Nigeria’s oil exports take another hit as main pipeline runs dry – Report

The Trans-Niger Pipeline, a major oil pipeline capable of transporting around 180,000 barrels of crude per day, has stopped transporting product since mid-June due to a theft.

Despite the development, the pipeline has not been officially closed, Bloomberg reported Wednesday citing a source familiar with details of the pipeline’s operations.

The report said the pipeline capacity is about 15% of Nigeria’s most recent average daily production.

In recent years, oil theft has become an unending problem in the Nigerian oil industry.

NNPC Limited group chief executive Mele Kyari revealed in April that Nigeria had lost $4 billion from oil theft at the rate of 200,000 barrels per day in 2021.

He added that the country had already lost $1.5 billion so far in 2022 due to escalating pipeline vandalism.

Mr Kyari said the country was losing 95% of its oil production to thieves at Bonny Terminal in Rivers State.

The development came amid another claim by United Bank of Africa Chairman Tony Elumelu that Nigeria was losing a lot to oil vandals at its terminals.

Mr Elumelu said on March 17 that Nigeria was losing 95% of production from the Bonny terminal due to vandals forcing Shell to declare force majeure production activities at the field.

“Look at Bonny Terminal expected to receive 200,000 bpd, instead received less than 3,000 bpd leading operator @shell to declare major fe,” Mr Elumelu tweeted in March. .

The federal government, in its recent draft fiscal strategy paper for 2023 to 2025, presented by the Minister of Finance, Budget and National Planning, Zainab Ahmed, showed that oil revenues were underperforming due to major oil production shortfalls such as shutdowns resulting from pipeline vandalism. and crude oil theft.

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