The Nigerian National Petroleum Corporation, NNPC, has promised that the average daily production of crude oil will rise to about 2.5 million barrels per day (mbpd) in two weeks, following repairs on the Nembe Creek Trunk Line (NCTL).
Independent sources in the oil industry, however said the country was only producing 1.9mbpd, based on accruable revenue, and when an extra 140,000bpd is added from the NCTL, total output would stand at 2.04mbpd.
The difference between NNPC’s figures and those of independent sources has been blamed on incessant crude oil theft and pipeline vandalism, which is costing Nigeria an estimated 400,000bpd.
NNPC stated Tuesday that the expected completion of repair works on the NCTL, which has a daily capacity of 150,000bpd, would increase daily average crude oil production to 2.50mbpd, thus exceeding the target of 2.48mbpd.
Efforts exerted by the federal government through the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, to stem the tide of oil theft and pipeline vandalism were yielding positive results, according to the corporation.
In a statement from its acting Group General Manager, Public Affairs Division in Abuja, Ms. Tumini Green, the NNPC noted that the combined efforts of Alison-Madueke, NNPC and IOCs to stem the crude theft menace have resulted in a significant drop in the level of pipeline vandalism and crude oil theft, thus resulting in a corresponding increase in crude oil production.
“Suffice it to say some vandalised pipelines and flow stations have been repaired and reopened such that average current national daily production stands at 2.4mbpd compared to the average year to date figure of 2.13mbpd as at June 2013.”
Attributing its current success to the directive by Alison-Madueke to NNPC to constitute an industry-wide committee on security strategy against crude oil and product theft, Tumini said the committee’s members included representatives from NNPC, all the IOCs, Nigerian Petroleum Development Company (NPDC), security agencies, as well as the Oil Producers Trade Section (OPTS) of the Lagos Chambers of Commerce and Industry (LCCI).
“In a fortnight, repair works on the Nembe Creek Trunk Line (NCTL), which has a daily capacity of 150,000bpd, is expected to be fully completed.
“On completion, daily average crude oil production is expected to increase to 2.50mbpd which will exceed the national daily target of 2.48mbpd,” Green said.
She noted that the corporation was determined to sustain the security measures initiated by the security agents against crude oil theft and pipeline vandalism.
“Our expectation is to increase production from the 2.48 to 2.55mbpd (both crude oil and condensates) for the rest of the year.
“We have the capacity and potential to maintain production above 2.55mbpd in the country. All that is required is to continue the fight against pipeline vandalism and crude oil theft to achieve this target.
“This will increase our 2013 average production to about 2.34mbpd if the current fight against pipeline vandalism and crude oil theft is sustained,” the NNPC spokesperson added.