Nigeria Lost $750m in Oil Revenue in 2019 – NNPC

By Adedapo Adesanya

The Nigerian National Petroleum Corporation (NNPC) has said activities of oil vandals cost the country over $750 million in revenue in 2019.

Managing Director of the national oil company, Mr Mele Kyari, speaking at the Executive Intelligence Management Course 13 of the National Institute for Security Studies, noted that the continued attacks on the nation’s pipelines has a detrimental effect on revenue as this will hinder development.

Mr Kyari, who spoke on the topic Piracy in the Gulf of Guinea; Issues, Challenges for International Trade, National Security and Sustainable Development of Member States, stated that any threat to the corporation’s operations was a direct threat to the economy which contributes 10 percent to the Gross Domestic Product (GDP).

He listed other security challenges facing the corporation to include vandalism of oil and gas infrastructure and kidnapping of personnel.

He added that there was a deep connection between the insecurity challenges in Nigeria as they are all linked to what was happening in the Gulf of Guinea and the entire maritime environment.

Mr Kyari explained that crude oil would still be relevant despite the demand for energy migration in Western countries.

According to him, in the next 50 years, the demand for crude oil would not reduce as fossil fuels would still be relevant.

“Even by 2050, fossil fuel would account for 80 percent of the energy mix, and there would still be consumption of at least, 100 million barrels of oil per day. We are determined to remain relevant in the long term,” he assured.

In his presentation, NNPC Chief Operating Officer, Downstream, Mr Yemi Adetunji, cited that in 2016, the Gulf of Guinea accounted for more than half of the global kidnappings for ransom, with 34 seafarers kidnapped out of 62 cases worldwide.

He said the corporation was working closely with security agencies to tackle the security challenges, and cited the “Operation Kurombe” that was recently conducted by the Nigerian Navy at the Atlas Cove as an example of such collaborative efforts.