2013 Budget: FG fails to meet 2.53m bpd oil production target
The Federal Government is yet to meet the 2.53 million barrels per day (bpd) proposed in the 2013 budget with less than three months to the end of the year, Newsherald gathered on Tuesday.
While confirming this shortfall in production target, the Nigerian National Petroleum Company (NNPC) declared that it came “with huge revenue losses estimated at over $1.23 billion (N190 billion) in the first quarter.”
This came as Nigeria ranks fourth in the league of countries who contribute to global oil supply shortage, estimates from analysts at Deutsche Bank showed on Tuesday.
With more than 200,000 barrels per day (bpd) of crude oil being lost to pipeline vandalism, crude oil theft and spills, the country contributes to the total global outages, which amount to 3.15 million barrels per day.
According to the estimates compiled by Reuters, the 3.15 million bpd global outages is about 3.5 per cent of daily world oil demand of 90 million bpd.
Nigeria, Africa’s top oil producer, has had to grapple with upsurge in crude oil thefts and force majeure, resulting in frequent production shutdowns and massive oil leakages in recent time.
Italian oil major, Eni, only last month lifted a force majeure it imposed on its Nigerian Brass River crude oil production in March.
In August, the company said oil theft, sabotage and adverse natural events such as flooding have hurt its operations in Nigeria, amounting to a daily loss of 30,000 barrels of oil equivalent in the first half of the year, that’s equivalent to 2 per cent of the company’s overall production in the period.
The analysis shows Libya as the country with the biggest outages, losing 1.2 million bpd due to strikes and protests, followed by Iran with 1.1 million bpd as a result of the US and European sanctions over nuclear programme.
In Syria, outages amount to 300,000 bpd caused by civil war and Iraq lost 200,000 bpd due to disruption to Northern pipeline.