News
Nigeria’s Crude Oil Output Drops By 12.5%
Nigeria’s crude oil output dropped by 12.5per cent to 1.4million barrels per day (mb/d), including condensate, in the first half (January – June) of 2022, from 1.6mb/d in the corresponding period of 2021, according to the latest report of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
NUPRC attributed the decline in output to pipeline vandalism, oil theft and the booming illegal refining in the Niger Delta.
The commission further said that between 200,000 and 400,000 barrels of crude were lost to the oil thieves daily during the period.
The NUPRC report further showed that the nation was unable to meet the quota of the Organisation of Petroleum Exporting Countries (OPEC), currently standing at 1.826mb/d.
Attacks by oil thieves in 2021 alone culminated in the loss of over $4.01billion.
At the current price of over $90 per barrel, the expected windfall that should have accrued to the country has been lost to the thieves, especially now that the government is gasping for much revenue to fund its projects and programmes.
According to NNPC data, average production in 2020 stood at 1.77mb/d, before sliding consistently to 1.6mb/d and 1.4mb/d in 2021 and 2022, respectively.
The oil output was relatively high in 2020 when COVID-19 and lockdown that followed hampered the movement of goods and persons from one place to another, resulting to the production of 2.49mb/d on April 17, 2020.
The report also confirmed that the rate of oil theft kept rising as the price of crude oil recovered in the market “until March, 2022, when there was zero recovery from all the volumes that were pumped into the line”.
It also noted that oil theft, “is that it is more endemic with Joint Ventures assets and those that belong to the Independents than with Production Sharing Contracts assets. This is likely because of the nature of the JV assets, which are mainly onshore or in swamp/shallow waters. This makes the evacuation pipelines more accessible than those of the PSCs which are offshore and in deep waters.
“There is also a pattern in the way the theft is carried out. This can be discerned from the size of pipes inserted on the lines and the technology deployed in carrying out the insertion.
“In some cases, the pipes inserted to steal crude oil from the lines are small and fitted in an amateurish way. This is an indication that those involved are small time criminals, more likely artisanal refiners who operate the slew of illegal refineries that dot the creeks of the Niger Delta from Akwa Ibom to Rivers, and from Delta to Bayelsa.
“Some of the pipes fitted into the lines to siphon crude oil are big. In some cases, they are of the same size with the pipeline or of the size that is used at the terminal to pump crude into vessels. A close look at them would reveal that they are professionally fitted with the use of cutting-edge technology.
“There have been cases where riser pipes were used indicating that the criminal deployed cranes. These cases indicate that the persons involved are not the regular illegal refinery operators but sophisticated and very knowledgeable criminals with access to vessels through which they ship the stolen crude oil out of the country.
“The involvement of this last group is what accounts for the high volumes involved in the theft which has become an existential economic threat to the oil and gas industry and even Nigeria as a nation”.
The Nigerian National Petroleum Company Ltd has entered into collaboration with the Nigerian Navy, the European Union and other security agencies to tackle issue of crude oil.
The collaboration, according to findings, has started yielding results saving the country the theft of N25billion worth of crude oil.
The collaboration was launched on April 1 through ‘Operation Dakatar Da Bararrwo.’
Since the launch of the operation in April, the partnership has assisted in preventing the theft of N25billion worth of crude oil and products.
Figures released showed that 23,110,102.59 litres of diesel had been seized while crude oil was put at 39,664,420.16 litres or 230,882.73 barrels.
For kerosene, about 649,775.38 litres were confiscated; while PMS had recovery of 345,000.49 litres, Sludge 380,000 litres, and LPFO 66,000 litres
During the operation, 85 suspects were arrested with 72 boats while 23 vehicles were also seized.
Personnel of the Navy, working with the NNPC also destroyed 127 ovens, 102 large pits, 148 storage tanks and recovered 41 outboard engines.
Four months ago, the Minister of Petroleum Resources, Chief Timipre Sylva; the Chief of Defence Staff; Lt.-Gen. Lucky Irabor; and the Group Managing Director of the Nigerian National Petroleum Company Ltd, Mele Kyari; visited the Niger Delta for an on-the-spot assessment of the damage done by vandals.
Shortly after the visit, a military operation followed immediately to smoke vandals out of the creeks.
Just last week, Kyari led the European Union delegation, top officials of the NNPC Ltd as well as representatives of security agencies to again visit the Niger Delta Creek to assess the ongoing fight against crude oil theft, illegal bunkering and vandalism of oil and gas installations.
The NNPC delegation had the Group Executive Director (Upstream), Engr Adokiye Tombomieye; GED Gas and Power, Abdulkadir Ahmed; the Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Bala Wunti; Manager, Joint Venture Asset, Mr Mustapha Yusufu; Head Gas Facilities, Dr Obinna Otuu; and the PTDT Upstream, Mr Olanrewaju Igadan.
The EU delegation had Mr. Matthew Baldwin (Deputy Director General, EU Commission); Ms. Samuela Isopi; (EU Ambassador to Nigeria and ECOWAS); Ms. Cecile Leemans (Team Leader Southern Partnerships, EU Commission); Mr. Richard Young ( Head of Division West Africa, EEAS); and Mr. Thomas Kieler (Political Adviser, EU Delegation to Nigeria).
Other members of the EU delegation are Mr. Jerome Riviere (Programme Manager, EU Delegation to Nigeria); Mr. Juan Sell (Ambassador of Spain to Nigeria); Mr. Tarek Chazli (Charge d’affairs Italy Embassy to Nigeria); and Mr. Luis Barros (Ambassador of Portugal to Nigeria).
The delegation was also accompanied by the Commander Operations Delta Safe, Admiral Aminu Hassan.
Commenting on the development, Group Managing Director/CEO of NNPC, Mallam Mele Kyari, had said Nigeria’s capacity to produce significantly higher volumes on any normal day than it is currently doing.
Recently, he had said: “If you inject 239,000 barrels of crude oil into either of the Trans-Niger Pipeline or the Nembe Creek Trunk Line (these are some of the major pipelines that convey crude oil to the terminals for export), you will only receive 3,000 barrels. It got to a point where it was no longer economically sustainable to pump crude into the lines and a force majeure was declared.
“In 2021, a similar trend was observed. In January of that year, out of about 239,000bpd pumped into the line, only 190,000bpd was recovered putting the loss at 19,000bpd”.
The Chairman/Managing Director of ExxonMobil, Richard Laing, pointed out that though the issue was not new, it has grown from just oil theft to organised criminality with sophisticated operation.
He had said: “As an industry, I know how hard my colleagues work to produce products that we need and to suffer the level of theft that we have is disheartening. But more importantly it is a threat to investments, a threat to the health of the industry and wealth of the nation
In its latest briefing notes, Shell Petroleum Development Company, the nation’s highest oil producer, which confirmed the development, stated: “In 2021, the combined production from the SPDC JV and SNEPCo (Bonga) fell to 493,000 barrels of oil equivalent per day from 614,000 in 2020.
“The SPDC JV produced 383,000 barrels of oil equivalent in 2021, compared with 497,000 barrels of oil equivalent in 2020. The fall in output was largely a result of curtailed oil production because of heightened security issues, such as crude oil theft and illegal oil refining.”
A Coalition of civil society organisations has urged the Federal Government to take proactive steps towards addressing the persistent gas eruptions in Bille, Rivers.
The coalition, made up of the People’s Assembly and Bille Working Group, made the call in an open letter addressed to President Bola Tinubu, and read to journalists in Port Harcourt, yesterday.
Reading the letter, the coalition’s convener, Dr Isaac Osuoka, said that the persistent gas eruption in Bille had led to serious environmental and public health challenges.
Osuoka, also the Executive Director, Social Action, urged Tinubu to establish a presidential task force to investigate and contain the gas leak in Bille.
He also called for the immediate relocation of residents to safe shelters, provision of clean water, food and healthcare services.
Dr Emem Okon, the Executive Director, Kebetkache Women Development and Resource Centre, stated that gas had been bubbling from the ground, creeks, boreholes and hand-dug wells in the community since October 2025.
Okon said that the gas had triggered several fires and explosions, and that residents of the community had reported respiratory problems, vomiting and other illnesses associated with exposure to the emissions.
According to her, preliminary investigations by the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have yet to identify the source of the gas.
Mr Kentebe Ebiaridor, the Coordinator, Oilwatch International, called for the publication of results from preliminary soil and water tests conducted in Bille for the residents to know the nature and extent of the contamination.
Ebiaridor urged the Federal Government to deploy medical teams to screen and treat affected residents, and immediately commence an independent study on the health impacts of the leak.
He further called for the suspension of oil and gas operations around OML 18 and 24 until the source of the gas leak was identified and the affected areas declared safe.
Ebiaridor urged the government to hold current and former operators of the oil leases accountable for environmental damage on the community.
Another speaker, Dr Bieye Briggs, urged the National Assembly to fast-track the NOSDRA Amendment Bill, 2025 to provide the agency with statutory funding and stronger enforcement powers.
Briggs urged the Federal Government to activate the regional Spill Command Centre, and make the Upstream Remediation Fund accessible for the Bille crisis and other affected communities in the Niger Delta.
The Akwa Ibom State Police Command has banned drone operations and fireworks in Uyo and announced temporary traffic restrictions ahead of President Bola Tinubu’s visit to the State today.
The state Commissioner of Police, Baba Mohammed Azare, announced the measures yesterday while briefing journalists at the Police Headquarters in Ikot Akpan Abia, Uyo.
He said the restrictions were part of security arrangements to maintain public order, protect strategic locations and ensure the smooth movement of the President’s convoy during his engagements.
“There will be total restriction on the operation and flying of drones within Uyo metropolis throughout the period of the visit. Members of the public, drone operators and service providers are advised to strictly comply with the directive,” he said.
The police commissioner also announced a ban on fireworks, knockouts and other explosive sound-producing devices within the state capital during the visit.
He said the measure would prevent panic and allow security personnel to respond effectively to genuine security threats.
The command also announced temporary restrictions on public access to designated routes and locations in Uyo to facilitate the movement of the presidential convoy.
The affected areas are Airport Road, Shelter Afrique Junction, Oron Road, Nung Oku Junction, Mbierebe Junction and Godswill Akpabio International Stadium.
“Motorists are urged to plan their journeys, exercise patience and cooperate with traffic and security personnel deployed along the corridors.
“Members of the public are advised to avoid the routes during the restriction and use alternative routes,” Azare said.
He also urged residents to plan their journeys, exercise patience and cooperate with traffic and security personnel deployed along the affected corridors.
The commissioner said the command, working with other security agencies, had put in place security arrangements to ensure a peaceful and hitch-free visit.
He appealed to residents to understand that the temporary restrictions were necessary security measures and not intended to cause hardship.
Azare urged members of the public to remain law-abiding, avoid restricted areas and report suspicious movements to the nearest police station or through police emergency channels.
Tinubu’s visit to Akwa Ibom is a working visit during which he is expected to inaugurate major infrastructure projects executed by Governor Umo Eno’s administration under its ARISE Agenda. The projects cut across aviation, road infrastructure, tourism, healthcare, land administration and security.
Among the projects scheduled for inauguration are the international terminal building and airport hospital at Victor Attah International Airport, Aviation Village, ARISE Palm Resort, the 14.5-kilometre Nsit Atai–Okobo Road, Ring Road 3, the Command and Control Centre and the AkwaGIS building.
The state government had earlier announced plans for the President to inaugurate projects as part of activities marking Akwa Ibom’s 39th anniversary in September.
The airport projects are particularly significant to the state’s ambition to expand aviation, tourism and investment.
The international terminal is expected to strengthen the airport’s capacity to handle international operations, while the Aviation Village is intended to provide accommodation for aviation workers. The airport hospital is also among the facilities lined up for inauguration.
The road projects are also expected to improve connectivity. The 14.5-kilometre Nsit Atai–Okobo Road links communities in the two local government areas, while Ring Road 3 is designed to improve movement within Uyo and ease pressure on existing roads. The Command and Control Centre, meanwhile, is intended to strengthen security surveillance and coordination in the State.
The Rivers State Ministry of Culture and Tourism has floated a culture content platform in collaboration with digital television group, Multichoice.
Permanent Secretary, Ministry of Culture and Tourism, Mr. Freddy Ndigbara, disclosed this after a meeting with MultiChoice Head of Content Acquisition, Don Dotun Ojon, in Port Harcourt.
He assured that content entrepreneurs and film makers would enjoy the platform by promoting culture and other contents to sell the states tourism potentials.
He said MultiChoice M-net was now open to increase its patronage for content shots on locations in Rivers State, describing the State as one that has numerous potentials for film tourism.
“We were privileged to have Don Ojon with us at the Rivers International Film Festival (RIFF) at the weekend in Bonny and he saw, first hand, the numerous sites and opportunities that are open to creatives in the State. After that, we felt it was important to deepen the conversation and he obliged. This is a cheering news for the sector in the State,” he said.
Ndigbara stated that “Rivers State has many more untold stories to tell, many more contents to reel out and the assurances from the M-net Acquisition Manager is an indication that the industry in the state will soon enjoy a new lease of life”.
The Permanent Secretary thanked Ojon for the visit and assured that creatives in the State would grap this opportunity and show the world that Rivers State is a major hub for film tourism in Nigeria.
On his part, Ojon said the visit was to discuss on ways of promoting tourism in the State using creatives and film.
Ojon said although the company has recently been acquired by canal+ France and is undergoing restructuring, he would promote the chances of Rivers State to host the MultiChoice talent factory in the State.
With Asaba, capital of Delta State, being saturated, Ojon said the next port is Rivers State, which he said is capable of building fresh crop of creatives, new locations, new story lines and concepts.
He, therefore, called for collaboration from stakeholders in the State.
Kevin Nengia
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