Nigeria’s crude oil production faced a second consecutive monthly decline in March, dropping to 1.231 million barrels per day, as reported by OPEC in its April 2024 Monthly Oil Market Report.
This decrease from February’s 1.322 million barrels per day is attributed to ongoing challenges like oil theft and pipeline vandalism, which persistently disrupt the country’s oil industry, causing production levels to fall below OPEC-approved quotas.
The Niger Delta region remains a hotspot for such incidents, with the Nigerian National Petroleum Company Limited (NNPCL) reporting 155 cases within a week.
Related News: Gombe Police Foil Food Fraud: Two Suspects Apprehended for Adulterating Rice with Chaff
These included illegal pipeline connections, unauthorized refineries, vessel infractions, and oil spills. NNPCL’s efforts also led to the seizure of wooden boats transporting stolen crude and apprehension of vehicles carrying illicit oil.
The economic impact of oil theft is significant, with losses totaling trillions of naira over the years.
At the Nigeria International Pipeline Technology and Security Conference, it was disclosed that over N4.3 trillion worth of crude oil was stolen in 7,143 pipeline vandalism cases within five years.
This poses a grave threat to Nigeria’s economy, hindering growth and business opportunities.
Despite initiatives to combat oil theft, the problem persists, prompting some international oil companies to shift focus from onshore to deep offshore fields or leave Nigeria altogether.
NEITI underscores the urgency of addressing this issue, emphasizing its adverse effects on the economy and oil sector.
Regulatory reforms, technological advancements, and improved security measures are crucial for mitigating the impact of oil theft on Nigeria’s oil industry.
You can also read: Journalist’s Detention to be Spotlighted on Boiling Point Arena