Oscarline Onwuemenyi 28 June 2017, Sweetrude, Abuja – Despite the Nigerian government’s success in achieving relative peace in the Niger Delta region and ensuring security for oil production, pipeline leakages and low wellhead pressure dragged the nation’s oil output down to 1.6 million barrels per day in April, the Nigerian National Petroleum Corporation, NNPC, has said.
The corporation stated this in its Monthly Production and Financial Reports for the month of April released in Abuja, which noted that Nigeria’s 1.6 million barrels per day oil production during the month showed a some 12.04 percent decline from its February 2017 production.
The report added that despite the government’s continuous engagements with militants in oil-rich Niger Delta, some of the issues that still dragged down production during the period were incessant deferred production due to leakages in the Trans Niger Pipeline, TNP, and Nembe Creek Trunk Line, NCTL, as well as leakages and low wellhead pressure at Qua-Iboe Terminal.
A subsisting force majeure at Forcados and intermittent shut-ins in Bonga Terminal due to Turn Around Maintenance, TAM, it added was also responsible for the drop in production volumes.
“In March 2017, crude oil production in Nigeria decreased to 1.60mb/d which represents 12.04 percent decrease relative to February 2017 production and also lagged behind March 2016 performance by 18.32 percent,” NNPC stated in the report.
It also revealed that it took specific steps to enhance security over oil assets located in Nigeria’s onshore and shallow waters, to ensure stability in the country’s oil production.
According to the report, the Federal Government gets more returns in oil production from the onshore and shallow waters than it did from deep offshore assets, hence, the corporation’s decision to secure them.
“Areas much affected by the insecurity are the onshore and shallow water assets, where government take is higher. Hence, sustained security of onshore and shallow water locations remains a priority to restore production to peak levels,” the report noted.
According to the report, pipeline sabotage in the country, however, decreased from 94 downstream pipelines vandalised points in March 2017 to 82 in April 2017.
This, it noted, represented a 12.77 percent reduction relative to the previous month, and which it said was made possible by government’s continuous engagements with the stakeholders.
Stressing its focus on the security of oil assets, the report said: “NNPC is undeniably in need of the continued support from Nigerians especially in areas of security and Infrastructural integrity.
“The favourable business environment will afford NPDC the opportunity to reverse deferred production revenue – average of N20 billion per month – caused by pipeline sabotage.”