— as production slumps by 11.63 million barrels

Revenues accruable to Nigeria from the sale of crude oil crashed by about N500.6bn between January and May this year, findings from various oil and gas, as well as statistical reports have indicated.

It was gathered on Wednesday that the crash in revenue was due to the slump in the country’s oil production, as it tumbled by 11.63 million barrels during the review period.

Data obtained from different reports of the Organisation of Petroleum Exporting Countries showed that the country produced 1.399 million barrels of crude oil daily in January, translating to 43.369 million barrels in the entire month.

This, however, nose-dived to 1.024 million barrels per day in May, according to crude oil production figures based on direct communication as contained in OPEC reports, indicating a total production of 31.744 million barrels in May 2022.

The difference between January and May figures implies that Nigeria’s oil production crashed by 11.63 million barrels within the five-month period.

On the monetary value of the lost oil volumes, data from Statistica, a globally renowned statistical firm, showed that Nigeria had been losing billions of naira monthly due to the persistent plunge in its oil production.

Industry figures obtained from Statistica on Wednesday showed that in January, February, March, April and May 2022, the average prices of Brent, the global benchmark for crude, were $86.51/barrel, $97.13/barrel, $117.25/barrel, $104.58/barrel and $113.34/barrel respectively.

This gives an overall average of $103.76/barrel for crude oil during the five-month period.

With an overall average of $103.76/barrel and 11.63 million barrels of crude lost between January and May, it implies that Nigeria’s oil revenue crashed by $1.21bn (N500.6bn at the official exchange rate of N415/$) during the period under review.

Meanwhile, additional findings by our correspondent indicated that the nation’s oil production kept moving southwards since January this year.

Figures from OPEC reports showed that while the country produced 1.399 million barrels per day in January, this crashed to 1.258 million barrels per day in February.

The oil production plunge continued in March, as it dropped 1.238 million barrels per day and further went down to 1.219 million barrels per day in April.

The worst plunge was recorded in May this year, as the country’s oil production slumped to 1.024 million barrels per day, based on crude oil production figures obtained through direct communication by OPEC.

Operators and government officials have repeatedly complained about the crash in Nigeria’s oil production and its impact on the country’s badly hit economy.

Vandalism, oil theft, sabotage, among others, have been thrown up occasionally as the causes of the crash in Nigeria’s crude oil production.

However, efforts are ongoing by the Federal Government to boost oil production in Nigeria, as on Tuesday it awarded Petroleum Prospecting Licenses to more than 150 indigenous companies to explore for crude from 57 marginal fields.

Reacting to the country’s oil production challenges while speaking to marginal field investors in Abuja, the Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe, regretted that the rise in oil prices had not reflected in Nigeria.

He said, “It is worthy of note that the average price of crude oil in recent months has been above $100 per barrel. This upward swing in market fundamentals is largely associated with the Russian/Ukraine conflict.

“However, the impact of the upswing in the crude oil price is not reflecting in the nation’s revenue earnings due to disruptions in our national oil production owing to sabotage, theft, and other operational challenges.

“Therefore, potential licensees are urged to take advantage of the current market realities and quickly bring their fields to production.”

Also, the Minister of State for Petroleum Resources, Chief Timipre Sylva, urged investors to support the government in boosting the country’s crude oil production so that Nigeria would gain from the current price rise.

He said, “It is my strong belief that the awardees would take advantage of the current attractive oil prices to bring these fields into full production within a short period in line with Mr. President’s aspiration to increase production, grow reserves and reduce the cost of production.

“The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations.

“Indeed, this will boost activities in the oil and gas sector, add to our production output, and create additional employment opportunities for Nigerians.”

The Managing Director, Matrix Energy Group, Adisa Aliu, also called on operators in Nigeria’s upstream oil sector to take advantage of the continued upswing in global crude oil prices in the past few months.

He said this would help shore-up Nigeria’s crude oil production, increase its foreign exchange earnings and boost the country’s overall economy.

He said, “We are aware that the upstream industry is more challenging. But we are also aware that there are a lot of opportunities to contribute to the growth and development of the industry, in particular, and the country in general.

“As an oil-producing country, it is best for the operators to ensure they take advantage of the current rising price of crude oil at the International market by ensuring the country meets its production quota at all times.”

https://punchng.com/nigeria-lost-n500-6bn-crude-oil-in-five-months-investigation/

Vote out APC. Vote for Peter Obi

typing

The truth of the matter is total deregulation of the downstream sector of the oil and gas in Nigeria. Remove fuel subsidy but the mistake we made in 2012 was not heeding to GEJ views on deregulation. Now we are suffering. Hope the next president will not shoot himself on the leg.

saintopus:
The truth of the matter is total deregulation of the downstream sector of the oil and gas in Nigeria. Remove fuel subsidy but the mistake we made in 2012 was not heeding to GEJ views on deregulation. Now we are suffering. Hope the next president will not shoot himself on the leg.

So subsidy is the the reason for crude oil theft and vandalism?

Who is the Minister for petroleum?

He should be held accountable or should resign from his post if he is incompetent to the task he is supposed to carry out

You're not elected to be junketing from one country to another while you couldn't protect the only source of income of the country while refusing to invest in other potential sectors that would have helped the growth of the nation's economy

Nigeria needs to diversify

The sole dependency of oil is our problem

R

I wonder where EFCC is in times like this.

If EFCC were really effective, they will be arresting Nigerian politicians on a daily basis, because the corruption is just too much.

Everything is crashing in the country

See figures abeg.

What bad people with bad lucks are in government, what do yhu expect?

Everything crashing, power (electricity) generation crashed, fuel crashed, just name it, everything is crashing under this visionless and clueless government.

Please tell me, what has not crashed under this government?
The only thing the evil government knows is increase in tax, yet everything keeps crashing.

Nigeria needs to be rescued quickly before it crashes finally.

Meanwhile, cost of commodities keeps going up.

Buhari was only gloating over the good life the people of this country were enjoying, he came to make life difficult for Nigerian.


Get your PVC and together, let's reason PETER OBI, for once, let's have a neutral party in government and see how it pans out.

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No wonder boys are making 3-500k daily on illegal refinery

Stolen money

Whether the production goes up or come down, the life of the masses doesn't improve.

Let the oil dry up sef. Its a curse.

The reason why Nigeria's crude oil production has magically dropped is the same reason why Nigerians with about a third of the purchasing power are magically buying 4 times more PMS than they did in 2015.



I leave you to draw your own conclusions.
Thank you.

Lost wetin... Money or oil that has been syphoned

PaChukwudi44:

So subsidy is the the reason for crude oil theft and vandalism?

What do you understand by deregulation of the downstream oil sector. See when they deregulate investors will invest creating more jobs. There may not be much oil theft if there are jobs for the youths

Abi dem steal am.. who is deceiving who

saintopus:
The truth of the matter is total deregulation of the downstream sector of the oil and gas in Nigeria. Remove fuel subsidy but the mistake we made in 2012 was not heeding to GEJ views on deregulation. Now we are suffering. Hope the next president will not shoot himself on the leg.

Did you even bother to read the article?

Nigeria didn't lose any money.
Check very well, the money is in the bank accounts of those Saints that took Buhari 6 months to appoint.

PDP KILLED THIS COUNTRY, APC BURIED IT

The problem we have as a country is not really corruption as most people think, on the contrary, it's patriotism. Nigerians are not patriotic in any sense of the word.

Nigerians owe their loyalty to Imams, pastors, family, elders, politicians etc with zero love for their country. This is why most Nigerians are only interested in what the country has to offer them rather than what they can offer the country. The chaotic atmosphere and mass hysteria in our darling nation is a testament to this fact.

The second problem we face as a country is that we lack vision. No blueprint. We don't even know where we are headed, every president comes with his own agenda. Things don't work that way. How do you progress without a blueprint or vision?

The third problem facing our country is the judiciary. How is the country suppose to grow towards progress with the kind of judiciary we have today in Nigeria where the highest bidder goes home victorious? The judiciary should be the hope of the common man.

If this three issues are fixed i think corruption won't be a problem anymore.

The NNPC knows quite well that other African countries are in need of Nigerian oil, the wise thing to do as a national body is to ensure new refinaries are built so our oil can be refined here and then exported through legal channels to other african countries, this inturn will bring in more money to our reserves. If they did this, petrol would be cheap for Nigerians since the major loses will be covered through our oil exportation to other African countries.

We need patriotic leaders that are competent enough to understand that Nigeria has all it takes to be the Dubai of Africa if only they put in the work.

Keep deceiving the gullible Nigerians.

sotall:


Whether the production goes up or come down, the life of the masses doesn't improve.

Let the oil dry up sef. Its a curse.

Exactly! We provide everything for ourselves, yet we are still taxed heavily. What exactly do we enjoy under this government?

For the first time, I am campaigning for a change of power from the major parties.

Wow! So in an environment where Brent is $120, not only has production almost halved but we are spending all the money on subsidies because we can’t refine locally!! What a country!