₦airaland Forum

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

ubee:
Nigeria is a sick joke of a country.

This is a country where stone hearted criminals will amass and lodge at a particular section of the bush, at the edge of the highway, and kidnap travelers with the ease of passing hot knife through butter.
They will stay inflicting terror on the lives of citizens unchallenged by any of the security forces in the country for years.

Same way the governments act with criminals destroying the environment and destroying lives in Imo and the entire south south.

The bunkering site has been existing and operating probably a couple years, with no challenge from government forces, but now with this tragedy government will open their stinking mouths to tell us - "the perpetrators will be brought to book" ...

Sick country

MadamVanessa:



[s]You're very selfish and self centered human being. Your type is the reason this world is like this. For crying out loud, what is wrong with your mum helping her relatives? tell me one thing that is wrong and I will tell you a billion things that's good about her lending a helping hand to her relatives.


What your mum sowed today in the lives of your nephew, nieces, cousins etc , unfortunately she may not be alive to reap it, but it's selfish you that may probably reap it later or your children.[/s]

History555:
Omenka is not from benue. He like benuejosh, mannabbq are yoruba men pretending to be from benue. Remember osafygo aka juliusmalema who always claim to be from anambra. Well this is the same person going emotional over the death of two aboki and threatening lgbos with genocide

Angelfrost:
Impressive resume, even for a thug!

This is where Ipob messed up! You don't give such power and influence to a psychopathic lowlife, no matter his level of learning and erudition.

Simon Ekpa is no different from Hesbollah, Hamas, ISIS, and Taliban Warlords!

All he cares about are Power, Influence, and Self-Aggrandizement.

The fact that he is even prepared to burn down Imo and Anambra (while leaving out his own state) says more than enough about his true selfish nature!

AchalugoNwa:
[s][/s]
your opinion is rubbish

AchalugoNwa:
this Abakeleke guy Ekpa no go end well I swear.

dude is doing like he's paid by this evil government.

everything about him is anti igbo.

he'll be killed soon
one thing I know is that NOBODY has ever succeeded in attacking igbos.
jee jua ese

RedpillAnalyst:
Marriage is not bullshit and love is not scam. The way we handle it these days made it so.

Many women see men as crap. Average men don't even qualify or meet the requirement of their delusional dreams. You are seen as too ugly or too poor compared to what they have been programmed to believe by TV, instasham and fakebook.

Many men see these women as too whorish and delusional to have any meaningful long term partnership with.

When the centre can't hold things will start to fall apart.

Kaiamafirst:
There is this girl I have been dating for a while, suddenly her sister now went to school and have a male friend and connect them with my girlfriend, the lowest number of call they make a day with my girlfriend is 5 time, and whenever I am around she always tell the guy that she is going to call him when she is done.

What really baffle me was my girlfriend call me yesterday morning and tell me she wants to forward my account number to someone, I now ask her who, she now said she is going to explain it to me one on one in the evening.

so I ask her to send me the person number which she did and I forward my account number to the person.

On my arrival in the evening the first thing that comes out of her mouth was the explanation of the person that I send my account number to.

She continue and said her bestie see some of her pictures from her sister phone and like a style and the guy wants to sew it for her younger sister too, and she is the one to help them buy the stuff,I didn't make any statement, she keep asking what is wrong because my mood changes and I tell her nothing.

Fast forward this morning I now receive an alert from guy plus a call asking me if I receive alert, I now said yes, After 2min my girlfriend call me asking if I receive an alert which I said no, she give an interval of like 20min confirming if I receive an alert which I said no, 2min after her call the guy call me if I receive an alert I said again yes.

Elders of the house put me through, don't mind my errors, I register nairaland today because of this issue, everything is allow, bash and advice is allow.

Caleycashh:
Its only a foolish man that walks away from his home, don't mind all these manipulative leeches!

frozen70:
[s]Your wife is the issue here not your cousin

If your wife is decent and you trust her with your last breath, you don't need to panic

If she wants to sleep with another man, she will do so even while you are leaving in Nigeria

So even if you get a room self contain for your cousin to pack out, they will meet when they want to meet

So, just talk to your wife by advising her and that's all

Who go cheat go cheat [/s]

Dollarremix:
You get sense so? You no see person way I quote? Oga go check your post weda you write say dem kill person, before you come start to dey behave like animal.

Dollarremix:
They did not kill them

Are you normal?

aieromon:
Read up on the forests that cut through Kaduna, Niger, Kebbi, Zamfara and Katsina.

Summary, bandits flushed out of Katsina and Zamfara have converged in the Kaduna and Niger part of these forests. Kamuku and Dajin Rugu forests are notorious for bandits causing mayhem in Kaduna.

https://www.newsexpressngr.com/news/118048-UNCOVERED-Nine-forests-governed-by-bandits-Boko-Haram

Candidlady:
Are you the senior version of ila.mina

Jamesz12:
Thanks a lot, God bless you

3150974618
First Bank

Dorwadora:


As single mothers no gree show maybe op should bless the single ladies in the spirit of Easter

2131041426
UBA....

Let the blessings flow in

Burruchaga71:
Has the best man ever won the presidency b4?

AdoOloro:
If someone imprisons you, would they put the key around that area?
Yes they will feed you, so the bread is not in the very wrong place. The key is.
Whoever puts the key so close to the prison cell is playing a kind of game.

Teetee777:
Bandits attacked kano state also but I can't say for the jigawa state. I stayed in kano state, our village was attacked by bandits two weeks ago but they met their match by the youth of the village, all of them were killed except one that hand over to the police

Seredebe:
Ebubu will soon come for your head

Dorwadora:
[s]The mother crying on the floor is so heartbreaking.... So sad...

I'm not going for NYSC service till the 2023 election is concluded .... I won't go.

I'll learn a skill till that time elapse[/s]

Obamaofusa:
Anambra:
Erosion...70%
Okpoko....10%
Slum.......10%
fairly built....10%
Oh my!!
What says ...?