Nigeria’s oil sector loses 754,000bpd due to pipeline break
According to the latest monthly financial report of the Nigerian National Petroleum Corporation (NNPC), the Nigerian oil sector is said to have lost more than 754,000 barrels per day (bpd) in February, as a result of pipeline vandalism.
This translates into a loss of about $49.010m (N17.643bn) at an average price of $75 per barrel if sold. According to the report, about 160,000bpd was shut down for the month of February due to ageing facilities/integrity issues at Qua Iboe Terminal.
The Trans-Nigeria pipeline at Bonny terminal was also shut down from February 13th to 16th due to a leak in the Bodo area, with a production loss of about 120,000 bpd.
Approximately 180,000 bpd was shut due to the closure of the Trans Forcados pipeline following hot faucet leaks in the Oteghele axis for five days during the month.
Approximately 55,000 bpd was shut in due to the shutdown of the plant for water flood gray lock leak repairs from 4th to 15th of February 2018 at Bonga Terminal. In addition, 215,000 bpd was shut down following the complete shutdown of the water flood gray lock leak repairs for five days. Production was interrupted for seven days to mitigate the impact of wind direction on the flare that set off smoke, thermal alarms resulting in the closure of approximately 24,000 bpd at the Agbami terminal.
According to NNPC integrity issues persisted during the month in review, as pipeline vandalism remained a challenge to the industry operations.
It stated: “In March 2018, pipeline break stood at 224, of which 25 pipeline points either failed to be welded or ruptured/clamped. Thus 199 pipeline points were vandalised as against 125 recorded last month. PHC-ABA and ABA-ENUGU pipeline segment accounted for 177 points or 88.94 per cent of the affected pipeline points.
The Corporation, therefore, solicited continued support from Nigerians especially in areas with security challenges to achieve zero vandalism of the nation’s oil and gas infrastructure. It noted that products theft and vandalism have continued to deprive value addition and put NNPC at disadvantaged competitive position given that “A total of 1599 vandalised points have been recorded between March 2017 and March 2018.”
As a result, the Group’s General Managing Director, NNPC, Dr. Maikanti Baru, denounced vandalism, the theft of crude oil and sabotage, which resulted in huge losses of income, lives, and property, as well as damage to the environment. He called on security agencies and other stakeholders across the country to collaborate with the corporation in its ongoing campaign against the sabotage of oil facilities.
In a world teeming with entrepreneurial spirits, the dream to become a multi-millionaire w…