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Business News of Wednesday, 6 July 2022

Source: thenationonlineng.net

‘Nigeria loses 20% daily oil production to thieves’ - Adewale Tinubu

Group Chief Executive, Oando Plc, Mr Adewale Tinubu Group Chief Executive, Oando Plc, Mr Adewale Tinubu

The Group Chief Executive, Oando Plc, Mr Adewale Tinubu, said Nigeria is losing about 20 per cent of its crude oil production to oil thieves and pipeline vandals daily.

Tinubu spoke yesterday at the opening ceremony of the Nigerian Oil and Gas (NOG) conference and exhibition in Abuja.

The conference had as theme: “Expanding the Nigerian Content Frontier through Intra-African Trade”.

He said Nigeria’s oil production had declined at an alarming rate due to the activities of the oil thieves and pipeline vandals.

Tinubu said: “There has been a 43 per cent reduction in our production from March 2020 to May 2022.

“We lose almost 20 per cent of our daily crude production to oil thieves and pipeline vandals and 20,000 barrels a day of oil is lost to oil theft.

“Basically some three million barrels on average yearly is lost to oil theft and pipeline vandalism.”

He said the development had led to reduction in the country’s Gross Domestic Product and degradation of the environment.

“The Organisation of Petroleum Exporting Countries (OPEC) gave us a quota of 1.4 million barrels per day and we were struggling to do 1.21 million barrels per day.

“We will get to a quota of 1.8 million very soon because the OPEC agreement expires in September. They are easing production by 400,000 barrels per day.

“We are not meeting the quota and we will not be able to meet it by September,” Tinubu added.

He, therefore, called for a collaborative effort between the government and all industry stakeholders to tackle the challenge.

Tinubu stressed the need to deploy sabotage detection technology, on-ground and aerial surveillance as well as community policing which would help to bring the situation under control.