80% of oil production don’t make it to the terminals due to oil theft – Austin Avuru


Says the state of the Nigerian Petroleum Industry calls for a national emergency
William Ukpe by William Ukpe March 18, 2022


Austin Avuru, founding MD/CEO of Seplat Energy and Executive Chairman AA Holdings has warned that Nigeria’s oil production has reached an emergency critical status. He stated that some oil production wells don’t get to see 80% of production making it to the terminals due to oil theft.

Avuru disclosed this in a report titled “Reining in the Collapse of the Nigerian Oil industry” published by the Africa Oil + Gas report on Thursday.

He urged the NNPC and regulators to set up a “war room” strategy to deal with the rising issue of oil theft in Nigeria.


What Mr Avuru is saying
He stated that the phrase “crude theft” which crept into the industry around 2010 has taken a new meaning with the entire export pipeline networks being surrendered to vandals and illegal bunkerers.

He said that there are some pipeline systems now (particularly in the East) where 80% of production injected therein does not make it to the terminal.

He disclosed that almost every producer is now cooking up “alternative evacuation” schemes that cost four to five times what pipeline export would normally cost.


“The stark reality today is that the IOCs are leaving, their decision is outside our control as a nation, in fact, over the last twelve years, Shell and Chevron have divested from a total of 21 blocks. It is now public knowledge that shell and ExxonMobil are now exiting the onshore/shallow water altogether.

“In fact, my projection is that, by Christmas of 2025, TOTAL would be the only IOC in J.V with NNPC.

“The situation is the same with domestic gas delivery, even though we are weaving all the right slogans about the future of gas in Nigeria, in the past 5 years, I can only point at a couple of Nigerian independents who are investing in gas development and processing of the domestic market,” he said.

He added that the state of the Nigerian Petroleum Industry is a national emergency, as oil production is down to about 1.4 million BPD and declining, and this includes 600K BPD from the deep-water. Domestic production has stagnated to about 1.2 billion cubic feet per day over the past five years at a time when projected production should have been 3.5BCf per day.

“The collateral impact of course is the low level of power generation which itself has stagnated at about 4,000 MW per say since 2015,” he said.

Avuru urged that Nigeria at the current oil production level can only be imagined when oil prices return to the $60 per barrel level, highlighting that the situation has to be treated as a national emergency.

What can be done:


NNPC and upstream regulators need to set up a war room, some form of an effective task force to develop a blueprint.

A well organized transition of the IOCs driven by a clear policy direction from the retreating IOCs to a crop of efficient independents with the requisite resources will have to be implanted.

He added that just standing back and intervening by pre-emptive acquisitions cannot be a sustainable solution proffered by NNPC.

He also called for a deliberate policy-driven return to the traditional onshore/shallow water terrains as 80% of Nigeria’s remaining reserves are still in this belt.

“Nigeria needs to address the twin problems of reliable pipeline evacuation and community restiveness. These problems have been heightened, not because there is no solution, but because we have abandoned every attention to them in the last 15 years

“Nigeria needs to match its gas slogan with effective, measurable, policy actions to drive investments in domestic gas supply,” he added.

In case you missed it

Nairametrics reported yesterday that Tony Elumelu, Chairman of UBA Banking Group and Heirs Holdings stated that the reason Nigeria cannot meet its crude oil production quota and benefit from high oil prices is due to theft.
He stated that Nigeria is losing 95% of oil production to oil thieves, citing the Bonny terminal oil theft that should be receiving over 200k barrels of crude oil daily, instead it receives less than 3,000 barrels.

https://nairametrics.com/2022/03/18/80-of-oil-production-dont-make-it-to-the-terminals-due-to-oil-theft-austin-avuru/

cc mynd44 lalasticlala seun dominique

He said that there are some pipeline systems now (particularly in the East) where 80% of production injected therein does not make it to the terminal.

D 100 people burnt today na d people wey dey steal dis crude.
https://www.nairaland.com/7092380/explosion-abaezi-ohaji-egbema-illegal-bunkering

Even in death, EFCC suppose arrest dem family members because most of dem dia family sabi d criminal work dem dey do.

Work full ground brekete but dem like easy money wey go full ground and dem go use oppress oda people wey no dey do crime.

FG must get all dia names and publish to shame dem and dia families.

Even Tony Elumelu sef lament say 90% of produced crude oil are stolen by dis same criminals

Businessman and Chairman Heirs Holdings, Mr Tony Elumelu, yesterday bemoaned the fact that Nigeria was losing over 95 per cent of its oil production to thieves.

As far back as 2012, Shell don dey shout say Nigeria dey lose $5 billion annually from crude oil theft. Dat number don double and triple sef since 2012 and na dis criminals dey cause am

But I thought eastern region was barren and had only palm oil ?

mrvitalis:
But I thought eastern region was barren and had only palm oil ?

Nigeria is the world capital of ironies.

How can one steal 95% of 0 (barreness)?

No be juju be that?

Cc: ramdeuter aka dayokanu, what do you think about stealing 95% of 0 resources in the red mud land? E no shock you?

ZombieSlaughter:


Nigeria is the world capital of ironies.

How can one steal 95% of 0 (barreness)?

No be juju be that?

I no understand ooh

mrvitalis:
But I thought eastern region was barren and had only palm oil ?

eastern they mean includes SS.
No dey whine yourself

DMerciful:
But when we include SS/SE, you guys would say we're attaching them together

re read my post.
Why exactly are all of you this dumb?
I said "they"
Go and fill out your hollow skull

I know

mrvitalis:
But I thought eastern region was barren and had only palm oil ?

e be like say too much sense dey worry u. No be barreness be make businesses con invest for iboland make dem dey lose.

Dat same investment elsewhere in Nigeria dey fetch beta returns on investment yet d one in ur place dey lose and if dat no be barreness, wetin con be barreness?Shiorr

Only in Nigeria.

Transcriber:
eastern they mean includes SS.
No dey whine yourself

Why they no call am south east and south south now

Heard!!

Transcriber:
eastern they mean includes SS.
No dey whine yourself

When it suits them best.

We know.

Yolloba people

Transcriber:
eastern they mean includes SS.
No dey whine yourself

Yaribaa logic

Today they will say the East is barren and has no natural resources

Tomorrow when a report about the abundance of oil and gas in the East is provided, Yaribaa will change mouth and say it includes the South South also and not just the SE.

Next Tomorrow the same Yaribaas will open their dirty ewedu and gbegiri unwashed buccal cavities and claim there is nothing like Eastern region only SE and SS as separate entities.

Honestly the level of stupidity in the South wastee region needs to be studied as a thesis in the university.

Transcriber:
eastern they mean includes SS.
No dey whine yourself

so if Eastern in this context includes SS...please tell us the place where oil is not stolen...because the poster emphasised on Eastern...or is North the exception? Oil dey North? Abi SW

Nigerialabalaba:
As far back as 2012, Shell don dey shout say Nigeria dey lose $5 billion annually from crude oil theft. Dat number don double and triple sef since 2012 and na dis criminals dey cause am

I wander why the FG is not handling this issue with an iron fist The kind of damage this people do to the environment eh

That is what the Nigerian societies are good at doing.They steal steal and steal but complaine of corruption.

Transcriber:
eastern they mean includes SS.
No dey whine yourself

you have added your own to make you feel comfortable, he said in the east, he never mentioned eastern, i know their is difference between east and eastern.

VictorUSA:
That is what the Nigerian societies are good at doing. They steal and steal but complained of corruption.

Zamfara Gold and Osun Gold are what?

Transcriber:
eastern they mean includes SS.
No dey whine yourself

Hahahaha. So Igbos are no longer attached by force?

So SE/SS are together now?

mrvitalis:
But I thought eastern region was barren and had only palm oil ?

You are not smart all! Are you trying to smarter than the CEO of Seplat that made such claim?
Do you need to own crude oil to their the oil? Is it not where pipeline pass through that you people vandalize and steal from?

Nigerialabalaba:
80% of oil production don’t make it to the terminals due to oil theft – Austin Avuru


Says the state of the Nigerian Petroleum Industry calls for a national emergency
William Ukpe by William Ukpe March 18, 2022


Austin Avuru, founding MD/CEO of Seplat Energy and Executive Chairman AA Holdings has warned that Nigeria’s oil production has reached an emergency critical status. He stated that some oil production wells don’t get to see 80% of production making it to the terminals due to oil theft.

Avuru disclosed this in a report titled “Reining in the Collapse of the Nigerian Oil industry” published by the Africa Oil + Gas report on Thursday.

He urged the NNPC and regulators to set up a “war room” strategy to deal with the rising issue of oil theft in Nigeria.


What Mr Avuru is saying
He stated that the phrase “crude theft” which crept into the industry around 2010 has taken a new meaning with the entire export pipeline networks being surrendered to vandals and illegal bunkerers.

He said that there are some pipeline systems now (particularly in the East) where 80% of production injected therein does not make it to the terminal.

He disclosed that almost every producer is now cooking up “alternative evacuation” schemes that cost four to five times what pipeline export would normally cost.


“The stark reality today is that the IOCs are leaving, their decision is outside our control as a nation, in fact, over the last twelve years, Shell and Chevron have divested from a total of 21 blocks. It is now public knowledge that shell and ExxonMobil are now exiting the onshore/shallow water altogether.

“In fact, my projection is that, by Christmas of 2025, TOTAL would be the only IOC in J.V with NNPC.

“The situation is the same with domestic gas delivery, even though we are weaving all the right slogans about the future of gas in Nigeria, in the past 5 years, I can only point at a couple of Nigerian independents who are investing in gas development and processing of the domestic market,” he said.

He added that the state of the Nigerian Petroleum Industry is a national emergency, as oil production is down to about 1.4 million BPD and declining, and this includes 600K BPD from the deep-water. Domestic production has stagnated to about 1.2 billion cubic feet per day over the past five years at a time when projected production should have been 3.5BCf per day.

“The collateral impact of course is the low level of power generation which itself has stagnated at about 4,000 MW per say since 2015,” he said.

Avuru urged that Nigeria at the current oil production level can only be imagined when oil prices return to the $60 per barrel level, highlighting that the situation has to be treated as a national emergency.

What can be done:


NNPC and upstream regulators need to set up a war room, some form of an effective task force to develop a blueprint.

A well organized transition of the IOCs driven by a clear policy direction from the retreating IOCs to a crop of efficient independents with the requisite resources will have to be implanted.

He added that just standing back and intervening by pre-emptive acquisitions cannot be a sustainable solution proffered by NNPC.

He also called for a deliberate policy-driven return to the traditional onshore/shallow water terrains as 80% of Nigeria’s remaining reserves are still in this belt.

“Nigeria needs to address the twin problems of reliable pipeline evacuation and community restiveness. These problems have been heightened, not because there is no solution, but because we have abandoned every attention to them in the last 15 years

“Nigeria needs to match its gas slogan with effective, measurable, policy actions to drive investments in domestic gas supply,” he added.

In case you missed it

Nairametrics reported yesterday that Tony Elumelu, Chairman of UBA Banking Group and Heirs Holdings stated that the reason Nigeria cannot meet its crude oil production quota and benefit from high oil prices is due to theft.
He stated that Nigeria is losing 95% of oil production to oil thieves, citing the Bonny terminal oil theft that should be receiving over 200k barrels of crude oil daily, instead it receives less than 3,000 barrels.

https://nairametrics.com/2022/03/18/80-of-oil-production-dont-make-it-to-the-terminals-due-to-oil-theft-austin-avuru/

cc mynd44 lalasticlala seun dominique

Half baked journalism, quite true but with the connivance of the security agents who collect kickbacks. Northern officers too load tankers from there, so why the noise?

People make it seem like Poor Civilians are into Bunkering, the Oga's-At-The-Top are Men in Government. But who Cares? We still Receive the Blame.

alanto:

You are not smart all! Are you trying to smarter than the CEO of Seplat that made such claim?
Do you need to own crude oil to their the oil? Is it not where pipeline pass through that you people vandalize and steal from?

Are you smart ? Why should pipeline pass the East ? Where is the pipeline going ? Oya talk na

As u no enter geography class

Nigerialabalaba:

e be like say too much sense dey worry u. No be barreness be make businesses con invest for iboland make dem dey lose.

Dat same investment elsewhere in Nigeria dey fetch beta returns on investment yet d one in ur place dey lose and if dat no be barreness, wetin con be barreness?Shiorr

Igbos are the only people that invest everywhere
Outside oil tell me any Yoruba that made money in south south ? ...or north ?

Transcriber:
eastern they mean includes SS.
No dey whine yourself

Really ? Like where in South south

foryourmindlol:

Hahahaha. So Igbos are no longer attached by force?

So SE/SS are together now?

can you read?

Advocate500:
you have added your own to make you feel comfortable, he said in the east, he never mentioned eastern, i know their is difference between east and eastern.

read the post I quoted.
Read the op

Mafejopami

Razgas:
so if Eastern in this context includes SS...please tell us the place where oil is not stolen...because the poster emphasised on Eastern...or is North the exception? Oil dey North? Abi SW

yes there is oil in the SW

Tobichimezie:

Yaribaa logic

Today they will say the East is barren and has no natural resources

Tomorrow when a report about the abundance of oil and gas in the East is provided, Yaribaa will change mouth and say it includes the South South also and not just the SE.

Next Tomorrow the same Yaribaas will open their dirty ewedu and gbegiri unwashed buccal cavities and claim there is nothing like Eastern region only SE and SS as separate entities.

Honestly the level of stupidity in the South wastee region needs to be studied as a thesis in the university.

Re read the op and stop qouting me with mpuru mrimri in your head

Sergio103:


When it suits them best.

We know.

Yolloba people

I said "they"
Or can't you read?