[b]Nigeria’s oil production crashes below 1.5 m barrels per day

Posted by: Our ReporterPosted date: November 22, 2012In: Business| comment : 3




Daily oil production from Nigeria yesterday crashed below 1.5 million barrels, representing a loss of over 1 million barrels as ExxonMobil on Wednesday became the fourth oil major in a month to warn customers over delays to Nigerian oil and gas exports.

Nigeria, which produces about 2.4 million barrels daily, depends largely on proceeds from oil to service over 85 per cent of its annual budget and this loss of over 1 million barrels poses a fresh threat to the country’s budget.

Already, Exxon’s Nigerian unit, Mobil Producing Nigeria, operator of the Nigerian National Petroleum Corporation, (NNPC)/MPN Joint Venture declared on Wednesday it would not be able to meet its contractual agreement with its traders as it declared a force majeure on Qua Iboe crude oil exports.

A statement by its General Manager, Public and Government Affairs, Paul Arinze, said the action was due to outages caused by a pipeline oil spill on November 9, which witnesses said had spread 20 miles down the coastline.

Royal Dutch Shell lifted on Wednesday its force majeure on Nigeria’s benchmark Bonny Light crude oil exports, easing some of the supply concerns.

But three of Nigeria main oil grades; Qua Iboe, Brass River and Forcados are still under force majeure. These oil streams together account for around 700,000 barrels per day (bpd) or around a third of total Nigerian exports.

France’s Total and Italian oil firm Eni have also declared force majeure, on gas and oil supplies, respectively.

These developments have added to a raft of problems caused by oil spills, theft and flooding.

A huge fire on an oil tanker being used to steal oil last month prompted Shell’s outages. The Anglo-Dutch, major shut another pipeline in Imo River on October 31 due to theft damage and deferred 25,000 bpd.

Oil theft is a major problem in the winding creeks and waterways of the Niger Delta, where it is easy to conceal boats and illegal refineries in the dense mangroves. Nigeria estimates around 150,000 bpd is stolen, much of which is sold abroad.

http://thenationonlineng.net/new/business/nigerias-oil-production-crashes-below-1-5-m-barrels-per-day/
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eyah.

i see a rush somewhere.

yet Asari dokubo,Tompolo,Ateke Tom and these other riff-raffs keep getting billions for protecting waterways and oil pipeline.These govt is failing in all fronts except in mischief.very soon,this silly presido will use it as a basis for increasing pump price of fuel citing govt's dwindling income whereas all he needs to do is guranntee security and honest leadership.

What did they do with the proceed?

Hard times ahead.

Na them know, even if the production hits 10m barrels daily it won't affect my life.

1.5M barrels per day is too much for nigeria.

It should be totally stopped.

We don't need oil at all. There are many nations without oil and they are fine.

This is kinda a "bittersweet news". Where are those folks who said that Nigeria's production or export ot the U.S. sn't decreasing?

I see a major chaos being the order of the day in 2013 when Nigeria cannot further fulfill her budget, state govts will be forced to readdress the pressing issues before them, no more running to Abuja for allocation. Meanwhile Aso Rick won't need about N2.3billion just to fund their wasteful expenses, neither will about 9% accrue to statutory allocation including NASS.

juman: 1.5M barrels per day is too much for nigeria.

It should be totally stopped.

We don't need oil at all. There are many nations without oil and they are fine.

I feel like hugging you. You couldn't have put it better!
Infact let the oil dry up for 10yrs!

blink182: Na them know, even if the production hits 10m barrels daily it won't affect my life.

Le Stylo:
I feel like hugging you. You couldn't have put it better!
Infact let the oil dry up for 10yrs!

The money is not for the masses. They are just eating the money.

The oil should dry up completely. Who cares.

Yet some cabals are saying N1.305b will not be enough for their meal.

Even if our Oil output exceeds that of the Saudi Arabia, Our problem will still be there...All these thieves need to be burnt alive.

Le Stylo:
I feel like hugging you. You couldn't have put it better!
Infact let the oil dry up for 10yrs!

Are you okay in ur head??

An whats up abt it, am nt suprise at all, Cox the other tons of feul stolen r been shared our leaders. Now the the money is nt enuf for them thats y they increase the tons amount.

Oil theft by oil barons and their foot soldiers have come to stay! It is on record that Nigeria looses about $5 billion annually to illegal refining businesses. There are an estimated 5000 illegal refining outfits built by youths in strict collaboration with their well-connected sponsors. These economic sabotage swells the pockets of the oil barons and their boys with a princely $400 million daily.Ironically, these were the children of the Biafran war veterans! Jona never see anthing! hmn

Whether they produce 2.4 million barrels a day or 1.5million barrels a day, they'd still go borrowing to finance infrastructural developments which sometimes lines their pockets. So?

LET IT CRASH TO BELOW 0 BARRELS WHAT DIFFERENCE DOES IT MAKE EXCEPT 2 THE BIGWIGS

blink182: Na them know, even if the production hits 10m barrels daily it won't affect my life.

How could you be so ignorant! Did you go to school at all or you paid your way through school or let me guess , you are waiting for admission that would never come.

This affects the country, your relatives, even if you are abroad, it would eventually affect you, if you have relatives here.

When the oil crash finish i go see wetin our politicians go use embezzle money. ...This is the time to start thing because one day oil go finish

Hw dt one tey affect the price of gari,shiooooo

... And oil theft increased under tompolo's watch.

WOOOOOOOOW SO WE ACTUALLY EXPORT THIS MUCH NA WAO
WELL AM NOT SCARED I THINK THEY ARE AND WE ALL KNOW WHY

Is this figure representing pre or post bunkering theft. The cartel are still looting.

ochallo:

How could you be so ignorant! Did you go to school at all or you paid your way through school or let me guess , you are waiting for admission that would never come.

This affects the country, your relatives, even if you are abroad, it would eventually affect you, if you have relatives here.

I am probably more qualified educationally than you. How exactly does it affect me?

I provide housing for myself
I have my own borehole
I have a generating set
I have no social or health insurance, I pay all bills myself
I pay for my security

Bad roads, poor electricity supply, poor health system, bureaucratic bottle necks, blatant corruption, impunity, I am even made to pay for the incompetence of the government whenever I have to fuel my generating set. These are a few of the things I have to endure.

So tell me exactly how oil production affects my life positively, I might truly be ignorant?

Born 2be Rich: When the oil crash finish i go see wetin our politicians go use embezzle money. ...This is the time to start thing because one day oil go finish

gas plenty boku. Its really annoying. Most people do not know but Nigeria is actually more of a gas nation.

Who cares?

What a good news!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

make me self join una dey celebrate joor, after all, 2.5barrels nor affect our lives

I see so much stupidity here.
people asking how it affects them.
When the country is no longer able to fund its budget, people will be owed salaries, workers will be retrenched and even the poverty and hunger in the country will go to an alltime high.
It makes no sense wishing evil for ur country when ur life and survival depends on the oil proceeds.

kutchs: I see so much stupidity here.
people asking how it affects them.
When the country is no longer able to fund its budget, people will be owed salaries, workers will be retrenched and even the poverty and hunger in the country will go to an alltime high.
It makes no sense wishing evil for ur country when ur life and survival depends on the oil proceeds.

I tried to reason with your analysis until d post below brought me back to reality:

blink182: I am probably more qualified educationally than you. How exactly does it affect me?

I provide housing for myself
I have my own borehole
I have a generating set
I have no social or health insurance, I pay all bills myself
I pay for my security

Bad roads, poor electricity supply, poor health system, bureaucratic bottle necks, blatant corruption, impunity, I am even made to pay for the incompetence of the government whenever I have to fuel my generating set. These are a few of the things I have to endure.

So tell me exactly how oil production affects my life positively, I might truly be ignorant?

ochallo:

How could you be so ignorant! Did you go to school at all or you paid your way through school or let me guess , you are waiting for admission that would never come.

This affects the country, your relatives, even if you are abroad, it would eventually affect you, if you have relatives here.

no cause for alarm, after all it had been truly discussed that the economy is growing and oil contributes only a small fraction to the budget.

Kx:

I tried to reason with your analysis until d post below brought me back to reality:

The guy asked how oil production affects his life and I ask with what does he run his gen and borehole?
Water I guess!
So many families depend on oil revenue for survival that you cant dispute. Now think of what will happen to such families when the govt is no longer able to pay their salaries.