Nigeria’s oil production in April 2022 averaged 1.354 million barrels per day, mbpd, about 78 percent of the 1.735 mbpd quota allocated to it by the Organisation of Petroleum Exporting Countries, OPEC.
In its latest report to the Federation Account Allocation Committee, FAAC, meeting in May, the NNPC said total oil lifted (export crude) in April was 8.8 million barrels which was a 10 percent decline from the 9.77 million barrels lifted in the previous month. The report said that N337.6 billion was the gross domestic crude oil and gas revenue for the month of April, while recovery of strategic holding cost of N239, 381,651.39 was posted.
NNPC added that crude oil export revenue received during the month amounted to $14.70 million, with export revenue received in April amounting to $29.94 million. The report also showed that NLNG feedstock gas receipt was $76.47 million which represented last month’s receipt $72.48 million, plus arrears of $4.26 million. It added that other receipts for the month included the sum of $29.18 million being miscellaneous receipts, gas and ullage fees as well as interest income.
Speaking at the Iwereland Petroleum Communities Summit of the Host Communities’ Development Trusts as part of the Implementation of the Host Communities Development Trusts in Oil-Producing Itsekiri Communities, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe attributed the country’s low production level to the massive oil theft going on in the Niger Delta region.
Komolafe said that despite the country’s technical capacity to produce 2.3mbpd, it was producing 1.9 mbpd out of which 1.35 mbpd was received at export terminals. He said: “While the Commission is prioritising efforts towards increasing oil and gas production and ensuring maximum economic recovery in Nigeria through the optimisation of the oil and gas value chain, there have been challenges limiting the country from making the much-desired progress.
“Currently, Nigeria has the potential to produce about 2.3 million barrels of oil per day being the technical allowable. Unfortunately, the country can only produce about 1.9 million barrels of oil per day out of which only about 1.35 million barrels of oil per day is received at the terminals due to massive crude oil theft and pipeline vandalism”.
He pointed out that “in the first Quarter of 2022 alone, out of about 141 million barrels of oil produced and a total of about 9 million barrels of oil was lost to crude oil theft. This amounts to a loss in Government revenue of about 1 billion United States Dollars (at $116 per barrel) or about N434 billion (at CBN rate of N 415/$) which is about 90% the size of Delta State’s budget of N479 billion for the 2022 fiscal year.
“These monies could have otherwise been available for developmental projects such as building of hospitals, schools, roads, provision of electricity and portable water, etc. More saddening, and undesirable, is the fact that sabotage of oil and gas facilities results in additional remediation cost to the Government as well as environmental degradation, soil and water contamination, threat to human life, source of livelihood, wildlife and marine life (fishes), crops resulting from spills”.