(Updates with more details from Nigerian National Petroleum
Corp. statement.)
IBADAN, Nigeria--Nigeria`s crude oil production dropped in the
first quarter of the year due to crude oil theft and vandalism
along major pipelines in the Niger Delta, the Nigerian National
Petroleum Corp. said Wednesday.
Tumini Green, acting group general manager of NNPC`s Public
Affairs Division, said in a statement that daily crude oil
production during the period fluctuated between 2.1 million and 2.3
million barrels per day compared with the projected estimate of
2.48 million barrels a day.
She said the drop in production has cost the nation about $1.23
billion in revenue.
Major international oil companies like Royal Dutch Shell Plc and
Agip Spa have reported rising crude oil theft from their pipelines
in the past few years.
Shell said an estimated 60,000 barrels of oil per day are stolen
from its facilities in the Niger Delta. Last month, Agip stopped
oil production in Nigeria`s southeast Bayelsa state after it said
about 7,000 barrels of oil per day was stolen.
Nigeria, Africa`s largest oil producer, earns more than 90% of
its foreign exchange and about 80% of government revenue from oil
exports.
Ms. Green said that the NNPC/Shell Petroleum Development Co.
joint venture recently declared a force majeure on Bonny Crude due
to "incessant crude oil theft," adding that this resulted in the
shutting in of 150,000 barrels per day.
She said investigations showed that 53 break points along the 97
kilometer (60 miles) Nembe Creek Tunkline. "Repair work is expected
to last about six weeks," she added. "This will further reduce our
April and May monthly average to about 2.2 million barrels per day
and further decrease crude oil revenue by about $554.0
million."
Ms. Green said the company will "continue to work with relevant
government agencies both at the federal and state levels to end
this incessant crude oil theft and pipeline vandalism. We have the
potential to meet the national target of 2.48 million barrels per
day if this menace is eliminated."
She added "crude oil theft and pipeline vandalism continue to
degrade the environment, increase operational costs, impact
negatively on the image of the country and of course, reduce
revenue accruable to the nation."
-By Obafemi Oredein; Dow Jones Newswires
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