‘NNPC Has Violated Its Own Guidelines, Reporting Production Shut-Ins As Losses’

Nigerian National Petroleum Corporation (NNPC) has violated its own guidelines, reporting production shut-ins as losses.
The violation is contained in the Corporation’s latest monthly report for January obtained by SweetcrudeReports, adding also, that six million barrels of oil production had been deferred following the shutdowns of the export terminals between November and December 2021.
The shut-ins termed losses by NNPC had led to Nigeria’s inability to export over 6 million barrels of crude oil, according to NNPC.
In the past, the Nigerian National Petroleum Corporation had severally admonished reporters to stop reporting shut-ins as losses, however, the Corporation appears to have also fallen foul of same misrepresentation it had flagged.
For instance, while detailing some of its key challenges in the January 2021 report, the Corporation disclosed that 10 crude oil terminals were shut down within two months as a result of either leaks, fire, or for maintenance purposes.
The January 2021 report went ahead to tag the inability to export crude through those channels as “loss” instead of shut-ins.
In the past the Corporation had admonished journalists not to report crude oil shut-in as a loss because when such production comes back on stream, the same would be exported and revenue obtained.
The Corporation had put the supposed loss at the export terminals (Batan flow station at Forcados, Opuama flow stations at Trans Escravos pipeline, Abo terminal, Agbami terminal, Brass and Erha terminals, Ugo Ocha terminal at Odidi flow station, Jone Creek FS, Yoho terminal, Usan and Ima terminal, Qua Iboe terminal, Okono and Escravos terminal, and Escravos Dubri terminal) at over 6 million barrels within the said months.
Nigeria has 26 export terminals scattered across the country with 10 located in the Western zone, 11 in the Eastern zone, and 5 in the Lagos zone.
A breakdown of the “losses” as reported by the NNPC, showed that the Batan flow station at Forcados terminal was shut down on the 18th of November 2020, and for 31 days in December due to protest by the community over outstanding payments. Also, the Opuama flow stations were shut down due to reported leaks on 20’’ Trans Escravos Pipeline on December 1. Cumulative “loss “ over 31days in December was 359,200bbls.
At the Abo terminal, production shut down for maintenance took place on the 7th of December 2020 for 13 days. Another shutdown occurred on December 20 for 6 days. Cumulative “loss” for the period was put at 360,000bbls.
Production curtailed for flare management for GTC no.3 first stage discharge cooler repairs and planned maintenance at the Agbami terminal on 24th and 11th November respectively resulted in an aggregate “loss” of 294,414bbls.