Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months - Politics - Nairaland
Nairaland Forum / Nairaland / General / Politics / Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months (1880 Views)
Militants Blow Up 2 More Oil Facilities In Delta / Youths Protest Against Attacks On Oil Facilities In Niger Delta / I’ll Do Everything Necessary To Secure Oil Facilities In Niger Delta — Buhari (2) (3) (4)
| Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by ADEWUMIMichael(m): 7:56pm On Jul 06, 2016 |
About N1.0 trillion may have been lost to production shortfalls due to the resurgence of attacks on oil and gas facilities in the Niger Delta, between January and June 2016 as well as various facility related repairs and leakages. In the first quarter, going by the figures of the Central Bank of Nigeria, CBN, at 1.82 million barrels per day, bpd, down from targeted 2.2 million bpd, the country recorded a total production shortfall of 380,000 barrels per day, bpd. However, the shortfalls worsened in the second quarter as the Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Ibe kachikwu, stated that Nigeria’s crude oil output had dropped to 1.6 million bpd, giving a shortfall of 600,000 bpd. Furthermore, recent data from the NNPC revealed that Nigeria had between January to April 2016, lost N51.388 billion to pipeline vandalism. Giving a breakdown of the cost of the bombings to the Nigerian economy, the NNPC, in its Monthly Financial and Operations Report for April 2016, revealed that the country, spent N33.994 billion for pipeline repairs and management, while as a result of the vandalisation, N10.335 billion worth of crude oil was also lost, even as petroleum products losses between January and April 2016, stood at N7.059 billion. The report further highlighted that crude oil losses for the four months period, accounted for 61.06 per cent of the total crude oil loss of N16.925 billion recorded in the 12-month period, between May 2015 and April 2016, while pipeline repairs and management cost for the four- month period accounted for 36.3 per cent of the total loss of N93.649 billion between May 2015 and April 2016. On the other hand, product losses for the four months period were 18.03 per cent of the total of N39.145 billion recorded between May 2015 and April 2016. The amount lost to pipeline vandalism in the four months period, between January and April 2016, was 16.38 per cent of the total sum of N313.652 billion remitted by the NNPC to the Federation Account Allocation Committee, FAAC, in the four months period. In addition to these losses, NNPC disclosed that that its subsidiary, the Nigerian Petroleum Development Company’s, NPDC, crude oil sales was still hampered by the vandalism of the Forcados pipeline. According to the NNPC, the vandalism had continued to deny NPDC of monthly crude oil revenue of about N20 billion. To this end, from February 2016, when the Forcados pipeline was first vandalized, till date that it was yet to be repaired, the country has lost N100 billion. Furthermore, the NNPC reported that the incessant pipeline vandalism posed the greatest threat to the power industry, noting that the country has lost over 1,500 megawatts of power supply to the damage as gas supply from Forcados, which is Nigeria’s major artery, accounts for 40-50 percent of gas production. In addition to challenges in gas to power, vandalism had brought about a scarcity in Liquefied Petroleum Gas, LPG, also known as cooking gas and has negatively affected the performance of the country’s refineries Also, major refineries across the globe have concluded plans to stop the purchase of crude oil from Nigeria due to rising uncertainties about the country meeting up with deliveries. This is mainly due to the fact that a number of oil companies in Nigeria had declared force majeure of crude oil export, while a few others had been forced to suspend or cut production as a result of the bombing of oil facilities across the Niger Delta. Specifically, data obtained from Reuters revealed that four of Nigeria’s oil grades - including the largest stream, Qua Iboe — had been under force majeure over the last two months — a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances. The report further stated that refineries in the United States’ East Coast are starting to turn away from Nigerian crude oil, noting that these same refineries had been on a buying spree for Nigerian crude in recent months that averaged 240,000 barrels per day (bpd) in April and May. As a result, the report said differentials to dated Brent for Qua Iboe, Bonny Light and other grades are under downward pressure, adding that there are several unsold cargoes for June loading. According to the report, the reduced demand means Nigeria is not benefiting as much as others from a rebound in Brent crude prices, which is partly driven by its own oil outages, stating that the reluctance of the refineries to buy Nigeria’s crude oil was limiting the prices Nigeria can get for its oil even as there is less of it. The NNPC explained that the reduced national production volume due to indiscriminate vandalism of oil and gas facilities and product theft by the vandals had continued to destroy value and put NNPC as well as the Federation at disadvantaged competitive position, stating that crude oil and products losses have continued to cost NNPC and the country huge amount of financial and human resources. Industry analysts are putting the cumulative cost of these challenges since this year at over N1.0 trillion, as the entire economy which runs largely on the oil industry resources bleeds from the pressures. According to the NNPC, reduction in vandalism will indeed unlock several industry upsides which include improved upstream oil production due to reduced pipeline disruptions, stable gas supply to power plants, improved refinery utilization due to increased crude oil feed from restored pipelines, and reduction of crude/product losses. To address the issue, Minister of State for Petroleum Resources Kachikwu called on the militants to shelve their weapon and embrace dialogue with the Federal Government. He said, “There is no doubt that over the decades of oil production, a lot of things that ought to have been done in the oil geographical areas were not done. The answer to the issue will not be heating up the grounds.” He further stated that government was making contacts with everybody involved especially those that could be identified, while he expressed confidence that through dialogue, the crisis would be resolved. He urged the militants to allow the truth reign and assured that federal government was ready to intensify effort to ensure development in the region. Also speaking on the issue, National Executive Chairman, Host Communities of Nigeria, Producing Oil and Gas (HOSTCON), Mr. Mike Emuh, called on the Federal Government, the Niger Delta Avengers and other militant groups in the Niger Delta to immediately adhere to a one- month ceasefire to allow for dialogue among all stakeholders on ways to address the crisis in the region. Emuh, in a presentation to Sweetcrude, also commended the Federal Government for all its current efforts aimed at achieving permanent peace in the region, while he urged citizens of the Niger Delta to tow the same line To tackle the crisis, Emuh insisted that pipeline surveillance contracts should be awarded to oil producing and impacted communities all over the country, while he also advocated utilization of 100 per cent of the amnesty budget for the empowerment of former militants that had laid down their arms. He further maintained that all international oil companies should be made to relocate their headquarters to their states of operations; reopening of the closed down Maritime University, Okerekoko within this period, to urge all to sheath their sword and give room for dialogue; while the Federal Government should pronounce immunity for the Niger Delta Avengers within this period. www.vanguardngr.com/2016/07/attacks-oil-facilities-nigeria-economy-lost-n1-0trn-six-months/
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| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by HungerBAD: 7:58pm On Jul 06, 2016 |
This is Bad. We are losing this much?no wonder the economy is very shaky. These Militants right?i have a suggestion. Let the States take the punishment for this, and as mean as this may Sound, i am sure it will work. The Governors are the Chief Security Officers of their States, they know these guys causing this problems. If this much money is getting lost, Monies allocated to this States should be reduced too from the Federal Coffers. If this is done, this Governors will help flush out all these Militants. 1 Like |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by SeverusSnape(m): 8:05pm On Jul 06, 2016 |
HungerBAD:Modify your post and blame Jonathan as usual. www.nairaland.com/attachments/3754104_3022_jpegd91cee85ba3ef786f7756743a8ace3de 10 Likes 1 Share |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by BankeSmalls(f): 8:07pm On Jul 06, 2016 |
Lets blame the pdp and Jonathan again  5 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by ADEWUMIMichael(m): 8:07pm On Jul 06, 2016 |
SeverusSnape:lol |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by TheFreeOne: 8:09pm On Jul 06, 2016 |
And some still insist on force as the only solution  I am for #teamdiplomacy. |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Businessideas: 8:37pm On Jul 06, 2016 |
This is a sensational report. There's no loss for as long as the oil remains in your reserve. The actual losers are the natives whose environment is damaged and the states that doesn't get money to pay salaries 1 Like 1 Share |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by BankeSmalls(f): 8:43pm On Jul 06, 2016 |
Businessideas: Na lie. The main loses are the owners of oil wells who will lose revenue , salaries can be paid in arrears 9 Likes 2 Shares |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Businessideas: 8:48pm On Jul 06, 2016 |
BankeSmalls:That's why they have force majeure.The oil reserves is the main asset and it doesn't depreciate as a matter of fact, the resultant scarcity raises oil price which increase their return when they restart oil lifting.Loss can only arise if you lose your ships lifting the oil before its delivered to your buyer 1 Like 1 Share |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by TheFreeOne: 8:48pm On Jul 06, 2016 |
HungerBAD: Businessideas: Senseless...SMH 3 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Businessideas: 8:53pm On Jul 06, 2016 |
TheFreeOne:Apparently, you don't comprehend the explanation. If your oil remains in your reserve and you eventually sell it when the price has appreciated. Where's the loss?meanwhile the fishermen and farmers still don't benefit from any oil price increase because their environment remain damaged and they still lose their source of livelihood .Loss is like the corrupt manner Jonathan and Dasuki stole directly from the Central Bank like we had in last administration and even refunds are made with no interest 2 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by BankeSmalls(f): 8:57pm On Jul 06, 2016 |
Businessideas: And if the blow up of pipelines continue for two years? They will not lose money, go ahead, entertain us  9 Likes 1 Share |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by BankeSmalls(f): 8:59pm On Jul 06, 2016 |
Businessideas: Who says oil prices will always appreciate? Change your moniker, you have ZERO businessideas 7 Likes 1 Share |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by kcnwaigbo: 9:05pm On Jul 06, 2016 |
BankeSmalls: Seriously I never thought someone will the this clueless!! So if no oil is produced for two years according to that dudue,no money is lost!! How exactly does that guy reason!! 8 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Izonpikin: 9:07pm On Jul 06, 2016 |
Can't the oil in lagos cover up for the billions of naira lost?... Make this government serious with the Niger delta oo....its obvious Nigeria needs the Niger delta like a new born child needs his mama... 4 Likes 3 Shares |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by BankeSmalls(f): 9:07pm On Jul 06, 2016 |
kcnwaigbo: Don't blame them, Awolowo's free education caused so much illiteracy in that region. 5 Likes 1 Share |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Izonpikin: 9:07pm On Jul 06, 2016 |
kcnwaigbo: |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Businessideas: 9:09pm On Jul 06, 2016 |
BankeSmalls:And they told you that pipeline will remain locked and oil prices will remain small like your moniker? This was the dummy they sold you earlier until real oil trade figures confirmed that the actual earnings made despite the bombing remain profitable to oil majors and federal government. This is for only the wise who know what goes on in real business not small minds feeding on what one sensational journalist writes.The major losers remain the natives whose environment remain destroyed whether oil price is low or high!! I have been there and lived among these natives |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by sanandreas(m): 9:14pm On Jul 06, 2016 |
Cy HungerBAD: Laughing so hard. NNPC would turn to water board soon. Who generates the money to federal coffers. Give these people the basic needs of life. Is it too much to ask for. These money is not utilize at the grassroot |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by BankeSmalls(f): 9:17pm On Jul 06, 2016 |
Businessideas: I am only a secondary school graduate but I will lecture you in elementary economics. In business, nothing is certain. The chances of a sustained upward appreciation on any commodity is only a mirage, oil lost 70% of its value in the last 24 months, and you are here spewing trash! Secondly, oil output lost up to 50% of its volume in the past 120 days in Nigeria and you are here talking of profit in the face of glaring downward trend? Which school did you attend, the lecturers needs to be locked up! 4 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by TheFreeOne: 9:18pm On Jul 06, 2016 |
Businessideas: Having a reserve is not enough guarantee that all is well. The economy suffers when there are no funds to implement the budget, argument/service loans and implement needed infrastructures e.t.c And have you thought of the ripple effect of states inability to pay salaries coupled with the harm of a degraded environment Government should reach out to agitators/ communities in the ND for lasting solutions that'll discourage militancy. |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by lekzyn(m): 9:30pm On Jul 06, 2016 |
Nigeria wil be great despite all these problems. Government should find a lasting solution to militancy in niger delta. |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by olubenzer: 10:05pm On Jul 06, 2016 |
They deceive buhari to go after tompolo and they think they can intimidate him with efcc and media propaganda in bid for APC to control the oil states little did they know that a fight against him is a fight against all the ex militant leaders. I pray this is over soon because the government is the engineer of this problem. We should now agree that this is a war between two government. 2 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Businessideas: 10:22pm On Jul 06, 2016 |
sanandreas: TheFreeOne: BankeSmalls: kcnwaigbo:The joke is on all of you. Since you all want to keep deluding yourself,I will leave you to your fantasy that federal government is the loser while you stay in the city and keep supporting the havoc caused by the few lazy relatives of yours. For the umpteenth time, once the political issue is resolved and oil prices rise up or steady maximum daily lifting of crude recommences, all the 'loss on paper' to the government would be immediately reversed in this same year like it happened during Yardua's tenure but no-one will restore the environment or compensate the ordinary natives who daily bear the brunt of the criminality of those you are supporting.Instead of championing the cause of the ordinary hardworking and patriotic natives in fishing and farming,you are pitying a federal government that can always recover it's 'losses'. Since you are pretending to be suffering from amnesia, let me remind you that despite all the boom recorded during the Obasanjo, Yardua and Jonathan government, did government and the oil majors repair the seriously polluted Ogoniland?It is still the ogoni natives that are suffering from the environmental degradation while those years, government and oil majors smiled to the bank. It's people like you these sensational Nigerian journalists can deceive not some of us. Wake up, you and your militants can't bring down the federal government,the joke is on the natives and to an extent oil producing state governments,but to a very large extent, the natives. It's the suffering of the innocent natives I chose to redirect the sensational journalist to not to have childish emotional outbursts from you all. Like you are enjoying a free unpolluted environment in the city where most of you live, they deserve it too. I chose to ignore the suffering of state governments who have the misfortune of having governors who support and arm the oil pipeline vandals because Buhari defeated their PDP candidate, former president Goodluck Jonathan. 1 Like |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by naijaking1: 10:25pm On Jul 06, 2016 |
HungerBAD: Yeah, just like the governors of Borno and Yola were held responsible for Boko Haram 1 Like |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by MyGeneration(m): 10:31pm On Jul 06, 2016 |
we loose 10 trillion and so? Who the 1trillion help? true federalism or nothing. 1 Like |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by TheFreeOne: 10:35pm On Jul 06, 2016 |
[s] Businessideas:[/s] A weak attempt to mask your shallow reasoning. Abeg go sleep. |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by ckmayoca: 10:38pm On Jul 06, 2016 |
Region that feeds the nation should fill the gap and fetch the lost trillion by exporting onions and beans |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by kcnwaigbo: 10:44pm On Jul 06, 2016 |
olubenzer: I wonder what exactly Buhari was thinking when he went after Tompolo!! That move was just too reckless and stupid. 3 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Descartes: 10:51pm On Jul 06, 2016 |
HungerBAD: I wonder how you guys reason. Do you know how much Zoogeria spent on fighting the ragtags called bokoharam in the North East? Are you aware that billions of naira went down the drain which would have provided good roads and portable water in the south? While the almajiri Governors in the North East got what belong to them as monthly allocations without any deductions. Hypocrisy is the highest form of deception which is a consequent for zombeism. 3 Likes |
| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by Pavarottii(m): 10:53pm On Jul 06, 2016 |
HungerBAD: 1 Like
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| Re: Attacks On Oil Facilities: How Nigeria Economy Lost N1.0trn In Six Months by oduastates: 10:54pm On Jul 06, 2016 |
What difference has the oil ever made? |
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