Oil production in the country has continuously been interrupted by increased third party breach of producing assets on one hand and monumental theft of crude
The country‘s National Security Adviser, Nuhu Ribadu, penultimate Saturday made the disclosure when he led a presidential delegation to inspect oil and gas facilities at Owaza in Abia and Odogwa in Etche Local Government Area of Rivers.
“Nigeria has the capacity to produce 2 million barrels of crude daily, but we are currently producing less than 1.6 million barrels due to theft and vandalism of pipelines. “If you multiply $4 million by 365 days – one year, you will see that it is a lot of money running into billions of dollars, .” He said huge investments made by the government in building infrastructures for the common good of all were being destroyed by few individuals, and in the process, destroying the environment.
Since then there has been a major drop in activities of vandals which has helped to upscale crude production to meet OPEC quota. Onuwaje, continued, „When we started crude oil pipeline from Escravos to Warri in 2015, two weeks after we had issues with avengers, but in 2016, we cleared all the lines removing almost 86 valves in the PPMC.
„We want our refineries to work and we would continue to secure more lines. The federal government has to come to the aid of the people where you have these pipeline infrastructure to ensure that they have their sense of belonging. For Trans Forcados we have employed 820 people and we have another 120 intelligent gathering officials we have engaged. If you look at Trans Escravos also we have 480 people we have employed and OML 40, Trans Benin River, we have employed over 300 people.
According to Smart Amula, Supervisor OML 40 Benin River Houses, „We started this work in November 2018 and so far so good, the pipeline infrastructure is working fine and we are working with NPDC. Since we began our operations, crude oil has been flowing very fine and we all are okay According to the NNPCL records, Nigeria before the contract lost over $800 million to poor handling by previous contractors.
In terms of production numbers, this translates to over 11 million barrels of crude oil which on face value equates to over $800 million in lost revenue to all the stakeholders in the matrix. This arrangement is totally different from the old order where the contractor gets paid for surveillance duties and totally exempted from repair cost or any form of responsibility in the event of any line break or breach to the pipeline he is paid to watch.
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