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Crude oil production erratic since February – NNPC

By on October 31, 2013

Crude oil production in the country has been inconsistent since February this year, the Nigerian National Petroleum Corporation has said.

According to the corporation, the country’s production has been fluctuating between 2.2 million barrels per day and 2.3mbpd.

The Group Managing Director, NNPC, Mr. Andrew Yakubu, said the development was largely caused by the persistent attacks on major pipeline arteries supplying crude oil to export terminals, stressing that the menace had impacted negatively on the nation’s economy.

The NNPC  boss, in a statement from the corporation, said these in his submission to the Senate and House of Representatives Joint Committee on the Medium Term Expenditure Framework for the period of 2014 to 2016.

He was quoted as saying, “The critical and most important point to note here is that when the artery conveying crude oil to the terminals is hit, this reduces our production volume by 150,000 barrels per day, and for the period that the line is down, accounts for the drop in crude oil production.

“From February to date, we have witnessed so much breaches and each time we go down, about 150,000bpd goes down.”

Yakubu explained that the continuous crude oil theft, pipeline vandalism and shut-in had constrained the sector from meeting its revenue projection.

“We have looked at the 2014 oil projection from a realistic point of view and we will continue to recalibrate it with the National Assembly and other relevant stakeholders to ensure that the petroleum sector continues to play a key role in the national economy,” he added.

Yakubu stated that the NNPC actively participated with the Budget Office of the Federation in arriving at the MTEF.

He said the corporation would do everything possible to ensure that the MTEF was achieved in terms of accruals from projected oil and gas input.

The Director-General of the Budget Office of the Federation, Dr. Bright Okogu, affirmed that crude oil theft and pipeline vandalism coupled with the discovery of shale oil and gas were responsible for the inability of the NNPC to realise the projected 2.5mbpd crude oil production in 2013.

The Chairman, the National Assembly Joint Committee on the MTEF, Senator Ahmed Makarfi, said the reason for the interface with all the revenue generating agencies was to assess the workability of the MTEF.

 

 

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