*Loses over N5 trillion to deferment
26 November 2018, Sweetcrude, Lagos — The total number of fields – producing and shut-in as at the end of December 2017 stood at 184 and 101 respectively, according to data from DPR’s Nigerian Oil and Gas Industry Annual Report, NOGIAR 2017.
According to the report, a total of 285 from both 184 producing fields, and 101 shut-ins, 101, was from 44 oil producing companies.
A breakdown showed that during the year under review, Addax produced in 14 fields, and had 8 shut-in fields for contractual reasons and operational issues. AENR and Allied Energy produced in their one field each, while Amni produced in two. Aiteo produced in three, shut-in one, no reason was given for the deferment.
Atlas and Brittania-U produced one each, while Chevron produced in 28 and shut-in six for operational issues.
Stardeep produced in one, Consolidated two, Dubri, one, Continental one, Total E & P produced in 10 and shut-in 8 citing operational issues and sabotage, while Total Upstream produced its one field.
Energia and Express and Midwestern Energy produced one each, Esso two, and Mobil with 35 fields produced in 20, and shut-in 15 citing that the QIT 48 trunk line was down.
Moni Pulo and Nigerian Agip Exploration, NAE produced one each, while Nigeria Agip Oil Company Limited, NAOC produced in 25 and shut-in 13 for facility sabotage.
For Niger Delta Petroleum Resources Ltd, NDPR, it produced in 10 fields and shut-in 14 for leak in the Trans-Forcados Pipeline, TFP, and operational issues.
While Oriental produced one, Pan Ocean produced in one and shut-in seven. Platform and Pillar Energy also produced one each.
Seplat produced in all of its four fields, SPDC produced in 35 fields and shut-in 25 following down in operations of the TFP and Trans Niger Pipeline, TNP.
Sterling Oil Exploration & Energy Co. Limited, SEEPCO produced in its two fields, Eroton produced in five and shut-in two, Shell Nigeria Exploration and Production Company, SNEPCO produced its one field.
Waltersmith, Network, Yinka Frontier, and Excel Energy produced one each, while Enageed produced in its two fields.
Green Energy produced its one field, Newcross produced its three fields, Neconde and Belma produced four each and Universal Energy produced one.
Total for producing fields in the year was 184, while 101 fields were shut-in.
In all, the average production deferment for 2017 was 725, 859 barrel per day.
Summary of production deferment month by month last year: in January, total of 34, 312, 407b was not produced (the highest), 18, 741, 313 was not produced in February, while 27, 155, 214b was deferred in March.
It would be recalled that as at January 2017, oil militants in the Niger Delta were yet to a ceasefire.
In April, the sum of 22, 687, 364b was not produced, while on May, 19, 442, 180b was deferred.
In June, 16, 290, 944b, 18, 703, 193b in July, 19, 910, 410b in August, shooting up to 22, 226, 880b in September, rising again to 23, 008, 643b in October, dropping to 20, 618, 839b in November and then 21, 841, 275b in December.
Total deferment in 2017 totaled 264, 938, 662b, an average of 725, 859b/d.
Nigeria loses over N5 trillion to production deferment
In 2017, the international benchmark, Brent, sold for $54.15 per barrel last year.
Since the country lost 264, 938, 662b to deferment, this brings the total loss in the year to $14, 346, 428, 547.3 (N5, 151, 372, 098, 471.01).
The loss of over N5 trillion to deferment almost equals Nigeria’s national budget for last year of N7.44 trillion. That of this year was 9.12 trillion
What Nigeria would have achieved with N5 trillion
Last year, acting Director General, Infrastructure Concession Regulatory Commission, ICRC, Mr. Chidi Izuwah in an interview with Thisday, said total funds needed to provide quality infrastructure in Nigeria over the next six years is about $100 billion.
He estimated that while about $60 billion would be required for the oil and gas sector; about $20 billion to revamp the power sector; $14 billion for roads and between $8 and $17 billion for rail tracks.
According to him, between 2009 and 2013, Nigeria invested just $664 per capita per annum in infrastructure or three percent of GDP, as against an average of $3,060 or five percent of GDP in developed countries.
“Less than 56 percent of Nigerians have access to electricity compared to 80 percent for developed countries. This level of access translates to an average of 24 hours in a week.
“For over 75 percent of businesses operating in Nigeria, power supply is a major constraint. Of the over 10,000 MW of Nigerian power sector generation capacity, between 2,500 to 3,500 MW is available for over 170 million.
“Compares unfavourably with South Africa that generates 50,000 megawatts for a population of about 50 million,” he added.
Mr. Izuwah explained that about 68 percent of all roads in the country are in bad condition, with only about 18 percent of Nigerian federal roads were free of hassles.