Attacks on Oil Assets Led to $2.75bn Loss in 2019 – P-PESPI

January 6, 2020
Attacks on Oil Assets Led to $2.75bn Loss in 2019 – P-PESPI

By Adedapo Adesanya

The activities of oil pipeline vandals and oil theft cost Nigeria a loss of $2.75 billion in 2019, Partner for Petroleum & Energy Sector Prosperity Initiative (P-PESPI) has claimed.

This was explained by the group’s Chairman, Mr Charles Ibiang, who noted in a statement on Sunday that criminal damage on the nation’s oil asset was affecting the nation’s revenue inflow.

According to him, industry information from NEITI, NNPC, NEC Adhoc Committee on Prevention/Control of Crude Theft and other sources revealed that Nigeria in 2019 recorded a loss of 22.64 million barrels of crude oil valued at $1.35 billion for the half-year and $2.7 billion for the full year at a global oil price of $60 per barrel.

Speaking on some of the country’s assets that faced this incessant damage, the group’s chief expressed concerns about consistent attacks on the AITEO E&P Nembe Creek Truck Line Pipelines (NCTL).

“The P-PESPI has observed with concern and condemns in strong term the persistent and deliberate sabotage of the AITEO E&P Nembe Creek Truck Line Pipelines and other critical national petroleum pipelines assets by criminals.

“These illegal activities around these critical national petroleum assets has caused a lot of disruptions in revenue inflow to government affected the environment of the host communities and Aiteo/Oil Companies commercial interests,” Mr Ibiang said.

He further gave a breakdown that Nembe Creek Trunk Line (NCTL) lost 9.2 million barrels throughout the year while others include: Trans Niger Pipeline (TNP) – 8.6 million barrels; Trans Forcados Pipeline (TFP) – 3.96 million barrels, and Trans Escravos Pipeline (TEP) – 877 thousand barrels.

P-PESPI then appealed to President Muhammadu Buhari to declare a security red alert over NCTL in particularly so as to stop the persistent and deliberate interference of these critical assets.

“Mr President Sir, the constant attack and disruptions of the NCTL is worrisome and seriously affecting the Environment of the host Communities along the Trunk of the Niger Delta, a Region your Govt is devoting so much attention and spending huge resources to clean up,” he said.

He noted that the disruptions on NCTL has seriously affected Crude Production, transportation from Eroton, NewCross, Belema Oil and SHELL Fields, pointing out that the illegal activities had a negative implication on the country’s revenue projection as well as posing and backing security challenges such as insecurity and terrorism

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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