Aba and Kaduna Refinery-Kano.

“NNPC has also re-commissioned the Kano Depot which has been down since January 2014. Efforts are also ongoing to revamp and commission other critical pipelines and depots across the country.

“NNPC will resume oil exploration activities in the Chad Basin of the country on the heels of improved security situation in the North East of the country, devastated by insurgent upheavals.”

Oil sector earns N817.48b in first quarter                                                 

Meanwhile, the CBN, in its 2017 quarterly economic report, stated that, “At N817.48 billion or 54.4 per cent of the total revenue, gross oil receipt was lower than the provisional quarterly budget estimate by 7.5 per cent, but was above the receipts in the fourth quarter of 2016 by 21.4 per cent.

“The decline in oil revenue relative to the budget estimate was attributed to the persistent fall in receipts from crude oil and gas export, due to the continuous drop in the price of crude oil in the international market, as well as series of shut-ins and shut-downs at some NNPC terminals, owing to pipeline vandalism and repairs during the review quarter.

“Nigeria’s crude oil production, including condensates and natural gas liquids, averaged 1.59 mbd or 143.10 million barrels (mb) in the review quarter. This represented an increase of 0.05 mbd or 3.2 per cent, compared with 1.54 mbd or 141.68 mb recorded in the preceding quarter.

“Crude oil export stood at 1.14 mbd or 102.6 mb, representing an increase of 4.6 per cent, compared with 1.09 mbd or 100.28 mb recorded in the preceding quarter.

“The development was due mainly to the temporary shutdown of the Nembe Creek Line, which exported Bonny Light crude oil to allow for repairs.

“Allocation of crude oil for domestic consumption was maintained at 0.45 mbd or 40.50 million barrels in the review quarter. Oil prices improved with increased confidence arising from the extension of the OPEC production cut agreement.”

 NNPC lost 150,000 bpd to vandalised TNP

Meanwhile, the NNPC, Group Managing Director. Dr. Maikanti Baru has said that the corporation lost 150,000 barrels of crude from an attack on its Trans Niger Pipeline in Ogoniland.

He said the attack will affect the Corporation’s plan to sustain its record of 2.2million barrels production per day experienced last month.

“Unfortunately, we have not been able to sustain it because of challenges. The Trans Niger Pipeline has been breached in Ogoni land and 150,000 barrels of oil has been locked up daily. That has been fairly an issue in that area and we hope we can continue at that level,” Baru added.

 UK to invest in Nigeria’s pipeline devt

The British Government has expressed readiness to invest in Nigeria’s power, gas, renewable energy and pipeline development.

British High Commissioner, Mr. Paul Arkwright, stated that the British Government had genuine investment interest in the Downstream, Midstream and Upstream sectors, stressing that the British Department for International Trade was ready to liaise with the Federal Government to invest in the country.

He urged the Federal Government and the NNPC to organise a road show in London to create awareness on the possible investment opportunities available in the nation’s oil and gas sector.

Mr. Arkwright further stated that so many British investors had funds which they were willing to invest in Nigeria.

“However, the process of obtaining Nigerian visa in United Kingdom is cumbersome with three different levels of visa procurement fees as well as Nigeria’s postal order system”, Arkwright said.