Oil revenues decreased by N288 billion in Q3 – FG

• Oil revenues decreased by N288 billion in Q3 – FG
• The global statistical company
• Expert advises FG

According to the Federal Government, ongoing crude oil theft in the Niger Delta caused Nigeria’s revenue from the commodity to drop by N287.95 billion in the third quarter of 2022.

According to data on oil production acquired Nigerian Upstream Petroleum Regulatory Commission, a federal institution, the amount of oil produced in July 2022 decreased by 1.15 million barrels compared to the same month the previous year. Nigerian crude oil production fell to 33.6 million barrels in July from 34.75 million barrels in June.

The country produced 30.14 million barrels of oil in total in August, a further decline in output. When compared to what it produced in July, Nigeria lost 3.46 million barrels of oil in August.

With a total production of 28.13 million barrels in September, the oil production losses persisted from the previous month. Compared to August, the nation’s oil output decreased by 2.01 million barrels in September.

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According to the research above, Nigeria’s oil output fell by 1.15 million barrels in July, 3.46 million barrels in August, and 2.01 million barrels in September, for a total decline of 6.62 million barrels in the third quarter of 2022.

The global statistical company

The average price of Brent, the world’s standard for crude oil, was $111.93 per barrel, $100.45 per barrel, and $89 per barrel in July, August, and September of 2022, according to data from Statistica, a global statistical company.

It follows that Nigeria’s oil revenues fell by $128.72m (N56.44bn at the official currency rate of N438.5/$) in July as a result of losing 1.15 million barrels.

A decrease in the production of 3.46 million barrels in August resulted in a $347.56 million (N152.4 billion) loss for the nation. As a result of the loss of 2.01 million barrels of crude oil worth $180.42 million in September, oil revenues fell once more (N79.11bn).

The third quarter of this year saw an N287.95 billion drop in the country’s oil revenues, according to a summation of the losses for the three-month period.

Nigeria has lost billions of dollars owing to oil theft, which has also limited the nation’s output. The country has routinely fallen short of the Organization of Petroleum Exporting Countries’ monthly crude oil output quota.

Recently, the Federal Government reported that its most current research indicated that due to ongoing oil theft in the industry, over 1.2 million barrels of crude oil were routinely shut-in by producers across various oil wells in the Niger Delta.

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Additionally, it added that according to recent data, Nigeria lost roughly 100,000 barrels of oil daily to theft, which translates to about three million barrels each month. At the press conference in Abuja, the government revealed via the NUPRC that the nation’s gas reserves had increased to 208 trillion standard cubic feet.

“One of the negative and side effects of crude oil theft is that it has incentivized well shut-ins by producers, in the sense that it is not part of their investment model to produce and hand over to thieves,” the Chief Executive, of NUPRC, Gbenga Komolafe, had stated.

On crude volumes being stolen, Komolafe said, “By our estimates, the current volume we are losing as a result of crude oil theft oscillates between 80,000 to 100,000 barrels per day.”

Expert advises FG

Dr. Sam Nzekwe, a former president of the Association of National Accountants of Nigeria, commented on the situation and said that the government must put an end to oil theft in order to prevent Nigeria from suffering such enormous financial losses.

“Nigeria needs all the revenue it can get now, so nipping oil theft in the bud is paramount and must be addressed by the Federal Government as fast as possible,” he stated.

Nzekwe, on the other hand, expressed optimism that Nigerian oil theft will be reduced as a result of the new pipeline surveillance contract handed to a private security company.

According to a report from August, in order to stop the huge oil theft in the Niger Delta, the Federal Government gave a contract for pipeline surveillance worth N48 billion annually to a company owned by Government Ekpemupolo, known as Tompolo.

Approximately 58 unlawful locations where crude oil was being taken were found in the states of Delta and Bayelsa, according to an announcement made by Ekpemupolo less than two months after the contract was given.

An illegal oil pipeline measuring 4 km was found in the state’s Forcados region, according to the former militant group’s commander, Movement for the Emancipation of the Niger Delta, who spoke to journalists in Delta State.

“I think we have found over 58 points that have been tapped in both Delta and Bayelsa states. We are doing this work together with the security agencies. We are only providing intelligence for the security people to assist to do the work,” he reportedly stated.

Nzekwe expressed optimism that the arrangement would contribute to improving pipeline security and ensuring that crude oil from Nigeria wasn’t stolen.

He said, “It is not that our security agencies are not working, but the fact is that this man (Tompolo) is from the grassroots and understands the area more than the security officers. That is why he has been able to see where these activities happen.

“He has more intelligence and that is why he’s making progress this fast. He knows the terrain better than those who were securing it in the past. So I think it is a good development because our desire is to stop oil theft.”

Source: punchng.com