Nigeria’s Oil Production Can Increase Significantly if Oil Theft is Reduced
The Nigerian National Petroleum Company Limited (NNPCL) has expressed concern over the significant vandalism and oil theft plaguing the country, causing economic sabotage. According to the company, if oil theft and insecurity are reduced to the barest minimum, Nigeria can produce up to 3 million barrels of crude oil per day, exceeding the allocated quarter by the Organization of the Petroleum Exporting Countries (OPEC).
Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, made this statement while briefing journalists at the National Assembly. He commended President Bola Tinubu for providing the political will to combat oil theft and pipeline vandalism, which has led to an increase in daily oil production from 1.4 million to 1.7 million barrels per day.
Soneye emphasized that achieving 3 million barrels of oil production per day is possible if all stakeholders work together, including security agencies, oil companies, and host communities. He also highlighted the importance of synergy among stakeholders to combat oil theft and pipeline vandalism, stating that an enabling environment would be created for optimal oil production to reach 2.5 to 3 million barrels per day.
The NNPCL official also shared a concerning statistic, stating that oil production had decreased to 900,000 barrels per day at one point before the involvement of private security agencies and the military. However, the company has since seen a significant reduction in oil theft, alleviating concerns.
Murtala Muhammad, Deputy Manager of the NNPC Command and Control Centre, presented a power point on the menace of crude oil theft and its impact on Nigeria’s economy. According to him, over 8,000 illegal refineries and 5,800 illegal oil pipeline connections were detected and destroyed within the last six months. The hotspots of this crime include Bayelsa, Rivers, Imo, and Abia states.
The NNPCL’s call to reduce oil theft and insecurity highlights the importance of addressing these issues to increase Nigeria’s oil production and boost the economy.
